1. Objective 5.02
Explain how business and industrial leaders accumulated wealth and wielded political and economic power.

2. Natural Resources Fuel Industrialization
Edwin Drake-used a steam engine to drill for oil
Made removing oil practical and lead to a boom in the oil industry
Refineries made oil into kerosene and gasoline which became more popular with the invention of cars

3. Bessemer Process Iron Ore was also plentiful in the United States
Carbon removed from iron helped form steel
Henry Bessemer and William Kelly developed the Bessemer Process to remove the carbon and other impurities from Iron

4. Bessemer and Kelly
Steel needed for Railroad production

5. Inventions promote change
1. Thomas Alva Edison
Invented the light bulb and electric power
Helped businesses in America operate machines

6. George Westinghouse
2. George Westinghouse-added innovations that made electricity safer and cheaper
Developed a large Generator called the Niagara Plant that sent power to Buffalo
Also invented the transformer

7. Alexander Graham Bell
Invented the telephone in 1876 that opened up the worldwide communication network

8. Christopher Sholes Invented the typewriter in 1867
Changed the way people worked

9. Big Business and Labor
Andrew Carnegie John D. Rockefeller

10. Andrew Carnegie
By 1899 the Carnegie Steel Company produced more steel than all of the steel factories in Great Britain
Innovations
Accounting Systems
Offered workers stock in the company
Encouraged competition
Make better products cheaper

11. Gospel of Wealth
Describing how it is the job of wealthy people to be philanthropist or give back to the community
Carnegie gave over 90% of fortune away

12. Gospel of Wealth Rev. Russell Conwell - “Acres of Diamonds”
žRobber barons vs. philanthropists
¡“godliness is in league with riches”
¡Rockefeller- God gave me my money
Rev. Russell Conwell - “Acres of Diamonds”
¡Carnegie- those entrusted with society’s riches have to prove themselves morally responsible

13. Russell Conwell Acres of Diamonds - 1890 Takeaways?
-Persian Farmer’s Story
Union Army Captain
Deserted post
Sermon repeated 6,000 times before he died in 1925
Founded Temple University
Takeaways?
-dig in your own garden!
-the rich and poor deserve their situation

15. Control of Steel Industry
Carnegie controlled most of the steel industry through vertical integration
He bought out his suppliers (coal fields and iron mines), ore freighters and railroad lines
He also attempted to buy out his competitors in the steel industry which is horizontal integration

16. Why was Carnegie successful?
Carnegie explained his success through hard work and innovations
Others offered the explanation of Social Darwinism
Herbert Spencer applied Social Darwinism to the evolution of human society
Carnegie’s success comes from his ability to survive (“survival of the fittest”)

17. “Social Darwinists”- survival of the fittest
žContempt for poor- their own making
ž14th amend- courts ruled corporations as people- used against labor

18. Gov’t Tackles the Trusts
žSherman Antitrust Act- 1890
¡No distinction b/t good & bad trust
¡No means of enforcement, lots of loopholes
¡Used against labor
¡SC of the period almost always favored business

19. South in the Age of Industry
žSharecropping
žCigarette-making machine
¡James Buchanan Duke- Trinity College- Durham

20. Idea of “New South”- Henry Grady Atlanta Constitution - Confed.
funeral story
¡RRs cost too much
¡Textile mills in south
¢Cheap labor
¢Family work for wages
¢Bound to company town

21. Impact of the New Industrial Revolution
žStandard of living increase
žGrowth of cities, decline of agriculture (Jefferson)
žLife by the whistle
Horatio Alger Myth - self made men were rare

22. Horatio Alger Writer who wrote many rags to riches stories
Showed how you could get rich by working hard and being virtuous

24. U. S. Steel
Formed by J. P. Morgan in 1901 by combining the Federal Steel Company with Carnegie’s steel operations
Holding company-did nothing but buy out the stock of other companies

25. John D. Rockefeller Standard Oil Company
Gained control of 90% of the oil industry by 1890
Merged with other oil companies through illegal trust agreements which allowed him to gain total control of the oil industry

26. Standard Oil Company

27. Vanderbilt Family
Cornelius Vanderbilt established a large shipping and railroad empire
Vanderbilt University (1873)

28. Robber barons
Business men who accumulated large personal fortunes from anti competitive or unfair business practices
Carnegie, Rockefeller, Morgan and Vanderbilt were all called Robber barons