HIS 315L Lecture Notes - Lecture 2: American Tobacco Company, Profit Margin, Post Bellum
Document Summary
Very little capital to rebuild, much had been property of the slaveholders. 1880 largest agricultural place, yet yearly earnings are national average. State governments gave land grants to railroad companies, others offer incentives to rr companies. By 1890 more rr in south and west, whole nation. The plan for economic revitalization of the south. Steel durable and stronger than iron. Need cotton textile mills northern money and northern investors. Proit margin is 22% good investment. Goes back to the north, low wages stay in the south. Pre civil war: pipe tobacco, cigars, chewing tobacco. Tobacco grown in the south create tobacco industry and. James duke buys out all the companies, gets investors and creates the. 60% of nation"s timber resources are in the south. North bargains with state governments to buy state forests. Hire men to cut the timber, takes a while, make wages. But: forest is gone nothing else for logging company to do.
