American Republic Ch. 9
American Republic Ch. 9
American Republic Ch. 9
1865–1901
Why It Matters
The rise of the United States as an industrial power began after the Civil War. Many factors
promoted industry, including cheap labor, new inventions and technology, and plentiful raw
materials. Railroads rapidly expanded. Government policies encouraged growth, and large
corporations became an important part of the economy. As industry expanded, workers tried to
form unions to fight for better wages and working conditions.
1869 1876
• Transcontinental • Alexander Graham Bell 1882
railroad completed invents telephone • Standard Oil
forms trust
1879
• Edison
perfects
lightbulb
▲ ▲
A. Johnson Grant Hayes Garfield Arthur Cleveland
1865–1869 1869–1877
▲ 1877–1881 ▲ 1881 1881–1885 1885–1889
▼ ▼ ▼ ▼
1876
• Korea forced to 1881
1867 trade with Japan • Russian czar
• British colonies unite to 1869 Alexander II
form Dominion of Canada assassinated
• Chemist Dmitri Mendeleyev
creates periodic table of elements
306
This painting by twentieth-century artist Aaron Bohrod captures the dynamism of an
industrializing nation. Bohrod titled his work The Big Blow: the Bessemer Process.
1892 1901
• Homestead • J.P. Morgan
strike occurs forms U.S. Steel
1894
1886 • Pullman strike
• Haymarket begins 1903
Square riot
• Women’s Trade HISTORY
▲ ▲ Union League
B. Harrison Cleveland McKinley T. Roosevelt founded
1889–1893 1893–1897 1897–1901 1901–1909
▲ ▲ ▲ Chapter Overview
Visit the American Republic
Since 1877 Web site at
1895 1905 tarvol2.glencoe.com and
click on Chapter Overviews—
▼ ▼ ▼ Chapter 9# to
to preview
preview chapter
chapter
1892 1896 1900 information.
• Rudolf Diesel patents • Athens hosts first • Boxer Rebellion
diesel engine modern Olympic begins in China
games
307
The Rise of Industry
Main Idea Reading Strategy Reading Objectives
American industry grew rapidly after the Organizing As you read about the • Identify the effects of expanding popu-
Civil War, bringing revolutionary changes changes brought about by industrializa- lation on industry.
to American society. tion, complete a graphic organizer similar • Explain the effects of technological
to the one below listing the causes of innovations such as the telephone and
Key Terms and Names industrialization. telegraph on American development.
gross national product, Edwin Drake, Causes
laissez-faire, entrepreneur, Morrill Tariff, Section Theme
Alexander Graham Bell, Thomas Alva United States
Economic Factors The free enterprise
Edison Becomes an system nurtured the growth of American
Industrial Nation industry.
On October 21, 1879, Thomas Alva Edison and his team of workers were too excited to
sleep. For weeks they had worked to create an electric incandescent lamp, or lightbulb,
that would burn for more than a few minutes. For much of the 1800s, inventors had strug-
gled to develop a form of lighting that would be cheaper, safer, and brighter than tradi-
tional methods such as candles, whale oil, kerosene, and gas. If Edison and his team could
do it, they would change the world. Finally, after weeks of dedicated effort, they turned
night into day. Edison later recalled:
“ We sat and looked and the lamp continued to burn and the longer it burned the more
fascinated we were. None of us could go to bed and there was no sleep for over 40 hours;
we sat and just watched it with anxiety growing into elation. It lasted about 45 hours and
Thomas Edison
then I said, ‘If it will burn 40 hours now I know I can make it burn a hundred.’
”
—quoted in Eyewitness to America
Early
Pennsylvania
oil well
N
W E
Boston S
Chicago
New York City 40°N
Pittsburgh
Washington, D.C.
Coal mining
Iron ore
Prairie 1. Interpreting Maps Where were most industrial cities in
Chief manu-
facturing cities the Northeast located?
0 200 miles
Iron/Steel mills 2. Applying Geography Skills What natural resources
Oil field
0 200 kilometers contributed to making Pittsburgh, Pennsylvania, a major
Lambert Equal-Area projection
Railroad steel center?
Sawmills
✦1850 ✦1865
1852 1874
Elisha Otis, Stephen Dudley Field,
1864
elevator brake electric streetcar
George Pullman,
rail sleeping car
✦1880 ✦1895
1879 1883
Thomas Edison, Jan E. Matzeliger,
incandescent lightbulb shoemaking machine
1879
James Ritty, cash register
reversing years of declining tariffs. By the end of the that the new American industries could compete
Civil War, tariffs had risen sharply. Congress also with the large established European factories unless
gave vast tracts of western land and millions of dol- tariffs were put in place to protect them. By the early
lars in loans to western railroads. The government 1900s, many American industries were large and
also sold public lands with mineral resources for highly competitive. Business leaders increasingly
much less than their market value. Historians still began to push for free trade because they believed
dispute whether these policies helped to industrial- they could compete internationally and win.
ize the country.
Reading Check Analyzing Do you think govern-
Supporters of laissez-faire generally favor free
trade and oppose subsidies, believing that tariffs and ment policies at this time helped or hindered industrialization?
subsidies drive up prices and protect inefficient com- Why?
panies. They point out that one reason the United
States industrialized so rapidly in the 1800s was
because it was one of the largest free trade areas in New Inventions
the world. Unlike Europe, which was divided into
A flood of important inventions helped increase
dozens of states, each with tariffs, the entire United
the nation’s productive capacity and improved the
States was open to trade. The Constitution bans
network of transportation and communications that
states from imposing tariffs, and there were few fed-
was vital to the nation’s industrial growth. New
eral regulations to impede the movement of goods
inventions led to the founding of new corporations,
across the country. Similarly, the United States prac-
which produced new wealth and new jobs.
ticed free trade in labor, placing very few restrictions
on immigration.
TECHNOLOGY
High tariffs, however, contradicted laissez-faire
ideas and hurt many Americans. When the United Bell and the Telephone One of the most dramatic
States raised tariffs against foreign goods, other inventions in the late 1800s came in the field of com-
countries raised their tariffs against American goods. munications. In 1874 a young Scottish-American
This hurt American companies trying to sell goods inventor named Alexander Graham Bell suggested
overseas, and in particular, it hurt farmers who sold the idea of a telephone to his assistant, Thomas
their products to Europe. Ironically, the problems Watson. Watson recalled, “He had an idea by which
farmers faced may have helped speed up industrial- he believed it would be possible to talk by tele-
ization, as many rural Americans decided to leave graph.” Bell intended to make an electrical current of
their farms and take jobs in the new factories. varying intensity transmit sound.
Despite the problems tariffs created for trade, Bell worked until 1876 before he succeeded in trans-
many business leaders and members of Congress mitting his voice. Picking up the crude telephone, he
believed they were necessary. Much of Western called to the next room, “Come here, Watson, I want
Europe had already industrialized, and few believed you.” Watson heard and came. The telephone
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Making
Inferences
313
The Railroads
Main Idea Reading Strategy Reading Objectives
After the Civil War, the rapid construction Organizing As you read about the devel- • Discuss ways in which the railroads
of railroads accelerated the nation’s opment of a nationwide rail network, spurred industrial growth.
industrialization and linked the country complete a graphic organizer similar to • Analyze how the railroads were
together. the one below listing the effects of this rail financed and how they grew.
network on the nation.
Key Terms and Names Section Theme
Effects
Pacific Railway Act, Grenville Dodge, Individual Action The railroads pro-
Leland Stanford, Cornelius Vanderbilt, vided new ways for some Americans to
Nationwide Rail
time zone, land grant, Jay Gould, Crédit Network amass wealth.
Mobilier, James J. Hill
“ The trains pulled up facing each other, each crowded with workmen who sought advan-
tageous positions to witness the ceremonies. . . . The officers and invited guests formed on
each side of the track. . . . Prayer was offered; a number of spikes were driven in the two
Grenville Dodge adjoining rails . . . and thus the two roads were welded into one great trunk line from the
”
Atlantic to the Pacific.
—quoted in Mine Eyes Have Seen
History
Engineering Victory The Union Pacific and Central Pacific were joined near
Ogden, Utah. The last spike driven was made of gold. It was quickly removed and
kept as a symbol. What did the event mean for the nation’s commerce?
became governor of California and later served as a unconnected lines existed.
United States senator after founding Stanford The challenge for eastern HISTORY
University in 1885. capitalists was to create a
Because of a shortage of labor in California, the single rail transportation
Student Web
Central Pacific Railroad hired about 10,000 workers system from this maze of Activity Visit the
from China. All the equipment—rails, cars, locomo- small companies. American Republic
tives, and machinery—was shipped from the East, Railroad consolidation Since 1877 Web site at
either around Cape Horn at the tip of South proceeded rapidly from tarvol2.glencoe.com
America or over the Isthmus of Panama in Central 1865 to 1900. Large rail and click on Student
America. lines took over about 400 Web Activities—
small railroads, and by Chapter 9 for an
Reading Check Examining Why were many work-
1890 the Pennsylvania activity on
ers on the Central Pacific Railroad recruited from China? Railroad was a consolida- industrialization.
tion of 73 smaller compa-
nies. Eventually seven
Railroads Spur Growth giant systems with terminals in major cities and
The transcontinental railroad was the first of many scores of branches reaching into the countryside con-
lines that began to crisscross the nation after the Civil trolled most rail traffic.
War. This expansion spurred American industrial One of the most famous and successful railroad
growth. By linking the nation, railroads helped consolidators was Cornelius Vanderbilt, a former
increase the size of markets for many products. Huge boat captain who had built the largest steamboat fleet
consumers themselves, the railroads also stimulated in America. By 1869 Vanderbilt had purchased and
the economy by spending extraordinary amounts of merged three short New York railroads to form the
money on steel, coal, timber, and other necessities. New York Central, running from New York City to
Buffalo. Within four years he had extended his con-
Linking Other Lines In the early 1800s, most rail- trol over lines all the way to Chicago, which enabled
roads had been built to promote specific cities or to him to offer the first direct rail service between New
serve local needs. By 1865 hundreds of small York City and Chicago. In 1871 Vanderbilt began con-
struction of New York’s Grand Central terminal.
RUSSIA
50
How might the construc- At the same time, new locomotive technology and
tion of a railroad affect N Vladivostok the introduction of air brakes enabled railroads to
towns along the line? W Trans-Siberian put longer and heavier trains on their lines. The new
E 30°N
Railroad rail systems, along with more powerful locomotives,
S
110°E
125
(in thousands)
100
Boston
Chicago 75
40°N
New York City
50
San Francisco Washington, D.C.
25
70°W
ATLaNTic 0
Ocean 0°N 1870 1875 1880 1885 1890
3
120°W
Year
Source: Historical Statistics of the United States:
Colonial Times to 1970.
Gulf of Mexico
PaCIFic
Ocean
0 600 miles
Pacific
110°W Time Zone 0 600 kilometers 20°N
Lambert Equal-Area projection
80°W 1. Interpreting Maps What part of the United States saw
Mountain Time Zone
Central Time Zone the greatest expansion in rail lines by 1890?
Eastern Time Zone 2. Applying Geography Skills In which time zone did the
Railroads built by 1870 Central Pacific originate?
Railroads built by 1890
*Time zones and borders shown as of 1890
made railroad operation so efficient that the average sell the land to settlers, real estate companies, and
rate per mile for a ton of freight dropped from two other businesses to raise the money they needed to
cents in 1860 to three-fourths of a cent in 1900. build the railroad.
The nationwide rail network also helped unite In the 1850s, the federal government granted indi-
Americans in different regions. Looking back at a vidual states over 28 million acres of public lands to
quarter century of railroad travel, the Omaha Daily give to the railroads. After the Pacific Railway Acts of
Republican observed in 1883 that railroads had 1862 and 1864, the government gave the land directly
“made the people of the country homogeneous, to the railroad companies.
breaking through the peculiarities and provin- During the 1850s and 1860s, the federal land grant
cialisms which marked separate and unmingling system awarded railroad companies over 120 million
sections.” This was, perhaps, an overstatement, but acres of land, an area larger than New England, New
it recognized a significant contribution that railroads York, and Pennsylvania combined. Several railroad
made to the nation. companies, including the Union Pacific and the
Central Pacific, earned enough money from the gov-
Reading Check Explaining Why did the American
ernment’s generous land grants to cover much of the
Railway Association divide the country into four time zones? cost of building their lines.
Reading Check Summarizing How did the govern-
The Land Grant System ment help finance railroads?
Building and operating railroad lines, especially
across the vast unsettled regions of the West, often
required more money than most private investors Robber Barons
could raise on their own. To encourage railroad con- The great wealth many railroad entrepreneurs
struction, the federal government gave land grants acquired in the late 1800s led to accusations that they
to many railroad companies. Railroads would then had built their fortunes by swindling investors and
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In the 1860s, the oil industry in the United States was highly competitive. One highly effi-
cient company was Standard Oil, owned by John D. Rockefeller and his associates. Because
his company shipped so much oil, Rockefeller was able to negotiate rebates, or refunds, from
railroads that wanted his business. This gave his company an advantage, and he began to
pressure other oil companies to sell out to him.
Oil producer Franklin Tarbell pledged never to surrender. Tarbell’s daughter Ida later
recalled her father’s indignation over Rockefeller’s maneuvers:
“ It was as if somebody had tried to crowd me off the road. . . . There were rules, you
couldn’t use the road unless you obeyed those rules. . . . The railroads—so said my
father—ran through the valley by the consent of the people; they had given them a right of
way. The road on which I trotted was a right of way. One man had the same right as
another, but the railroads had given to one something they would not give to another. . . .
The strong wrested from the railroads the privilege of preying upon the weak.
”
—quoted in All in the Day’s Work
Cartoon of John D. Rockefeller
Cooled Warehouses
Independent Oil Refineries
Refrigerated Railroad Cars
Slaughterhouse
Cattle
oil companies throughout the world forced the they were not violating the law. This arrangement
Standard Oil Company to keep its prices low. enabled the trustees to control a group of companies
as if they were one large merged company.
Trusts By the late 1800s, many Americans had
grown suspicious of large corporations and feared Holding Companies Beginning in 1889 the state of
the power of monopolies. To preserve competition New Jersey further accelerated the rise of big business
and prevent horizontal integration, many states with a new general incorporation law. This law
made it illegal for one company to own stock in allowed corporations chartered in New Jersey to own
another without specific permission from the state stock in other businesses without any need for special
legislature. In 1882 Standard Oil formed the first legislative action. Many companies immediately used
trust, a new way of merging businesses that did not the New Jersey law to create a new organization
violate the laws against owning other companies. A called a holding company. A holding company does
trust is a legal concept that allows one person to man- not produce anything itself. Instead, it owns the stock
age another person’s property. The person who man- of companies that do produce goods. The holding
ages another person’s property is called a trustee. company controls all of the companies it owns, effec-
Instead of buying a company outright, which was tively merging them into one large enterprise. By 1904
often illegal, Standard Oil had stockholders give their the United States had 318 holding companies.
stocks to a group of Standard Oil trustees. In Together these giant corporations controlled over
exchange, the stockholders received shares in the 5,300 factories and were worth more than $7 billion.
trust, which entitled them to receive a portion of
the trust’s profits. Since the trustees did not own the Reading Check Explaining What techniques did
stock but were merely managing it for someone else, corporations use to consolidate their industries?
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Read the following excerpts from the Industrial Commission hearings of 1899. Then
complete the questions and activities on the next page.
John D. Rockefeller
I am a citizen of the United States. unable to do. I have had to conse- their general trade, and thus effec-
. . . Producer of petroleum for quently shut down, with my busi- tually wipe out all competition, as
more than 30 years, and a refiner ness absolutely ruined and my fully set forth. Standard Oil prices
of same for 20 years, but my refin- refinery idle. This has been a very generally were so high that I
ery has been shut down during sad, bitter, and ruinous experi- could sell my goods 2 to 3 cents a
the past 3 years, owing to the ence for me to endure, but I have gallon below their prices and
powerful and all-prevailing endeavored to the best of my cir- make a nice profit, but these sav-
machinations of the Standard Oil cumstances and ability to combat age attacks and cuts upon my
Trust, in criminal collusion and it the utmost I could for many a customers’ goods, and their con-
conspiracy with the railroads to long waiting year, expecting relief sequent loss, plainly showed
destroy my business of 20 years of through the honest and proper them their power for evil, and the
patient industry, toil, and money execution of our laws, which have uselessness to contend against
in building up, wholly by and as yet, however, never come. . . . such odds, and they would buy
through unlawful freight discrim- Outside of rebates or freight dis- no more of my oil. . . .
inations. I have been driven from criminations I had no show with
pillar to post, from one railway the Standard Oil trust, because of
line to another, for 20 years, in the their unlawfully acquired monop-
absolutely vain endeavor to get oly, by which they could tem- Understanding the Issue
equal and just freight rates with porarily cut only my customers’ 1. What potential advantages could
the Standard Oil Trust, so as to be prices, and below cost, leaving the companies like Standard Oil offer
able to run my refinery at any- balance of the town, nine-tenths, consumers?
thing approaching a profit, but uncut. This they can easily do 2. What did George Rice believe to be
which I have been utterly without any appreciable harm to the reason Standard Oil was so
successful?
3. How would you assess the credibility
of the two accounts?
Activities
1. Investigate Today many industries,
unions, and special interest groups
lobby Congress for favorable legisla-
tion. What are the most powerful
groups? How do they operate?
2. Check the News Are there any com-
panies that recently have been inves-
tigated for unfair or monopolistic
practices? Collect headlines and news
articles and create a bulletin board
display.
On September 6, 1869, hundreds of miners’ wives and children heard the repeated
shrill blasts of the Avondale Mine’s whistle, which signaled an accident. The families ran
to the mine’s entry and beheld a terrifying sight: hot smoke billowing from the mine shaft.
The owners of the Avondale Coal Mine in Luzerne County, Pennsylvania, had not built
a second entrance. Without an escape route, the 179 miners trapped below soon died.
Songs to commemorate the disaster later gave voice to the silenced victims:
“ Men, if you must die with your boots on, die for your families, your homes, your
country, but do not longer consent to die like rats in a trap. . . .
”
—quoted in Labor’s Untold Story
Reading Check
Describing What aspects of
industrial life caused frustration for
workers in the late 1800s?
Early Unions
There were two basic types
of industrial workers in the
United States in the 1800s—
craft workers and common
laborers. Craft workers had
special skills and training.
They included machinists, iron
molders, stonecutters, glass-
blowers, shoemakers, printers, History
carpenters, and many others. Unsafe Working Conditions Workers in the late 1800s often faced unsafe working conditions. Many began to
Craft workers generally join labor unions in an attempt to improve these conditions. What unsafe conditions does this photograph of a
received higher wages and steel mill show?
TEXAS Birmingham-
Pacific Texas and
LA. Bessemer
1894
Ocean Pacific R.R.,
1886 FLA.
power is fast eating up the substance of the people. and Chicago. The governors of several states called
We have made war upon it, and we mean to win it. If out their militias to stop the violence. In many places,
we can we will win through the ballot box; if not, we gun battles erupted between the militia and striking
will resort to sterner means. A little bloodletting is workers.
Determined to stop the violence, President Hayes
sometimes necessary in desperate causes.
” ordered the army to open the railroad between
—quoted in Industrialism and Philadelphia and Pittsburgh. He then sent troops to
the American Worker Chicago, where the strike had paralyzed the entire
city. The troops restored order, but by the time the
The Great Railroad Strike of 1877 In 1873 a strike ended, more than 100 people lay dead, and
severe recession known as the Panic of 1873 struck millions of dollars of property had been destroyed.
the American economy and forced many companies
to cut wages. In July 1877, as the recession continued, The Knights of Labor The failure of the Great
several railroads announced another round of wage Railroad Strike convinced many labor organizers that
cuts. This triggered the first nationwide labor protest. workers across the nation needed to be better organ-
The day after the cuts took effect, railroad workers in ized. By the late 1870s, enough workers had joined a
Martinsburg, West Virginia, walked off the job and new organization, the Knights of Labor, to make it
blocked the tracks. the first nationwide industrial union.
As word spread, railroad workers across the coun- The Knights called for an eight-hour workday and
try walked off the job. The strike eventually involved a government bureau of labor statistics. They also
80,000 railroad workers in 11 states and affected two- supported equal pay for women, the abolition of
thirds of the nation’s railways. Angry strikers child labor, and the creation of worker-owned facto-
smashed equipment, tore up tracks, and blocked rail ries. The Knights’ leaders initially opposed the use
service in New York, Baltimore, Pittsburgh, St. Louis, of strikes, preferring to use boycotts to pressure
Working Women
Throughout the 1800s, most wage-earning work-
ers in the United States were men. After the Civil
War, the number of women wage earners began to
increase. By 1900 women made up more than 18 per-
cent of the labor force.
The type of jobs women did outside the home in
the late 1800s and early 1900s reflected society’s ideas
History
about what constituted “women’s work.” Roughly
one-third of women worked as domestic servants. Detail Work These women worked in the National Elgin Watch
Another third worked as teachers, nurses, sales Company’s gilding room, where they gilded metal watches with thin layers
clerks, and secretaries. The remaining third were of gold. What do you notice about their working conditions?
industrial workers, but they were employed in light
industrial jobs that people believed appropriate to of Jane Addams and Lillian Wald—the founders of
their gender. Many worked in the garment industry the settlement house movement—they established
and food processing plants. the Women’s Trade Union League (WTUL), the first
Regardless of their employment, women were national association dedicated to promoting
paid less than men even when they performed the women’s labor issues. The WTUL pushed for an
same jobs. It was assumed that a woman had a man eight-hour day, the creation of a minimum wage, an
helping to support her, either her father or her hus- end to evening work for women, and the abolition of
band, and that a man needed higher wages to sup- child labor. The WTUL also collected funds to sup-
port a family. For this reason, most unions, including port women on strike.
the AFL, excluded women.
In 1903 two woman labor organizers, Mary Reading Check Comparing How were female
Kenney O’Sullivan and Leonora O’Reilly, decided to industrial workers treated differently than male workers in the
establish a separate union for women. With the help late 1800s?
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Critical Thinking
30. Analyzing Themes: Individual Action List the names and
actions of five people who contributed to American eco-
nomic growth in the late 1800s.
31. Organizing Use a graphic organizer similar to the one
Factors Behind Industrialization below to list the factors that led to making the United States
• Abundant natural resources an industrial nation.
• Cheap immigrant labor force
• High tariffs that reduced foreign goods
• National communication and transportation networks
Factors Leading
to Industrialization
Growth of Business
• Little or no government intervention
• Development of pools, trusts, holding companies,
and monopolies
• Small businesses could not compete with 32. Interpreting Primary Sources Americans like Ida Tarbell
economies–of–scale of large businesses criticized large corporations such as the Standard Oil
• Practices of some big businesses sometimes limited Company. In the following excerpt from History of the
competition Standard Oil Company, she warns of the results of
Rockefeller’s business practices on the nation’s morality.
Read the excerpt and answer the questions that follow:
Changing Workplace
• Rural migration and immigration created large,
“ Very often people who admit the facts, who are will-
ing to see that Mr. Rockefeller has employed force and
concentrated workforce fraud to secure his ends, justify him by declaring, ‘It’s
• In large–scale industries, low wages, long hours, and business.’ That is, ‘It’s business’ has come to be a legiti-
dangerous working conditions were common
mate excuse for hard dealing, sly tricks, special privileges.
• First large unions formed but had little bargaining
It is a common enough thing to hear men arguing that
power against large companies
the ordinary laws of morality do not apply in business.
HISTORY
Steel Production, 1865–1900
Self-Check Quiz
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Chapter 9 to assess your knowledge of chapter content.
10
9
As for the ethical side, there is no cure but in an
8
Millions of Tons
increasing scorn of unfair play. . . . When the business-
7
man who fights to secure special privileges, to crowd his
6
competitor off the track by other than fair competitive
5
methods, receives the same summary disdainful
4
ostracism by his fellows that the doctor or lawyer who is
‘unprofessional,’ the athlete who abuses the rules, 3