IV. Andrew Carnegie w/fellow businessmenIV. Andrew Carnegie w/fellow businessmen A. Huge FortuneA. Huge Fortune

1. 1900 – over 4,000 millionaires 1. 1900 – over 4,000 millionaires B. CarnegieB. Carnegie

1. one of the wealthiest & most famous1. one of the wealthiest & most famous 2. Scotch immigrant2. Scotch immigrant 3. Put all his $ and other investors in 3. Put all his $ and other investors in largest steel-making plant in PAlargest steel-making plant in PA C. BeliefC. Belief 1. Rich had the right to make $ but also 1. Rich had the right to make $ but also

spend properlyspend properly 2. “trustee for his poorer brethren…”2. “trustee for his poorer brethren…”

V. V. Pennsylvania oil fieldPennsylvania oil field A. 1A. 1stst oil well oil well 1. Titusville, PA 18951. Titusville, PA 1895 2. NW PA studded w/derricks2. NW PA studded w/derricks 3. oil refining big business due to 3. oil refining big business due to automobiles, locomotives, turbinesautomobiles, locomotives, turbines

VI. John D. RockefellerVI. John D. Rockefeller A. Oil BusinessA. Oil Business 1. bought up oil refineries1. bought up oil refineries 2. ruthless methods to eliminate 2. ruthless methods to eliminate competitioncompetition 3. lower prices to get customers > 3. lower prices to get customers > raise prices once competitor raise prices once competitor gonegone 4. Company Standard Oil controlled 4. Company Standard Oil controlled 90% of refining by 187990% of refining by 1879 B. TrustB. Trust 1. stockholders of independent 1. stockholders of independent companies exchange stock for companies exchange stock for certificates given by giant firmscertificates given by giant firms 2. shareholders get dividends but 2. shareholders get dividends but lose control of managementlose control of management 3. Rockefeller gains control > 3. Rockefeller gains control > monopoly monopoly

VII. VII. Railroad outside Chicago, IllinoisRailroad outside Chicago, Illinois A. Chicago, IL 1860A. Chicago, IL 1860

1. US rail system only 30,000 miles of 1. US rail system only 30,000 miles of track – mostly Easttrack – mostly East2. sending freights long distance costly 2. sending freights long distance costly & too much time& too much time

B. TransportationB. Transportation1. key to industrialization1. key to industrialization2. US needs to move freight and 2. US needs to move freight and passengers quickly passengers quickly

VIII. Political cartoon Cornelius VIII. Political cartoon Cornelius VanderbiltVanderbilt

A. Rail networkA. Rail network1. railroad made more 1. railroad made more efficient by combining efficient by combining small linessmall lines

2. Vanderbilt one of 2. Vanderbilt one of several who controlled several who controlled

expanding rail network – expanding rail network – link from NY to Chicagolink from NY to Chicago

3. 1867 Vanderbilt gained 3. 1867 Vanderbilt gained most important rail like – most important rail like – NY Central by forceNY Central by force

4. at his death 1877 4. at his death 1877 controlled 4,500 mile of controlled 4,500 mile of railrail

ContinuedContinued

B. Improvements to rail linesB. Improvements to rail lines

1. cheaper & faster1. cheaper & faster

2. iron tracks replaced w/ steel2. iron tracks replaced w/ steel

3. tracks laid side by side > traffic move 3. tracks laid side by side > traffic move both directionsboth directions

Big BusinessmenBig Businessmen

Good Good

1.1. Made industrialization Made industrialization possiblepossible

2.2. Inventions improved Inventions improved products, lowered products, lowered cost, made life better cost, made life better for Americans for Americans

Bad Bad

1.1. Drove small Drove small companies out of companies out of businessbusiness

2.2. Exploited workersExploited workers

3.3. Paid off governmentPaid off government

4.4. Overcharged on Overcharged on goodsgoods

5.5. Hurt the environmentHurt the environment