Big Business Industrial Cities.ppt

Big Business Industrial Cities Chapter 5 Introduction Machines started to replace hand tools. Inventors developed new technologies. Important time for FREE ENTERPRISE An economic system in which businesses have the freedom to offer for sale many kinds of goods and services. Railroads Transcontinental railroad – from the Atlantic to the Pacific Lincoln’s election promise 1862 Union Pacific Railroad Central Pacific Railroad Met at Promontory, Utah Others also built tracks Growth of Railroads George Westinghouse Air brake….made train travel safer Granville T. Woods…improved the air brake and developed telegraph system to help trains and stations communicate. Growth Problems Needed more locomotives, cars, and tracks Had to pay workers to lay tracks Needed capital resources…money $$$ Got some money from the government Some from investors – invest to buy shares in the hope of making money. Shares are called stocks. Corporations – businesses that sell shares Railroad was the 1st business to become corporations! Telegraph Samuel Morse developed the Morse Code Dots and dashes Used electricity along iron wires Railroads Improved transportation Expanded businesses across the entire country. The Steel Industry Locomotives became too heavy for iron Used steel, but was more expensive Inventors found a new way to make steel more cheaply Henry Bessemer Melted iron ore and other metals together Blast furnace made steel stronger Andrew Carnegie Entrepreneur (set up new business and takes risks with money) Built a steel mill in Pittsburg, Pennsylvania Very successful Built many more Bought coal and iron mines, ships, so he could lower cost of his steel Carnegie Steel Company Biggest steel business in United States He became one of the richest people in the world The Oil Industry John D. Rockerfeller 24 years old Built an oil refinery in Ohio Refinery is a factory that makes crude oil into grease, kerosene, gasoline and other USABLE products. Bought other refineries Monopoly – almo