Chapter 24: Industry Comes Of Age (1865-1900)

How big were railroads, 1865-1900

35,000 miles of rail track; 25 years later, 192,556 miles; was probably greater than or equal to Europe. Accomplished by subsidies granted by Congress in 1862, for military and postal needs. Rewarded 155,504,994 acres. They turned lands into GOLD- using as collateral from loans/selling

Union Pacific Railroad

Railroad commissioned by Congress in 1862 that started from Omaha, Nebraska to CA, and it connected with the Central Pacific Railroad in Promontory Point, Utah; hired Chinese immigrants & Irish Paddies (Patricks). 1 mile of track granted 20 mi^2 to them. Hurt by corruption because of Crédit Mobilier scandal, reaping $75M.

Central Pacific Railroad

A railroad that started in Sacramento, through the Sierra Nevada and connected with the Union Pacific Railroad in Promontory Point, Utah

Big Four (Railroads)

Nickname for the owners of the largest train tracks including CA ex governor, Leland Stanford, Mark Hopkins, Charles Crocker, and lobbyist Collis P. Huntington. These entrepreneurs were in charge the western part of the country. Eventually they united the East and the West via train tracks.

"Wedding of the Rails" (1869)

Event where in Ogden, Utah, the Central Pacific and Union Pacific Railroads were joined together to form the nation's first transcontinental railroad.

What were four other major railroads, besides Central Pacific & Union Pacific?

Northern Pacific Railroad (1883)- From Lake Superior to Puget Sound; Atchison, Topeka & Santa Fe (ATSF, 1884) - Southwestern deserts to California; Southern Pacific (1884) - New Orleans to San Francisco; Great Northern (1889) - Duluth to Seattle

Land speculation

The practice of buying up land with the intent of selling it off in the future for a profit. Seen in pioneer builders, who were overoptimistic, seeking lots of land bounties and unworthy lands for railroads to pass through- bankruptcy

New York Central Railroad

A railroad company founded by Cornelius Vanderbilt. It consolidated many smaller rail companies, standardized gauges, and popularized steel rails. It linked major cities on the East Coast and in the Midwest.

Improvements to railroads in the late 1800s

Advancements that enhanced safety & function of railroads; 1) Steel rails- By Vanderbilt, he replaced iron tracks of the New York Central with STEEL; 2) Westinghouse air brake (1870s) - Contributed to safety and efficiency; 3) Pullman Palace Cars (1860s) - Gorgeous traveling hotels. However, accidents and deaths still exists, despite upgrades

Revolution by Railways

Term to describe how the stimulated the industrialization of the country in the post-Civil War years. It created an enormous domestic market for American raw materials and manufactured goods. Railroad companies also stimulated immigration. Until the 1880s, every town in America had its own local time. To keep schedules and avoid wrecks, the major rail lines proposed, on November 18, 1883, dividing America into 4 time zones - most towns accepted the new time method—market economy.

Stock watering

Price manipulation by strategic stock brokers of the late 1800s. The term for selling more stock than they actually owned in order to lower prices, then buying it back. Railroad managers were forced to charge extortionate rates to pay financial obligations.

Free passes

Rewards offered to companies, in the form of free shipments; given to companies to encourage future business

"Pools"

Agreement between railroads to divide competition. Equalization was achieved by dividing traffic. Railroad owners would use these and defensive alliances to show profit.

Wabash Case (1886)

A United States Supreme Court case that severely limited the rights of states to control interstate commerce. It led to the creation of the Interstate Commerce Commission. Limited States' rights

Interstate Commerce Act of 1887

Law that was designed to regulate the railroad industry; created the Interstate Commerce Commission to railroads and ensure that they complied with the new regulations. ICC was not a victory over corporate wealth, but a good attempt by Congress.

How did the U.S. become #4 in manufacturing by 1894?

Accomplished by liquid capital (profiteering & fortunes); natural resources (coal, oil, iron); immigration labor; American ingenuity/inventiveness, 440K patents issued from 1860-90; and women's work due to inventions of cash register, typewriter, stock-ticker; urbanization, which led to the refrigerator door, electric dynamo & electric railway.

Alexander Graham Bell (1847-1922)

Scottish-American inventor and educator; his interest in electrical and mechanical devices to aid people with hearing impairments led to the development and patent of the telephone in 1876.

Thomas Edison (1847-1931)

One of the most prolific inventors in U.S. history. Among other things, he invented the phonograph (1878), first practical light bulb (1879), electric battery, mimeograph, and the moving picture. Menlo Park was his laboratory.

Andrew Carnegie

"Steel king," Scottish-born American industrialist and philanthropist who founded the Carnegie Steel Company in 1892. By 1901, his company dominated the American steel industry. Produced 1/4 of Bessemer steel in the U.S. by 1900; $25M/year. Utilized vertical integration

Vertical Integration

The combination in one company of two or more stages of production normally operated by separate companies.

John D. Rockefeller

"Oil baron," American industrialist who made his money in the oil industry; created Standard Oil Company; used strategy of horizontal integration to create a monopoly. Pursued a policy of "rule-or-ruin." Controlled 95% of oil refineries by 1872. Produced superior oil at cheap price.

Horizontal Integration

Absorption into a single firm of several firms involved in the same level of production and sharing resources at that level. Company buys out all of its competition, but first had to ally w/ competitors to monopolize given market.

J.P. Morgan

"Banker's Banker," he was a financier who buys out Carnegie Steel and renames it to U.S. Steel Corporation (1901). Was a philanthropist in a way; he gave all the money needed for WWI and was payed back. Was one of the "Robber barons." Consolidated rival enterprises and placed his own officers on their board of directors, to counter competition, or interlocking directorates. Helped boost Wall Street by financing the reorganization of railroads, insurance companies, and banks.

Bessemer Process

A way to manufacture steel quickly and cheaply by blasting hot air through melted iron to quickly remove impurities. Adopted by William Kelly

Kerosene

A light fuel oil obtained by distilling petroleum, used especially in jet engines and domestic heaters and lamps and as a cleaning solvent. Kicked off oil industry and its flame >> whale oil. 4th valuable export by 1870s. Will be rendered obsolete by electrical industry.

Gospel of Wealth

This was a book written by Carnegie that described the responsibility of the rich to be philanthropists. This softened the harshness of Social Darwinism as well as promoted the idea of philanthropy.

Acres of Diamonds

This was a lecture written by Russell Conwell that advocated Social Darwinism It justified the rich being rich and the poor being poor and, it called people not to help the poor since it was their fault, thus promoting a laissez faire ideal.

Sherman Anti-Trust Act of 1890

First federal action against monopolies; the law gave government power to regulate combinations "in restraint of trade." Until the early 1900s, however, this power was used more often against labor unions than against trusts. Ineffective because it was barely enforced and had legal loopholes, but fixed by 1914.

James Buchanan Duke

Southern industrialist behind the American Tobacco Company and Southern Power Company who made great advances in the businesses of tobacco and hydroelectric power. Became "Czar of Cigarettes."

The Pittsburgh plus

A pricing system that was economic discrimination against the South in the steel industry, in which steel lords of Pittsburgh charged Birmingham steel a fictional fee no matter where it was shipped

Henry W. Brady

The editor of Atlanta Constitution who prescribed new economy based on industry. Urged Southern Industrialization.

Strikebreakers

People hired by management to replace striking employees; called "scabs" by striking union members

How did corporations combat striking union members?

Called on federal courts to issue injunctions, or orders to stop striking. Failure to do so will result in troops to be sent

Lockouts

A company tool to fight union demands by refusing to allow employees to enter its facilities to work

Yellow dog contract

A written contract between employers and employees in which the employees sign an agreement that they will not join a union while working for the company.

How did the Industrial Revolution affect America?

Increased wealth, standard living, and workers were well-fed and enjoyed physical comforts. Jeffersonian ideals of agriculture fell out the window. Rural Americans and European immigrants lived by the factory whistle.

Charles Dana Gibson

Magazine illustrator who created a romantic image of the new, independent woman; "Gibson Girl."

National Labor Union

Union founded by William Sylvis (1866); supported 8-hour workday, convict labor, federal department of labor, banking reform, immigration restrictions to increase wages, women; excluded blacks. Agitated arbitration of industrial disputes. Dissolved because of the Panic of 1873.

Knights of Labor (1869)

Nationwide labor union that was open to all workers. Led by Terence V. Powderly. Won against Wabash Railroad in an 1885 strike. The union reached its peak in 1886 before beginning a decline in membership.

Haymarket Square Bombing (May 4, 1886)

Event during a strike in Chicago led by the Knights of Labor, an anarchist threw a dynamite bomb, killing and injuring dozens, including police. No connection between the anarchists and the bombing. But forever tainted the Knights, as they were associated with anarchy. Membership of the Knights dropped.

American Federation of Labor (1886)

Federation founded by Samuel Gompers; sought better wages, hrs, working conditions; skilled laborers, arose out of dissatisfaction with the Knights of Labor, rejected socialist and communist ideas, non-violent.

Labor Day (1894)

A legal holiday that was permitted by Congress, as the public started to concede the rights of workers.