Big Business Bell Ringer: When you hear the term “big business” what do you think of?

Capitalism United States operated under a capitalist system. –Capitalism: the idea that private business runs most industries. Horatio Alger Jr. : publishes a popular series of books that reflects the increasing importance of individualism. Usually his books had a rags to riches theme. He believed in a laissez- faire or free enterprise that let the people choose.

Corporations Corporation : Organizers raise money by selling shares of stock, or certificates of ownership in a company. Stockholders then receive a dividend or share of the company’s profit. Trust: a group of companies who turn over control of their stock to a board of trustees. Monopoly: What happens when a trust gains control of an industry having little or no competition.

Andrew Carnegie Immigrant from Scotland. At 17 worked as a secretary for a railroad company, after watching how the business worked he began making investments. 1860: Decided to get involved with steel though he knew nothing about it. Believed and used vertical integration. In 1899 he sold his companies to J.P. Morgan for $500 Million. Making him the richest man in the United States.

John D. Rockefeller Founder of Standard Oil Started making money in wholesale food, then jumped to oil refining in Used both vertical and horizontal integration. Drove other competitors out of business by providing goods and services at lower prices. 1880: Controlled 90% of the country’s petroleum.

Railroad Tycoons Cornelius Vanderbilt Gained control of New York Central Railroad. Soon had control of Chicago, New York, Cleveland, Toledo. Bought small lines to combine to create direct routs to urban centers. George Westinghouse Created the compressed air brake. Allowed trains to pull more cars and travel at higher speeds. George Pullman Designed and manufactured railroad cars for long distances. Built dining cars, sleeping cars Opened a factory in Chicago Seeing the poor living conditions he created a planned factory community next to his plant to improve quality of life.

Department Stores Store that sold a variety of goods. Pioneered by Marshall Field, R.H. Macy. Became woman’s domain for both work and shopping. Bought large quantities of goods in bulk and sold them for cheap prices.

Homework Chapter 15, Section 2 –Questions 1, 2, 4 –Due tomorrow –No Exceptions or Excuses!