industrialization. features of late 19 th -century industrialization exploitation of coal deposits...
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Industrialization
Features of Late 19th-Century Industrialization
• Exploitation of coal deposits for cheap energy
• Technological innovation and factory system
• Large supply of compliant labor (which immigrants?)
• Competition lowered prices and costs, and led to monopolies
• Lower prices increased consumers’ purchasing power
Cleveland Standard Oil plant in 1899
Bessemer Process
• Steel = iron + carbon• Problem: too much
carbon leads to impurities
• Process blows hot air through mixture to remove impurities
• Bessemer Process Link
Andrew Carnegie
• Fantastically wealthy entrepreneur gave hope to the “American Dream”
• Immigrated from Scotland at age 12; rose from a bobbin boy to incredible wealth as head of Carnegie Steel
• Innovation and detailed cost analysis: “Watch the costs, and the profits will take care of themselves”
• Created vertical integration: control all production processes from raw materials to finished product
• 1900: Carnegie Steel was largest industrial company in world; eventually bought out by JP Morgan
• Towards end of life, gave away nearly all his money: public libraries across the US and other charities
1909 cartoon satirizing Carnegie’s change of heart about wealth in America
J.P. Morgan
• Son of a wealthy banker; educated in Europe; rose within father’s bank
• 1861: sold defective rifles to gov’t at massive profit; sued successfully for payment once scam discovered
• Acquired ownership of railroads, and finally created US Steel through merger with Carnegie Steel
• At height, directed 340 companies, controlled 100 corporations worth more than $22 billion
• Made many charitable contributions, but left massive fortune to his son
• Holdings were divided into 3 pieces in 1933 by gov’t
John D. Rockefeller
• Believed his purpose was to make as much money as possible, and then use it to improve mankind
• Built Standard Oil, and controlled large majority of US petroleum industry, through purchasing or outcompeting rival companies
• Frequent target of “muckrakers,” journalists who exposed defects of industrializing America
• Broken up into Exxon, Mobile, Amoco, and Chevron
• In last 40 years of life, donated most of fortune to charity, especially for medical research and treatment
• Gave dimes to children he met in public
• When asked how much money was enough money, he replied “Just a little bit more.”
Thomas Edison
• “The Wizard of Menlo Park” was one of most prolific inventors in history
• Went deaf at age of 12
• Joined innovation with modern production techniques
• Invented or improved light bulb, phonograph, film, microphone, movie camera, storage battery, and 1,000 other devices
• Favored DC rather than AC; created campaign of electrocution to prove danger of AC; AC won out, due to cheaper cost and longer transmission distances
• Edison Electric Light merged to become General Electric
1890: Sherman Anti-Trust Act
• Prevent conspiracy in restraint of trade or commerce
• Not really used until 1900s
• Used by Teddy Roosevelt to attack Standard Oil, JP Morgan, AT&T, tobacco monopolies and railroads
• Today, government must approve mergers and aquisitions