Chapter 17: The Rise of Industrial America 1865-1900 Flashcards Preview

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Flashcards in Chapter 17: The Rise of Industrial America 1865-1900 Deck (39)
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Trunk Lines

The major route between large cities; smaller branch lines connected the trunk lines with outlying towns
~Vanderbilt ("Commodore" Cornelius Vanderbilt) used his millions to merge local railroads to the New York Central Railroad


Crédit Mobilier

Insiders gave stock to influential members of Congress to avoid investigation of the profits they were making from government subsidies for building the transcontinental railroad
~As high as 348%


Union Pacific

Railroad company chartered to build the eastern half of the transcontinental railroad
~Was to build westward across the Great Plains starting from Omaha, Nebraska


Central Pacific

Railroad company chartered to build the western half of the transcontinental railroad
~Took on the formidable challenge of laying track across mountain passes in the Sierra Nevadas by pushing eastward from Sacramento, California


Southern Pacific

Another transcontinental railroad constructed across the West
~Tied New Orleans to Los Angeles


Northern Pacific

Another transcontinental railroad constructed along the West
~Connected Duluth, Minnesota with Seattle, Washington


Jay Gould

A speculator who went into the railroad business for quick profits and made millions by selling off assets and watering stock


Watering Stock

Inflating the value of a corporation's assets and profits before selling its stock to the public



An attempt by railroaders to increase their profits
~Competing companies agreed secretly and informally to fix rates and share traffic


JP Morgan

Banker who moved in to take control of the (now) bankrupt railroads and consolidated them
~With competition eliminated they could stabilize rates and reduce debts
~Created regional railroad monopolies


William Vanderbilt

Inherited his father's (Cornelius Vanderbilt) transportation empire


Henry Bessemer/William Kelly

Discovered that blasting air through molten iron produced high-quality steel
~Able to produce large quantities of steel


Andrew Carnegie

A shrewd business genius who gained leadership of the fast-growing steel industry
~Began manufacturing steel in Pittsburgh and soon outdistanced his competitors by a combination of salesmanship and use of the latest technology
~Employed a business strategy known as vertical integration
~Carnegie Steel climbed to the top of the steel industry


Vertical Integration

A company would control every stage of the industrial process: from mining raw materials to transporting the finished product


U.S. Steel

The first billion dollar company and the largest enterprise in the world
~Controlled over 3/5 of the nation's steel business


John D. Rockefeller

Founded a company that would come to control most of the nation's oil refineries by eliminating its competition
~Applied latest technologies and efficient practices
~His company Standard Oil Trust controlled 90% of the oil refinery industry


Standard Oil

Rockefeller's oil refinery company who owned the monopoly on oil refineries
~Able to keep prices low for their consumers due to the monopoly



Consists of the various companies acquired all managed by a board of trustees the main company controlled


Horizontal Integration

Where former competitors were brought under a single corporate umbrella


Sherman Anti-Trust Act (1890)

Prohibited any "contract, combination, in the form of trust or otherwise, or conspiracy in restraint of trade or commerce"
~Unable to stop the development of trusts


United States v. E.C. Knight & Co. (1895)

Court ruled that the Sherman Anti-Trust Act could not be applied only to commerce, not manufacturing
~The U.S. Department of Justice secured few convictions until the law was strengthened in the Progressive Era



If a government kept its hands off the economy, businesses would be motivated by their own self-interest to offer improved goods and services at low prices


Herbert Spencer

Influential Social Darwinist who thought Darwin's survival of the fittest should be applied to the marketplace
~Concluded that the concentration of wealth in the hands of the "fit" was a benefit


William Graham Sumner

American Social Darwinist who taught at Yale
~Argued that help for the poor was misguided because it interfered with the laws of nature and would only weaken the evolution of the species by preserving the unfit


Gustavus Swift

Used refrigerated railroad cars and canning to change the eating habits of Americans
~Mass produced meat and vegetable products


Horatio Alger

Author who publicized the growing class distinctions by romanticizing the American dream
~Each Alger novel portrayed a young man of modest means who became rich and successful through honesty, hard work, and a little luck
~Rags to Riches stories like Andrew Carnegie's were unusual


Black List

Tactic used by employers to defeat the Unions
~Names of pro-union workers circulated among employees


Yellow Dog Contracts

Tactics used by employers to defeat the Unions
~Workers being told, as a condition for employment, that they must sign an agreement to not join a Union


Great Railroad Strike (1877)

Railroad companies cut wages to reduce the costs
~Strike that spread across 11 states and shut down 2/3 of the country's rail trackage
~First strike to be put down using federal troops; violent
~Employers addressed some of the worker's demands while others took a hard line by busting worker's organizations


National Labor Union

First attempt to organize ALL workers in all states
~Championed the goals of higher wages and the eight hour day
~Wanted equal rights for women and blacks, monetary reform, and worker cooperatives
~Lost support after unsuccessful strikes of 1877
~Won stand on 8 hour day


Knights of Labor

A second national labor union which began as a secret society in order to avoid detection by employers


Terrence v. Powderly

Led the Knights of Labor, took the union public
~Opened its membership to all workers, including Africans and women
~Advocated a variety of reforms:
1. Worker cooperatives to make each man his own employer
2. Abolition of child labor
3. Abolition of trusts and monopolies


Haymarket Square (1886)

The place where protesters threw a bomb into a sea of police officers, killing 7
~Bomber never found
~Led to decline of unions due to the view that they were radical


American Federation of Labor (AFL)

Concentrated on attaining practical economic goals
~Did not advocate a reform program to remake American society


Samuel Gompers

Led the American Federation of Labor
~Went after the basics of higher wages and improved working conditions
~He directed his local unions of skilled workers to walk out until the employers agreed to negotiate a new contract through collective bargaining


Henry Clay Fricke

The manager of Andrew Carnegie's Homestead Steel Plant near Pittsburgh
~Precipitated a strike in 1892 by cutting wages by nearly 20%
~Used the weapons of the lockout, private guards, and strike breakers to defeat the steel workers' walkout after five months


Homestead Strike (1892)

Strike at Andrew Carnegie's Homestead Steel Plant
~Set back the union movement


Pullman Strike

Manufacturers of the sleeping cars
~Caused by Pullman's announcement of lower wages
~The boycott tied up railroad transportation across the country


Eugene V. Debs/In Re Debs (1895)

The American Railroad Union leader/Supreme Court approved the use of court injunctions against strikes
~Gave employers major power to break the unions