QOD #3  Read pg  Answer:  1. What personal qualities and talents played a part in Andrew Carnegie’s rise to success?  2. How did personal contacts contribute to Carnegie’s financial success?  3. In what industry did Carnegie make his immense fortune?

Railroads Spur Industrial Growth

I) Reasons for Growth in Industry

 A) Following the Civil War, large factories began to replace small workshops

I) Reasons for Growth in Industry  A) Following the Civil War, large factories began to replace small workshops  1. The # of factories went from 140,000 in 1865 to 510,000 by 1900

I) Reasons for Growth in Industry  A) Following the Civil War, large factories began to replace small workshops  1. The # of factories went from 140,000 in 1865 to 510,000 by 1900  2. The US had become the world’s leading industrial nation

I) Reasons for Growth in Industry  B) Coal, Iron Ore, and lumber all made there way to factories via the booming RR industry

I) Reasons for Growth in Industry  B) Coal, Iron Ore, and lumber all made there way to factories via the booming RR industry  1. There were 30,000 miles of track in 1865 and 200,000 miles in 1900

II) Railroads Link the Nation

A) Goods from different parts of the country could now be shipped to one location

 1. This meant that coal from West Virginia could be sent to Cleveland to fire the furnaces to melt iron ore from Minnesota and be turned into steel which could be shipped to New York City to make buildings

B) In addition, mail order business thrived

 1. Goods could be shipped to homes across the country

B) In addition, mail order business thrived  1. Goods could be shipped to homes across the country  2. Companies such as Montgomery Ward and Sears Roebuck would send farmers catalogs to purchase all kinds of goods

C) Problems with RR

 ’s of RR companies caused conflict

C) Problems with RR  ’s of RR companies caused conflict  2. North and South used different gauge (thickness) track

C) Problems with RR  ’s of RR companies caused conflict  2. North and South used different gauge (thickness) track  3. Environmental issues: lumber to build RR ties, coal to power

III) RR Competition

A) Cutthroat competition between companies

 1. Rate wars, reduce fares as low as possible

A) Cutthroat competition between companies  1. Rate wars, reduce fares as low as possible a. Once you eliminate competition, you up fares as high a you wanta. Once you eliminate competition, you up fares as high a you want

A) Cutthroat competition between companies  1. Rate wars, reduce fares as low as possible a. Once you eliminate competition, you up fares as high a you wanta. Once you eliminate competition, you up fares as high a you want  2. Rebates- refund of payment

A) Cutthroat competition between companies  1. Rate wars, reduce fares as low as possible a. Once you eliminate competition, you up fares as high a you wanta. Once you eliminate competition, you up fares as high a you want  2. Rebates- refund of payment a. offer rebate if company promises to use on your RRa. offer rebate if company promises to use on your RR

A) Cutthroat competition between companies  1. Rate wars, reduce fares as low as possible a. Once you eliminate competition, you up fares as high a you wanta. Once you eliminate competition, you up fares as high a you want  2. Rebates- refund of payment a. offer rebate if company promises to use on your RRa. offer rebate if company promises to use on your RR  3. Consolidation- several companies combined into one

A) Cutthroat competition between companies  2. Rebates- refund of payment a. offer rebate if company promises to use on your RRa. offer rebate if company promises to use on your RR  3. Consolidation- several companies combined into one a. Cornelius Vanderbilt bought lines from NY to Chicagoa. Cornelius Vanderbilt bought lines from NY to Chicago

A) Cutthroat competition between companies  2. Rebates- refund of payment a. offer rebate if company promises to use on your RRa. offer rebate if company promises to use on your RR  3. Consolidation- several companies combined into one a. Cornelius Vanderbilt bought lines from NY to Chicagoa. Cornelius Vanderbilt bought lines from NY to Chicago b. The trip usually meant 17 train changes, under Vanderbilt, 1 b. The trip usually meant 17 train changes, under Vanderbilt, 1