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2d Industrial Revolution and the Growth of Big Business

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1 2d Industrial Revolution and the Growth of Big Business
Section 1: 2d Industrial Revolution and the Growth of Big Business Georgia Performance Standards: SSUSH11a-d

2 SSUSH11 The student will describe the economic, social, and geographic impact of the growth of big business and technological innovations after Reconstruction. a. Explain the impact of the railroads on other industries, such as steel, and on the organization of big business. b. Describe the impact of the railroads in the development of the West; include the transcontinental railroad, and the use of Chinese labor. c. Identify John D. Rockefeller and the Standard Oil Company and the rise of trusts and monopolies d. Describe the inventions of Thomas Edison; include the electric light bulb, motion pictures, and the phonograph, and their impact on American life






8 Growth of Railroads

9 Pre-Civil War Railroad Expansion

10 Pre-Civil War Railroad Expansion

11 Pre-Civil War Railroad Expansion


13 Growth of Railroads Need: Results: Faster mode of transportation
Creation of a national market Standardized “American” culture Helps lead to: Urbanization Industrialization, Organized Labor Immigration

14 Railroads and the West The "West"

15 Railroads and the West Government involvement in settlement:
Morrill Act (1862) Public land used or sold to found colleges Examples: UGA, Ft. Valley, Auburn, AL A&M Homestead Act (1862) People could gain property after living on it and farming for 5 years

16 Railroads and the West “Railheads” Cattle Drives Ranching
Cities on a rail line that served to move cattle eastward Cattle Drives Ranching “open range” Introduction of barbed wire



19 Transcontinental Railroad
Prior: Routes to California Overland by wagon train (2 months) Water, via Panama/Nicaragua (2-6 months) Water, via Cape Horn (6-10 months) Pacific Railroad Acts Central Pacific – from Sacramento CA east Union Pacific – from Council Bluffs IA west

20 Transcontinental Railroad
Problems: Weather Geography Supplies Had to be shipped to San Francisco California Iowa


22 Explore Art Search Exhibitions Explore Art Education Research and Conservation Publications Public Programs About the J. Paul Getty Museum Trestle Bridge Near Fort Harker, Kansas Alexander Gardner American, Kansas, Albumen print 13 x 18 1/2 in. 84.XM

23 Transcontinental Railroad
Meeting: Promontory, Utah May 10, 1869

24 Transcontinental Railroad meeting at Promontory Summit, Utah
Transcontinental Railroad meeting at Promontory Summit, Utah

25 Chinese Labor and Railroads
Early labor: Miners Viewed as unreliable, expensive Move to Chinese immigrants Cheap Economic conditions in China were poor By 1868, 12,000 were employed by the Central Pacific Railroad (80% of their workforce)

26 Chinese Labor Harsh treatment Paid less
Discriminated against due to ethnicity he Chinese teams were organized into groups of 20 under one white foreman; as the difficulty of construction increased, so often did the size of the gangs. Initially, Chinese employees received wages of $27 and then $30 a month, minus the cost of food and board. In contrast, Irishmen were paid $35 per month, with board provided

27 Reaction to Chinese Laborers
The Mongolian invasion has begun at last in good earnest…the first detachment of Chinese laborers…numbering 250 men, arrived… carrying their baggage on poles…in true Oriental fashion. Most of these men were employed in the construction of the Pacific Railroad…. - Harper’s Weekly, 22 January, 1870








35 Rise of Trusts/Monopolies
Monopoly: control over all or almost all trade or production of a good Cause: Rise of urban centers (cities) Rise of industrialization/mass production Transportation improvements Two Major Corporations: Standard Oil U.S. Steel Trusts: a large corporation or combination with a monopoly of some service or commodity.

36 Big Business A pejorative (negative) term used to describe the political and economic power of a corporation that influences prices of goods Wal-Mart Exxon Home Depot Now it’s your turn.


38 Monopoly Monopoly One company has exclusive control over their entire industry Wipe out all of the competition Two Methods: Vertical Integration Horizontal Integration

39 Vertical Integration One company controls all means of production and distribution from beginning to end Middleman is eliminated Costs less for company to create a product Lower prices Consumers go with cheaper prices Competition eliminated

40 Vertical Integration One Company Owns all Phases of Production
From Top To Bottom Raw Materials Assembly and Manufacturing End Product Distribution

41 Horizontal Integration
Buy out the competition If companies refuse to sell, lower prices to undercut the competition Consumers flock to lower prices Competition goes bankrupt or is forced to sell


43 Horizontal Integration
To Form a Giant Company (Trust) Small Business Small Business Small Business Purchased by one Company Small Business Small Business Small Business Small Business Small Business Small Business Small Business Small Business Small Business



46 Steel Industry Needed to build railroads, buildings
Mass production, perfected by Carnegie, allowed U.S. steel production to skyrocket

47 U.S. Steel Formed in 1901 World’s first billion dollar company
Produced 67% of U.S. steel in that year

48 Robber Baron Negative - a business leader that builds wealth by lying, cheating and stealing Robs from consumers Abuses employees and workers Drives competitors out of business (And enjoys it!) Drains the country of natural resources Bribes government officials


50 Captain of Industry Positive - a business leader that positively contributes to the country Creates jobs Increases availability of goods Expands markets Helps the economy A philanthropists – donates money or goods to a charity Creates museums, libraries, universities


52 Andrew Carnegie (1835-1919) “Rags to riches” Born poor in Scotland
Became rich in U.S. due to investments Worked his way to the top Gave away most of his fortune



55 Standard Oil Company Oil company founded in Cleveland, Ohio by John D. Rockefeller Successful, yet ruthless By 1890, it controlled 88% of all refined oil By 1904, it controlled 91% of U.S. oil production DID YOU KNOW: Today, descendants of Standard Oil Company still exist. Do you recognize any of these logos of just a small portion of the successors to Standard Oil?


57 John D. Rockefeller (1839-1937) Founder of Standard Oil
Famous businessman and philanthropist Richest man in the world at his death Worth $1,400,000,000 at his death, approx. $663,000,000,000 today


59 Thomas Edison ( ) American Inventor Held over 1,000 patents

60 Edison’s Inventions Electric Light Bulb Motion Pictures Phonograph
Improvement,1879 Motion Pictures Kinetograph/Kinetoscope, 1891 Phonograph 1878

61 Light bulb used by Thomas Edison in his first demonstration in 1879

62 Other Inventions of the Time
Cash Register (1879) James Ritty Popcorn Machine (1885) Charles Cretors Thermostat (1883) Warren Johnson Dishwasher (1886) Josephine Cochrane

63 Other Inventions of the Time
Photographic Film / Roll Film (1885) George Eastman Zipper (1891) Whitcomb Judson Air Conditioning (1902) Willis Carrier Electric Washing Machine (1908) Alva Fisher

64 Other Inventions of the Time
Electric Chair (1881) Alfred Southwick / Harold Brown Skyscraper (1885) William Jenney Used steel frame construction Chicago, Home Insurance Company Building

65 Other Inventions of the Time
Adding Machine [Comptometer] (1887) Dorr Felt Wireless Radio (1893) Guglielmo Marconi

66 Other Inventions of the Time
Assembly Line Developed by Henry Ford & Ford Motor Co. Developed from 1 2 3 4

67 Alexander Graham Bell (1847-1922)
Invented the telephone (1876)

68 Inventions of the Time How did these inventions
Impact on American life How did these inventions change the way people lived?

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