Vocabulary List 5 - Time Zone -Integrate -Investor -Distribution -Consumer -Resource -Practice -Chain Stores (p103) -Mail-Order catalogue (p 103)

Second Industrial Revolution Industry Tycoons & Inventors

I. Railroads ●A) Background: ○Transcontinental RR connected entire continent ○Building/running RR is dangerous work - 2,000 died, 20,000 injured ●B) Benefits: ○Increased trade amongst cities ○Helped all other industries grow ●C) Abuses: ○Excessive rates ○Tried to obtain favorable legislation through bribery ●D) Consequences: ○Interstate Commerce Act government could regulate shipping rates ○Started by Granger Movement

I. Railroads (cont…) ●E) Conelius Vanderbilt - merged RR lines to create powerful RR system between Chicago, NYC and Boston. Created steel rails / bridges

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II. Steel ●A) Bessemer Process ○Cold Air + Molten Iron = Tougher Steel ○Steel used for everything → Buildings! ●B) Andrew Carnegie - Steel King ○Pittsburgh ○Wealthiest man in America ○Carnegie Steel Co. > Great Britian Steel *Vertical Integration

III. Oil & Petroleum ●A) Early uses: ○Kerosene - lighting ○Oil grease - machine lubrication ○Eventually… used for fuel ●B) John D Rockefeller ○Standard Oil Co. ○Horizontal Integration ○Dominated 90% of oil business ○Sherman Anti-trust Act - dissolved company because too big.

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IV. Finance ●A) JP Morgan - largest private banker in America ○Bought Carnegie Steel company ○Merged with other steel companies ○Created first billion dollar company (US Steel Corp)

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V. Other Industries ●A) Meat-Packing ○Pioneered by Armour, Morris & Swift ○Cows/Pigs slaughtered shipped to all parts ○waste used for glue, soap & fertilizer ●B) Tobacco - James Duke created American Tobacco Company ○Famous for price wars ○Dissolved by Anti-trust act ●C) Chemicals - DuPont Family started with Gunpowder, eventually worldwide corp

VI. Other Inventions

VII. Retail is born ●A) Past - people purchased things only at general stores. Now… ●B) Specialty Shops - single type of product ●C) Chain stores - same store, different location ●D) Department stores - product categories in separate departments (Marshall Field) ●E) Selling by Mail - shopping by catalogue (Sear, Roebuck) ●F) Advertising & Marketing - in newspapers/magazines ○$50 million spent in 1867 ○$500 million spent in 1900 ●G) Packaging - created brand awareness

Daily Quiz 5 For the following individuals - list the persons industry and something they are famous for. ex: 0) James Duke. Industry was Tobacco. Famous for price wars. 1) Andrew Carnegie 2) JP Morgan 3) Cornelius Vanderbilt 4) John D Rockefeller 5) a) Who invented the telephone? b) Who invented the Steam Engine c) Who invented the Automobile? d) Who invented the Machine gun?