chapter 6 section 2 rise of big business. review what business did carnegie invest and become rich...

Chapter 6 Section 2

Rise of Big Business

Review

What business did Carnegie invest and become rich in?

What is “vertical integration”? How did Rockefeller become rich? What is “horizontal integration”?

Cornelius Vanderbilt

Prior to Railroad– operated shipping business By 1869 gained control of New York Central and

2 others that connected New York City Soon controlled lines between Chicago,

Cleveland, New York, and Toledo Provided more efficient service by combining

small railroads By 1877 controlled 4,500 miles of track Personal fortune of $100 million

George Westinghouse

1869 at age of 23 established Westinghouse Air Brake Company

After public demonstration of effectiveness of air brake his business grew

By 1874 air brake was on 7,000 passenger cars

George Pullman

Built Railroad cars to make travel more comfortable

Built company town south of Chicago in 1880 Hoped to encourage educated, healthy, peaceful

and virtuous workers Provided homes, stores, church, library, theatre,

medical offices and athletic fields strictly controlled daily life in company town

Mass Marketing

Persuade consumers to purchase products Brand names– name recognition

“Standard Oil”– implies standard for industry Packaging to set products apart

Helped create consumer culture Montgomery Ward and Sears, Roebuck and

Company– develop mail order catalogs

Department Store

Variety of products under one store Buy in bulk and set cheap prices

Marshall Field– Chicago R.H. Macy– New York John Wanamaker– Philadelphia

Becomes domain of women Hired as workers Enticed to shop

Chain Stores

Branch stores in many citiesWoolworths– Frank Woolworth in

1879By 1900 had 59 stores around

country