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The Gilded Age, 1865-1900 The Rise of Industrial America

The Gilded Age, 1865-1900 The Rise of Industrial America. One view….

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The Gilded Age, 1865-1900 The Rise of Industrial America

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  1. The Gilded Age, 1865-1900The Rise of Industrial America

  2. One view… As we view the achievements of aggregated capital, we discover the existence of trusts, combinations, and monopolies, while the citizen is struggling far in the rear or is trampled to death beneath an iron heel. Corporations, which should be the carefully restrained creatures of the law and servants of the people, are fast becoming the people’s masters. President Grover Cleveland, 1888

  3. By 1900… • US leading industrial power in world • Manufacturing output exceeds 3 biggest rivals (UK, France, Germany) • Rapid growth (Avg. about 4% per year)

  4. WHY? • TONS of natural resources • Coal, iron ore, copper, lead, timber, oil • ABUNDANT labor supply (suppl. by huge waves of immigrants) • Inc. Pop + Adv. Transp. Network = largest market for industrial goods in the world • Lots of ready capital (from surplus wealth both in US & Europe) • Dev. of labor saving tech. to increase productivity • Gov’t policies that protect private property, subsidize railroads, provide protective tariffs, don’t heavily regulate or tax corporations. • Talented entrepreneurs able to build & manage vast industrial commercial enterprises

  5. It all starts on the rails… • 1865 = 35,000 mi. of track • 1900 = 192,556 mi. of track • Congress gives 155,504,994 acres to rail companies • Able to tie up land for a long time • Cleveland ends this in 1887 • Railroads gave land value • With rail, survive to become sprawling cities • Without, become ghost towns

  6. Just to name a few… • 1862  Union Pacific Commissioned • From Omaha to CA • Credit Mobilier scandal • Lots of Irish immigrant labor • Central Pacific Railroad (working from West) • Backed by the “Big Four” (incl. Leland Stanford & Collis Huntington) • Lots of Chinese Immigrants • 1869  lines connected near Ogden, UT • By 1900, 4 other transcontinental lines built • Northern Pacific Railroad (1883) • Atchison, Topeka, & Santa Fe (1884) • Southern Pacific (1884) • Great Northern (James J. Hill)

  7. Revolution by Rail • Rails stitched nation together • Huge markets, lots of jobs • Stimulates mining & agriculture in West • Spurred immigration to the West • Caused created of 4 national time zones • Creates millionaires & the millionaire class • Enter the super rich…

  8. Consolidation of the Rails • C. Huntington, J. Gould, J. Hill (et al.) buy out bunches of smaller competitors • Create huge “trunk lines” that controlled most the track • Standardized equipment, track gauge – generally more efficient • Totally abuse their powers • Bribed politicians • Kickbacks & rebates for big companies – overcharged small business & farmers • Some Gov’t Reaction • 1887  Interstate Commerce Act • Forbids pools, rebates, monopolistic practices • Created Interstate Commerce Commission (largely ineffective – court decisions almost always sided with RRs) • By 1906, 7 giant companies controlled 2/3 of the rails

  9. So…umm…what about industrialization? • Lesson of RRs get applied to STEEL • Corporations, stock sales, monopolies, gov’t corruption

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