The Top Half and the Other Half
1After the Civil War, railroads became the first truly big businesses in the United States. Cornelius Vanderbilt, who had made a fortune in steamboats, bought several railroads and combined them into the New York Central. By the 1870s, lines he controlled ran from New York City to Buffalo and on to Chicago. Railroad companies employed tens of thousands of workers and bought huge amounts of iron, steel and coal. They also set the rates that farmers and merchants paid to ship their goods. Their owners grew richer than almost anyone in the country had been before.
2In 1873 a financial panic set off a long depression, and many railroads cut wages, some more than once. In July 1877, the Baltimore and Ohio Railroad announced another 10 percent pay cut. Railroad workers at Martinsburg, West Virginia, stopped the trains. Within days, strikes and angry crowds spread along the rail lines to Baltimore, Pittsburgh, Chicago and St. Louis. Governors called out state militia, and President Rutherford B. Hayes sent federal troops. By the time the Great Railroad Strike ended, about 100 people had been killed, and most strikers had not won back their pay.
3The strike showed both sides how much power the railroads held. Many workers decided that only larger, stronger unions could bargain with such huge companies, and in the 1880s the Knights of Labor, a union open to many kinds of workers, grew quickly. Many newspapers and business leaders blamed the strikers for the violence, and several cities built armories to house militia troops.
4Meanwhile, New York's harbor was the main gateway for newcomers. From 1855 to 1890, most immigrants arriving in New York passed through Castle Garden, a station at the southern tip of Manhattan. Many had little money left to travel farther, and many found work nearby on the docks, in building construction and in the clothing trade. They crowded into tenements, narrow buildings of five or six stories with several families on each floor. A state law of 1879 required a window in every room, but many of those windows opened only onto a narrow air shaft.