Transcontinental Railroad Abraham Lincoln signed the Pacific Railway Act in This Act allowed for the construction of a rail line that would stretch across the country. Two companies were in charge of building this rail line: 1. Union Pacific 2. Central Pacific

UNION PACIFIC RR (1)LAND & CAPITAL NEEDED (2) 33,000 (3)200,000

Central Pacific RR

Transcontinental Railroad part 2 (6)Greenville Dodge was the man in charge of the Union Pacific. Due to (4)pacific railway act w/ more (5)construction freedom (7)Leland Stanford &Theodore Judah was the man in charge of the Central Pacific. The Union Pacific hired (8)Civil War soldiers, ex-criminals, and Irish immigrants. The Central Pacific mostly hired Chinese immigrants.

Transcontinental Railroad part 3 Over 20,000 men worked on the project. It only took 4 years to complete the railroad. The “final spike” ceremony was held on (9)May 10 th 1869 in Promontory Point Utah.

Growth of Railroads Many new jobs were created because of the railroad: 1. Brake men4. Loaders 2. Engineers5. Repair men 3. Oilers Railroads helped our country grow and expand w/ (10)steel, coal, & timber One could travel from Chattanooga to Santa Fe in a few days rather than months. (16) In 1883, The American Railway Association divided the country into 4 time zones. b/c most people (14) set clock by noon (15)leading to crashes (17)Land Grants with money for land were given to RR companies to encourage RR construction. The companies could then sale this valuable land and make a profit. Many RR entrepreneurs were accused of making their money illegally. They were known as robber barons—the worst was (18)Jay Gould. Not all RR consolidators were crooks. (22)James J. Hill built the Great Northern RR without any federal grants or subsidies. It became very successful and the only RR not to go bankrupt

The ‘Robber Barons’ of the Past (21)-Loot money and never give it back

Modern ‘Robber Barons’??

New York Central Cornelius Vanderbilt made millions by connecting Chicago to New York and creating the (12)New York Central rail line to Chicago. He bought several smaller rail companies and combined them together. In 1871 he began construction of New York’s Grand Central Terminal.

William Vanderbilt $ The public need be forgotten! $ What do I care about the law? H’aint I got the power? $ The public need be forgotten! $ What do I care about the law? H’aint I got the power?

Cornelius [“(11)Commodore”]Vanderbilt & (11)railroad tycoon Can’t I do what I want with my money?

Credit Mobilier Scandal Credit Mobilier was a construction company. This company would overcharge investors to make more money. It involved Oakes Ames who was a member of Congress and the Credit Mobilier. This scandal was revealed during the 1872 elections. No member of the company was charged due to Ames relationship with Congress. (20)James Blaine & James Garfield Only people ever implicated

Great Northern Railroad James J. Hill built this rail line from Wisconsin in the east to Washington state in the west. He built this rail line so it would pass thru already established towns. This became the most successful rail line of the era.

% of Billionaires in 1900

-RR rules-Tech time- 1.LAND &CAPITAL17. money for land 2.33, Jay Gould , Construction Scandal 4.Pacific Railway Act20. James Blaine, James Garfield 5.Provided construction21. loot money & never give back 6.Greenville Dodge22. Great Northern Railroad 7.Leland Stanford, Theodore Judah 8. immigrants, criminal, CW soldier 9. Promontory point and completion 10. Steel, Timber, Coal 11. RR Tycoon, Commodore 12. Chicago & New York st train station & Grand Central 14. noon 15. Crashes & screw ups 16. Create 4 time zones, 1883

Who cares and So What? NEW BUSINESS, NEW RULES EVERYONE FOR HIMSELF, NO HELP EITHER PART OF THE PROBLEM OR YOU’RE PART OF THE SOLUTION IMMINENT DOMAIN

Transcontinental RR 2014 Imagine the Transcontinental RR just opened up in 2014 connecting the entire US and you want to go for a trip across the country. Write down an Itinerary for this trip including where you would like to go, what you would like to see and do, and some things you would need to bring with you on this trip: 5 places you would like to see 5 things you would like to do As well as a list of items you would need to travel across country by train.

MONEY MADE FROM ARMS 1 USA CHINA RUSSIA UK FRANCE JAPAN SAUDI ARABIA GERMANY BRAZIL INDIA- 35.6

Notes Chapter 5 part 3 The Rise of Big Business After the Civil War, business began to use mail order catalogs to attract new customers. Big Business dominated the economy with factories, warehouses, and distribution facilities. Corporations soon formed owned by stockholders and would create pools to keep prices down or level.

U. S. Corporate Mergers

New Type of Business Entities

Andrew Carnegie He made his millions in the steel business. He came to the United State from Scotland. In 1875 he built the first American steel mill in Pittsburgh. He also bought mines, quarries, and iron ore fields. These are products that go into producing steel. By buying these products he could keep prices low for his steel. Carnegie began vertical integration of the steel industry which meant he owned all the different companies that the steel co. depended on.

“On Wealth” Andrew Carnegie $ The Anglo-Saxon race is superior. $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.” $ The Anglo-Saxon race is superior. $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.”

Iron & Steel Production

J.P. Morgan The most successful banker from the late 1800’s was John Pierpont Morgan. He made his fortune by buying and selling stock of large corporations. He bought out Andrew Carnegie in 1901 and created the largest company in America called United States Steel Company.

New Financial Businessman The Broker:  J. Pierpont Morgan The Broker:  J. Pierpont Morgan

The Rise of Big Business part 2 Big Business had several advantages: 1. Produce goods cheaply 2. Cut prices to stay in operation during hard economic times. 3. Negotiate rebates from the large railroad companies. Many smaller businesses felt these larger corporations were driving them out of business.

The ‘Bosses’ of the Senate

Wall Street – 1867 & 1900

John D. Rockefeller By the late 1800’s the oil industry had become very competitive. The company owned by Rockefeller was called Standard Oil. Rather than drilling for oil, he built refineries. Because it shipped so much oil, he was able to control both the price of oil and the railroads that transported his product. At one time, his company controlled 90% of the oil refining in the U.S. The oil business made him millions of dollars.

Standard Oil Co.

New Type of Business Entities Trust:  Horizontal Integration  John D. Rockefeller Trust:  Horizontal Integration  John D. Rockefeller  Vertical Integration: o Andrew Carnegie  U. S. Steel  Vertical Integration: o Andrew Carnegie  U. S. Steel

Advertising and Shopping Advertising quickly became a big money maker. By 1900, retailers were spending $90 million a year attracting new customers. Department stores became popular which helped make shopping more fun led by Woolworth's store. These new stores offered a wide variety of products.

Mail Order Catalogs Department stores would send out catalogs with colored pictures to people living in rural areas. The idea of “shopping from home” appealed to thousands of people. Two large mail-order retailers: 1. Montgomery Ward 2. Sears and Roebuck

Relative Share of World Manufacturing

% of Billionaires in 1918

WHO CARES, SO WHAT?? BIG BUSINESS TAKE OVER On the back of your section 3 review sheet please answer these questions: 1.) Do you think corporations were a good or bad idea in the 19 th and 20 th century 2.) Which industry which industry would you want to be apart of in the late 19 th and early 20 th century oil, steel, finance and WHY?? 3.) Was the rich steel selling Scotsman Andrew Carnegie right, should the rich rule and make decisions for the poor? 4.) Finally, look at the clothes you wearing today, and try to remember what store they were bought at, and just list those stores. EX: Shoes- Wal-Mart, Pants- JcPenny, etc..

Alternate Current George Westinghouse

Alternate Current Westinghouse Lamp ad

The Airplane Wilbur Wright Orville Wright Kitty Hawk, NC – December 7, 1903

Model T Automobile Henry Ford I want to pay my workers so that they can afford my product! Henry Ford I want to pay my workers so that they can afford my product!

“Model T” Prices & Sales

New Business Culture: “The American Dream?” Protestant (Puritan) “Work Ethic”  Horatio Alger [100+ novels] Protestant (Puritan) “Work Ethic”  Horatio Alger [100+ novels] Is the idea of the “self-made man” a MYTH??

New Type of Business Entities 1.Pool 1887  Interstate Commerce Act  Interstate Commerce Commission created. 2.Trust  John D. Rockefeller 1.Pool 1887  Interstate Commerce Act  Interstate Commerce Commission created. 2.Trust  John D. Rockefeller  Standard Oil Co.

The Reorganization of Work Frederick W. Taylor The Principles of Scientific Management (1911) Frederick W. Taylor The Principles of Scientific Management (1911)

The Reorganization of Work The Assembly Line

“On Wealth” Andrew Carnegie $ The Anglo-Saxon race is superior. $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.” $ The Anglo-Saxon race is superior. $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.”