Chapter #24: Identifications Government Subsidies This was basically money the government gave to businesses.

The purpose of this lay behind the belief that supporting certain businesses would lead to those businesses supporting the country through feeding the economy. Transcontinental Railroad As the name suggests, this railroad was built so that it stretched across the entire continent. Its construction was headed by two companies, the Union Pacific Railroad and the Central Pacific Railroad. Cornelius Vanderbilt After earning the name, The Commodore for his success in the shipping industry, he turned his attention to the growing railroad industry. This shift in business took him from New York to Chicago. Jay Gould He was known for manipulating stocks within the railroad industry for his own benefit, and he embezzled millions of dollars worth of stocks. Interstate Commerce Commission This was an attempt at controlling the corruption that occurred in the railroad industry. However, it didnt work at first because the government couldnt successfully enforce the system. Vertical Integration This was the strategy used by business owners in which they controlled every step of the process in their business. This cut out any middlemen and made sure that all profit made came directly to their company. Horizontal Integration This was the strategy in which business owners would make alliances with other businesses in their field. This would spread their power and influence and allow them to better rid the field of weaker competitors. Trusts These were groups of businesses that made up what essentially was a monopoly. These pushed out smaller companies and eradicated any competition. J.P. Morgan He worked mainly in banking and finance. He was incredibly successful and eventually bought Carnegies entire business for 400 million dollars. His success and name went on to symbolize the corruption and greed of the Gilded Age. Sherman Anti-Trust Act

This act outright banned trusts and anything that went against the progression of trade. It took a while for it to actually work, however, in 1881, the government was able to successfully enforce the act. Yellow Dog Contracts These were unfair contracts that workers had to sign before they were able to start working anywhere. It stated that they were not allowed to join any unions. Blacklists These were lists of troublemakers, workers who were in unions and went on strike. These lists told employers who not to employ, and they effectively kept many workers in line for fear of losing employment. Haymarket Square incident This incident occurred in 1886, in Chicago, during a labor protest. Anarchists within the group of strikers detonated dynamite which killed and injured several people. This incident was then linked with the large union, the Knights of Labor. In the end, this incident terminated their status as a thriving labor union. Chapter #24 Guided Reading Questions The Iron Colt Becomes an Iron Horse Know: Land grants 1. What were the advantages and disadvantages of government subsidies for the railroads? The advantage of government subsidies lay in the fact that towns with railroads became immensely successful. Those without railroads soon became deserted. The disadvantages came from the fact that since the plot of land was never fully decided for railroad companies, it was completely withheld from others who could use the land. This brought massive protest from citizens. Spanning the Continent with Rails Know: Union Pacific, Central Pacific, Paddies, Leland Stanford 2. Describe how the first transcontinental railroad was built. The construction of the transcontinental railroad was headed by two different companies, the Union Pacific Railroad and the Central Pacific Railroad. The Union Pacific Railroad expanded the track to the west starting from Omaha and to California. The Central Pacific built the rail to the east. The Union Pacific utilized the labor of Irish immigrants, and the Central Pacific relied on the Chinese. The railroad was completed in 1869, in Promontory Point, Utah. Binding the Country with Railroad Ties Know: The Great Northern, James J. Hill 3. Explain how the railroads could help or hurt Americans. The railroads could help Americans since it was a fast, efficient method of transportation. It brought supplies and goods much faster than any coach or horse. This made it easier for towns to flourish and become cities. However, the railroads made eager Americans jump on the investment bandwagon. A lot of money was thrown into railroads, and soon banks went bankrupt from handing out loans when the land wasnt worth what they thought it was.

Railroad Consolidation and Mechanization Know: Cornelius Vanderbilt, Pullman Cars 4. What technological improvements helped railroads? There were several technological improvements which advanced railroads. First, there was the steel rail, which proved to be tougher than its predecessor, the iron rail. Next, there was the air brake, which made stopping trains much safer than before. Pullman Palace Cars allowed wealthy passengers to travel in luxury. Other important technological advancements were telegraphs, double-racking, and block signals. Revolution by Railways Know: Time Zones 5. What effects did the railroads have on America as a whole? Railroads further connected America as a country. Better transportation opened up further opportunities in terms of employment, since the previously unoccupied West was now accessible to job-seekers. Said job-seekers traveled to the west, and thus the mining and agricultural market bustled. Also, these railroads helped people reach the Great Plains and settle in the vast area. These railroads also helped the establishment of the four national time zones that are still in place today. The success of railroads also led to the creation of what we know as the millionaire class. Wrongdoing in Railroading Know: Jay Gould, Stock Watering, Pools 6. What wrongdoing were railroads guilty of? As with the government, the railroad industry was filled to the brim with corruption. A well-known example of this is the actions taken by Jay Gould, who embezzled stocks sold by many railroad companies and stole millions of dollars for himself. Stock watering was a wide-spread tactic, and was basically the over-pricing of stocks in order to make a profit. The heads of the railroad industry often manipulated the public to the disadvantage of the poor, and gave the rich rebates. Pools were also set up by what seemed to be rival companies. Government Bridles the Iron Horse Know: Wabash, Interstate Commerce Commission 7. Was the Interstate Commerce Act an important piece of legislation? In my opinion, the Interstate Commerce Act was an important piece of legislation. It was an attempt at curbing the corruption in the railway industry, and it illustrated that the government did have an interest what was best for the public. While it could have been used to the advantage of the wealthy, it was a step in the right direction. Miracles of Mechanization Know: Mesabi Range, Alexander Graham Bell, Thomas Edison 8. What factors made industrial expansion possible? The factors that made industrial expansion possible were the advancements in technology, new economic factors, and cheap labor. First, new technology like mass production, electric railway, and the typewriter made it easier to produce goods for consumption. Next, America had access to its natural resources such as coal, oil, and iron. Lastly, immigration made it easy for businesses to have access to cheap, manual labor.

The Trust Titan Emerges Know: Andrew Carnegie, John D. Rockefeller, J.P. Morgan, Vertical Integration, Horizontal Integration, Trust, Interlocking Directorate 9. How did businesses organize to try to maximize profits? Businesses, in order to try to maximize profits, did whatever it took to monopolize their given industry. For example, Andrew Carnegie was famous for his strategy, vertical integration. This basically meant he controlled every single step of his business, which allowed no room for any other business to get a single piece of his profit. Rockefeller utilized horizontal integration, which meant that he formed alliances with businesses in his field which furthered his influence and power. The Supremacy of Steel Know: Heavy Industry, Capital Goods, Consumer Goods, Bessemer Process 10. Why was steel so important for industrialization? Steel was important for industrialization because it was a strong, reliable metal. During earlier times in American history, such as when Lincoln had been alive, steel was incredibly expensive. However, due to the efficiency of the Bessemer Process, steel was able to be mass-produced without too much expense or trouble. Carnegie and Other Sultans of Steel Know: Andrew Carnegie, J.P. Morgan 10. Briefly describe the careers of Andrew Carnegie and J.P. Morgan. Carnegie and Morgans careers had different paths. Carnegie started out very poor, and was very much the basis of an American success story. He became rich through hard work and endurance. He did not agree with other strategies taken up by businesses such as forming trusts. Morgan, however, seemed to be rather successful before he broke into the steel industry. In fact, he even bought Carnegies business for a whopping 400 million dollars, the most of which Carnegie donated to charity. Rockefeller Grows an American Beauty Rose Know: Kerosene 12. How was John D. Rockefeller able to become so wealthy? Rockefeller was able to become so wealthy due to his approach to business and the quality of his products. He was known as ruthless and merciless because of his tendency to eradicate his competitors. Those he viewed as weak were immediately taken out of the picture by his companys both superior and cheaper product. The Gospel of Wealth Know: Social Darwinism 13. How did the wealthy justify their wealth? The wealthy justified their wealth through different belief systems. The Gospel of Wealth stated that some of the wealthy were destined to attain wealth, which they would then spend in helping their fellow man. People who believed in Social Darwinism were not as altruistic. This philosophy abided by Darwins statement survival of the fittest. Russell Conwell, a man who became rich due to his sermon, Acres of Diamonds, stated that the wealthy made themselves rich, and the poor made themselves poor.

Government Tackles the Trust Evil Know: Sherman Anti-Trust Act 14. What two methods were tried by those who opposed the trusts? First, people who opposed the trusts, mainly the public, tried to get the state legislation to stop it. However, that plan didnt work out. After that, they took their case to Congress. What resulted was the Sherman Anti-Trust Act which outright banned trusts and anything that hindered the progress of trade. Yet it didnt actually work until 1914 when the government could actually enforce it. The South in the Age of Industry 15. How successful were Southerners at industrializing? The Southerners were not very successful at industrializing. While the North seemed to flourish in terms of Industry, the South seemed to stay on a firmly agricultural course. This seemed to be because the North took some measures to keep the South from industrializing while others wanted the region to become more like the north. The Impact of the New Industrial Revolution on America 16. Describe the positive and negative effects of the industrial revolution on working Americans. The positive effects of the industrial revolution were the spread of more jobs and new opportunities for women. Women were able to work in the factories and make livings for themselves, which promoted a new view for women which did not involve bearing and raising children. However, industrialism also made it necessary for many people to toil in factories all day as a form of cheap labor. Though there were more jobs, there was also a huge fear of the chance of losing a job, which placed a huge importance on the well-being of the bread-winner. In Unions There is Strength Know: Scabs, Lock-out, Yellow-dog Contract, Black List, Company Town 17. What conditions existed in America that led Jay Gould to say, "I can hire one half of the working class to kill the other half"? In terms of working conditions, the working class had very terrible conditions. They worked at low rates and could not argue or negotiate for better ones. Unions and strikes were often ignored with the use of scabs or strike-breakers, which were workers who could step in and take the place of the strikers. These conditions were worsened by the belief that if these workers truly wanted better conditions, they had to make it for themselves. Labor Limps Along Know: National Labor Union, Knights of Labor 18. Explain the similarities and differences between the National Labor Union and the Knights of Labor. The National Labor Union made a huge amount of progress for Unions and workers. They fought for eight hour work days, which they achieved, but only for people who worked within the government. They did not, however, include any Chinese workers, Blacks, or women. The Knights of Labor was very similar to the NLU, but they were a secret organization until 1881. Their goals were very similar, however this organization only excluded people who dealt liquor, gambled for a living, bankers, lawyers, and stockbrokers. Ultimately, the KoL were much more successful and had a bigger number of members.

Unhorsing the Knights of Labor Know: Haymarket Square 19. What factors led to the decline of the Knights of Labor? The Knights of Labor had been involved in what was called the Mayday Protests, however these protests pretty much failed. Unfortunately, in Chicago, many anarchists who were also members of the Knights of Labor began spreading words that promoted violent protest and the overthrowing of the government. All this tension erupted into what is now known as the Haymarket Square Bombing, which killed and injured several people, and permanently stained the Knights of Labors reputation. This led to many people leaving the organization and to the end of the Knights of Labor. The AF of L to the Fore Know: American Federation of Labor, Samuel Gompers, Closed Shop 20. How was the AFL different from previous unions? AFL was different from previous labor unions because it was made up of different unions which all worked together and fell underneath the overarching organization, AFL. This union truly represented only 3% of all workers in America, since it did not let unskilled workers join. Yet it was due to this unions work in striking that Labor Day became a national holiday, and the public along with business owners started listening to the demands of the laborers. Makers of America: The Knights of Labor Know: Mother Jones, Terence Powderly 21. Were the Knights conservative or revolutionary in their ideas? In my opinion, the Knights were fairly revolutionary in their ideas. This opinion stems mostly from the fact that they had included women into their organization and had allowed them to organize activities as well. I have come to this conclusion also because women were mostly ignored in other labor unions. This Union also welcomed Irish immigrants and blacks into the fold, which were groups other unions also ignored. However, this group was not quite ready to accept Chinese immigrants, which hindered them quite a bit. Varying Viewpoints: Industrialization: Boon or Blight 22. To what degree is it possible for common people to improve their status in industrial America? It is possible for common people to improve their status in industrial America, but it is rare for them to rise so far from the status in which they originated. According to historians, the inequality of a capitalistic class system makes difficult to rise so far in terms of economic class. People seem to, more often than not, remain in the class they were born into or the class they started in.