1. The Rise of Industrial America

2. An emerging power…

3. Important Factors in Industrialization
Raw materials
Coal, iron ore, copper, lead, timber, & oil
Labor supply
Immigration & migration
Markets
Growing population & transportation networks
Capital
Influx of money from Europe & new millionaires in US
Entrepreneurs & inventors
New technologies & business practices
Pro-business government policy
Subsidies, tariffs, & laissez-faire
New technology & processes
Patents & increase in efficiency

5. The Business of Railroads 1865 = 35,000 miles 1900 = 193,000 miles

8. Impact of Railroads Created national market
Encouraged mass production, mass consumption, & economic specialization
Promoted growth of other industries (e.g. coal & steel)
Advocating for refrigeration of food
Creation of modern stockholder corporations

9. Eastern Railroads Consolidation into trunk lines
Major routes between large cities
Cornelius Vanderbilt creates the NY Central
Others: Baltimore & Ohio RR, Pennsylvania RR

10. Western Railroads Federal Land Grants Transcontinental Railroads
170 million acres to 80 companies
Meant to increase settlement & land value
Led to poor construction and mass corruption
Transcontinental Railroads
Central Pacific = Chinese immigrants

12. Competition & Consolidation
Overbuilding of RRs led to bad business practices
Rebates (discounts) to some; high rates for others
Made farmers angry (Grange & Populist movements)
Panic of 1893 led to bankruptcy of 1/4 of RRs
Bankers (J.P. Morgan) took control
By 1900 seven systems controlled 2/3 of RRs

14. New Ways of Doing Business
Corporations
A business with many share holders.  Corporations are formed to raise capital for expansion.  Share holders receive dividends when the company makes a profit, and can only lose what they put in.
Trusts
Corporations in the same market or related markets would form a trust that put control of business under a single group of trustees. Share holders still received dividends, but had no say in the business. 
Holding Company
A holding company would buy enough stock in different companies to control them.  This was done to get around the outlawing of trusts. Eventually, holding companies were outlawed.
Monopoly
A monopoly is when a company or corporation controls an entire market.  This allows them to raise prices to any level.  Government regulation prevents all but a few monopolies such as utility companies.

15. The Rise of Heavy Industry
The Steel Industry
Andrew Carnegie
Bessemer process
Vertical integration (mines-transport-steel)
Sold for $400m to JP Morgan
Combined w/ other steel companies to create US Steel Corporation
Worth $1 billion
168,000 workers
3/5 of steel business
The Rise of Heavy Industry

16. Horizontal integration 90% of oil refinery business
The Oil Industry
J.D. Rockefeller
Standard Oil Trust
Horizontal integration
90% of oil refinery business

18. Anti-Trust Movement Sherman Anti-Trust Act (1890)
first federal antitrust law, authorized federal action against any "combination in the form of trusts or otherwise, or conspiracy, in restraint of trade." 
US vs. E.C. Knight Co. (1895)
The act could only be applied to commerce not manufacturing

19. Laissez-faire Capitalism
Adam Smith, “The Wealth of Nations”
Regulation by “invisible hand” of supply & demand
“Social Darwinism” (survival of fittest)
Herbert Spencer: rich were the “fit”
William Graham Sumner: helping poor makes species weaker
Gospel of Wealth
Rockefeller: “God gave me my riches”
Carnegie: God wants wealthy to practice charity
Rev. Russell Conwell: “Acres of Diamonds” everyone has a duty to try and become rich

20. Age of Technology & Innovations

22. #1 Reason for Mass Demand of Clothing in the US!

23. The Rich Get Richer…
1890 – richest 10% owned 90% of wealth

24. Rise of the Middle Class
Industrialization creates jobs in middle management (supervisors, accountants, etc.)
These workers increase demand for professionals (stores, lawyers, doctors)