1. The Industrial Age

2.  The time when people switched from making goods by hand to manufactured goods wit machines.  This completely changed how people lived and worked.  Many of these changes were for the better, but not all.

3.  Transformation of an economy from an agricultural base to an industrial base built on the mechanization of labor, and the production of a new product.  Steel.

4.  Settlers are transported west  Railroads deliver raw materials and finished goods  Thousands of jobs are provided  Railroad Barons start buying up smaller lines or driving them out of business.  This was called consolidation.  These so called barons would now control the rail lines ◦ Example: Cornelius Vanderbilt of NY Central Line controlled everything from NY to the Great Lakes  Large railroads offer secret rebates to costumers and make secret agreements that raise rates

5.  Samuel Morse introduces telegraph in 1844 (instant communication)  The telegraph links the United States and Europe ◦ Cyrus Field in 1866 links US with Europe when he lays a telegraph line across Atlantic  Alexander Graham Bell invents the telephone in 1876  Thomas Alva Edison (Wizard of Menlo Park) ◦ Invents the electric light bulb in 1879 and builds the first power plant in NYC in 1882 powering 85 buildings ◦ Later founds GE (General Electric)

6.  Henry Ford uses the assembly lines to mass produce the automobile ◦ Could mass produce large quantities of goods very quickly ◦ Founded Ford Motor Company in 1903 and mass produced the Model T in 1908  This automobile could be easily maintained; anyone could afford, and could drive anywhere ◦ In the next 18 years 15 million were sold  Wright brothers fly airplane at Kitty Hawk ◦ 12 second flight later after more testing developed a practical aircraft. ◦ Propellers were 8 ½ feet in diameter, diameter was 40 feet 4 inches, length was 21 feet 1 inch, weighed 605 pounds

7.  Better ways to sell goods.  Post Office began delivering to homes in 1863. ◦ Post office expanded and started delivering to rural areas in 1890’s.  Start to see mail order businesses or catalogs ◦ Allowing farmers to get products that could not be found in country stores.

9.  Corporation ◦ a business owned by many people. ◦ Railroads are first to incorporate.  Monopoly ◦ one company or person controlling and industry.  Trust ◦ group of companies with in an industry that combine to work together to reduce competition and control prices.

10.  Before 1860 steel was very expensive. ◦ Discovery of Bessemer Process made steel more affordable and could be produced in large quantities.  Ruled the Steel industry by 1890.  Created US Steel Company.  Vertical Integration ◦ Bought iron mines, coal mines, warehouses, ore ships, and railroads to gain control of all parts of making and selling steel.  World’s 1 st billion dollar corporation.  Producing 1/3 of the nation’s steel by 1900.  Sold company to banker J.P. Morgan.

11.  Dominated the oil industry.  Created Standard Oil Company  Most famous corporate empire of its day.  Created an monopoly of the oil industry and a trust in 1882.  Horizontal Integration ◦ Acquired competing companies ◦ Acquired many oil companies by having shareholders in those companies trade their stock for his company’s.  Lowered his prices to force competitors out.  Pressured customers to avoid other companies.  Persuaded RR’s to give him rebates in return for his business.

12.  Built his fortune in the tobacco industry.  Founded American Tobacco Company.  Improved on a machine design to effectively roll cigarettes ◦ Found cost effective way to mass produce pre-rolled cigarettes.  This drove down price and made him a fortune.  Later his heirs get involved in other ventures such as Duke Energy.

13.  Philanthropy ◦ Millionaires give some of their fortunes back to the people.  Carnegie ◦ Donated 350 million, built Carnegie Hall, Carnegie Foundation for Teaching, set more than 2000 libraries world wide  Rockefeller ◦ Established University of Chicago, Rockefeller Institute for Medical Research in NY, restored Colonial Williamsburg, donated land for United Nations.

14.  Vanderbilt: ◦ Established Vanderbilt University ◦ Family eventually donates acres of land because son is big into forestry.  Duke: ◦ Donated millions to a local school by the name of Trinity College. ◦ Later renamed Duke University in 1924.

15.  Why? ◦ Limited competition and cornered the market.  Sherman Antitrust Act: 1890 ◦ This regulated trusts and monopolies. ◦ Not effective in regulating anything until 1900’s.

16.  The Textile Industry:  By 1900 177 mills  George Alexander Gray (rags to riches)  Holt Family (prewar rep) ◦ 2 nd largest cotton textile producer in the country.  Furniture Industry:  1 st factory in High Point ◦ Started by 3 men: Snow, Tate, and Wrenn.  Swicegood family and African American Thomas Day also known for fine furniture.  Railroad:  Spurred economic growth.  “Tobacco Road” ◦ From Charlotte, to Concord, to High Point, to Greensboro, to Durham, and finally to Raleigh.  Gets attention of banker JP Morgan.  NC now connected throughout Nation and world.  RR not taxed in NC business’s boom.  Tobacco:  RJ Reynolds competitor of Duke started RJ Reynolds Tobacco Company