Age of Business and Age of Business and IndustryIndustry

RailroadRailroad Imported first steam Imported first steam

locomotive from Great locomotive from Great BritainBritain

1869 transcontinental RR 1869 transcontinental RR was completed – was completed – connected both coastsconnected both coasts

Travel easierTravel easier Opened markets coast to Opened markets coast to

coastcoast Boom towns created at Boom towns created at

train depotstrain depots Population migrationsPopulation migrations

SteelSteel

Iron + coal= steelIron + coal= steel Bessemer Process – Bessemer Process –

removed carbon from removed carbon from Iron making steel Iron making steel strongstrong

Increased production Increased production of RR tracksof RR tracks

Brooklyn BridgeBrooklyn Bridge Skyscrapers – build Skyscrapers – build

upup

OILOIL Black GoldBlack Gold Edwin Drake used a Edwin Drake used a

steam engine to drill for steam engine to drill for oiloil

Oil boom in PA, Oil boom in PA, OH,KY,IL,INOH,KY,IL,IN

Petro refining industries Petro refining industries in Pittsburgh and in Pittsburgh and ClevelandCleveland

Gasoline, a byproduct Gasoline, a byproduct made autos a cheap made autos a cheap innovationinnovation

BankingBanking

Panics of 1893 & 1907 Panics of 1893 & 1907 people lost faith in bankspeople lost faith in banks

Large financial Large financial corporations bought up corporations bought up smaller banks, failing smaller banks, failing RRs, steel and oil RRs, steel and oil corporationscorporations

Banks became huge and Banks became huge and could control other could control other industries in the nationindustries in the nation

InventionsInventions

Light BulbLight Bulb 1876 Thomas Edison 1876 Thomas Edison

perfected perfected incandescent light incandescent light bulbs and a system for bulbs and a system for distributing electrical distributing electrical powerpower

Electrical AgeElectrical Age Build a plant wherever Build a plant wherever

they wanted!they wanted!

TypewriterTypewriter 1867 Christopher 1867 Christopher

Sholes, James Sholes, James Densmore improved Densmore improved and sold it in 1873and sold it in 1873

Office work and new Office work and new jobs for womenjobs for women

Increased jobs away Increased jobs away from home.from home.

InventionsInventions Time ZonesTime Zones

1870 – proposed the 1870 – proposed the earth’s surface be divided earth’s surface be divided up into time zones finalized up into time zones finalized in 1884in 1884

Zones begin in Greenwich, Zones begin in Greenwich, England– O degrees long.England– O degrees long.

1883 times zones 1883 times zones synchronized around synchronized around nationnation

1918 US Congress 1918 US Congress officially recognized officially recognized “railroad time”“railroad time”

Bessemer PressBessemer Press Englishman Henry Englishman Henry

Bessemer and American Bessemer and American William Kelly – 1850- William Kelly – 1850- invented a way to inject air invented a way to inject air into molten iron to remove into molten iron to remove carbon and this created carbon and this created STEELSTEEL

Process improved upon in Process improved upon in 18861886

TelephoneTelephone

Invented by Alexander Graham Bell and Invented by Alexander Graham Bell and Thomas Watson in 1876Thomas Watson in 1876

Laid the groundwork for world wide Laid the groundwork for world wide communicationcommunication

Helped to increase office work and opened Helped to increase office work and opened more jobs for women!more jobs for women!

Business LeaderBusiness LeaderCornelius VanderbiltCornelius Vanderbilt

American RR magnateAmerican RR magnate Started career in Ferry boats, worked with Gibbons of Started career in Ferry boats, worked with Gibbons of

Gibbons v. Ogden fameGibbons v. Ogden fame By 1867 gained control of the NY Central RR – By 1867 gained control of the NY Central RR –

connected Chicago to NYCconnected Chicago to NYC During the During the Panic of 1873 and the resulting depression, and the resulting depression,

Vanderbilt began construction of Grand Central Terminal Vanderbilt began construction of Grand Central Terminal in New York City, offering employment to thousands who in New York City, offering employment to thousands who otherwise would have been unemployed. The New York otherwise would have been unemployed. The New York Central was one of the few railroads that posted profits Central was one of the few railroads that posted profits during the depression. Bought up RR companies that during the depression. Bought up RR companies that were failing – turned small companies into one large were failing – turned small companies into one large companycompany

Anderson Cooper

Great-great-great-great grandson of

Cornelius

Business LeaderBusiness LeaderJ.P. MorganJ.P. Morgan

Built family fortune into a colossal financial Built family fortune into a colossal financial and industrial empireand industrial empire

After panics of 1893 and 1907, used his After panics of 1893 and 1907, used his money to buy failing industries, RR, mines, money to buy failing industries, RR, mines, manufacturing, insurance, shipping and manufacturing, insurance, shipping and communication systemscommunication systems

His firms had enormous funds to help His firms had enormous funds to help develop American resourcesdevelop American resources

Business LeaderBusiness LeaderJohn D. RockefellerJohn D. Rockefeller

Established Standard Oil CompanyEstablished Standard Oil Company Used ideas of trust to create one large corporationUsed ideas of trust to create one large corporation Paid low wages, drove competitors out of Paid low wages, drove competitors out of

business by selling his oil at lower prices, then business by selling his oil at lower prices, then hiking it up once the competition was gonehiking it up once the competition was gone

Used clout to get rebates on RR shipping costs Used clout to get rebates on RR shipping costs and kickbacksand kickbacks

““Rockefeller's personal life was fairly simple and Rockefeller's personal life was fairly simple and frugal. He . He was a man of few passions who lived for his work, and his was a man of few passions who lived for his work, and his great talent was his organizing genius and drive for order”great talent was his organizing genius and drive for order”

I always tried to turn every disaster into an opportunity.

Business LeaderBusiness LeaderAndrew CarnegieAndrew Carnegie

Born in ScotlandBorn in Scotland Poor immigrantPoor immigrant Entered the steel industry in 1873Entered the steel industry in 1873 1899 Carnegie Company manufactured more 1899 Carnegie Company manufactured more

steel than all the companies of Great Britainsteel than all the companies of Great Britain New production, hiring chemists for New production, hiring chemists for

improvements, detailed accounting, offered improvements, detailed accounting, offered stock in companystock in company

Bought out his suppliers of coal and iron to cut Bought out his suppliers of coal and iron to cut costs and control qualitycosts and control quality

Organizational StructuresOrganizational Structures

MonopolyMonopoly Complete control over Complete control over

an industry’s an industry’s production, quality, production, quality, wages paid, wages paid, prices prices chargedcharged, achieved by , achieved by buying up or driving buying up or driving out all competitorsout all competitors

TrustsTrusts Consolidating Consolidating

competing companies competing companies in which participants in which participants turn over stock to a turn over stock to a board of trustees who board of trustees who run companies as one run companies as one large corporationlarge corporation

Organizational StructuresOrganizational Structures

Holding CompanyHolding Company A company formed to A company formed to

buy up other buy up other companiescompanies

Vertical IntegrationVertical Integration A company takes over A company takes over

its suppliers and its suppliers and distributorsdistributors

Horizontal Horizontal ConsolidationConsolidation Merging of companies Merging of companies

that make a similar that make a similar productproduct

Used to create a Used to create a monopolymonopoly

Government Attempts at Government Attempts at Regulating BusinessRegulating Business

Granger LawsGranger Laws Farmers attempted to Farmers attempted to

combat the power of the combat the power of the RRs in late 19RRs in late 19thth century century

Why? Misuse of Why? Misuse of government funds, RRs government funds, RRs agreed with each other to agreed with each other to fix prices, and keep fix prices, and keep farmers in debtfarmers in debt

Raised money to get Raised money to get politicians elected to pass politicians elected to pass laws for them!laws for them!

Munn vs. Illinois Munn vs. Illinois 18771877 Supreme Court Supreme Court

casecase Regulate private industry Regulate private industry

for public interestfor public interest Supreme Court upheld Supreme Court upheld

right of government right of government regulation of RRs for the regulation of RRs for the benefit of farmersbenefit of farmers

Grangers set up funds to Grangers set up funds to help farmers sue for help farmers sue for violation of Granger Lawsviolation of Granger Laws

Government Attempts at Government Attempts at Regulating BusinessRegulating Business

Interstate Commerce Interstate Commerce ActAct

a law passed by a law passed by Congress in 1887 Congress in 1887 reestablished the federal reestablished the federal governments right to governments right to supervise RR activities supervise RR activities and created a 5 member and created a 5 member ICCICC

Gained control of RR in Gained control of RR in 19061906

Sherman Anti-Trust Sherman Anti-Trust ActAct

Law passed by Congress Law passed by Congress in 1890 intended to make in 1890 intended to make monopolies illegalmonopolies illegal

Worried monopolies Worried monopolies would interfere with free would interfere with free tradetrade

Enforcement nearly Enforcement nearly impossible!impossible!