INDUSTRY COMES OF AGE C H A P T E R 2 4 A P U S H I S T O RY
PERIOD 6 KEY CONCEPTS: Key Concept 6.1: Technological advances, large-scale production methods, and the opening of new markets encouraged the rise of industrial capitalism in the United States. Key Concept 6.2: The migrations that accompanied industrialization transformed both urban and rural areas of the United States and caused dramatic social and cultural changes. Key Concept 6.3: The Gilded Age produced new cultural and intellectual movements, public reform efforts, and political debates over economic and social policies.
T H E I R O N C O LT B E C O M E S T H E I R O N H O R S E :
MAJOR IDEAS: By 1900 the U.S. exceeded the combined output of Germany and Great Britain. U.S. borrowed heavily from Europe; after World War I, U.S. emerged as largest creditor. Technological innovations: Steel: railroads, skyscrapers, engines Oil: internal combustible engine, cars (suburbs), subways, street railroads Electricity: lights, power, refrigerated railroad cars Advances in business: telephone, typewriter, cash register, adding machines. Mass popular culture (early 20 th century): Cameras, phonographs, bicycles, moving pictures, amusement parks, professional sports. Contrasts 1 st Industrial Revolution: textiles, coal, iron, early railroads.
In 1880, about 50% of Americans worked in agriculture; only 25% by 1920 Class divisions became most pronounced in U.S. history during this period. Farmers lost ground In 1880, 25% of those who farmed did not own their land. 90% of African Americans lived in the South; 75% were tenants or sharecroppers. Depressions and recessions led to unrest 1873-1879 1882-1885 1893-1897 1907-1908 1913-1915
RAILROAD BUILDING: By 1900, ~200,000 miles of track had been laid: 35,000 miles in 1865 alone (more than all Europe combined) The government subsidized transcontinental railroad building since unpopulated areas were initially unprofitable Railroad companies given million of acres along rail lines The government received low rates for postal service and military traffic in return. Cities flourished where lines were laid while bypassed cities became "ghost towns" The growth and consolidation of railroads benefits the nation but also leads to corruption and required government regulation.
THE TRANSCONTINENTAL RAILROAD: Pacific Railway Act (1862): Passed by Republican Congress during Civil War. Connecting the Pacific states seen as urgent to the security of the republic. Union Pacific Railroad: appointed by Congress to build west from Omaha, Nebraska. Company granted 20 square miles for each mile of track constructed Company also granted federal loans for each mile: $16,000 for flat land $32,000 for hilly country $48,000 for mountainous country Construction began in 1865 Irish "paddies" who fought in the Union armies worked at a frantic pace. Workers fended off attacks from hostile Indians; scores lost their lives Railroad towns sprang up and experienced problems including drinking, gambling, and prostitution. Insiders of the Credit Mobilier construction company pocketed $73 million for some $50 million worth of work. Bribed congressmen looked the other way
Central Pacific Railroad pushed east from Sacramento over Sierra Nevada. Led by the Big Four the chief financial backers of the Central Pacific: Leland Stanford -- ex-governor of CA and future Senator Collis P. Huntington Vice President.; managed enterprise on day to day basis. The Central Pacific ran a relatively clean operation compared to the Union Pacific (Credit Mobilier) The government provided the same subsidies as it had to the Union Pacific 10,000 Chinese laborers, "coolies," worked as cheap, efficient and docile labor Hundreds lost their lives in premature explosions and other mishaps Sierra Nevada became a major challenge as workers could only chip through a few inches a day through rocky tunnels. The first Transcontinental railroad was completed at Promontory Point, Utah on May 10, 1869.
What is the significance of a transcontinental railroad? Linked the entire continent via railroad and by telegraph Paved the way for incredible growth of the Great West. Facilitated a burgeoning trade with the Orient Seen by Americans at the time as a monumental achievement along with the Declaration of Independence and the freeing of the slaves. Other Transcontinental lines: No subsequent railroad received government loans to construct a transcontinental line; but, all railroads received generous land grants. Northern Pacific Railroad completed in 1883 (Lake Superior to Puget Sound) Atchison, Topeka, and Santa Fe RR completed in 1884 Connected those cities through the southwestern deserts to California. Southern Pacific: New Orleans to San Francisco via Los Angeles (1884) Great Northern Railroad: Duluth, MN to Seattle, WA; completed in 1893 Created by James G. Hill, probably the greatest of all the railroad builder. -- Believed prosperity of railroad depends on prosperity of area it serves Hill ran agricultural demonstration trains along his lines and imported bulls from England which he distributed to farmers.
RAILROAD CONSOLIDATION AND MECHANIZATION: Cornelius Vanderbilt Popularized the steel rail; replaced the old iron tracks of the New York Central Railroad Why steel? Steel is safer and more economical (can carry a heavier load). Amassed a fortune of $100 million dollars Jay Gould and Russell Sage by 1880 controlled much of railroad traffic in West. Gutted their railroads by stock watering and pocketing profits rather than reinvest. Gould had earlier tried to corner the gold market during Grant's presidency. Significant improvements in railroad building Steel, standard gauge of track width, Westinghouse air brake, Pullman Palace Cars afforded luxurious travel, introduced in 1860s.
CORNELIUS VANDERBILT
SIGNIFICANCE OF THE RAILWAY NETWORK: Spurred the industrialization of the post-civil War years (especially steel) Sprawling nation became united physically. Created enormous domestic market for US raw materials and manufactured goods. Probably the largest integrated market in the world. Stimulated creation of 3 Western frontiers: mining, agriculture, and ranching Railroad led to great urbanization movement of late 19th Century. Railways could feed huge numbers of people; supply raw materials and markets Facilitated large influx of immigrants. Advertised in Europe free travel to new farms in the American West. Spurred investment from abroad Concept of time altered with creation of distinct "time zones" from coast to coast. Maker of millionaires; a new railroad aristocracy emerged Native Americans displaced and herded into ever-shrinking reservations.
RAILROAD CORRUPTION: Jay Gould: Forced prices of stocks to boom and bust on some of his lines. stock watering: Railroad stock promoters grossly inflated value of railroad stock. Railroad managers forced to charge high rates and wage ruthless competition to pay off the exaggerated financial obligations. Railroad tycoons, for a time, became the most powerful people in America Bribed judges and legislatures, employed effective lobbyists, and elected their own men to office.("senatorial Roundhouse" cartoon) Gave free passes to journalists and politicians. Eventually ruled as an oligarchy instead of cut-throat competition. "Pools" Formed defensive alliances to protect their profits. Competing firms agreed to divide the market, establish prices, place profits in a common fund, and pro-rate profits. Some gave secret rebates or kickbacks to large corporations.. Slashed rates on competing lines but made up difference on other lines. Hurt farmers with long-haul, short-haul practices Cornelius Vanderbilt: "Law! What do I care about the Law? Hain t I got the power?" -- Ruined opponents rather than sue them legally.