1. Chapter 6 Section 2
Rise of Big Business

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

3. 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

4. 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

5. 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

6. 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

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