describe the westward growth of the united states, including the emerging concept of manifest...

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Describe the westward growth of the United Describe the westward growth of the United States, including the emerging concept of States, including the emerging concept of Manifest Destiny leading to conflict with Manifest Destiny leading to conflict with Native Americans. Native Americans. Describe the impact of the railroads in the Describe the impact of the railroads in the development of the West, including the development of the West, including the transcontinental railroad, and the use of transcontinental railroad, and the use of Chinese labor, Chinese labor, Describe the growth of the western population Describe the growth of the western population and its impact on Native Americans with and its impact on Native Americans with reference to Sitting Bull and Wounded Knee, reference to Sitting Bull and Wounded Knee, Examine the problems of American farmers, Examine the problems of American farmers, solutions offered by populism in the late solutions offered by populism in the late 19th Century and identify the major goals and 19th Century and identify the major goals and achievements of the reformers achievements of the reformers Western Migration, Western Migration, Industrialization, Industrialization, Urbanization, and Immigration Urbanization, and Immigration

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Page 1: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

Describe the westward growth of the United States, Describe the westward growth of the United States, including the emerging concept of Manifest Destiny including the emerging concept of Manifest Destiny leading to conflict with Native Americans.leading to conflict with Native Americans.Describe the impact of the railroads in the Describe the impact of the railroads in the development of the West, including the development of the West, including the transcontinental railroad, and the use of Chinese transcontinental railroad, and the use of Chinese labor, labor, Describe the growth of the western population and its Describe the growth of the western population and its impact on Native Americans with reference to Sitting impact on Native Americans with reference to Sitting Bull and Wounded Knee, Bull and Wounded Knee, Examine the problems of American farmers, solutions Examine the problems of American farmers, solutions offered by populism in the late 19th Century and offered by populism in the late 19th Century and identify the major goals and achievements of the identify the major goals and achievements of the reformersreformers

Western Migration, Industrialization, Western Migration, Industrialization, Urbanization, and ImmigrationUrbanization, and Immigration

Page 2: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

The New Industrial AgeThe New Industrial Age1876 - 19001876 - 1900

Page 3: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

Economic WheelEconomic Wheel

BADBAD

SlowSlow

Less JobsLess Jobs

Less Less OpportunityOpportunity

GOODGOOD

FastFast

More JobsMore Jobs

More More OpportunityOpportunity

Hands OFF v. Hands ON

Page 4: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

Chapter 15 READING SHEETSChapter 15 READING SHEETSChapter 15 Immigrants and UrbanizationSection 1: The New immigrantsBetween 1870 and 1920, approximately _____ million Europeans arrived in the United States. Before 1890, most had come from countries in western and northern Europe. However, increasing numbers began to come from __________ and ________________ Europe. In 1907 alone, about a million arrived from Italy, Austria-Hungary, and Russia. Many left to escape religious persecution (whole villages of Jews were driven out of Russia under Pogroms) and others left because of rising population which resulted in scarcity of land and jobs.________________ immigrants will arrive on the west coast in smaller numbers. Between 1851 and 1883 _________ arrived. Many came to seek fortunes after the discovery of Gold in California. They helped build the __________, they turned to farming, mining, domestic services and business, although Chinese immigration was sharply limited by a ____________________________ in 1882. In 1884, the Japanese government allowed _______________ planters to recruit Japanese workers.

Page 5: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

Analyze important consequences of Analyze important consequences of American industrial growth.American industrial growth.

Identify the Knights of Labor, American Federation of Labor, Identify the Knights of Labor, American Federation of Labor, and Samuel Gompers, and Samuel Gompers, Describe the Homestead Strike, Haymarket Square, and the Describe the Homestead Strike, Haymarket Square, and the 1894 Pullman strike as examples of industrial unrest, 1894 Pullman strike as examples of industrial unrest, Describe Ellis Island, the change in immigrants' origins to Describe Ellis Island, the change in immigrants' origins to southern and eastern Europe, and the impact of this change on southern and eastern Europe, and the impact of this change on urban America, urban America, Explain the Chinese Exclusion Act of 1882 and anti-Asian Explain the Chinese Exclusion Act of 1882 and anti-Asian immigration sentiment on the West Coast, immigration sentiment on the West Coast, Evaluate the effects of increased urbanization, including Evaluate the effects of increased urbanization, including overcrowding, pollution, poverty, crime, but also, improvement overcrowding, pollution, poverty, crime, but also, improvement in quality of life due to the availability of resources, in quality of life due to the availability of resources,

Industrialization, Urbanization, and Immigration

Page 6: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

Ch. 14Ch. 14 the New the NewIndustrial AgeIndustrial Age““The Expansion of IndustryThe Expansion of Industry””

– Edwin L. DrakeEdwin L. Drake– Bessemer ProcessBessemer Process– Thomas Alva EdisonThomas Alva Edison– Alexander Graham BellAlexander Graham Bell– Christopher SholesChristopher Sholes

““The Age of RailroadsThe Age of Railroads””– Transcontinental RailroadTranscontinental Railroad– Central Pacific – Union PacificCentral Pacific – Union Pacific– George PullmanGeorge Pullman– Credit Mobilier ScandalCredit Mobilier Scandal– Granger Laws (Munn v. Illinois)Granger Laws (Munn v. Illinois)– Interstate Commerce Act in 1887Interstate Commerce Act in 1887

““Big Business & LaborBig Business & Labor””– Andrew CarnegieAndrew Carnegie

Vertical IntegrationVertical IntegrationHorizontal IntegrationHorizontal Integration

– Social DarwinismSocial Darwinism– John D. RockefellerJohn D. Rockefeller

Robber BaronsRobber BaronsStandard OilStandard Oil

– Sherman Anti-Trust ActSherman Anti-Trust Act– Working Conditions-UnionsWorking Conditions-Unions

American Federation of LaborAmerican Federation of Labor– Samuel GompersSamuel Gompers

Industrial Unionism Industrial Unionism – Eugene DebsEugene Debs

Socialism / CommunismSocialism / Communism

– Haymarket AffairHaymarket Affair– Homestead StrikeHomestead Strike– Pullman StrikePullman Strike– Mother Jones (Miners)Mother Jones (Miners)– Pauline Newman garment Pauline Newman garment

workersworkers

Page 7: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

Describe the economic, social and geographic impact of the Describe the economic, social and geographic impact of the growth of big business and technological innovations in growth of big business and technological innovations in

the United States after Reconstruction.the United States after Reconstruction.Describe technological inventions, such as the telephone, Describe technological inventions, such as the telephone, automobile, airplane, and Thomas Edison's electric light bulb automobile, airplane, and Thomas Edison's electric light bulb and phonograph, and their impact on American lifeand phonograph, and their impact on American lifeExplain the importance of the growing economic disparity Explain the importance of the growing economic disparity between the North and South through an examination of between the North and South through an examination of population, functioning railroads, and industrial outputpopulation, functioning railroads, and industrial output Explain the impact of the railroads on industries, such as steel, Explain the impact of the railroads on industries, such as steel, and on the organization of big business, and on the organization of big business, Identify John D. Rockefeller, Sr. and the Standard Oil Identify John D. Rockefeller, Sr. and the Standard Oil Company, Andrew Carnegie and Carnegie Steel, and the rise of Company, Andrew Carnegie and Carnegie Steel, and the rise of trusts and monopolies, to include horizontal and vertical trusts and monopolies, to include horizontal and vertical integration, integration, Identify the Knights of Labor, American Federation of Labor, Identify the Knights of Labor, American Federation of Labor, and Samuel Gompers, and Samuel Gompers, Describe the Homestead Strike, Haymarket Square, and the Describe the Homestead Strike, Haymarket Square, and the 1894 Pullman strike as examples of industrial unrest, 1894 Pullman strike as examples of industrial unrest,

Industrialization, Urbanization, Immigration

Page 8: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

They believed that freedom from government controls would They believed that freedom from government controls would mean a growing economy with material progress for all people.mean a growing economy with material progress for all people.

Capitalist Ideas

In the early 1800s, the middle-class owners of railroads, factories, In the early 1800s, the middle-class owners of railroads, factories, and mines began supporting and mines began supporting laissez-faire laissez-faire economicseconomics

Page 9: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

In In The Wealth of NationsThe Wealth of Nations (1776), Smith stated that an economy (1776), Smith stated that an economy works best when the natural forces of supply and demand operate works best when the natural forces of supply and demand operate without government interference.without government interference.

Adam Smith

Industrial leaders relied on the ideas of Industrial leaders relied on the ideas of Adam SmithAdam Smith,, a Scottish a Scottish economist who set down the workings of a laissez-faire economy. economist who set down the workings of a laissez-faire economy.

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6 of 26

As the Industrial Revolution gathered momentum and spread throughout the As the Industrial Revolution gathered momentum and spread throughout the world, Smith’s ideas profoundly influenced economic thought and practice.world, Smith’s ideas profoundly influenced economic thought and practice.

Page 11: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

GROWTH IN AMERICAGROWTH IN AMERICA

CAUSES

EFFECTS

Page 12: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

( TECHNOLOGY( TECHNOLOGY = = Science applied to Science applied to

Business )Business )the wealth of nation is based upon (equation)the wealth of nation is based upon (equation)

1-1-NATURAL NATURAL RESOURCESRESOURCES, , Oil, Coal, Iron, Water

2-2-GOVERNMENT GOVERNMENT support for business development support for business development

a growing a growing URBAN URBAN population that provided population that provided 3 -3 -CHEAP LABORCHEAP LABOR and and

4-4-NEWNEW markets markets for selling for selling

5- new 5- new PRODUCTSPRODUCTS..

**NNew Markets = Growth = New Jobs*

Page 13: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

The New Industrial AgeThe New Industrial Age1876 - 19001876 - 1900

Page 14: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

( TECHNOLOGY( TECHNOLOGY = = Science applied to Business )Science applied to Business )

TelephoneTelephone (Alexander Graham Bell) (Alexander Graham Bell) AAmerican merican TTelegraph & elegraph & TTelephoneelephoneElectric PowerElectric Power Thomas A. EdisonThomas A. Edison (Light Bulb) (Light Bulb) ((Central Power StationCentral Power Station) ) WestinghouseWestinghouse-Alternating Current -Alternating Current – Impact of Electricity on daily lifeImpact of Electricity on daily life

Bessemer ProcessBessemer Process ( (STEELSTEEL) ) mass productionmass production : easier, cheaper : easier, cheaper– Impact on New Products / New LifestylesImpact on New Products / New Lifestyles

Page 15: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

By the 1920’s, the United States have become the By the 1920’s, the United States have become the leading leading INDUSTRIALINDUSTRIAL power in the world. This power in the world. This immense industrial boom was due to: immense industrial boom was due to:

the wealth of nation is based upon (equation)the wealth of nation is based upon (equation) 1-1-NATURAL NATURAL RESOURCESRESOURCES, , Oil, Coal, Iron, Water 2-2-GOVERNMENTGOVERNMENT support for business development support for business development a growing a growing URBAN URBAN population that provided population that provided 3 -3 -CHEAP LABORCHEAP LABOR and and 4-4-NEWNEW markets markets for selling for selling 5- new 5- new PRODUCTSPRODUCTS..

**NNew Markets = Growth = New Jobs*In 1859, In 1859, EDWIN L. DRAKEEDWIN L. DRAKE successfully used a successfully used a steam engine to drill for steam engine to drill for OILOIL in Titusville, PA. in Titusville, PA. This breakthrough started an This breakthrough started an OILOIL boom. boom. GASOLINEGASOLINE, a byproduct of the refining process, was , a byproduct of the refining process, was originally thrown away, but after automobiles became originally thrown away, but after automobiles became popular, it became the most important part of oil.popular, it became the most important part of oil.

Page 16: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

In 1887, prospectors discovered In 1887, prospectors discovered IRON OREIRON ORE deposits deposits more than 100 miles long and up to 3 miles wide in the more than 100 miles long and up to 3 miles wide in the Mesabi Range in Mesabi Range in MINNESOTAMINNESOTA.. At the same time, At the same time, COALCOAL production skyrocketed from 33 million tons to production skyrocketed from 33 million tons to more than 250 million tons. more than 250 million tons. IRONIRON is a dense metal, but is soft and tends to break is a dense metal, but is soft and tends to break down and rust. Removing the carbon produces lighter, down and rust. Removing the carbon produces lighter, more flexible and rust resistant metal - more flexible and rust resistant metal - STEELSTEEL. All . All that was needed was make it more readily available that was needed was make it more readily available was a was a CHEAPCHEAP manufacturing process. manufacturing process.The The BESSEMERBESSEMER process was developed by British process was developed by British manufacturer manufacturer HENRY BESSEMERHENRY BESSEMER and American and American ironmaker ironmaker WILLIAM KELLYWILLIAM KELLY in 1850. In this age of in 1850. In this age of rapid change and rapid change and INNOVATIONINNOVATION, even this process , even this process was bettered in the 1860’s. was bettered in the 1860’s. It was eventually replaced by the It was eventually replaced by the OPEN-HEARTHOPEN-HEARTH process, allowing manufacturers to produce quality process, allowing manufacturers to produce quality steel from steel from SCRAP METALSCRAP METAL as well as raw materials. as well as raw materials.

Page 17: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

The The RAILROADRAILROAD with thousands of miles of with thousands of miles of track became the biggest customer for steel, but track became the biggest customer for steel, but inventors soon found new uses for it. inventors soon found new uses for it. JOSEPH GLIDDEN’SJOSEPH GLIDDEN’S barbed wire and barbed wire and McCORMICKMcCORMICK and and DEERE’SDEERE’S farm machines farm machines helped transform the plains into the food helped transform the plains into the food producer of the world. producer of the world. 1 of the most remarkable structures was the 1 of the most remarkable structures was the BROOKLYN BRIDGEBROOKLYN BRIDGE. Completed in 1883, it . Completed in 1883, it spanned 1,595 feet of the East River in NY City. spanned 1,595 feet of the East River in NY City. WILLIAM BARON JENNYWILLIAM BARON JENNY will design the first will design the first skyscraper. With a steel frame to support the skyscraper. With a steel frame to support the weight, however, architects could build as high weight, however, architects could build as high as they wanted.as they wanted.

Page 18: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

In 1876, In 1876, THOMAS ALVA EDISONTHOMAS ALVA EDISON became a became a pioneer on the new pioneer on the new INDUSTRIALINDUSTRIAL frontier when frontier when he established the world’s first research he established the world’s first research laboratory in laboratory in MENLO PARK, NJMENLO PARK, NJ. .

There he perfected the There he perfected the INCANDECENT LIGHTINCANDECENT LIGHT BULBBULB - patented in 1880 and later an entire - patented in 1880 and later an entire system for producing and distributing system for producing and distributing ELECTRICAL POWERELECTRICAL POWER. .

Another inventor Another inventor GEORGE WESTINGHOUSEGEORGE WESTINGHOUSE along with Edison, added innovations that made along with Edison, added innovations that made ELECTRICITYELECTRICITY safer and less expensive. safer and less expensive.

AC-DC (Alternating Current v. Direct Current)AC-DC (Alternating Current v. Direct Current)

Page 19: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

This harnessing changed the nature of This harnessing changed the nature of business in America. By 1890, business in America. By 1890, ELECTRICITYELECTRICITY ran numerous machines. This inexpensive ran numerous machines. This inexpensive convenient source of energy soon became convenient source of energy soon became available in homes and spurred the invention of available in homes and spurred the invention of TIME-SAVING APPLIANCESTIME-SAVING APPLIANCES. .

ELECTRIC STREET CARSELECTRIC STREET CARS made urban travel made urban travel cheap and efficient and also promoted the cheap and efficient and also promoted the outward growth of cities. outward growth of cities.

It also allowed manufacturers to locate their It also allowed manufacturers to locate their plants plants WHEREVER THEY WANTEDWHEREVER THEY WANTED, which , which allowed industry to grow like never before.allowed industry to grow like never before.

Page 20: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

CHRISTOPHER SHOLESCHRISTOPHER SHOLES invented the invented the typewriter in 1867 and changed the world of typewriter in 1867 and changed the world of work. Next to the light bulb, however, perhaps work. Next to the light bulb, however, perhaps the most dramatic invention was the the most dramatic invention was the TELEPHONETELEPHONE unveiled by Thomas Watson and unveiled by Thomas Watson and ALEXANDER GRAHAM BELLALEXANDER GRAHAM BELL in 1876. in 1876.

It opened the way for worldwide It opened the way for worldwide communication. These inventions also affected communication. These inventions also affected office work and created new jobs for women. office work and created new jobs for women. Although women made up less than Although women made up less than (FIVE) 5(FIVE) 5 % % of all office workers in 1870, by of all office workers in 1870, by 18701870 they they accounted for nearly 40% of clerical workers. accounted for nearly 40% of clerical workers.

Page 21: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

It also impacted on factory work. Women had It also impacted on factory work. Women had previously sewn clothing previously sewn clothing BY HANDBY HAND, but with , but with industrialization clothing will be industrialization clothing will be MASS-PRODUCEDMASS-PRODUCED in factories, creating in factories, creating a need for garment workers, many of whom will a need for garment workers, many of whom will be women. be women.

The county’s expanding urban population The county’s expanding urban population provided a vast potential for new provided a vast potential for new INVENTIONSINVENTIONS and products of the late 1880’s.and products of the late 1880’s.

Page 22: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

By 1856, railroads extended west to By 1856, railroads extended west to MISSISSIPPIMISSISSIPPI,, and three years later they crossed the and three years later they crossed the MISSOURIMISSOURI River. Just over a decade later, the River. Just over a decade later, the CENTRAL PACIFICCENTRAL PACIFIC && UNION PACIFICUNION PACIFIC met at met at PROMONTORY POINTPROMONTORY POINT Utah on May, 10, 1869. Utah on May, 10, 1869. A A GOLDEN SPIKEGOLDEN SPIKE marked the spanning of the marked the spanning of the nation by the first nation by the first TRANSCONTINENTALTRANSCONTINENTAL RAILROADRAILROAD. The railroads brought the dream of . The railroads brought the dream of available land, adventure and a fresh start for many available land, adventure and a fresh start for many Americans, made possible by the harsh lives of Americans, made possible by the harsh lives of railroad workers. railroad workers. The The CENTRAL PACIFICCENTRAL PACIFIC will employ thousands of will employ thousands of Chinese immigrants, while the Chinese immigrants, while the UNION PACIFICUNION PACIFIC employed thousands of Irish immigrants, out of work employed thousands of Irish immigrants, out of work Civil War veterans to lay tracks across the treacherous Civil War veterans to lay tracks across the treacherous terrain. terrain.

Page 23: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

Though linked in space, each community still Though linked in space, each community still operated on it’s own time. In 1869, to remedy operated on it’s own time. In 1869, to remedy this problem, this problem, C. F. DOWDC. F. DOWD proposed that the proposed that the earth’s surface by divided into earth’s surface by divided into 24 24 time zones, time zones, one for each hour of the day. one for each hour of the day.

Under this plan, the United States would Under this plan, the United States would contain contain FOUR (4)FOUR (4) zones, zones, EASTERN, EASTERN, CENTRAL, MOUNTAIN, PACIFICCENTRAL, MOUNTAIN, PACIFIC. Finally on . Finally on November 18, 1883, railroad crews and towns November 18, 1883, railroad crews and towns across the country synchronized their watches. across the country synchronized their watches.

Page 24: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

In In 18841884 an international conference set an international conference set worldwide time zones. The rapid growth of worldwide time zones. The rapid growth of railroad line also fostered the growth of railroad line also fostered the growth of TOWNSTOWNS, helped establish , helped establish NEW MARKETSNEW MARKETS, , and offered rich opportunities for both and offered rich opportunities for both visionaries and profiteers. visionaries and profiteers.

As a part of a nationwide network of supplies As a part of a nationwide network of supplies and markets, individual towns began to and markets, individual towns began to SPECIALIZESPECIALIZE in particular products. in particular products.

CHICAGOCHICAGO soon became known for its soon became known for its stockyards and stockyards and MINNEAPOLISMINNEAPOLIS for its grain for its grain industries. industries.

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In 1880, In 1880, GEORGE PULLMANGEORGE PULLMAN built a factory for built a factory for manufacturing sleepers and railroad cars on the manufacturing sleepers and railroad cars on the Illinois prairie. Pullman created his company Illinois prairie. Pullman created his company town out of the desire for control and profit. In town out of the desire for control and profit. In some other railroad magnates, these desires some other railroad magnates, these desires turned into self-serving corruption. turned into self-serving corruption.

In one of the most infamous schemes, In one of the most infamous schemes, stockholders in the stockholders in the UNION PACIFIC R.RUNION PACIFIC R.R.. formed, in 1864 a construction company called formed, in 1864 a construction company called CREDIT MOBLIERCREDIT MOBLIER. A congressional . A congressional investigation of the company eventually found investigation of the company eventually found that the officers had taken up to $23 million in that the officers had taken up to $23 million in stocks, bonds and cash.stocks, bonds and cash.

Page 26: Describe the westward growth of the United States, including the emerging concept of Manifest Destiny leading to conflict with Native Americans. Describe

Farmers were especially affected by corruption Farmers were especially affected by corruption in the railroads. The in the railroads. The GRANGERSGRANGERS - members of - members of a farmers’ organization founded in 1867 – a farmers’ organization founded in 1867 – began demanding governmental control over began demanding governmental control over the railroad industry. the railroad industry.

In response to these abuses by the railroads, In response to these abuses by the railroads, the the GRANGERSGRANGERS took political action. They took political action. They sponsored state and political sponsored state and political candidates, elected legislators, candidates, elected legislators, and successfully pressed for laws and successfully pressed for laws to protect their interests. to protect their interests.

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In 1877, in the case of In 1877, in the case of MUNN v. ILLINOISMUNN v. ILLINOIS, the , the Supreme Court upheld the Granger laws by a Supreme Court upheld the Granger laws by a vote of 7-2, that “established maximum freight vote of 7-2, that “established maximum freight and passenger rates and prohibited and passenger rates and prohibited discrimination”. discrimination”.

In 1886,the Supreme Court, however, will rule In 1886,the Supreme Court, however, will rule that a state could not set rates on interstate that a state could not set rates on interstate commerce, Congress passed the commerce, Congress passed the INTERSTATE COMMERCE ACTINTERSTATE COMMERCE ACT in 1887. in 1887.

This act reestablished the right of the federal This act reestablished the right of the federal government to supervise railroad activities and government to supervise railroad activities and established a established a FIVE (5)FIVE (5) member member Interstate Interstate Commerce Commission (ICC)Commerce Commission (ICC)

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Section 3 “Big Business and Labor”Section 3 “Big Business and Labor”Andrew Andrew CARNEGIECARNEGIE rise from rags to riches, rise from rags to riches, along with his passion for supporting charities along with his passion for supporting charities made him a model of the American success made him a model of the American success story. He entered the story. He entered the STEELSTEEL business in 1873 business in 1873 after touring a British steel mill and witnessing after touring a British steel mill and witnessing the awesome spectacle of the Bessemer the awesome spectacle of the Bessemer process in Action. process in Action. His success was due in part to management His success was due in part to management practices that he initiated and that soon practices that he initiated and that soon became widespread. First, he continually became widespread. First, he continually searched for ways to make better products searched for ways to make better products more more CHEAPLYCHEAPLY Second, he attracted talented Second, he attracted talented people by offering them people by offering them STOCKSTOCK in his in his company. company.

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He will attempt to control as much of the steel He will attempt to control as much of the steel industry as possible by maintaining industry as possible by maintaining VERTICAL VERTICAL INTEGRATIONINTEGRATION, a process in which he bought , a process in which he bought out his suppliers – coal fields, iron mines, ore out his suppliers – coal fields, iron mines, ore freighters and railroad lines – in order to the raw freighters and railroad lines – in order to the raw materials and transportation systems. materials and transportation systems.

He also attempted to buy out competing steel He also attempted to buy out competing steel producers. This process of producers. This process of HORIZONTAL HORIZONTAL INTEGRATIONINTEGRATION companies producing similar companies producing similar products merge. By the time he sold his products merge. By the time he sold his business in 1902, his company produced by far business in 1902, his company produced by far the largest portion of the nation’s steel.the largest portion of the nation’s steel.