-Leland Stanford is most responsible for building the very first trans. RR.

-He donated the profit to Stanford University!!

-They were very expensive!!

-Built b/c of land grants & subsidies

-Govt. gave RR’s 1 square mile in checkerboard fashion

I CAN DESCRIBE THE CREATION OF AND THE IMPACT OF THE RAILROAD ON AMERICA

When RR’s first started taking construction, there were 2 Main ones:

&

-started in the middle of the country & moved west

-started in the west of the country & moved towards the middle

I CAN DESCRIBE THE CREATION OF AND THE IMPACT OF THE RAILROAD ON AMERICA

The transcontinental Railroad met up in Ogden, Utah at a place called Promontory Point.

Leland Stanford used a silver sledgehammer and drove a golden spike into the ground.When he drove the golden spike into

the ground, they rang the cracked liberty bell!! (It apparently cracked when John Marshall died!)

I CAN IDENTIFY THE MAJOR LEADERS OF THE RAILROAD INDUSTRY

1)Union Pacific-Central Pacific

2) Northern Pacific

3) Atchison, Topeka, & Santa Fe

4) Southern Pacific

5) Great Northern-1893-bulit by James J. Hill w/o land grants or subsidies.

I CAN IDENTIFY THE MAJOR LEADERS IN THE RAILROAD INDUSTRY

-Bought little railroads & put them all together

-amassed $100 million fortune

-Biltmore House and Gardens

-First to use Steel Rail and standardized RR tracks

Used airbrake & palace cars

The Railroad Business

I CAN IDENTIFY THE MAJOR LEADERS IN THE RAILROAD INDUSTRY

Unfair Business Practices by the RR *Pooling-agreement to divide

business in a given area and share profit. ( high prices…no competition)

*Secret Rebates

*Kickbacks

*Differential Freight Rates -RR’s would charge more for the short haul than a long haul.

Stock Watering-selling something for more than its worth!

Farmers soon organized into groups (Grange / Patrons of Husbandry) to protest the unfair practices of the RR.

I CAN LIST AND EXPLAIN THE FORMS OF CORRUPTION IN THE RAILROAD INDUSTRY

- United the country together

- Stimulated the industrialization of America

- Stimulated Mining

- Stimulated agriculture

- Stimulated Urbanization

- Helped settle lands

- Time zones were created!

- Produced many millionaires

I CAN IDENTIFY THE RESULTS OF RAILROADS ON AMERICA

RAILROAD IMPROVEMENTS

I CAN LIST THE MAJOR IMPROVEMENTS MADE IN RAILROADS

Steel Rails Air Brake

Palace Cars

Steel rails were safer and more economical b/c they could handle heavier loadsAlso created standard gauge track width

Created by George WestinghouseMade railroads much safer

Allowed for better travel for passengersDangerous b/c they often caught on fire though

*Upheld the Granger Laws

-said a state could regulate the RR for the common good. 10 years

later in the Wabash

Case-1886-the supreme court ruled that it could not regulate interstate trade.

*Reversed Munn v. IllinoisI CAN SUMMARIZE GOVERNMENT INTERVENTION AGAINST THE

RAILROADS

Farmers the most hurt by unfair railroad practicesPressure put on government to do something by the Grange or

Patrons of Husbandry

INTERSTATE COMMERCE ACT OF 1887Prohibited rebates and pools

Required railroads to publish their ratesForbid unfair discrimination by charging more for short hauls versus long haulsEstablished the ICC (Interstate Commerce Commission) to administer and enforce law

PROBLEM: NO TEETH!!!!!!I CAN SUMMARIZE GOVERNMENT INTERVENTION AGAINST THE

RAILROADS

There were FOUR “Captains of Industry” They were the IT people.

1) Cornelius Vanderbilt- RR Consolidation

2) John D. Rockefeller- Oil

3) Andrew Carnegie- Steel Industry

4) J.P. Morgan- Banking

I CAN IDENTIFY THE FOUR MAJOR INDUSTRIAL LEADERS/ROBBER BARRONS

What he’s known for:

Vertical Integration-when you control every stage of the development of a product.

The Steel Business

Kelley Bessemer Process-1850’s –steel process. William Kelly from KY, and Henry Bessemer from England.

Mesabi Iron Ore Range-gotten in Web.-Ash.-1842-process of taking very hot iron ore, forcing cold air through to clean our impurities.

By 1900, he produced 25% of the nations steel.

Carnegie was an immigrant who grew up very, very poor.

I CAN EXPLAIN THE LEADERS OF AND THE KELLEY-BESSEMER PROCESS

Andrew Carnegie wrote The Gospel of Wealth”

“The man who dies rich dies thus disgraced”Carngie forced JP Morgan to buy him out of the steel industry for $400 million dollars.

Stated that an individuals wealth was

beneficial to all

I CAN SUMMARIZE THE HISTORY OF ANDREW CARNEGIE

Charles Darwin published the “Origin of the Species” in 1859.

Darwinism-had three main parts:

*Survival of the Fittest

*Evolution

*Natural Selection

Social Darwinism was the concept of applying Darwinism to explain society. (rich & poor, low, middle, & high classes)

I CAN DESCRIBE THE BELIEF KNOWN AS SOCIAL DARWINISM AND HOW IT APPLIES TO BUSINESS

Inventions

The Typewriter Fridg

e

Electric Dynamo

Telephone

By: Christopher Shoales “The Literary Piano”

Clarence Birdseye

Michael Faraday

Alexander Graham Bell

I CAN LIST MAJOR INVENTIONS AND INVENTORS OF THE INDUSTRIAL AGE

Invented in…1879

BY: Thomas Edison

He was known as…“The Wizard of Minlow Park”

He also invented motion pictures & the phonograph.

“Genius is 1% inspiration, and 99%

perspiration”I CAN LIST MAJOR INVENTIONS AND INVENTORS OF THE INDUSTRIAL

AGE

Banking-Used “Interlocking Directories”-placed his board of directors with directors on other banks boards. This way a decision affects all the companies and he benefits.

Forced to buy out Andrew Carnegie for $400 million dollars

1901-United States Steel Corporation

This was the first billion dollar company.

I CAN DESCRIBE THE WORK OF JP MORGAN

The Oil BusinessHis motto: “Let us Prey”

Rockefeller practiced “Horizontal Integration” - the process of spreading or taking over to make a profit.

Standard Oil – 1870 -Cleveland, Ohio

The Trust-perfected by Rockefeller.

Stockholders of smaller oil companies gave their stock to the Standard Oil Company.

1st Oil Well- Titusville, PA, By Edwin Drake-1859

“Drake’s Folly”

I CAN SUMMARIZE THE WORKS OF J.D. ROCKEFELLER

The Sherman Anti Trust Act 1890

flatly forbade combinations in restraint of trade, without distinctions between good trusts and bad trusts.

Big was bad! Law was weak. It had no teeth!

First time govt. stepped in to regulate trusts.The 14th Amendment-

Was used by businesses and trust so they could hide behind it.

Some corp. lawyers got judges to say a corp. was a legal person.

I CAN DESCRIBE THE SHERMAN ANTI-TRUST ACT

Three Big Unions

National Labor Union-1866

Knights of Labor-1869

American Federation of Labor-1886

“Labor unions are good…Labor unions are

bad”

I CAN DESCRIBE THE HISTORY OF UNIONIZATION IN AMERICA

National Labor Union-1866-William Slyvis

Knights of Labor-1869-Terence V. Powderly

American Federation of Labor-1886-Samuel Gompers

I CAN DESCRIBE THE HISTORY OF UNIONIZATION IN AMERICA

National Labor Union-1866 Founded By: William H. Slyvis-First

Nationally organized Labor Union

-allowed skilled & unskilled workers-Destroyed by the 4th panic

I CAN DESCRIBE THE HISTORY OF UNIONIZATION IN AMERICA

Founded By Terence V. Powderly “The Grandmaster Workman”

Put all into big union, allowed skilled & unskilled workers (this was a weakness)

Did well until Haymarket Square Riot-1886-in Chicago “The Windy City”

“An injury to one is a concern to all” –his motto

The bomb blast in the riot tended to associate labor unions with anarchists & terrorists

I CAN DESCRIBE THE HISTORY OF UNIONIZATION IN AMERICA

American Federation of Labor - 1886Led By Samuel Gompers

“Show me the country in which there are no strikes & ill show you the country in which there

is no liberty”Samuel Gompers-39 years as president

Gomper hated socialism & loved capitalism

He said he just wanted a little more…better wages, short hours, benefits, better working conditions.

Unskilled workers were not allowed-because they wanted strength

Labor Day was established as a legal holiday in 1894-the first Monday in September.

These are called the “bread & butter” issues that unions are concerned with.I CAN DESCRIBE THE HISTORY OF UNIONIZATION IN AMERICA

1)Strike Breakers / scabs

2)Injunction

3)Lockout

4)“Iron Clad Oaths”- “Yellow Dog Contracts”

5)Black List- “You’ll never work again in this town”

6)Company Town-co. starts their own town

The company town provided housing (very high rent) and easy credit (company town)

-subtle way of keeping workers in debt forever

I CAN LIST WEAPONS USED BY OWNERS AGAINST STRIKING WORKERS

1)Strike – refusal to work

2)Walk out

3)Boycott-refusal to buy

4)Closed shop – is a union technique that requires a worker to join the union or they will not keep the job.

I CAN LIST WEAPONS USED BY STRIKING WORKERS AGAINST OWNERS