1. Big Business in the Late 1800s Pgs. 205-211

2. Entrepreneurs During the late 1800s, many people took chances to make lots of money. There was an even greater chance of losing lots of money. An entrepreneur is a person who sets up a new business with the hope of making money. These entrepreneurs contributed to the growth of the American economy.

3. Iron vs. Steel In the early 1800s, iron was used to build bridges, buildings, and railroads. As locomotives got bigger and heavier, iron tracks were no longer strong enough. Steel tracks were needed, but steel was much more expensive to make than iron. By the 1850s inventors had developed a way to make steel more cheaply.

4. Andrew Carnegie In the 1860s Andrew Carnegie built a steel mill in Pittsburgh, Pennsylvania. By the 1870s business was good for Carnegie. With his profits he built more steel mills and made even larger profits. He bought mines to supply his steel mills with coal and iron. He bought ships to carry natural resources to his mills.

5. Andrew Carnegie With his mines and ships, he could make more steel at a lower cost than other mills could. He could afford to lower the price of his steel. Other steel mills were not able to compete with Carnegies lower prices so he bought their mills and joined them with his business forming the Carnegie Steel Company.

6. Andrew Carnegie The company became one of the biggest steel businesses in the United States, and Andrew Carnegie became one of the riches people in the world. By 1901 he earned about $250 million each year. Look at the graph on page 208.

7. The Oil Industry In 1863 John D. Rockefeller set up an oil refinery near Cleveland, Ohio. He was 24 years old. A refinery is a factory that makes oil into products people can use. The first products made by Rockefellers refinery were grease and kerosene for lamps.

8. John D. Rockefeller His refinery was one of 30 in the Cleveland area. Within a few years, he had bought most of the other refineries. In 1870 he consolidated them into one business he called the Standard Oil Company. Other companies could not match Rockefellers low prices for oil products.

9. John D. Rockefeller He had a monopoly, or almost complete control of the oil business. At the age of 99, Rockefeller was worth $1.4 billion. Look at the graph on page 209.

10. Industrial Cities Most factories were located near good rivers and harbors. With the growth of the railroads and industries such as steel and oil, new industrial cities developed inland, far from the coast.