th AP United States History - Terms and People – Unit 9, Chapter 24 (12 Ed.) HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work. Industry Comes of Age: 1865 – 1900 Before studying Chapter 24, read over these “Themes”: Theme: America accomplished heavy industrialization in the post-Civil War era. Spurred by the transcontinental rail network, business grew and consolidated into giant corporate trusts, as epitomized by the oil and steel industries. Theme: Industrialization radically transformed the practices of labor and the condition of American working people. But despite frequent industrial strife and the efforts of various reformers and unions, workers failed to develop effective labor organizations to match the corporate forms of business. Theme: With the concentration of capital in the hands of a few, new moralities arose to advance justifications for this social and economic phenomenon. A survival of the fittest theory emerged, a popular theory based on the thought of Herbert Spencer and William Graham Sumner, which argued that millionaires were products of natural selection. Another theory known as the Gospel of Wealth argued that society’s well-to-do people had to prove themselves morally responsible. After studying Chapter 24 in your textbook, you should be able to: 1. Explain how the transcontinental railroad network provided the basis for the great post-Civil War industrial transformation. 2. Identify the abuses in the railroad industry and discuss how these led to the first efforts at industrial regulation by the federal government. 3. Describe how the economy came to be dominated by giant “trusts,” such as those headed by Carnegie and Rockefeller in the steel and oil industry. 4. Discuss the growing class conflict caused by industrial growth and combination, and the early efforts to alleviate it. 5. Explain why the South was generally excluded from industrial development and fell into a “third world” economic dependency. 6. Analyze the social changes brought by industrialization, particularly the altered position of working men and women. 7. Explain the failures of the Knights of Labor and the modest success of the American Federation of Labor. Know the following people and terms. Consider the historical significance of each term or person. Also note the dates of the event if that is pertinent. A. People Leland Stanford Collis P. Huntington James J. Hill Cornelius Vanderbilt Jay Gould +Alexander Graham Bell +Thomas Edison William Graham Sumner +Andrew Carnegie +John D. Rockefeller +J. P. Morgan Terence V. Powderly John P. Altgeld +Samuel Gompers B. Terms: land grant stock watering *Act establishing Yellowstone National Park (1872) *Patent application for the light bulb th AP United States History - Terms and People – Unit 9, Chapter 24 (12 Ed.) HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work. pool rebate vertical integration horizontal integration trust interlocking directorate capital goods plutocracy injunction Union Pacific Railroad Central Pacific Railroad Great Northern *Interstate Commerce Act / Commission (see page 7) *Sherman Anti-Trust Act Grange Wabash case Bessemer process United States Steel “Gospel of Wealth” social Darwinism New South yellow dog contract lock out National Labor Union Haymarket Square / Haymarket riot Knights of Labor American Federation of Labor +=One of the 100 Most Influential Americans of All Time, as ranked by The Atlantic. Go to Webpage to see all 100. *=A 100 Milestone Document from the National Archive. Go to Webpage to link to these documents. C. Sample Essays: Using what you have previously learned and what you read in Chapter 24, you should be able to answer an essay such as this one: What was the impact of the transcontinental rail system on the American economy and society in the late nineteenth century? D. Did you ever wonder…? Why were time zones developed in the United States? (see page 3) E. Voices from the past: “Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.” Industrialist Andrew Carnegie, in his essay “Wealth,” published in North American Review in 1889. Carnegie argued that individual capitalists were duty bound to play a broader cultural and social role and thus improve the world. Carnegie’s essay later became famous under the title “The Gospel of Wealth.” th AP United States History - Terms and People – Unit 9, Chapter 24 (12 Ed.) HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work. US Time Zones The Earth is divided into 24 time zones so that everyone in the world can be on roughly similar schedules (i.e., noon being when the sun is highest in the sky). Time zones were first used in 1883 by railroads in order to standardize their schedules. The contiguous US is divided into four time zones. Most US states (except Hawaii and most of Indiana and Arizona) go on daylight saving time (DST) from April until October to save energy (in DST, clocks are set forward one hour). Note: the Alaska and Hawaii Time zones are not pictured on the map above. 1. Label each of the US Time Zones on the blank line in each zone on the map. 2. What Time Zone is Pennsylvania in? ______________________ 3. How many hours difference is it between Pennsylvania and California? ___________ 4. If it is 3 PM in New York, it is _____________ in Oregon. 5. If it is 2 PM in Nevada, it is ______________ in Missouri. F. What was the Populist Party? What did they stand for? Read their 1892 party platform to find out th AP United States History - Terms and People – Unit 9, Chapter 24 (12 Ed.) HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work. People's (Populist) Party Platform of 1892 BACKGROUND: The People's party, more commonly known as the Populist party, was organized in St. Louis in 1892 to represent the common folk—especially farmers—against the entrenched interests of railroads, bankers, processors, corporations, and the politicians in league with such interests. Farmers as a group did not share in the general prosperity of the latter nineteenth century, and believed that they had been marked out as special victims of the new industrial system. Beginning in the 1870s, they attempted in a number of ways to mount an effective political campaign to rectify what they saw as the corruption of government and economic power, which they attributed to big businesses and railroads. In fact, much of the farmers' plight was due to factors unrelated to industrialization, such as fluctuations in international markets for corn and wheat. But perceptions are often more important than reality, and American farmers believed that the democratic system of their forebears was being subverted. The most successful of the agrarian political movements was the People's Party, or the Populist Party, which after the 1892 presidential campaign appeared to have the strength to become a potent force in American politics. Its strength lay primarily in the southern and Midwestern states, the agricultural heartland of the nation, although its leaders tried to reach out and attract eastern workers. Assembled upon the 116th anniversary of the Declaration of Independence, the People's Party of America, in their first national convention, invoking upon their action the blessing of Almighty God, put forth in the name and on behalf of the people of this country, the following preamble and declaration of principles: Preamble The conditions which surround us best justify our cooperation; we meet in the midst of a nation brought to the verge of moral, political, and material ruin. Corruption dominates the ballot-box, the Legislatures, the Congress, and touches even the ermine of the bench. The people are demoralized; most of the States have been compelled to isolate the voters at the polling places to prevent universal intimidation and bribery. The newspapers are largely subsidized or muzzled, public opinion silenced, business prostrated, homes covered with mortgages, labor impoverished, and the land concentrating in the hands of capitalists. The urban workmen are denied the right to organize for self-protection, imported pauperized labor beats down their wages, a hireling standing army, unrecognized by our laws, is established to shoot them down, and they are rapidly degenerating into European conditions. The fruits of the toil of millions are badly stolen to build up colossal fortunes for a few, unprecedented in the history of mankind; and the possessors of these, in turn, despise the Republic and endanger liberty. From the same prolific womb of governmental injustice we breed the two great classes—tramps and millionaires. The national power to create money is appropriated to enrich bond-holders; a vast public debt payable in legal-tender currency has been funded into gold-bearing bonds, thereby adding millions to the burdens of the people. Silver, which has been accepted as coin since the dawn of history, has been demonetized to add to the purchasing power of gold by decreasing the value of all forms of property as well as human labor, and the supply of currency is purposely abridged to fatten usurers, bankrupt enterprise, and enslave industry. A vast conspiracy against mankind has been organized on two continents, and it is rapidly taking possession of the world. If not met and overthrown at once it forebodes terrible social convulsions, the destruction of civilization, or the establishment of an absolute despotism. We have witnessed for more than a quarter of a century the struggles of the two great political parties for power and plunder, while grievous wrongs have been inflicted upon the suffering people. We charge that the controlling influences dominating both these parties have permitted the existing dreadful conditions to develop without serious effort to prevent or restrain them. Neither do they now promise us any substantial reform. They have agreed together to ignore, in the coming campaign, ever issue but one. They propose to drown the outcries of a plundered people with the uproar of a sham battle over the tariff, so that capitalists, corporations, national banks, rings, trusts, watered stock, the demonetization of silver and the oppressions of the usurers may all be lost sight of. They propose to sacrifice our homes, lives, and children on the altar of mammon; to destroy the multitude in order to secure corruption funds from the millionaires. Assembled on the anniversary of the birthday of the nation, and filled with the spirit of the grand general and chief who established our independence, we seek to restore the government of the th AP United States History - Terms and People – Unit 9, Chapter 24 (12 Ed.) HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work. Republic to the hands of the ''plain people,'' with which class it originated. We assert our purposes to be identical with the purposes of the National Constitution; to form a more perfect union and establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty for ourselves and our posterity. . . . Our country finds itself confronted by conditions for which there is not precedent in the history of the world; our annual agricultural productions amount to billions of dollars in value, which must, within a few weeks or months, be exchanged for billions of dollars' worth of commodities consumed in their production; the existing currency supply is wholly inadequate to make this exchange; the results are falling prices, the formation of combines and rings, the impoverishment of the producing class. We pledge ourselves that if given power we will labor to correct these evils by wise and reasonable legislation, in accordance with the terms of our platform. We believe that the power of government—in other words, of the people—should be expanded (as in the case of the postal service) as rapidly and as far as the good sense of an intelligent people and the teaching of experience shall justify, to the end that oppression, injustice, and poverty shall eventually cease in the land. . Platform We declare, therefore— First.—That the union of the labor forces of the United States this day consummated shall be permanent and perpetual; may its spirit enter into all hearts for the salvation of the republic and the uplifting of mankind. Second.—Wealth belongs to him who creates it, and every dollar taken from industry without an equivalent is robbery. ''If any will not work, neither shall he eat.'' The interests of rural and civil labor are the same; their enemies are identical. Third.—We believe that the time has come when the railroad corporations will either own the people or the people must own the railroads; and should the government enter upon the work of owning and managing all railroads, we should favor an amendment to the constitution by which all persons engaged in the government service shall be placed under a civil-service regulation of the most rigid character, so as to prevent the increase of the power of the national administration by the use of such additional government employees. FINANCE.—We demand a national currency, safe, sound, and flexible issued by the general government only, a full legal tender for all debts, public and private, and that without the use of banking corporations; a just, equitable, and efficient means of distribution direct to the people, at a tax not to exceed 2 per cent, per annum, to be provided as set forth in the sub-treasury plan of the Farmers' Alliance, or a better system; also by payments in discharge of its obligations for public improvements. 1. We demand free and unlimited coinage of silver and gold at the present legal ratio of 16 to 1. 2. We demand that the amount of circulating medium be speedily increased to not less than $50 per capita. 3. We demand a graduated income tax. 4. We believe that the money of the country should be kept as much as possible in the hands of the people, and hence we demand that all State and national revenues shall be limited to the necessary expenses of the government, economically and honestly administered. We demand that postal savings banks be established by the government for the safe deposit of the earnings of the people and to facilitate exchange. TRANSPORTATION.—Transportation being a means of exchange and a public necessity, the government should own and operate the railroads in the interest of the people. The telegraph and telephone, like the post-office system, being a necessity for the transmission of news, should be owned and operated by the government in the interest of the people. LAND.—The land, including all the natural sources of wealth, is the heritage of the people, and should not be monopolized for speculative purposes, and alien ownership of land should be prohibited. All land now held by railroads and other corporations in excess of their actual needs, and all lands now owned by aliens should be reclaimed by the government and held for actual settlers only. th AP United States History - Terms and People – Unit 9, Chapter 24 (12 Ed.) HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work. Expressions of Sentiments Your Committee on Platform and Resolutions beg leave unanimously to report the following: Whereas, Other questions have been presented for our consideration, we hereby submit the following, not as a part of the Platform of the People's Party, but as resolutions expressive of the sentiment of this Convention. 1. RESOLVED, That we demand a free ballot and a fair count in all elections and pledge ourselves to secure it to every legal voter without Federal Intervention, through the adoption by the States of the unperverted Australian or secret ballot system. 2. RESOLVED, That the revenue derived from a graduated income tax should be applied to the reduction of the burden of taxation now levied upon the domestic industries of this country. 3. RESOLVED, That we pledge our support to fair and liberal pensions to ex-Union soldiers and sailors. 4. RESOLVED, That we condemn the fallacy of protecting American labor under the present system, which opens our ports to the pauper and criminal classes of the world and crowds out our wage-earners; and we denounce the present ineffective laws against contract labor, and demand the further restriction of undesirable emigration. 5. RESOLVED, That we cordially sympathize with the efforts of organized workingmen to shorten the hours of labor, and demand a rigid enforcement of the existing eight-hour law on Government work, and ask that a penalty clause be added to the said law. 6. RESOLVED, That we regard the maintenance of a large standing army of mercenaries, known as the Pinkerton system, as a menace to our liberties, and we demand its abolition. . . . 7. RESOLVED, That we commend to the favorable consideration of the people and the reform press the legislative system known as the initiative and referendum. 8. RESOLVED, That we favor a constitutional provision limiting the office of President and Vice- President to one term, and providing for the election of Senators of the United States by a direct vote of the people. 9. RESOLVED, That we oppose any subsidy or national aid to any private corporation for any purpose. 10. RESOLVED, That this convention sympathizes with the Knights of Labor and their righteous contest with the tyrannical combine of clothing manufacturers of Rochester, and declare it to be a duty of all who hate tyranny and oppression to refuse to purchase the goods made by the said manufacturers, or to patronize any merchants who sell such goods. G. What industry did the Populists go after first? Why? Did this battle continue long? Read on th AP United States History - Terms and People – Unit 9, Chapter 24 (12 Ed.) HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work. The Rise, and Fall, of Railroad Regulation In 1887, Congress passed the Interstate Commerce Act, making the railroads the first industry subject to federal regulation. Legislators designed the law, which established a five-member enforcement board known as the Interstate Commerce Commission, largely in response to public demand that the railroads' conduct should be constrained. In the years following the Civil War, railroads were privately owned and entirely unregulated. Though each company held a natural monopoly as long as it serviced its own destinations, the railroads became fiercely competitive once they started expanding into each other's markets. They were regarded with distrust by much of the public, who charged them with anything from forming monopolies and wielding corrupt political influence to stock manipulations and rate discriminations. None of the accusations were unfounded. The first attempt to regulate the railroad industry's practices came in 1871, at the state level. Illinois passed regulatory legislation first, and states across the South and Midwest quickly followed suit. The states, however, were powerless to regulate interstate commerce (Wabash v. Illinois, (1886)), and the railroads were expanding their operations across more state borders all the time. The Interstate Commerce Act sought to address the problem by setting guidelines for how the railroads could do business. However, the task of establishing specific measures was complex, and regulators lacked a clear mission. The law sought to prevent monopoly by promoting competition, and also to outlaw discriminatory rate-setting. Its most successful provisions were a requirement that railroads submit annual reports to the ICC, and a ban on special rates the railroads would arrange among themselves. Determining which rates were discriminatory proved to be technically and politically difficult, though, and in practice the law was not highly effective. The Hepburn Act of 1906 and the Mann-Elkins Act of 1910 strengthened the Interstate Commerce Commission, stating the government's regulatory power more definitively. The Hepburn Act empowered the ICC to change a railroad rate to one it considered "just and reasonable," after a full hearing of a complaint. The Mann-Elkins Act placed the burden of proof on the railroads; for the first time, they would have to actively demonstrate that a rate was reasonable. With these new powers, the ICC gained almost complete control over rail rates, and therefore much of rail competition. In the following years, the government continued to strip the railroads of their power. One important piece of legislation, the Adamson Act of 1916, enacted an eight-hour workday for railroad workers. Government control culminated when President Woodrow Wilson seized American railroads in 1918; the once-private industry would now be a tool of the federal government in the war effort. Wilson promised to return the railroads to private ownership after a peace treaty was signed. The Esch-Cummins Transportation Act of 1920, which returned the railroads to private hands, advocated a sharp reversal on past policies. The federal government, which had once been ardently anti-monopoly, now encouraged mergers, provided the mergers paired strong lines with weak ones. The ICC, in fact, dictated the merger combinations. In addition, Esch-Cummins empowered the ICC to fix minimum rates and dictate extensions and abandonments of routes. The railroad industry, which had long sought to eliminate unprofitable routes, was now saddled with them. th AP United States History - Terms and People – Unit 9, Chapter 24 (12 Ed.) HONOR PLEDGE: I strive to uphold the vision of the North Penn School District, which is to inspire each student to reach his or her highest potential and become a responsible citizen. Therefore, on my honor, I pledge that I have neither given nor received unauthorized assistance on this work. As devastating as the new legislation was, the railroads had a still greater enemy: increased competition from cars, buses, and trucks on an ever-growing network of roads. Passengers were electing more and more to travel by car or bus; freight shippers were increasingly choosing trucks for short- or long-haul jobs. Trucks, buses and cars could take flexible travel routes from point to point; railroads could not. For 20 years the railroads' situation worsened. Although they were losing business to competing modes of transportation, they were still considered a threat. The Transportation Act of 1940 amended the Interstate Commerce Act to extend its reach to the other industries, but the fact remained that while regulations were not relaxed on railroads, private cars, trucks, and 90 percent of inland water carriers were exempt from government control. It wasn't until 1958 that the government reversed its policy. Railroads, it was determined, no longer posed a monopoly threat; regulations could be loosened. By this time trucks had usurped much of the railroads' high-value freight traffic, and airplanes had taken the lion's share of long-haul passenger business, as well as the lucrative contract to carry the U. S. mail. By the 1970s and 1980s, railroads were enjoying freedom they hadn't known since the Gilded Age of the 1870s. Unfortunately, business did not keep pace. In 1971, the government formed Amtrak, a federally-supported corporation, to operate intercity passenger train service. In 1980 the Staggers Act furthered railroad deregulation, but by then, many railroads were operating under greatly reduced circumstances, if they were operating at all. By 1995, the Interstate Commerce Commission had lost most of its mandate. With deregulation complete, the ICC could no longer set rates, and the commission was dissolved in the ICC Sunset Act. The Surface Transportation Board, under the auspices of the U. S. Department of Transportation, now performs the few regulatory tasks that had remained with the ICC.
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