Revolution by Railways and Government Regulation

This section examines the profound impact of railroads on American society and the economy, as well as early attempts at government regulation of the industry.

Railroads transformed the United States by:

• Creating a huge domestic market for goods
• Stimulating industrialization, mining, and agriculture
• Accelerating urbanization and immigration
• Introducing standardized time zones in 1883
• Giving rise to a new class of millionaire industrialists

Definition: Horizontal integration is the practice of acquiring or merging with competitors in the same industry to increase market share and reduce competition.

The growing power of railroads led to calls for government intervention:

• Farmers protested unfair pricing and monopolistic practices in the 1870s
• Some Midwestern states attempted to regulate railroads
• The Supreme Court's Wabash case ruled that states could not regulate interstate commerce
• Congress passed the Interstate Commerce Act in 1887, marking the beginning of federal regulation of big business

Quote: "The Interstate Commerce Act was the first important federal law to regulate private industry in the United States." - This highlights the significance of this legislation in APUSH Chapter 24: Industry Comes of Age.

Trust Regulation and Southern Development

The era saw the rise of powerful trusts and the government's first attempts to regulate them, while the South experienced a different pattern of industrial development.

Definition: Gilded Age industrialization led to the formation of trusts and monopolies that dominated American business.

Highlight: The Sherman Anti-Trust Act of 1890 represented the first federal attempt to control monopolies.

Example: The South remained primarily agricultural but saw growth in tobacco production and cotton mills.

Vocabulary: "Interlocking directorates" allowed J.P. Morgan to control multiple companies through shared board members.