HIST 106 1st Edition Lecture 4Outline 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: Sharecropping2. Retreat: Northern Retreat from Reconstruction• Depression of 18733. Economic Issues Take Precedence• Pessimism over the South’s Ability to “Reconstruct” & to Treat African Americans Equally4. Fate of Southern Reconstruction Governments & the “Mississippi Plan”• Presidential Election of 1876 and the Compromise of 1877Outline 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 LaborCurrent Lecture1. The Great Railroad Strike of 1877a. Workers salaries slashedi. 1873- $70 a monthii. 1877- $30 a monthb. Prices only declined a small amountc. This led to homelessness, depression, suicide, etcd. Announced that in summer additional wage deductions would happeni. Workers all over walk ofii. First national labor strike1. Wildcat Strikesa. Unplannedb. Not led or initiated by unions2. Matinsberg, WVa. Workers disconnect all the enginesb. Said couldn’t provide family with basic necessities of lifec. Marked beginning of period of labor unionization3. Spreads to other citiesa. Women join4. Where trains continued, crowds stopped them (burning bridges, pulling up rails)a. Seize the food on the trains for familiesb. Militia exchanges firei. People walk of other jobs out of sympathye. South Reconstruction forgotteni. Many that complained about having federal troops stationed, called for them again1. President responds and sends2. Militia fires into crowd killing 20f. Marked beginning of repression of organized labor by businessmen and federal government2. The Second Industrial Revolutioni. Expansion of RRii. New Technologyiii. Expansion of Large industryiv. Survival of the fittest mentality and Laissez-faire Capitalismb. America’s Growthi. Population doubles in 35 years1. 1865-1900ii. Annual production of goods grows1. 2 billion dollars to 13 billioniii. Moves from Ag to Industrial economyiv. 1890s US passes Britain in terms of productionc. The Expansion of the Railroadsi. First major American corporationsii. Provided models for other industriesiii. Helped other industries grow fasteriv. 1830 only 23 miles of RR1. After Civil War, great demand for transcontinentala. Wanted to link N,S,E,W togetherb. Federal Government gets involved and gives large amount of moneyi. Largest contribution in historyv. Union Pacific- West from Omaha, Nebraska1. Irish and Blacksvi. Central Pacific- East from Cali1. Chinesevii. 1869- Companies meet in Utah1. Golden spike inserted to mark completion of transcontinental RRviii. Smaller RR branch and link up towns and cities across nation1. Now have 30k miles of tracks2. By 1900- 200k milesix. Necessary to growth of manufacturing business1. Allowed for movement of raw materials2. Labor to factories3. Goods to consumersx. Created National Marketxi. Means of communication1. Telegraph lines along linesxii. Permanent settlement of Great Plainsd. Cornelius Vanderbilt and the railroadsi. Buys up existing railroads to expand his kingdomii. Worth 100 million dollarsiii. Wanted everyone to know wealthiv. Built first home on “millionaires row”1. Had other vacation homesv. Still gave away his money, but to his descendents1. Grandson builds Biltmore Housee. Andrew Carnegie and Vertical Integrationi. Controlled line share of steel tradingii. Little former schoolingiii. Worked way up economic ladderiv. Age 38, builds world’s largest steel millv. Owned entire process of producing steel1. Stronger and more flexible than iron2. Employed 20 million3. Largest industrial corporation4. 1/3 of all steel5. 1901- JP Morgan buys Carnegie outf. John D. Rockefeller and Horizontal Integrationi. Oil1. Single product gained control of entire market by forcing out competitors 2. Took control of 22 of 26 in Clevelanda. Monopoly3. Under pricinga. Lower than competition prices until he ran them out of business or bought them outb. Then raise own prices4. Poolinga. Create agreements to set production quotasb. Anyone outside of this group got shut down5. Trustsa. Corporation would hold stock of smaller companies and keep control through board of trustees6. Richest man in world3. Gilded Age Ideas of Wealtha. Survival of the Fittesti. Those strongest would naturally succeedii. Free market allowed people who made money, deserved it and vice versaiii. Those who did not rise, only had themselves to blame1. Carnegie opposes inheriting wealthi. Gospel Wealth- Those that made it, should not passit downii. After Morgan buys out, he gives a lot of money to “improvement” of mankindiii. Fond of “Man who dies rich, dies disgraced”b. Hated Charityi. Put money to use helping others help themselvesii. Established over 2500 public librariesiii. Gave money to museums and concert hallsiv. University2. Rockefeller a. feels diferenti. Still donated much to charityii. Depended on Baptist church for guidanceiii. University of Chicagoiv. Rockefeller Foundationiv. Standard of living risesv. Gap between rich and poor widensvi. 1% of Corporation controls 33% of productionvii. 500 families control all of national wealth1. Most do not donate 2. Formed civic groups together3. Sent kids to University4. Kept hierarchy goingb. Laissez-faire Capitalismi. Little to no government interferencec. Conspicuous Consumptioni. Making wealth obviousii. Upper class restaurant had huge windows and mirrorsiii. On New Year’s Day, would open curtains so people could see expensive furniture4. Labor in the Gilded Agei. Name comes from Twain novelii. “thin layer covered bad underneath”iii. Extremely wealthy is cover to other problems in Americab. Tenement Livingi. Spreads across citiesc. Changes between Employers and Employeesi. Many people are working for large companiesii. Workers treated badlyiii. Lead stern and ruthlessiv. Machines start to