Chapter 14 Steel, Oil and Railroads The Main Idea During the late 1800s, new technology led to rapid industrial growth and the expansion of railroads.

New Industries Emerge New technologiesNew technologies –Electrical power replaced steam and water power. –Larger factories produced more and more goods. –Faster transportation moved people and goods more cheaply. Dramatic industrial growthDramatic industrial growth –Period sometimes called the Second Industrial Revolution

New Industries Emerge Making Steel Bessemer Process of purifying steel.Bessemer Process of purifying steel. – helped to make America the worlds top producer –transformed the U.S. into a modern industrial economy. –William Kelly created the idea in the United States. = Construction companies could build bigger bridges and taller buildings, locomotives and steel rails. = The low cost of steel made ordinary items affordable.

STEEL

Definition Uses / Innovations Process Impact of industry importance Steel is an alloy of iron with about 1-2 percent carbon.

IRON STEEL CAST IRON

Uses Chicago

Making Steel Bessemer Process of purifying steel.Bessemer Process of purifying steel. – helped to make America the worlds top producer –transformed the U.S. into a modern industrial economy. –William Kelly created the idea in the United States. = Construction companies could build bigger bridges and taller buildings, locomotives and steel rails. = The low cost of steel made ordinary items affordable.

Bessemer Process Changed everything – cheap consistent steel

Hosted by « Back to image details IMPACT OF STEEL

Cities went vertical.

Railroads were built everywhere

Vertical Integration Mines Trains Ships Coal Coke ovens Steel mills

Andrew CarnegieSTEEL Rose from Scottish immigrant child to steel magnate.Rose from Scottish immigrant child to steel magnate. Used profits from various business investments to found own company and buy out rival steel producers.Used profits from various business investments to found own company and buy out rival steel producers. By 1901 the Carnegie Steel Company dominated the U.S. steel industry. US Steel Corporation.By 1901 the Carnegie Steel Company dominated the U.S. steel industry. US Steel Corporation. After retiring, devoted his time to charity, supporting education and building public libraries.After retiring, devoted his time to charity, supporting education and building public libraries.

Andrew Carnegie -Made steel process efficient Sold company Become insanely rich--- Gave most away – 90% +

…and then tore it down. Stevens Point got a library.

Worker unrest – safety concerns – Unions form

You tell me…

Railroads

Cornelius VanderbiltRAILROADS Vanderbilt began investing in railroads during the Civil War.Vanderbilt began investing in railroads during the Civil War. By 1872, he owned the New York Central Railroad.By 1872, he owned the New York Central Railroad. At the height of his career he controlled 4,500 miles of track.At the height of his career he controlled 4,500 miles of track. He supported few charities, but gave money to what would come to be Vanderbilt University.He supported few charities, but gave money to what would come to be Vanderbilt University. He died leaving an estate of $100 million.He died leaving an estate of $100 million.

Railroads ExpandMore Tracks 1865 to 1890, the number of miles of railroad track increased nearly fivefold.1865 to 1890, the number of miles of railroad track increased nearly fivefold. –1860=30,000 miles –1890=180,000 miles To aid the growth, the federal government gave thousands of acres of land to railroad companies.To aid the growth, the federal government gave thousands of acres of land to railroad companies.

TRANSCONTINENTAL RAILROAD Laid tracks westward from Omaha, NebraskaLaid tracks westward from Omaha, Nebraska Prairie lands and gently rolling hills made for quick progress.Prairie lands and gently rolling hills made for quick progress. Union Pacific Tracks were laid eastward from Sacramento, California.Tracks were laid eastward from Sacramento, California. Chinese workers laid tracks through tougher terrain, crossing deserts and blasting through mountains.Chinese workers laid tracks through tougher terrain, crossing deserts and blasting through mountains. = May 18, 1869= The two lines met. United the country physically and economically. Golden Spike. Central Pacific

East ---West Connection Communication

TIME ZONES - Organization

Corruption

Railroad Productivity

Land Grants The first major railroad land grants originated with the 1862 legislation that enabled the transcontinental railroad. At that time, the Union Pacific and Central Pacific railroads were granted 400-foot right-of-ways plus ten square miles of land for every mile of track built.The first major railroad land grants originated with the 1862 legislation that enabled the transcontinental railroad. At that time, the Union Pacific and Central Pacific railroads were granted 400-foot right-of-ways plus ten square miles of land for every mile of track built.

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Depending on sources, 9.5% to 17% of all US lands were given/ controlled by railroads.

George PullmanPullman, IL Made his fortune designing and building sleeper cars that made long-distance travel more comfortable.Made his fortune designing and building sleeper cars that made long-distance travel more comfortable. He built a town south of Chicago to house workers in relative comfort, believing happy workers were more productive.He built a town south of Chicago to house workers in relative comfort, believing happy workers were more productive. The Pullman Company controlled aspects of life in the town, and criticism was not tolerated.The Pullman Company controlled aspects of life in the town, and criticism was not tolerated.

Effects Of Railroad… Promoted trade and provided jobs. Boosted steel industry and train manufacturers. Contributed to the growth of the modern corporation. Gave industrialists quick and inexpensive access to distant markets and distant sources of raw materials.

Effects Of Railroad… Settlement of the West was easier. Sparsely populated areas began to fill with residents. New towns were founded and existing ones expanded. Led to the adoption of standard time.

New Industries Emerge Oil industry begins Oil was a key commodity as a fuel source and for lubrication. Edwin L. Drake drilled the first commercial oil well. Oil prospectors, or Wildcatters, looked for oil in other regions. Major sources of energy from oil fueled a revolution in transportation and industry.

OIL Historical Origins / uses US origins Impact / Innovation Problems

First oil 347 AD

First oil 1846 – first mechanical well

Titusville Spindletop Signal Hill

By introducing the world's first commercial oil well in 1859, Edwin Drake launched an oil boom in Western Pennsylvania comparable to the California gold rush of '49.

First uses 3,000 years of use –3,000 years of use – –Lamp oil –Medicine –Seal boats –Generally a nuisance 150 years modern oil industry150 years modern oil industry

Impact – New energy economy 20 to 1 energy ratio20 to 1 energy ratio Nothing like it.Nothing like it.

Kerosene, not gasoline- first oil use

Products today Petrochemicals (Plastic)Petrochemicals (Plastic) AsphaltAsphalt Diesel fuelDiesel fuel Fuel oilsFuel oils GasolineGasoline KeroseneKerosene Liquefied petroleum gas (LPG)Liquefied petroleum gas (LPG) Lubricating oilsLubricating oils Paraffin waxParaffin wax TarTar

Some of biggest companies in the world

John D. RockefellerOIL Starting with an oil refinery and superb business sense, used both vertical and horizontal integration to capture 90% of the U.S. oil refinery business by 1879.Starting with an oil refinery and superb business sense, used both vertical and horizontal integration to capture 90% of the U.S. oil refinery business by Standard Oil Trustconsisted of 40 corporations that controlled every phase of oil refining.Standard Oil Trustconsisted of 40 corporations that controlled every phase of oil refining. –1913 gave away over half of his fortune to charity. –He donated millions to education and good works through his Rockefeller Foundation.

John D. Rockefeller Started Standard Oil Created refinery monopoly Also insanely rich from oil

How rich is insanely rich? Name: John D. RockefellerName: John D. RockefellerJohn D. RockefellerJohn D. Rockefeller Age at Highest Earnings: 74Age at Highest Earnings: 74 Age at Death: 97 (died May 23, 1937)Age at Death: 97 (died May 23, 1937)May May Net Worth: Billion $USDNet Worth: Billion $USD Original Net Worth: US$1 Billion (September )[2] US$900.0 Million (1913-eve of WWI) [3]Original Net Worth: US$1 Billion (September )[2] US$900.0 Million (1913-eve of WWI) [3][2][3][2][3] Origin: United StatesOrigin: United StatesUnited StatesUnited States Main Source of Wealth: Standard OilMain Source of Wealth: Standard OilStandard OilStandard Oil Other Achievements: First Billionaire (Globally-USD)[4] and The Rockefeller Foundation (Created:1913)[5]Other Achievements: First Billionaire (Globally-USD)[4] and The Rockefeller Foundation (Created:1913)[5][4][5][4][5]

The Auto Industry- Car Culture

Highway system

Car culture

Suburbia-

Daily Gas usage by country Relative Gas Prices

Future of Oil

Problems Non-renewableNon-renewable Major pollutantMajor pollutant Most not in USMost not in US No price controlsNo price controls WE NEED IT!!!!!!WE NEED IT!!!!!!

A Mixed Legacy Critics –Business tycoons were robber barons who profited unfairly by squeezing out competitors. –They lived lavish lifestyles from their ill-gotten rewards. Proponents –Business tycoons were captains of industry who used their business skills to make the American economy more productive. –That in turn made the American economy stronger.

A Favorable Climate for Business Free Markets Capitalism= competition determines prices and wages, and most industries are run by private businesses.Capitalism= competition determines prices and wages, and most industries are run by private businesses. In the 1800s, business leaders believed in laissez-faire capitalism with no government intervention.In the 1800s, business leaders believed in laissez-faire capitalism with no government intervention. Entrepreneurs risked their money andEntrepreneurs risked their money and talents in new ventures. talents in new ventures.

Proprietorships and Partnerships –Small businesses were run by individual proprietors or had more than one owner in a partnership. –In either case, owners are personally responsible for all business debts and obligations.

Corporations –As industries grew, the structure of ownership changed. –Businesses were owned by stockholders; decisions made by a board of directors, with day-to-day operations run by corporate officers. –Investment money was raised by selling stock, and investors were bound only by the amount of their investment.

Trusts and Monopolies –Some companies merged and turned their stocks over to a board of trustees who ran the group of companies as a single entity. –Sometimes a trust gained a monopoly, having complete control of an industry. –With no competition, prices could be raised or lowered at will.

Social Darwinism Economic life was controlled by the natural law of competition (survival of the fittest) Agreed with the well-known economist, Adam Smiths ideas of the law of supply and demand. Businessmen liked the ideas of capitalism, they actively sought to eliminate competition and control the free market. John Rockefeller and Andrew Carnegie.