Chapter 6 Section 2 Rise of Big Business

Review What business did Carnegie invest and become rich in? What is “vertical integration”? How did Rockefeller become rich? What is “horizontal integration”?

George Westinghouse 1869 at age of 23 established Westinghouse Air Brake Company After public demonstration of effectiveness of air brake his business grew By 1874 air brake was on 7,000 passenger cars

George Pullman Built Railroad cars to make travel more comfortable Built company town south of Chicago in 1880 Hoped to encourage educated, healthy, peaceful and virtuous workers Provided homes, stores, church, library, theatre, medical offices and athletic fields strictly controlled daily life in company town

Mass Marketing Persuade consumers to purchase products Brand names– name recognition “Standard Oil”– implies standard for industry Packaging to set products apart Helped create consumer culture Montgomery Ward and Sears, Roebuck and Company– develop mail order catalogs

Department Store Variety of products under one store Buy in bulk and set cheap prices Marshall Field– Chicago R.H. Macy– New York John Wanamaker– Philadelphia Becomes domain of women Hired as workers Enticed to shop

Chain Stores Branch stores in many cities Woolworths– Frank Woolworth in 1879 By 1900 had 59 stores around country