Section 3 An Age of Big Business

Edwin L. Drake Oil was used for medicine…later to produce heat medicine…later Oil was used for medicine…later to produce heat medicine…later Titusville, Pennsylvania, 1859

15 barrels a day Today – thousands a day 42 gallons in a barrel of oil

Factors of Production Land, Labor, & Capital *Land – land and natural resources *Labor – workers *Capital – equipment, machinery, tools & money for investment

Corporation: A company that sells shares, or stock, of its business to the public.

Shareholders: The people who invest in the corporation by buying stock. Dividends: Cash payments from the corporation’s profits – on the stock they own.

First business to incorporate? railroads

New ways of producing steel? Henry Bessemer:  Bessemer process  Open-hearth process

Steel capital of the U.S.? Pittsburgh, PA

Andrew Carnegie STEEL

Carnegie Steel Company Andrew Carnegie’s steel company… J. Pierpont Morgan: formed U.S. Steel Co. 1 st Billion dollar corporation

Philanthropists The use of money to benefit the community. Andrew Carnegie donated $350 Million to organizations. Built Carnegie Hall in New York, 2000 libraries around the world

Sherman Antitrust Act Protected people from monopolies (big business combinations) Protected people from monopolies (big business combinations)