Chapter 4, Lesson 2 The Rise of Big Business Mr. Julian’s 5th Grade Class

Chapter 4, Lesson 2The Rise of Big Business

Chapter 4, Lesson 2The Rise of Big Business

Mr. Julian’s 5th Grade ClassMr. Julian’s 5th Grade Class

Essential QuestionEssential Question

How did big businesses in the late 1800’s and early 1900’s help the United States economy grow quickly?

How did big businesses in the late 1800’s and early 1900’s help the United States economy grow quickly?

PlacesPlaces

Pittsburgh, Pennsylvania Cleveland, Ohio

Pittsburgh, Pennsylvania Cleveland, Ohio

PeoplePeople Andrew Carnegie John D. Rockefeller George Westinghouse William Randolph Hearst Madame C.J. Walker J. P. Morgan

Andrew Carnegie John D. Rockefeller George Westinghouse William Randolph Hearst Madame C.J. Walker J. P. Morgan

VocabularyVocabulary

Corporation Stock Monopoly Free enterprise Consumer Human resource Capital resource

Corporation Stock Monopoly Free enterprise Consumer Human resource Capital resource

Building with SteelBuilding with Steel

Steel has been made for 2,000 years by melting iron and adding carbon.

Steel can hold more weight than iron alone.

Steel was very expensive to make. Henry Bessemer, an Englishman,

made a way to make steel affordable in England.

Steel has been made for 2,000 years by melting iron and adding carbon.

Steel can hold more weight than iron alone.

Steel was very expensive to make. Henry Bessemer, an Englishman,

made a way to make steel affordable in England.

Building with SteelBuilding with Steel Andrew Carnegie used Bessemer’s

process of making steel. He built a steel factory in Pittsburg,

Pennsylvania Carnegie wanted to lower prices for

steel so he bought iron and coal mines to supply his factories.

He also bought ships and railroads to bring the resources to his factories and finished steel all over the country.

Andrew Carnegie used Bessemer’s process of making steel.

He built a steel factory in Pittsburg, Pennsylvania

Carnegie wanted to lower prices for steel so he bought iron and coal mines to supply his factories.

He also bought ships and railroads to bring the resources to his factories and finished steel all over the country.

Building with SteelBuilding with Steel

Carnegie helped steel become a “big business” or a major industry in the United States.

By 1900, the United States was producing more steel than any other country.

Steel was now affordable so people could use it to build buildings, trains, cars, and other products.

Carnegie helped steel become a “big business” or a major industry in the United States.

By 1900, the United States was producing more steel than any other country.

Steel was now affordable so people could use it to build buildings, trains, cars, and other products.

Railroads Link MarketsRailroads Link Markets

The railroads needed steel to build trains and tracks.

By 1893 the U.S. had more than 160,000 miles of railroad track!

Railroads were the first large corporations.

A Corporation is a business that is owned by investors.

The railroads needed steel to build trains and tracks.

By 1893 the U.S. had more than 160,000 miles of railroad track!

Railroads were the first large corporations.

A Corporation is a business that is owned by investors.


Corporations sell shares of the company called stocks to investors.

A corporation can use the money from selling stock to buy equipment for the company.

Railroads were the fastest and cheapest way to transport goods.

Corporations sell shares of the company called stocks to investors.

A corporation can use the money from selling stock to buy equipment for the company.

Railroads were the fastest and cheapest way to transport goods.


Railroads linked mines, farms, and cities all over the United States.

By providing these links, railroads helped the U.S. economy grow.

Cities that were major railroad centers also grew, like Chicago.

Railroads linked mines, farms, and cities all over the United States.

By providing these links, railroads helped the U.S. economy grow.

Cities that were major railroad centers also grew, like Chicago.

The Oil IndustryThe Oil Industry

On August 27, 1859, Edwin Drake found oil in western Pennsylvania.

This discovery made a teenager John D. Rockefeller realize money could be made in the oil business.

He built his first oil refinery in Cleveland, Ohio.

On August 27, 1859, Edwin Drake found oil in western Pennsylvania.

This discovery made a teenager John D. Rockefeller realize money could be made in the oil business.

He built his first oil refinery in Cleveland, Ohio.


Using profits from his company, he bought other refineries.

Rockefeller’s company, Standard Oil, slowly gained control of the nation’s oil industry.

Standard Oil had become a monopoly, or a company that has control of an entire industry with little or no competition.

Using profits from his company, he bought other refineries.

Rockefeller’s company, Standard Oil, slowly gained control of the nation’s oil industry.

Standard Oil had become a monopoly, or a company that has control of an entire industry with little or no competition.


By the early 1900’s people began buying cars in large numbers.

This created a huge demand for oil products such as gasoline and motor oil.

By the early 1900’s people began buying cars in large numbers.

This created a huge demand for oil products such as gasoline and motor oil.

Free EnterpriseFree Enterprise

In a free enterprise system, people are free to start their own business and own their own property. Business owners are free to decide what to produce, and how much to charge for their products or service.

In a free enterprise system, people are free to start their own business and own their own property. Business owners are free to decide what to produce, and how much to charge for their products or service.


A consumer is a person who buys or uses goods or services.

An inventor named George Westinghouse formed the Westinghouse Electric Company.

He used Alternating current (A/C) to deliver electricity to homes.

A consumer is a person who buys or uses goods or services.

An inventor named George Westinghouse formed the Westinghouse Electric Company.

He used Alternating current (A/C) to deliver electricity to homes.


He was in a “War of the currents” with Thomas Edison who used Direct Current or D/C.

Westinghouse won the war because he had a better product.

An newspaper owner named William Randolph Hearst found news ways to compete in the newspaper business.

He was in a “War of the currents” with Thomas Edison who used Direct Current or D/C.

Westinghouse won the war because he had a better product.

An newspaper owner named William Randolph Hearst found news ways to compete in the newspaper business.


Hearst used big eye catching headlines and color sections to make peoples attention, thus selling more papers.

Madame C.J. Walker took a different road to success.

She began bottling shampoo and other products in her attic.

She became the first African American woman to become a millionaire.

Hearst used big eye catching headlines and color sections to make peoples attention, thus selling more papers.

Madame C.J. Walker took a different road to success.

She began bottling shampoo and other products in her attic.

She became the first African American woman to become a millionaire.

Resources and Big Business


Resources are divided into three categories; natural resources, human resources, and capital resources.

Natural resources are things that are found in nature.

Human resources are people who work to produce goods and services.

Resources are divided into three categories; natural resources, human resources, and capital resources.

Natural resources are things that are found in nature.

Human resources are people who work to produce goods and services.



Capital resources are tools and machines that companies use to produce goods and services.

Banks helped businesses get the capital resources they needed.

J. P. Morgan was the countries richest and most powerful banker.

Capital resources are tools and machines that companies use to produce goods and services.

Banks helped businesses get the capital resources they needed.

J. P. Morgan was the countries richest and most powerful banker.

Help WantedHelp Wanted

Before the Civil War most Americans worked on farms.

By 1900 most Americans worked in factories.

The U.S. was the biggest producer of manufactured goods.

The U.S. economy was the fastest growing and one of the strongest in the world.

Before the Civil War most Americans worked on farms.

By 1900 most Americans worked in factories.

The U.S. was the biggest producer of manufactured goods.

The U.S. economy was the fastest growing and one of the strongest in the world.

Help WantedHelp Wanted

Growing industries created millions of jobs in American cities.

Many people moved to the cities looking for work.

Immigrants came from all over the world to find new opportunities in the United States.

Growing industries created millions of jobs in American cities.

Many people moved to the cities looking for work.

Immigrants came from all over the world to find new opportunities in the United States.

Review QuestionsReview Questions1. How did railroads help the

United States economy grow?2. What freedoms do business

owners and consumers have in a free enterprise system?

3. How was Andrew Carnegie able to produce huge amounts of steel at low prices?

1. How did railroads help the United States economy grow?

2. What freedoms do business owners and consumers have in a free enterprise system?

3. How was Andrew Carnegie able to produce huge amounts of steel at low prices?

Documents

Chapter 4, Lesson 2 The Rise of Big Business Mr. Julian’s 5th Grade Class