1. Notes Turn to page 416-421 What did the Pacific Railway create? Who owned the Union Pacific Railroad?What part of the railroad did it build Who owned the Central pacific Railroad? What part of the railroad did they build? How do Land Grants help construct the railroad? What was the Credit Mobiler scandal about?

2. America’s resources As America grew it had major advantages over it’s European competition. Abundant natural resources like timber, coal, copper, Iron. New resources like oil. Massive growth in labor or work force Labor: refers to people who are able to work.

3. Laissez-Faire In French it meant “Let the people do as the choose.” In other words companies just had to make the right product. The people will choose the best product, and the best business will survive. It became the understanding that government would it involve itself in the affairs of business. Government would only protect the property and peace of each business.

4. Entrepreneur With this understanding on how the market should operate many entrepreneurs flooded the market with their ideas and businesses. An entrepreneurship, is someone who owns the and controls their own business. They also have 100% of the risk if their business fails.

5. The Rise of Big Business Where there a lot of big businesses before the civil war? No Its during this industrial period that we find the rise of industry Corporations begin to take shape during this period Corporation: An organization owned by many people but treated by law as though it were one person. Stock also develops at this period which allows people to invest in a company Why is stock important? Stock allows a company to raise money while sharing the risk.

6. Carnegie What was Carnegie’s background before he started his company Carnegie came to the U.S. with very little money. He slowly worked his way up to place of power in the Pennsylvania Railroad. He began to invest in companies that were part of the rail road industry

7. Carnegie’s efficiency idea As his wealth grew Carnegie began to trips to Europe where he found a way to make cheap steel. Using this idea Carnegie opened his own steel company, which grew strength through the use of vertical integration Vertical integration: The company owns all the different businesses that it depends on for its operation.

8. John D. Rockefeller What is Rockefeller known for? Rockefeller founded standard oil the largest oil refiner. Rockefeller worked at making his company efficient through horizontal integration Horizontal integration: The idea of combining firms in same business into one large corporation. In other words he swallowed up his competition.

9. What happens when a company takes control Monopoly: When a single company achieves control of an entire market. Why are people afraid of monopolies? The company in control can charge whatever they want. How does the Government handle monopolies? States made it illegal for companies to stock in other businesses.

10. Trust Once the government made it illegal for monopolies to form businesses developed a new system around merging businesses. Trusts A Trust is a way to merge businesses. It is a legal agreement that allows on person to manage another person’s property.

11. Alexander Graham Bell This Scottish immigrant invented the first telephone. He would go on to create the Bell telephone company, which would become AT&T.

12. Thomas Alva Edison Was a well known inventor that had hundred of patents to his name. His most notable invention the creation of light bulb, and the foundation of his company General Electric or GE.

13. Railroads The new start of the art railroad began to connect the country. The distance it used to take carriages days to travel could now be achieved in hours.

14. The transcontinental railroad The Pacific Rail way act Was a bill passed under Abraham Lincoln. The plan behind the bill was to connect the east and west coast of America using one railroad line Smaller railroad would split from the major line.

15. Union Pacific Owen by Grenville dodge The union Pacific Railroad pushed west from Omaha Nebraska.

16. Central Pacific Railroad Originally four companies merge into one the Central Pacific Railroad ran from California to meet the Union pacific side. The company was owned by Leland Sanford. Due to a labor shortage the company employed 10,000 Chinese works to help finish the line.

17. Land Grants In order for the rail roads to gain money to build railroad the government would issue the companies land grants Land grants was land that the railroad went through, which became property of the railroad. The companies could sell these land grants to virtually anyone at any price.

18. Land Grant Corruption Those in the railroads took notice how easy it was to make money off of land grants. The companies begin to bribe government officials for the grants. Jay Gould was the most well known for owning a rail road and corrupting the grant system.

19. Credit Mobile Scandal A construction company Credit Mobiler became a major investor in the Union Pacific Railroad. By doing so they were able to choose the construction company for the rail road. They charged a large construction knowing that the railroad would have to pay no matter what.

20. Pushing industry As a result of the railroad connecting the country we see stores find ways to meet their consumer Department stores offered a wide array of items and existed through out the country Chain stores only existed in a few locations but offered items through mail order catalogs.

21. Why do we need unions Poor working conditions. Most workers suffer from chronic illness from dust. There were more accidents at work in America then in any other industrial nation Many workers were women and children mostly in the textile industry. Most children were under age 14, boys were paid less then men, and girls less because they would be married soon.

22. Union A group of workers joining together to fight for the rights of workers. Work less hours Better pay

23. Company opposition Oaths and contracts not join unions Those forming unions were black listed to keep them from being hired by other companies after being fired. Lock outs: Actually keep union members out of work to keep them from working. Companies would hire other workers known as strike breakers.

24. New Union Development The Knights of Labor: Developed in 1869 Opened itself up to both skilled and un skilled workers and minorities. The idea was in time workers would work for themselves not their bosses. After not properly negotiating a few strikes the knights lost membership.

25. AFL AFL: American Federation of Labor Several trade unions come together to form it. The union pushed for an eight hour work day It also wanted factory owners to only hire union members It continued the knights of labor trend of arbitration Samuel Gompers was the leader of the AFL and the first President of the union