The Second Industrial Revolution Unit 1 Section 2 Part 5

A. The Oil Boom Edwin Drake was the first person to drill for oil In Texas, huge deposits of oil were discovered Called the Oil Boom It was discovered that oil could be refined into gasoline starts a revolution in transportation and industry

B. Industry and Railroads In the 1850s, the Bessemer Process was created -made it easier and cheaper to make steel Steel transformed the U.S. into a modern industrial economy Steel was used to make RR’s, bridges, and skyscrapers

C. Railroads Expand In the 1850s, RR’s crossed America No RR’s connected the east to the west yet Congress authorized two companies to build rail lines to the west coast Union Pacific Railroad started building westward from Omaha, Nebraska Central Pacific Railroad started building eastward from Sacramento, California The two met in Promontory Summit, Utah This was the first Transcontinental Railroad

RR’s speeded the settlement of the West Also caused new towns to spring up Also led to the adoption of standard time -standard time made all people within a local time zone set their clocks alike

D. The Rise of Big Business Big Business prospered in the 1800s because of Entrepreneurs -people that started their own businesses America became a capitalist country -this meant that businesses are privately owned Social Darwinism -this said that stronger businesses survive, while weaker ones die out

E. New Business Organizations A new type of business called a corporation -a business with the legal status of an individual -owned by people who by stock in the corporation -Had advantages such as a corp. could continue after its founders die -easy to raise money by selling stocks Corporations competed some formed monopolies -this is where companies had complete control of a certain market

F. Industrial Tycoons The late 18, early 1900s was known as the Gilded Age -Americans amassed a large amount of wealth John D. Rockefeller -Standard Oil Company -leading oil producer in the U.S. -came up with Vertical and Horizontal Integration -Vertical Integration: taking over companies that supply you -Horizontal Integration: Taking over your competition -gave over half of his wealth to charity

Andrew Carnegie -U.S. Steel Company -Largest steel producer in the world -sold his company to J.P. Morgan in 1901 J.P. Morgan -wealthy banker and investor Cornelius Vanderbilt -RR Tycoon George Pullman -Pullman Palace Car Co. -made comfortable sleeper RR cars -even made a town for his employees to live in called Pullman, Chicago

Many people called these tycoons Robber Barons -this meant that they destroyed their companies with tough tactics and treated workers poorly Others called them Captains of Industry because they provided jobs for thousands and gave money to charity -also strengthened the economy