Chapter 24

1. Chapter 24 Industry Comes of Age (The Gilded Age Part II)

2. The Railroad • Built with government subsidies and land grants • Frontier outposts became flourishing cities (if they were lucky) • 1869: The Transcontinental Railroad links east and west • The “golden spike” is hammered in at Promontory Point, Utah • Steel provided the rails and bridges • Airbrakes made travel safer

3. Revolutionary Railroads • Physical unification of our country • The nation’s first “big business” • 20% of US investment $ • More employees than any other • Who wants to be a millionaire?? • Raw materials factories Finished goods consumers • Farm products from the West population centers in the East • Railroads changed time itself!

4. Golden versus Gilded • Stock watering inflated the RRs values artificially • Bribes/Kickbacks to politicians and judges • Rates were not made public • The reality: RR owners controlled American life • Politically, socially and economically ($) • Especially true of the farmers who were treated unfairly • Remember…this is where we saw the rise of Populism

5. Cleaning Up This Gilded Age • Wabash v. Illinois (1886) ruled that it was the federal government’s job to regulate interstate commerce • Illinois was trying to regulate railroad rates within their state • The I.C.C. (1887) set the precedent that the government was bound to protect the public interest • Our nation’s first trueregulatory agency

6. Mechanization and Innovation • Investment + abundant nat. res. + the size of the American market + transportation networks + cheap, plentiful labor + innovators and inventors (the Rockefellers, the Carnegies, the Edisons and the Bells) = SUCCESS! • By 1894, the US was the world’s manufacturing leader

7. In Trusts We DON’T Trust • Large business combinations (trusts) make millions while reducing competition • w/ the Pendleton Act taking the incentive out of political contributions, politicians turn to big business • Horizontal Integration • J.D. Rockefeller & Standard Oil • A monopoly • Vertical Integration • A. Carnegie & Carnegie Steel • NOT a monopoly

8. Horizontal Integration occurs when a business expands its control over other similar or closely related businesses. • By 1890, Standard Oil controlled over 90% of the refined oil in the U.S. • Vertical Integration occurs when a business expands its control over other business that are part of its overall manufacturing process.

9. What did he do?? • Temporarily undercutting the prices of competitors until they either went out of business or sold out to Standard Oil. • Buying up the components needed to make oil barrels in order to prevent competitors from getting their oil to customers • Using secret rebates from the RR to reduce shipping costs to a level far below the rates charged to competitors. • Secretly buying up competitors and then having officials from those companies spy on and give advance warning of deals being planned by other competitors.

10. …or a “Captain of Industry?” • John D. Rockefeller: "The American Beauty rose can be produced in all its splendor only by sacrificing the early buds that grow up around it."

11. Gilded Age Philosophies • Herbert Spencer and others were often labeled as “social Darwinists” • Individuals “won” their station in life based on competition and their natural talents (Darwin…Get it?) • This could also be applied to entire nations in order to justify dominating “lesser peoples” • Self-justification of one’s wealth led to contempt for the poor

12. Gilded Age Philosophies • Some Gilded Age capitalists did believe they had a duty to give back to the society that gave them their $ • This was known as the “Gospel of Wealth” • Andrew Carnegie famously said, “He who dies rich, dies disgraced” • By his death in 1919, he had given away over $350 million and provided more than 2,500 free public libraries throughout the world (J.D.R. will give away $500 million)

13. The Drumbeat of Discontent • An epidemic of strikes raised the prospects ofan industrial workers and farmer alliance with the Populists • Haymarket Square (1886) • 7 police killed and 60 wounded when a pipe bomb explodes • Homestead (1892) • 10 people were killed, 60 wounded when violence between Pinkertons and striking workers broke out in Pittsburgh

15. Sherman Anti-Trust Act (1890) • The first federal anti-trust law • Authorized federal action against any “combination in restraint of trade”

16. …and in the South?? • James B. Duke revitalizes the tobacco industry w/ machine-rolled cigarettes • North vs. South (Really? Again?) • N. manufactured goods were given preferential treatment by the RR • RR encouraged the use of S. raw materials • “Pittsburgh Pricing” to keep S. steel from heading N. • Keeping labor cheap kept S. workers in poverty

17. The Worsening Condition of Labor • Frederick Taylor published the Principles of Scientific Management • Unskilled workers become “part of the machine” • The skilled worker could be replaced • The craftsmen of old no longer controls his destiny

18. Working conditions proved less than ideal • Small, crowded rooms • Specialization led to boredom, monotony and injury • Stale air and unsafe machinery • Long hours, low wages, no job security

19. Labor Unions • Knights of Labor • 1st national union • Skilled & unskilled • T. Powderly becomes the leader in 1879 and ends the secrecy of the organization • American Federation of Labor • Organization of individual unions into one • Only skilled • Collective bargaining • Samuel Gompers was their most significant leader

20. The Impact of the Industrial Revolution • “Jeffersonian ideals were withering…” • Rural Americans and European immigrants were headed for the factories • A new “ideal woman” (the Gibson Girl) enters the workplace for secretarial/clerical work • Gap between the rich & poor grows • Dependent workers • Clamor for international trade

21. Chapter 25 America Moves to the City

22. The Urban Frontier • Characteristics of cities at the turn of the century • How cities were “monuments of contradictions”

23. The New Immigrants • Where from? • Social/Economic characteristics • Pushes and Pulls • How they were welcomed (or not) • How obstacles were overcome

24. Women, Blacks and Whites • Meanwhile, the NAWSA foughtfor suffrage forwomen…but only white women • Ida B. Wells helps launch the National Assoc. of Colored Women fighting for equality as well as anti-lynching laws

25. Booker T. Washington took an “accomodationist” approach • Go to technical school (like Tuskegee Institute) and learn a trade • In 1895 at the Atlanta Exposition he said: • “In all things purely social we can be as separate as the fingers, yet one as the hand in all things essential to mutual progress” (remember Plessy v. Ferguson?) • W.E.B. DuBois spoke of the “Talented Tenth” in 1903 • “Negroes must first of all deal with the Talented Tenth; it is the problem of developing the best of this race that they may guide the mass away from the contamination and death of the worst” • Go to college. Lead. • Considered the “Atlanta Compromise” propaganda

26. Divergent Paths to Equality for African-Americans

27. 1818 Frederick Douglass 1895 1856 Booker T. Washington1915 1868 W.E.B DuBois1963 1925 Malcolm X 1965 1929 M.L.K. 1968