US History 1302 – Unit 1 – Discussion Post

Monopolies, also known as Trusts, led to Abundant Capital for investments.

Big-Business Tycoons, also known as Trust Titans, dominated during Gilded Age.
These industry giants eliminated competition and maximized profits

Steel Industry
Andrew Carnegie

Andrew Carnegie (1835-1919) dominated the Steel Industry with a method of “vertical integration”.
He owned and bought out all aspects to monopolize the industry, mining iron, refining into steel and transportation of it.
Carnegie controlled all parts of the process and during U.S. Civil War, steel was scarce and expensive.
By 1900, the United States made more steel than England and Germany combined.
Steel production was primarily in the Pittsburgh, PA area and produced 1/4 of the nation’s steel.
Carnegie was worth $243 million ($101 billion today) and making $25 million a year
 The Trust Titans

Oil Industry
John D Rockefeller

John D. Rockefeller (1839-1937) dominated the Oil Industry with a method of “horizontal integration”.
He forced alliances or bought out all competition to monopolize the market.
In 1882, he created Standard Oil, in Ohio controlled the Oil Industry by forcing competitors to go bankrupt.
Rockefeller understood that the need for oil was just beginning.
He would capitalize on gasoline-burning internal combustion engine for automobiles.
He crushed weaker competitors by producing superior oil at a cheap price.
Rockefeller was worth $610 million ($253 billion today)
 The Trust Titans
Financial and Banking Industry

John Pierpont (J.P.) Morgan

John Pierpont Morgan (1837-1913) dominated the Financial and Banking Industry.
He developed a credit bridge between Europe and the United States.
He perfected modern investment and banking industry by using Wall Street.
In 1901, J.P. Morgan purchased Carnegie’s steel business, paying him $200 million.
In same year, he launched United States Steel Corp, the world’s first billion-dollar corporation.
At time of his death, J.P. Morgan was personally worth $118.3 million ($49 billion today)
 Other Monopolies/Trust Titans

Gustavus F Swift Philip Armour

Beef Titans: Philip Armour and Gustavus Swift.

Philip Armour and Company focused on meat-packing industry in Chicago, IL.
At time of his death in 1901, Armour was worth $50 million.
Gustavus Swift and The Swift Company made transported butchered beef profitable, worth $25 million.
In 1902, Swift and Armour merged into the National Packing Company
 Other Monopolies/Trust Titans

Cornelius Vanderbilt James J. Hill Jay Gould

Cornelius Vanderbilt (1794-1877) dominated the railroad and shipping (steamboat) industries.
This tycoon, at time of his death, was worth $100 million ($205 billion today).
James J. Hill (1838-1916) dominated railroad expansion in NW and called “The Empire Builder”.
At time of his death, was worth just over $6 million ($2.5 billion today).
Jay Gould (1836-1892) – Railroad developer, financier, investor and nicknamed a “robber baron”.
Owned Union Pacific, Missouri Pacific, Texas Pacific rail lines, Western Union Telegraph and several newspapers.
At time of his death, he was worth $77 million ($2.1 billion today)
 Urbanization – The Good

City life was characarized as being mostly good and alluring because of electric lights and telephone.
Technology improved transportation, such as mass transit capabilities.
They went from horse-drawn railways, to cable/street cars and electric trolleys
 Urbanization – The Good
Macy’s Marshall Field’s

Large department stores sprung up in large cities.

They provided urban working-class jobs and attracted urban middle-class shoppers.
Examples: In 1852, Marshall Field’s in Chicago and in 1858, Macy’s in New York
 Urbanization – The Good
Montgomery Ward Sears and Roebuck

The mail-order industry began and people could “order” what they needed and wanted before throwing away.
Examples: In 1872, Montgomery Ward, but closed in 2001 and in 1886, Sears and Roebuck, today simply known as Sears
 Urbanization – The Bad

City Life led to many major issues.

Crowded apartments were poorly designed, including the Dumbbell Tenements in 1879.
They lacked privacy, free space and sunshine.
People lived in dark, cramped spaces, with little ventilation
Urbanization – The Bad
Slums

The inner-cities turned into slums with all the crammed people.
Children could only play in streets with perverse odors.
Infectious diseases increased the mortality rate
 Urbanization – The Bad

Cities had lots of trash/garbage, contaminated water and poor sewage systems.
Farmers would recycle or burn trash.
In 1890’s, an estimated 3.5 million horses were in U.S. cities.
Horses averaged 20 lbs. of manure/urine daily
 Urbanization – The Bad

With poor sanitation, cities were filthy, noisy, smelly with unwashed bodies.
Infectious diseases led to poor health and low morale.
Cities were overwhelmed with massive crime, as criminals were everywhere.
Urban law enforcement and firefighters were under-staffed and poorly trained
Presidential Elections and Political Chaos
President Johnson Ulysses S. Grant

In 1868, U.S. President Andrew Johnson was politically dead.

He was first U.S. President impeached, by the House on Feb. 24th, 1868, but acquitted by Senate.
He was not nominated in upcoming Presidential Election of 1868.
Republicans nominate Civil War General Ulysses S. Grant (1822-1885), from Ohio, for President.
Grant was very popular, an accomplished military man, but he had no political experience
Presidential Elections and Political Chaos

Bloody Shirt Civil War Memories

Schuyler Colfax

Grant chose Schuyler Colfax (1869-1873), from Indiana, as his running mate.
Republicans “waved the bloody shirt” for political reasons.
This was the reviving of gory memories from Civil War
Presidential Elections and Political Chaos
Horatio Seymour

Francis Blair

Democrats nominated Horatio Seymour (1810-1886), from New York.

Democrats were disorganized and lacked much of their southern voting base.
Military Reconstruction was ongoing and many southern States had not been readmitted.
Seymour chose Francis Blair (1821-1876), from Missouri, as his running mate
 Election of 1868

Schuyler Colfax

Francis Blair

On November 3rd, 1868, the Election of 1856 took place, the first during the Reconstruction Era.
Grant won the election, gaining about 300,000 more popular votes than Seymour.
However, the gap was bigger in the Electoral College, with 214 to 80.
Grant was sworn in as 18th President of U.S. on March 4th, 1868 and would serve until March 4th, 1877.
Schuyler Colfax became Vice President, serving until 1873
 Era of Good Stealings (1868-1876)

William M. Tweed
or “Boss” Tweed

The Democratic Party owned a political machine in New York City from 1860-1871.
They were headed by William M. Tweed (1823-1878), better known as “Boss” Tweed.
He employed bribery, theft and fake elections, cheating the city out of about $200 million.
“Tweed Ring” or “Tammany Hall” of New York City was a corrupt political machine and example of Era of Good Stealings.
This scandal had no direct connections to President Grant, however, he was in office when it occurred
Era of Good Stealings (1868-1876)

“Tammany is Killing Democracy” by Thomas Nast

Samuel J. Tilden

In July, 1871, the New York Times exposed Tweed and he was arrested.
Tweed was convicted, sentenced to 12 years in prison and would die there.
Democratic Party, in New York, was now led by Samuel J. Tilden (1814-1886)
 Railroad Scandal
In 1867, the Credit Mobilier Company of America was founded by stockholders in Union Pacific Railroad.
U.S. Congress would invest $100 million to fund the building railroads out west.
However, only $50 million was the actual cost, resulting in large profit margin.
The New York City newspaper, The Sun, exposed the scandal

James G. Blaine James A. Garfield Roscoe Conkling Schuyler Colfax

The 1872 Credit Mobilier Scandal involved railroad construction payoffs.

Several U.S. Congressman were accused of receiving $9 million in Credit Mobilier stock.
Including Republicans James G. Blaine, James A. Garfield and Roscoe Conkling.
They all denied the allegations and nothing happened.
Vice President Schuyler Colfax accepted 20 shares of stock and Grant dropped him from his 1872 re-election bid
 Election of 1872

Ulysses S. Grant Schuyler Colfax Henry Wilson

President Grant was nominated for re-election in 1872 by the Republican Party.
Republicans criticized Ulysses S. Grant’s administration due to scandals.
Grant replaced V.P. Colfax with Henry Wilson (1812-1875), from Massachusetts
 Election of 1872

Republican reformers created the Liberal Republican Party and they nominated Horace Greeley (1811-1872).
He chose Benjamin Gratz-Brown (1826-1885), from Missouri, as his running mate.
Democratic Party was too unorganized to nominate a candidate and supported Greeley, who called to end Reconstruction

Horace Greeley Benjamin Gratz-Brown Ulysses S. Grant

The 1872 Election campaign was filled with mudslinging.

Greeley was called an atheist, a communist, a vegetarian and a signer of Jefferson Davis’s bail bond, which was true.
Grant was called an ignoramus, a drunk and a swindler
 Election of 1872
Henry Wilson

Benjamin Gratz-Brown

On November 5th, 1872, the Election of 1872 took place, the second during the Reconstruction Era.
Grant won re-election, gaining about 750,000 more popular votes than Greeley.
In Electoral College, Grant got 286 votes to Greeley’s 66.
President Grant served until March 4th, 1877, while Henry Wilson served as V.P.
 Whiskey Scandal
In 1875, the corruption of whiskey became public with the misallocation of $3 million in tax revenue.
Whiskey distillers and distributors bribed government officials to avoid paying federal taxes on their production.
Corrupt politicians took the bribes, payoffs and it became known as the Whiskey Ring

Grant’s private secretary

Orville E. Babcock

President Grant was criticized for corruption of Republicans in office and he said “Let no guilty man escape”.
Grant learned his own private secretary, Orville E. Babcock (1835-1884) was involved.
Grant, then, retracted his statement and dismissed Babcock in 1876.
Eventually, 110 convictions were made during the Whiskey Ring scandal
 Indian Scandal

Secretary of War
William Belknap Bad supplies given to Native Americans

In 1876, Secretary of War William Belknap (1829-1890) faced investigations.

He was selling “poor” or “bad” supplies to Native Americans, while cheating the Federal Gov’t as well.
Belknap collected about $24K in “kickback” payments and resigned on March 2nd, 1876.
Another scandal during Grant’s Era of Good Stealings
 Grant’s Legacy

Ulysses S. Grant

Ulysses S. Grant best legacy is that of a great General during the Civil War.
As President, however, it is criticized for the corruption and scandals in Era of Good Stealings (1868-1876).
There were many impactful events that took place while he was in office