1. Industry Comes of Age
Part 1

2. Transcontinental Railroad
Finished in Promontory Point
Union Pacific – Omaha, NE
Central Pacific – California
Govt. subsidized/huge land
grants

3. Effects of Railroads Trade with Asia Domestic Market Immigration
Connect nation by rail and telegraph
Eventual closure of the frontier
More than any factor spurred the Industrial Revolution

7. Improvements Steel: Cornelius Vanderbilt Standard Gauge
Time Zones (1883)
Bessemer Process
Lowered price of steel and made it easier to make

8. Corruption- “Robber Barons”
“stock watering” – inflating value of company
originally applied to cattle
Bribery
“Pools” – agree on a high rate between competing companies to make profit.
Jay Gould, Robber Baron

9. Government Intervention
Wabash v. Illinois (1886)
Individual states couldn’t regulate interstate commerce
Interstate Commerce Act (1887)
No pools or rebates
Publish rates openly
Interstate Commerce Commission (ICC)
Enforced legislation

10. Inventions Alexander Graham Bell – telephone (1876)
Thomas Edison – light bulb (1879)
Phonograph, motion picture machine
“Wizard of Menlo Park”

11. BIG 3- TRUST TITANS
Andrew Carnegie
J.P. Morgan
John D. Rockefeller

12. Carnegie and Morgan Steel
Carnegie business tactic “vertical integration”-control all aspects of production
Morgan bought Carnegie out for $400 million
United States Steel 1901
First billion dollar corporation

13. Rockefeller Standard Oil Company 95% of all oil refineries in U.S.
Eliminated competition
Horizontal integration-buy
up all competitors

14. Vertical vs. Horizontal Integration
Carnegie (steel)
Owning all steps of a process
Horizontal
Rockefeller (Oil)
Owning all parts of one step of a process