HIST 106 1st Edition Lecture 4 Outline of Last Lecture 1 Redemption Opposition to Reconstruction in the South Strong Southern Dislike of Reconstruction Governments Terrorism to Recreate Reinforce White Supremacy Establishment of a New Race and Class Based Labor System Sharecropping 2 Retreat Northern Retreat from Reconstruction Depression of 1873 3 Economic Issues Take Precedence Pessimism over the South s Ability to Reconstruct to Treat African Americans Equally 4 Fate of Southern Reconstruction Governments the Mississippi Plan Presidential Election of 1876 and the Compromise of 1877 Outline of Current Lecture The Great Railroad Strike of 1877 The Second Industrial Revolution America s Growth The Expansion of the Railroads Cornelius Vanderbilt and the railroads Andrew Carnegie and Vertical Integration John D Rockefeller and Horizontal Integration Gilded Age Ideas of Wealth Survival of the Fittest Laissez faire Capitalism Conspicuous Consumption Labor in the Gilded Age Changes between Employers and Employees Knights of Labor Haymarket Square Bombing American Federation of Labor Current Lecture 1 The Great Railroad Strike of 1877 a Workers salaries slashed i 1873 70 a month ii 1877 30 a month b Prices only declined a small amount c This led to homelessness depression suicide etc d Announced that in summer additional wage deductions would happen i Workers all over walk of ii First national labor strike 1 Wildcat Strikes a Unplanned b Not led or initiated by unions 2 Matinsberg WV a Workers disconnect all the engines b Said couldn t provide family with basic necessities of life c Marked beginning of period of labor unionization 3 Spreads to other cities a Women join 4 Where trains continued crowds stopped them burning bridges pulling up rails a Seize the food on the trains for families b Militia exchanges fire i People walk of other jobs out of sympathy e South Reconstruction forgotten i Many that complained about having federal troops stationed called for them again 1 President responds and sends 2 Militia fires into crowd killing 20 f Marked beginning of repression of organized labor by businessmen and federal government 2 The Second Industrial Revolution i Expansion of RR ii New Technology iii Expansion of Large industry iv Survival of the fittest mentality and Laissez faire Capitalism b America s Growth i Population doubles in 35 years 1 1865 1900 ii Annual production of goods grows 1 2 billion dollars to 13 billion iii Moves from Ag to Industrial economy iv 1890s US passes Britain in terms of production c The Expansion of the Railroads i First major American corporations ii Provided models for other industries iii Helped other industries grow faster iv 1830 only 23 miles of RR 1 After Civil War great demand for transcontinental a Wanted to link N S E W together b Federal Government gets involved and gives large amount of money i Largest contribution in history v Union Pacific West from Omaha Nebraska 1 Irish and Blacks vi Central Pacific East from Cali 1 Chinese vii 1869 Companies meet in Utah 1 Golden spike inserted to mark completion of transcontinental RR viii Smaller RR branch and link up towns and cities across nation 1 Now have 30k miles of tracks 2 By 1900 200k miles ix Necessary to growth of manufacturing business 1 Allowed for movement of raw materials 2 Labor to factories 3 Goods to consumers x Created National Market xi Means of communication 1 Telegraph lines along lines xii Permanent settlement of Great Plains d Cornelius Vanderbilt and the railroads i Buys up existing railroads to expand his kingdom ii Worth 100 million dollars iii Wanted everyone to know wealth iv Built first home on millionaires row 1 Had other vacation homes v Still gave away his money but to his descendents 1 Grandson builds Biltmore House e Andrew Carnegie and Vertical Integration i Controlled line share of steel trading ii Little former schooling iii Worked way up economic ladder iv Age 38 builds world s largest steel mill v Owned entire process of producing steel 1 Stronger and more flexible than iron 2 Employed 20 million 3 Largest industrial corporation 4 1 3 of all steel 5 1901 JP Morgan buys Carnegie out f John D Rockefeller and Horizontal Integration i Oil 1 Single product gained control of entire market by forcing out competitors 2 Took control of 22 of 26 in Cleveland a Monopoly 3 Under pricing a Lower than competition prices until he ran them out of business or bought them out b Then raise own prices 4 Pooling a Create agreements to set production quotas b Anyone outside of this group got shut down 5 Trusts a Corporation would hold stock of smaller companies and keep control through board of trustees 6 Richest man in world 3 Gilded Age Ideas of Wealth a Survival of the Fittest i Those strongest would naturally succeed ii Free market allowed people who made money deserved it and vice versa iii Those who did not rise only had themselves to blame 1 Carnegie opposes inheriting wealth i Gospel Wealth Those that made it should not pass it down ii After Morgan buys out he gives a lot of money to improvement of mankind iii Fond of Man who dies rich dies disgraced b Hated Charity i Put money to use helping others help themselves ii Established over 2500 public libraries iii Gave money to museums and concert halls iv University 2 Rockefeller a feels diferent i Still donated much to charity ii Depended on Baptist church for guidance iii University of Chicago iv Rockefeller Foundation iv Standard of living rises v Gap between rich and poor widens vi 1 of Corporation controls 33 of production vii 500 families control all of national wealth 1 Most do not donate 2 Formed civic groups together 3 Sent kids to University 4 Kept hierarchy going b Laissez faire Capitalism i Little to no government interference c Conspicuous Consumption i Making wealth obvious ii Upper class restaurant had huge windows and mirrors iii On New Year s Day would open curtains so people could see expensive furniture 4 Labor in the Gilded Age i Name comes from Twain novel ii thin layer covered bad underneath iii Extremely wealthy is cover to other problems in America b Tenement Living i Spreads across cities c Changes between Employers and Employees i Many people are working for large companies ii Workers treated badly iii Lead stern and ruthless iv Machines start to replace people v More people working for more money vi Few doing own business or in small business 1 2 3 working for others vii Few protections viii Someone