1. Chapter 6 Section 2
Rise of Big Business

2. Andrew Carnegie Born in 1835 in Scotland
Immigrated to United States in 1848 at age of 12
Worked in cotton mills for $1.20/week in 1848
At 17 became private Secretary to railroad superintendent

3. Carnegie Steel
Began investing to raise money which he used to get into steel industry
Began empire in 1860’s
Knew nothing about production but hired experts to run company

4. Vertical Integration
Own the companies that provide materials and services you depend on
Iron and coal mines for ore
Steamships and railroads to transport products
By 1899 Carnegie organizes Carnegie Steel Company
Sold it to J.P. Morgan in 1901 for $500 million

5. Gospel of Wealth
“Rich are morally obligated to benefit their fellow citizens”
Donated $350 million to charities across the country

6. Vertical Integration
Turn to a partner and explain “Vertical Integration” in your own words
How did Carnegie utilize this strategy?

7. John D. Rockefeller Ran Standard Oil Company
Started in 1863 at beginning of oil boom
Practiced vertical integration like Carnegie
Set out to control the oil industry
“Competition was inefficient”

8. Horizontal Integration
Control of other companies producing oil
Drove others out of business by making deals with suppliers/transportation at cheaper rates than others
Became first trust in U.S. in 1899
By 1880 controlled 90% of all oil production
Like Carnegie– donated vast sums to charity
$530 million total

9. Horizontal Integration
Turn to a neighbor and explain “Horizontal Integration” in your own words.
How did Rockefeller utilize this strategy?
What is the difference between “Vertical” and “Horizontal” integrations?

10. Map Quiz MONDAY!! What are the first 15 states?? Delaware Pennsylvania
New Jersey
Georgia
Connecticut
Massachusetts
Maryland
South Carolina
New Hampshire
Virginia
New York
North Carolina
Rhode Island
Vermont
Kentucky

12. Grab a book!!
P. 208 #2,3,4
Please complete the questions on a sheet of paper
DUE FRIDAY, 19.SEP