Week Two: The Evolution of American Capitalism (Aug. 30-Sept. 5) Terms and Definitions - Survey of U.S. History | Fall Semester 2026

Railroads (Definition)

A nationwide transportation system that increasingly linked cities, farms, factories, and western territories, allowing passengers, raw materials, manufactured goods, and agricultural products to move across long distances much faster and more cheaply.

Railroads (Significance)

During the nineteenth century, rail construction became central to American economic development and westward expansion. The Pacific Railway Act of 1862 provided federal land grants and loans to support construction of a transcontinental line by the Union Pacific and Central Pacific. Their lines were joined at Promontory, Utah, on May 10, 1869, reducing a cross-country journey that could take months to roughly one week. Railroads encouraged western settlement, opened markets for farmers and manufacturers, stimulated industries such as coal, iron, and steel, and helped create a more integrated national economy. The federal government ultimately authorized four transcontinental railroads and granted about 174 million acres of public land for railroad rights-of-way.

Trusts (Standard Oil, U.S. Steel) (Definition)

Business arrangements in which control over multiple companies was concentrated under a small group of trustees or corporate leaders, allowing formerly separate firms to coordinate their operations and potentially dominate an industry.

Trusts (Standard Oil, U.S. Steel) (Significance)

Large-scale industrial consolidation accelerated during the late nineteenth century. The National Archives describes a trust as an arrangement in which shareholders of several companies transferred their shares to trustees and received certificates representing their share of the combined earnings. Standard Oil established one of the most famous examples in 1882: nine trustees controlled its component companies, allowing the organization to function as a monopoly. Similar concentrations of corporate power contributed to Progressive Era demands for federal regulation and antitrust enforcement. U.S. Steel, formed in 1901 through the consolidation of major steel properties, represented the related rise of enormous corporations even though its legal organization differed from the classic Standard Oil trust structure.

J. P. Morgan (Finance) (Definition)

A powerful American banker and financier who helped organize, finance, and consolidate major corporations and railroads, becoming one of the most influential figures in American finance during the late nineteenth and early twentieth centuries.

J. P. Morgan (Finance) (Significance)

Investment banks became increasingly powerful as American corporations and railroads required enormous amounts of capital. The National Archives notes that between roughly 1890 and 1910 firms such as J. P. Morgan & Co. gained controlling interests in major corporations and influenced them through interlocking directorships, in which bankers or their associates sat on the boards of multiple companies. Morgan participated in railroad reorganizations and major corporate consolidations, most famously the creation of U.S. Steel in 1901. The concentration of financial influence associated with Morgan and other bankers helped inspire the congressional Pujo Committee investigation of the so-called "Money Trust" beginning in 1912.

Interstate Commerce Act (1887) (Definition)

A federal law that placed interstate railroads under national regulation, required rates to be "just and reasonable," prohibited certain discriminatory practices, and created the Interstate Commerce Commission to enforce federal railroad policy.

Interstate Commerce Act (1887) (Significance)

Railroad companies had become enormously powerful by the late nineteenth century, producing complaints about discriminatory rates, rebates, monopolistic behavior, and preferential treatment of particular customers or locations. State regulation proved inadequate, especially because interstate commerce fell under congressional authority. Congress responded in 1887 by making railroads the first American industry subjected to federal economic regulation. The law created the five-member Interstate Commerce Commission, prohibited special rates and rebates, and restricted practices such as long-haul/short-haul discrimination. Although initially weak in enforcement, it established an important precedent for federal regulation of private corporations.

Sherman Antitrust Act (1890) (Definition)

The first federal law aimed at prohibiting monopolistic business practices by outlawing contracts, combinations, trusts, and conspiracies that restrained interstate or international trade and by prohibiting monopolization.

Sherman Antitrust Act (1890) (Significance)

By the late nineteenth century, trusts had come to dominate several major industries and reduce competition. Congress responded in 1890 with legislation authorizing the federal government to pursue combinations that restrained trade. Early enforcement was limited because the law used broad language and courts interpreted federal power narrowly. Enforcement became stronger during the Progressive Era; the law was successfully used against Northern Securities and later against Standard Oil, which the Supreme Court ordered dissolved in 1911. The legislation established the foundation of federal antitrust policy.

Communist Manifesto (1848) (Definition)

A political pamphlet written by Karl Marx and Friedrich Engels arguing that history is shaped by class conflict and calling on workers to overthrow the capitalist system and ultimately create a classless society.

Communist Manifesto (1848) (Significance)

Published in Europe during the revolutionary period of 1848, the work became one of the most influential statements of communist ideology. Its ideas later influenced socialist and communist movements around the world. In the United States, fears surrounding revolutionary communism became especially important after the Russian Revolution of 1917 and contributed to anti-radical movements and government investigations during the 20th century.

American Federation of Labor (AFL) (Definition)

A national federation of labor unions that primarily represented skilled workers and pursued higher wages, shorter working hours, and improved working conditions through organized labor activity and collective bargaining.

American Federation of Labor (AFL) (Significance)

Founded in 1886 and led for decades by Samuel Gompers, the organization emphasized practical improvements for workers rather than broad revolutionary economic change. It became one of the country's dominant labor organizations. In 1955, it merged with the CIO, creating the AFL-CIO.

Congress of Industrial Organizations (CIO) (Definition)

A labor organization that sought to organize workers across entire industries, including large numbers of semi-skilled and unskilled industrial workers.

Congress of Industrial Organizations (CIO) (Significance)

Emerging during the 1930s, it expanded union organization in industries such as automobiles, steel, rubber, and manufacturing. Its growth occurred during the New Deal era, when federal labor policy increasingly protected collective bargaining. It eventually merged with the AFL in 1955 to form the AFL-CIO.