Industry Comes of Age

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Chapter 25

• Industry Comes of Age

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Railroads

• After the Civil War, railroad production grew
  enormously, from 35,000 mi. of track laid in 1865
  to a whopping 192,556 mi. of track laid in 1900
• Congress gave land to railroad companies totally
  155,504,994 acres

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Federal Land grants to RRs
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Transcontinental Railroad

• Congress commissioned the Union Pacific Railroad
  to begin westward from Omaha, Nebraska, to
  gold-rich California.
• The company received huge sums of money and land
  to build its tracks, but corruption also plagued
  it, as the insiders of the Credit Mobilier reaped
  23 million in profits
• In California, the Central Pacific Railroad was
  in charge of extending the railroad westward, an
  it was backed by the Big Four including Leland
  Stanford, the ex-governor of California who had
  useful political connections, and Collis P.
  Huntington, a adept lobbyist.
• Used many Chinese as labor
• In 1869, the transcontinental rail line was
  completed near Ogden, Utah in all, the Union
  Pacific built 1086 mi. of track, compared to 689
  mi. by the Central Pacific

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Promontory Point Utah
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Improvements of RRs

• Steel Rails
• Westinghouse Air brakes
• Pullman Palace Cars
• Standard time
• Standard gauge

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Pullman Palace Car
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Time Zones
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Corruption and the RRs

• Credit Mobilier Scandal
• Bribes
• Overcharging
• Monopolies
• Pools
• Kickbacks
• Trusts
• Horizontal Integration
• Interlocking Directories

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Farmers Unite

• Patrons of Husbandry (Grange) - formed by farmers
  to combat corruption, and to stop the railroad
  monopoly
• Wabash case Setback for farmers when the
  Supreme Court ruled that states could not
  regulate interstate commerce
• Interstate Commerce Act - passed in 1887, banned
  rebates and pools and required the railroads to
  publish their rates openly and also forbade
  unfair discrimination against shippers and banned
  charging more for a short haul than for a long
  one

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Marin California Grange
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U.S. Became 1 largest Manufacturer in the World

• - Liquid capital
• Fully exploited natural resources (like coal,
  oil, and iron)
• Massive immigration made labor cheap
• American ingenuity played a vital role, as such
  inventions like mass production
• Telephone Alexander Graham Bell 1876
• Invention Factory Thomas Edison

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Andrew Carnegie

• Immigrated to the U.S. from Scotland in 1835 at
  age 12
• Used Vertical integration to build Carnegie steel
  into a huge corporation.
• Combined into one organization all phases of
  manufacturing from one mining to marketing.
• Bessemer Process Cheap way to make steel.
  Burning of impurities in iron ore to make steel
• Later sold Carnegie Steel to JP Morgan for 400
  million.
• "Gospel of Wealth". In the article Carnegie
  argued that it was the duty of rich men and women
  to use their wealth to benefit the welfare of the
  community. He wrote that a "man who dies rich
  dies disgraced".

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Andrew Carnegie
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Carnegie the Philanthropist

• Carnegie set up a trust fund "for the improvement
  of mankind." This included the building of 3,000
  public libraries, the Carnegie Institute of
  Pittsburgh, the Carnegie Institute of Technology
  and the Carnegie Institution of Washington for
  research into the natural and physical sciences.
  Carnegie also established the Endowment for
  International Peace in an effort to prevent
  future wars.
• By the time Andrew Carnegie died in August, 1919,
  he had given away 350,000,000. A further 125
  million was placed with the Carnegie Corporation
  to carry on his good works

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John D. Rockefeller

• Master of horizontal integration, and a giant
  among bankers, simply allied with competitors to
  monopolize a given market.
• He used this method to form Standard Oil and
  control the oil industry by forcing weaker
  competitors to go bankrupt
• Rockefeller also placed his own men on the boards
  of directors of other rival competitors, a
  process called interlocking directorates

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Rockefeller
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J.P. Morgan

• In 1891 Morgan arranged the merger of Edison
  General Electric and Thompson-Houson Electric
  Company to form General Electric, which then
  became the country's main electrical-equipment
  manufacturing company.
• Purchased Carnegie Steel and renamed it United
  States Steel

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J.P. Morgan
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Standard Oil

• Oil (kerosene) was used mostly for light at night
• However, by 1885, 250,000 of Edisons electric
  light bulbs were in use, and the electric
  industry soon rendered kerosene obsolete, just as
  kerosene had made whale oil obsolete.
• Oil, however, had its profits from the
  gasoline-burning internal combustion engine
• John D. Rockefeller, ruthless and merciless,
  organized the Standard Oil Company of Ohio in 1882

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Standard Oil in Coalinga, CA
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Sherman Anti-Trust

• The Sherman Anti-Trust Act was designed to combat
  the rise in industrial combinations, the most
  notorious being the Standard Oil Trust. The law
  declared that "Every contract combination in the
  form of trust or otherwise in restraint of
  commerce among several states or foreign nations
  is hereby illegal."
• More effective against labor unions than against
  big business

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Women in 1900

• Women, who had swarmed to factories and had been
  encouraged by recent inventions, found new
  opportunities, and the Gibson Girl, created by
  Charles Dana Gibson, became the romantic ideal of
  the age.
• However, many women never achieved this, and
  instead toiled in hard work because they had to
  do so in order to earn money.

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Industrial Revolution

• No more Jeffersonian ideals
• Nation of wage earners
• Factory system
• With the inflow of immigrants providing a labor
  force that could work for low wages and in poor
  environments, the workers who wanted to improve
  their conditions found that they could not, since
  their bosses could easily hire the unemployed to
  take their place
• Big business could get rid of unruly workers
  easily and hire new workers
• Lockout
• Call in troops
• Ironclad oaths
• Blacklists
• Company towns

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Sweatshops
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Labor Unions

• National Labor Union
• Knights of Labor
• American Federation of Labor

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Knights of Labor

• Started in 1869
• All workers unite
• Used arbitration
• Pushed for an eight hour workday
• Led by Terence V. Powderly, the Knights won a
  number of strikes for the eight-hour day, and
  when they staged a successful strike against Jay
  Goulds Wabash Railroad in 1885, membership
  mushroomed to ¾ of a million workers.

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Downfall of Knights

• Bad Strike record
• Blamed for Haymarket Riot name became
  synonymous with anarchists
• Inclusion of skilled and non skilled workers
  together did not work

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Knights
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American Federation of Labor

• In 1886, Samuel Gompers founded the American
  Federation of Labor
• It consisted of an association of self-governing
  national unions, each of which kept its
  independence, with the AF of L unifying overall
  strategy.
• Bread and Butter Unionism - All he wanted was
  more, and he sought better wages, hours, and
  working conditions.
• Only skilled workers

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Samuel Gompers