AP FOCUS What were three factors in bringing on the age of industry that transformed modern America in the late 19 th and early 20 th centuries?

AP FOCUS

What were three factors in bringing on the age of industry that transformed modern America in the late 19th and early 20th centuries?

The New American Economy

The New American Economy

The Second Industrial Revolution was fueled

by 3 industries: railroads, steel, & oil

Industrialism

1865-1900

I. Major Ideas

Invention and Innovation in the Industrial Age

Accelerated technological innovation, emphasizing new inventions and applied science.

In the first decade of the US Patent Office (1790-1800) 276 new inventions were patented, From 1890 to 1900 235, 000 new devices were patented. 

I. Major Ideas

II. Railroad Building

1st transcontinentaltranscontinental railroad connected the west coast to eastern cities in 1869

Chinese workers made up a large percentage of laborers

on the western leg

Irish workers made up a large percentage of laborers on the eastern section

Rails Across the ContinentIn 1862, Congress authorized the

transcontinental railroad:–Union Pacific worked westward

from Nebraska (Irish laborers)–Central Pacific worked eastward

from CA (Chinese immigrants)–May 10, 1869 the 2 tracks met

at Promontory Point in UtahBy 1900, 4 more lines were built

to the Pacific

Other Transcontinental LinesNorthern Pacific Railroad 1883

Federal Land Grants to Railroads by 1871The national gov’t doled $65 million &

millions of acres in land grants (received reduced rates for shipping)

Railroad Construction, 1830-1920

Railroad Consolidation and Mechanization

In 1870, RR companies developed the 1st time zones to better schedule the RR system; the US

would not adopt time zones until 1918

“Pullman cars” & “refrigeration cars”

Significance of America’s RR Networks

1) Spurred Industrialization2) United Nation (physically)3) created huge domestic

markets for raw mat. & man. Goods

4) Stimulated 3 west. Frontiers (mining, ag., and ranching)

5) RR led to cityward movement of late 19th cent.

Significance of America’s RR Networks

6) Facilitated large influx of immigrants

7) spurred investment from abroad

8) time zones9) maker of millionaires, new rr

aristocracy emerged10) N.A. displaced and herded

into reservations

Railroad Corruption by Robber Barons

Wrong Doing in Railroading Railroads were not

without corruption, as shown by the Credit Mobilier scandal.

Jay Gould made millions embezzling stocks from the Erie, Kansas Pacific, the Union Pacific, and the Texas and Pacific railroadcompanies.

One method of cheap moneymaking was called “stock watering,” in which railroad companies grossly over-inflated the worth of their stock and sold them at huge profits.

Financier Jay Gould

The Railroad Industry America’s first “big business” was

the railroad industry:–Railroads stimulated the coal,

petroleum, & iron/steel industries–Large companies bought small

railroads, standardized gauges & schedules, & pooled cars

–Small lines in the east acted as tributaries to the 4 great trunk trunk lineslines into the West

Cornelius “the Commodore”

Vanderbilt was the most powerful figure in

the railroad industry

William VanderbiltWilliam Vanderbilt

$ The public be damned!- William

$ What do I care about the law? H’aint I got the power?- Cornelius

$ The public be damned!- William

$ What do I care about the law? H’aint I got the power?- Cornelius

Government Regulation of Robber Baron RR Tycoons

Supreme Court Precedence: Slaughterhouse Cases, 1873

Gov’t Regulation of Industry ■ From 1870 to 1900, 28 state

commissions were created to regulate industry, especially RRs:– In 1870, Illinois declared RRs to

be public highways; this was upheld by Munn v. Illinois Munn v. Illinois (1876)

–But, was overturned in Wabash Wabash v. Illinoisv. Illinois (1886): “only Congress can regulate interstate trade”

Tariffs & Trusts

■ Congress responded by creating:–The Interstate Commerce Interstate Commerce

CommissionCommission (ICC) in 1887 to regulate the railroad industry

The ICC became the model for future

regulatory agencies

This was the 1st attempt by the federal gov’t to regulate big business

The Interstate Commerce Act