1. I. Industrial Giants A. Railroads Grow 1. New Inventions (3 You Already Have) 2. Consolidation -Big companies buy smaller companies -(ex. Today - American bought Reno Air) 3. Helps Economy (Merc...lism?????) -Take goods to and from the factories. - Companies Mass Produce and ship huge amounts 4.(Elaborate) Why do you think there was a rush of inventions in the late 1800’s? What new Inventions excited the public in the 1800’s and how were they used? How did improvements to railroads affect the economy and transportation in the U.S.? What advances were made in

2. The Bessemer Process Invented in the 1850’s, the Bessemer Process could make several tons of steel in 10-20 minutes… Prior to this invention, the process took over a day!

3. INVENTIONS B. Inventions Galore 1. Between 1860-1890 400,000 patents *Patent is an exclusive right to make or sell an invention *Telegraph /Telephone / Personal Camera/ Typewriter / Light Bulb / Affordable Car 2. Communications *Telegraph, Samuel Morse *1844(1866- 1 st cable across Atlantic) *Telephone, Alexander Graham Bell *1876 *500,000 sold by 1890’s

4. INVENTIONS 3. Genius of Menlo Park – Thomas Edison -Created the 1 st research laboratory **1 st practical Light Bulb -Power plants (Run new Lights) -Hired other to research: Lewis Howard Latimer 4. Transportation -Ford, begins work in 1890’s – Company in1906 **Mass production/Assembly line: reduced cost -The Airplane * Orville and Wilbur Wright, 1903 » Kitty Hawk, N. Carolina

5. A. Big Business 1. The Major Players a. Railroads (we’ve already talked about) b. Steel Industry -Andrew Carnegie c. Oil Industry -John D. Rockefeller 5. Explain the differences between sole proprietorship, partnerships, and corporations in business. Give an advantage and disadvantage for each. What would you consider the best for running a company? Why?

6. Study Guide #5: Big Business 2. Types of Business: a. Sole Proprietor (One person owner) Advantages- *All profits go to you ($) *You’re the only boss *Make all decisions Disadvantage- *You do everything *Responsibility * You pay all expenses *Company looses $ you do Mr. Chaney

7. Study Guide #5: Big Business B. Partnership (2-3 people own company equally) Advantages- *1/2 work, time, expenses Disadvantage- *1/2 profit *1/2 boos, must agree w/part. *Disagreements with Partners

8. Study Guide #5: Big Business C. The Corporation 1. Need to raise money for expansion 2. Sell stocks in company to investors, raise “capital”(money) for expansion Advantage- *raises more $$ (capital) than an individual Disadvantage- *Stock holders have no direct say in company * receive dividends of profits if the company does well

9. A. The growth of Monopolies: Expanding Power 1. Vertical Integration -Buy anything you use for your Business Ex. Carnegie (Steel) “From ground to Mill” - Mine (Owned Iron Ore & Coal Mines) - Shipping (Owned Ore Fleet in Great Lakes) -Some railways also - Steel Mills (Turn Ore to Steel) VI. Explain how both Horizontal & Vertical Integration* were used to create trusts (Monopolies*). Name 3 businesses that grew with these practices and name their leaders. Name the first attempt to limit trusts. What were the major arguments for and against monopolies?

10. Study Guide #6: Monopolies 2. Horizontal Integration - Buy interest in competitors companies, bring together in one Corporation Ex. – Rockefeller (Standard Oil) Company A + Company B + Standard Oil= MONOPOLY The Oil Industry- Standard Oil 1. Oil discovered in Penn. In 1859 -“Black Gold” 2. John D. Rockefeller - Created the Standard Oil Corporation **Becomes most dominant oil company in the U.S. – Controlled 95% of Refineries **CONTROL ALL ASPECTS OF YOUR BUSINESS!!

11. Cartoons depicting Standard Oil

12. Study Guide #6: Monopolies 3. The TRUST (ex. Standard Oil Trust) **A group of Corporations governed by one Board Of Trustees 4. Public Reaction to Monopolies a. supporters- more efficient/ leads to reliable goods and services b. detractors: People tired of trusts: use unfair business tactics, leads to reduced competition, too much POWER (political???) -Sherman Anti-Trust Act (1890) **WEAK!! Fails to even define a “Trust”