Why in 1900 was America's manufacturing output larger than Great Britian, France, and Germany?
-lots of natural resources (coal, iron, oil, copper, lead, timber)
-immigrants flooded in
-growing population + better transportation = large market
-Rich Europeans and Americans funded economic expansion
-government protected pri, vate property, gave land grants to rr, protective tariffs, didn't tax corporate profits much, and didn't regulate business
After the Civil War, what was the nation's first big business?
"Commodore" Cornelius Vanderbilt
Used his millions earned from a steamboat business to merge local railroads into the New York Central Railroad in 1867. His tracks ran from New York to Chicago. He
What were Eastern trunk lines?
Consolidated railroads after the Civil War that connected large cities. Other than the NY Central Railroad, other trunk lines were the Baltimore and Ohio Railroad and the Pennsylvania Railroad.
What 2 effects did Western railroads have?
1. Promoted settlement of the Great Plains.
2. Linked the West to the East and thereby creating one great national market.
Provided hundreds of acres of public land to railroad companies. It went along with the trend at that time for the federal government to provide these companies large amounts of cash and land.
Why did the government give land grants?
-increase value of government land
-better rates for carrying mail and troops
What were some negative consequences of the subsidies (money given to rr)?
1.promoted hasty and poor construction
2.led to corruption
...in the 1880s, people started to protest
Nototriouslly corrupt railroad company that pocketed huge profits and bribed government officials.
First Transcontinental Railroad
Completed by the Union Pacific(going west from Omaha, Nebraska; General Dodge, Irish) and the Central Pacific(going east from California, went through Sierras, Crocker, Chinese) in Promontory Point, Utah 1869.
What were some bad actions that railraod companies took?
Overbuilding, mismanagement, fraud, and watering stocks/ inflating their price before going public(Jay Gould did it).
What did competition lead to?
Railraods competed by offering rebates to favored shippers but gave large rates to farmers. Later, then created pools to increase profits, where they secretly fixed rates and shared traffic.
J. Pierpont Morgan
Banker who consolidated bankrupt railroads after the Panic of 1893. He stabilized rates and reduced debt, created a more efficient system that was unfortunately was controlled by him and a few other powerful men like him. Many times there were interlocking directorates (same director running many competing companies), which created railroad monopolies.
Grangers state legislatures in 1874 passed law fixing maximum rates for freight shipments. The railroads responded by appealing to the Supreme Court to declare these laws unconstitutional
Insterstate Commerce Act
Called for all railroad charges to be fair and reasonable, forbade interstate railroad abuses.
Henry Bessemer(Eng.) and William Kelly(Amer.)
In the 1850s, both of them discovered that blasting air through molten iron produced high-quality steel.
Great Lakes region
leading steel producer
Was formerly a poor Scottish immigrant then a superintendent at the Pennsylvania Railroad, and finally a successful steel manufacturer in the 1870s. He created vertical integration where one company controls the entire process of the product. Carnegie Steel was at the top.
United States Steel
Created by JP Morgan after he Carnegie's company. Carnegie decided to sell his company and retire to philanthropy and library-funding. The United States Steel was the 1st billion-dollar company.
John D. Rockefeller
In 1863, he started the Standard Oil Trust, which used new technology, efficient practices, and rebates from railroad companies that led to cheaper prices to force ricvals to sell out. By 1881, they controlled 90% of the oil refinery. He created a trust/ horizontal inegration where competitors were alsoo brought under one umbrella, which allowed prices to soar. By elliminating waste, Rockefeller created cheaper oil.
Sherman Antitrust Act 1890
Antitrust legistation stating: "Every contract, combination, or conspiracy in restraint of trade is declared to be illegal." Terminology in the act was vague and difficult to prove. Middle class citizens and former wealthy people supported this.
United States v. E.C. Knight Co.
1895 ruling that said the Sherman Antitrust Act could only be applied to commerce and not manufacturing.
Hands off policy of government to not regulate business.
Wrote the Wealth of Nations, arguing that governments should not regulate business but the invisible hand should. This way, businesses can be motivated by own self-interests to improve goods and lower prices.
Herbert Spencer believed that the concentration of wealth in the fittest was beneficial for the human race. Social Darwinists would agree that helping the poor interfered with nature and weaken the species by preserving the unfit.
Gospel of Wealth
The thought that hard work and material success were sign of God's favor. John D. Rockefeller believed in this. Andrew Carnegie believed that the wealthy had the responsibility given by God to benefit society. Reverend Conwell preached that everyone had a duty to become rich.
Samuel F. B. Morse
Invented the first workable telegraph in 1844. He improved speed of communication.
Cyrus W. Field
Improved the transatlantic cable in 1866, which made it possible to send messages across the sea in an instant's time.
Alexander Graham Bell
Invented the telephone in 1876.
What were other important inventions?
typewriter, cash register, calculator, George Eastman's Kodak camera, Lewis E. Waterman's fountain pen, and King Gillete's safety razor and blade.
Invented the phonograph, the incandescent lamp (1st practical lightbulb), dynamo for generating electric power, and the motion picture camera. He first used his camera in the motion picture, Frankenstein, which was horrible and only 12 minutes long.
Held more than 400 patents and was responsible for developing the air brake for railroads in 1869. In 1885, he invented a transformer for making high-voltage alternating current, which allowed cities to be lit, electric streetcars, subways, and machinery to run.
Name some people involved in the new way of marketing consumer goods...
R.H.Macy and Marshall Field= large department stores, Woolworth's Five and Ten Cent Store, Kellogg, Post, Swift mass produced packaged meat, andvertisement=> going shopping becomes a hobby
Wrote stories of modest people becoming rich through work, honesty, and a little luck. In reality, people like Carnegie and Edison were unlikely.
What class did industrialization help expand?
The middle class/ white-collar workers.
What happened when the need for clerical workers increased?
Women filled the spaces but the job lost status and recieved lower wages.
What was factory work like?
Performing semiskilled tasks that were repetitive, monotonous, and monitered by the clock. Often, it was dangerous and hard.
Unemployed persons desperate for jobs, which owners utilized to undermine strikes.
closing a facotry to break a labor movement before it could get organized
names of prounion workers circulated among employers
workers being told, as a condition for employment, that they must sign an agreement to not join a union
What are two other management techniques?
court injunctions to break strikes and state militia/ provate guards
Great Railroad Strike of 1877
During an economic depresseion, railroad companies cut wages to reduce costs. The Baltimore and Ohio Railroad striked and many trails were shut down. Rutherford B. Hayes used troops to put down railroad workers and other industry workers. Many people were killed.
National Labor Union
First attempt to organize all workers in all states, both skilled and unskilled. They advocated 8hrs, higher pay, equal rights for blacks and women, etc. Its cheif victory was the eight hour workday.
Knights of Labor
Began in 1869 under leadership of Powderly. Membership was open to African Americans and women. They advocated worker cooperatives/ "make each man own employer," no child labor, no trusts or monopolies. The Haymarket Riot destroyed their public image and they died off.
In Chicago 1886, labor violence broke out at Chicago's McCormick Harvester plant. When the police tried to break it up, someone threw a bomb and 7 police officers were killed. Without knowing who threw it, 8 anarchists were tries, of those 7 sentenced to death. Public linked unions to violence and anarchists.
American Federation of Labor
Concentrated more on practical economic goals. Samuel Gompers improved wages and conditions. Largest union by 1901.
When Frick at Carnegie's Homestead Steel in Pittsburgh cut wages by 20% in 1892, a strike started. Frick used a lockout, Pinkertons, and won. This strike set back the union movement.
At George Pullman's sleeping car company in Chicago, he cut wages in 1894 and workers appealed to Eugene V Debs who told them to not handle Pullman cars. Rail trasportation got stopped all over the country. President Cleveland linked the case to mailt trains & the federal power to regulate interstate commerce, so he got an injuction to bust the strike.
In re Debs case 1985
The Supreme Court approved the use of court injunctions against strikes.