1. C APTAINS O F I NDUSTRY C HAPTER 1-3 C APTAINS O F I NDUSTRY

2. A. One of the most notable entrepreneurs of the late 1800s was John D. Rockefeller, who gained almost complete control of the nation's oil industry. B. By 1870, Rockefeller's firm, the Standard Oil Company of Ohio, owned one of the largest refineries in the Cleveland area. 1. Over the next nine years, Rockefeller gained control of more than 90 percent of the nation's refining business.

3. C. One method he used to gain control of the industry was to make deals for lower rates with railroads that shipped his oil in order to gain a competitive edge. D. In 1882, Rockefeller consolidated his control of the oil industry by combining 40 companies under a single management. 1. He then expanded vertically, taking over oil fields and even building a fleet of tankers and wagons to deliver the oil.

4.  Cartoon of John Rockefeller from 1901.  What can be determined based on the cartoon about Rockefeller’s corporation, Standard Oil?

5. E. In 1903, journalist Ida Tarbell exposed Rockefeller’s ruthless business tactics in a series of articles. F. Rockefeller denied any wrongdoing. He claimed that much of Standard Oil success stemmed from his passion for efficiency and hatred of waste. 1. Standard Oil continuously worked to improve its product. 2. In addition, the company had few labor troubles because it paid its workers well.

6. $100 Billion (1997)$660 Billion (1937) Bill Gates John D. Rockefeller

7. A. The other giant of American industry during this period was Andrew Carnegie, who gained control over the nation's steel industry. B. In 1873, Carnegie formed a group of investors to build the world's largest and most modern steel mill near Pittsburgh. 1. He used a new and cheaper way to make steel and thus gained a quick advantage over his competitors.

8. C. In his constant effort to be more efficient, Carnegie combined all the processes required for making steel into one great vertical combination. 1. He seized control of mines that dug out iron ore, a raw material used in steelmaking. 2. In addition, he gained control of the ships and railroads that carried the ore, as well of coal mines, whose products fired the blast furnaces in his factory.

9. D. Life in Carnegie's mills was hard for workers. 1. Carnegie drove wages down and hours up. 2. He crushed the steel workers' union so that the 12-hour day remained standard for years. Homestead Strike; 1892

10. A. Carnegie and most other industrialists found justification for their ruthless business actions in a philosophy known as Social Darwinism, which applied the biological theories of naturalist Charles Darwin to human society.

11. B. Darwin believed that in nature a competition exists in which only the strongest plants and animals survive. 1.The weak die out C. Industrialists believed that a similar competition operated within human society and that the fittest-the strongest, most clever, most efficient- competitors will succeed. Social Darwinism: The strong will rise to the top – the weak will sink to the bottom.

12. D. Some industrialists, including Carnegie, gave back much of the money they made in the form of philanthropy. 1. By the time he died in 1919, Carnegie had donated about $350 million-mostly to building libraries and improving education. 2. Rockefeller's donations totaled more than $500 million. A Carnegie Library close to home

13. E. By the late 1800s, a growing number of Americans were calling on the federal government to impose greater regulation (more rules) on big businesses. 1. In 1890, Congress passed the Sherman Antitrust Act, which outlawed monopolies. F. The Sherman Act, however, had little effect on preventing business consolidation. 1. It was not strictly enforced and was so loosely worded that many were unsure of its true meaning.

14.  Don’t be wasteful, do average tasks in above average ways  Try new things  Never give up, enjoy what you do, work hard  Take full responsibility for your actions, treat people well  Be charitable