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Published byShonda Richardson Modified over 9 years ago
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Cornelius Vanderbilt Vanderbilt built the railroads Majority of railway lines were owned by a few powerful men Offered secret deals to factories and industries
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I. John D. Rockefeller Multimillionaire who dominated the oil industry
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VI. The Oil Industry 1859 Oil discovered Oil boom followed
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A. Rockefeller and Standard Oil Son of a humble, New York peddler Thought competition was wasteful Standard Oil Company; Rockefeller’s oil monopoly Rockefeller drove competitors out of business
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B. Creating a Trust Trust: – A group of corporations run by a single board of directors Monopoly: – Controls all or nearly all of an industry Standard Oil controlled 95% of oil industry Corporation A Corporation B Corporation C Board of Directors
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II. Growth of the American Steel Company Railroads fueled the growth of industry Steel became the ideal material
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A. A new way to make steel Bessemer Process: – Method to produce strong and cheap steel More products being made of steel – Nails, screws, needles, skyscrapers
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B. Steel Mills spring up Sprang out throughout the Mid-West Positive: Created Jobs Negative: Pollution
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III. Andrew Carnegie Scottish Immigrant Went to England and saw the Bessemer process Built a steel mill and created relationships with railroads
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B. Controlling the Steel Industry Used $ to buy out rivals, iron mines, railroads, steamships and warehouses Vertical Integration: – Owning all phases of an industry Carnegie combined all businesses to create Carnegie Steel Co.
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C. Gospel of Wealth Carnegie thought the rich should help the poor Donated $60 million to build libraries
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IV. Rise of Big Corporations Big factories out produced small ones Small factories were forced to close Factory owners need ways to build capital Corporation: – Business owned by investors Stock: – Share in a corporation Dividends: – Share in profits
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V. Banks and Industry Corporations borrowed $ from banks JP Morgan: Powerful banker Invested in troubled corporations and turned a profit Took profits and invested in other industries (railroads and steel)
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VII. Big Business: Two viewpoints A.Opposition – Reduced Competition – Too much political influence – Led to poor working conditions. – Sherman Antitrust Act: Outlawed the formation of trusts and monopolies B. Support Too much competition ruined business; put people out of work Lowered production costs, lower prices, By 1900…Americans enjoyed the highest standard of living Free Enterprise System: Business are owned by private citizens
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