2. Vocabulary List 5 - Time Zone -Integrate -Investor -Distribution
-Consumer
-Resource
-Practice
-Chain Stores (p103) -Mail-Order catalogue (p 103)

3. Second Industrial Revolution
Industry Tycoons & Inventors

4. I. Railroads A) Background:
Transcontinental RR connected entire continent
Building/running RR is dangerous work - 2,000 died, 20,000 injured
B) Benefits:
Increased trade amongst cities
Helped all other industries grow
C) Abuses:
Excessive rates
Tried to obtain favorable legislation through bribery
D) Consequences:
Interstate Commerce Act government could regulate shipping rates
Started by Granger Movement

5. I. Railroads (cont…)
E) Conelius Vanderbilt - merged RR lines to create powerful RR system between Chicago, NYC and Boston. Created steel rails / bridges

6. Video on Vanderbilt

7. II. Steel A) Bessemer Process Cold Air + Molten Iron = Tougher Steel
Steel used for everything → Buildings!
B) Andrew Carnegie - Steel King
Pittsburgh
Wealthiest man in America
Carnegie Steel Co. > Great Britian Steel
*Vertical Integration

8. III. Oil & Petroleum A) Early uses: Kerosene - lighting
Oil grease - machine lubrication
Eventually… used for fuel
B) John D Rockefeller
Standard Oil Co.
Horizontal Integration
Dominated 90% of oil business
Sherman Anti-trust Act - dissolved company because too big.

9. Video on Carnegie & Rockefeller

10. IV. Finance A) JP Morgan - largest private banker in America
Bought Carnegie Steel company
Merged with other steel companies
Created first billion dollar company (US Steel Corp)

11. Video on JP Morgan

12. V. Other Industries A) Meat-Packing
Pioneered by Armour, Morris & Swift
Cows/Pigs slaughtered shipped to all parts
waste used for glue, soap & fertilizer
B) Tobacco - James Duke created American Tobacco Company
Famous for price wars
Dissolved by Anti-trust act
C) Chemicals - DuPont Family started with Gunpowder, eventually worldwide corp

13. VI. Other Inventions

14. VII. Retail is born
A) Past - people purchased things only at general stores. Now…
B) Specialty Shops - single type of product
C) Chain stores - same store, different location
D) Department stores - product categories in separate departments (Marshall Field)
E) Selling by Mail - shopping by catalogue (Sear, Roebuck)
F) Advertising & Marketing - in newspapers/magazines
$50 million spent in 1867
$500 million spent in 1900
G) Packaging - created brand awareness