Chapter 16 Industrialization Notes Vertical Integration- Purchase of all Levels of Production. Ace Meat Industries Cattle Slaughter House Refrigerated Railroad Cars Cooled Warehouse Meat Packing Plants Delivery Wagons Horizontal Integration- Purchasing of Competing companies in the Same Industry. Standard Oil company Independent Oil Company

Little or no government intervention Development of pools, trusts, holding companies, and monopolies Small businesses could not compete with economies-of-scale of large businesses Practices of some big businesses sometimes limited competition Factors Behind Industrialization: Abundant Natural resources Cheap immigrant labor force High tariffs that reduced foreign goods National communication and transportation networks Growth of Business Changing Workplace Rural migration and immigration created large, concentrated workforce In large-scale industries, low wages, long hours, and dangerous working conditions were common First large unions formed but had little bargaining power against large companies

Cause & Effect Cause: Railroad Boom spurs business Businesses become corporations Nation has rich supply of natural resources New inventions make business more efficient Rise of Industry: Steel and Oil become giant Industries Monopolies & Trusts dominate important industries Factory workers face harsh conditions Membership in labor Unions grows

Main Topics & Review Railroads & Industry: After civil war, thousands of miles of new railway lines were built, creating nationwide rail network. Despite man abuses by large railroads, the growth of railroads stimulated the nation’s economy. Big Business: In the 1800’s, steelmaking became a huge source of wealth & power for American Companies. Large Corporations formed trusts & monopolies to control competition and maximize profit. A Flood of Inventions: Advances in communication in the late 1800s included the laying of the first transatlantic telegraph cable and the invention of the telephone. At his research laboratory, Thomas Edison invented the light bulb, the phonograph, and hundreds of the of the other useful devices, Through his use of the assembly line, Henry Ford made it possible for millions of Americans to afford a automobile. Labor in the Age of Industry: Though various labor unions had differing ideals and methods, they all worked to improve working conditions and pay for workers Labor unions made slow progress at first because few Americans supported their goals.