APUSH Chapter 17

Alexander Graham Bellfirst telephone
Factors that contributed to the growth of American industry1. raw materials
2. large and growing labor supply
3. surge in technological innovations
4. group of entrepreneurs
5. fed. gov. that assisted the growth of business
6. expanding domestic market
Cyrus W. Fieldtransatlantic telegraph
Among the most revolutionary innovationELECTRICITY in the 1870s
Turn of the century electricity usage1. street railway
2. factories
3. offices homes
Bessemer Processan industrial process for making steel using a Bessemer converter to blast air through through molten iron and thus burning the excess carbon and impurities
Open hearth processa process for producing steel by oxidizing and removing the impurities in molten iron using external heat and a blast of air or oxygen.
New Blast furnacesBefore: made of stone
Now: redesigned as cylindrical iron shells lined with brick
New transportation systems1. steam freighters
2. railroads
Rise of Petroleum industry1st oil well in Titusville, PN
– George Bissell showed substance could be burned in lamps
– Drake established Titusville
Two technologies critical to automobile1. creation of gasoline
2. internal combustion engine
Frank Duryeabuilt the first gasoline driven motor vehicle in America
By 19175 million cars on the road
Wright Brothers– Kitty Hawk, North Carolina
– 120 feet and 12 seconds
National Advisory Committee on Aeronautics in 1915American airplanes became a significant pressure in Europe during World War I
Corporate Research and Development– coincided with a decline in government support for research
– helped corporations attract skilled researchers
“Taylorism”scientific management, encouraged the development of mass production techniques and the assembly line, led to a revolution in American education of social science.
Assembly linemechanical system in a factory whereby an article is conveyed through sites at which successive operations are performed on it
Model T prices950 in 1914 to 290 in 1929
Importance of government subsidiesrailroad: 30,000 to 193,000
subsidies were vital to this expansion
great railroad combinations
Vanderbilt, Hill, Huntington
Limited liabilitythe liability of a firm’s owners for no more than the capital they have invested in the firm
First to adopt new corporate form of organizationPennsylvania and other railroads
Andrew Carnegiescottish immigrant
steelworks in Pittsburgh
dominated the industry
associate Frick
Sold out to J. P. Morgan
merged the Carnegie interest with others to create the United States Steel Corporation
horizontal integrationthe combining of competing firms into one corporation (Rockefeller before he expanded vertically)
vertical integration (CARNEGIE STEEL)Practice where a single entity controls the entire process of a product, from the raw materials to distribution
Pool arrangementspool is an informal agreement between a group of people or leaders of a company to keep their prices high and to keep competition low. The Interstate Commerce Act in 1887 made railroads publicly publish their prices and it outlawed the pool.
Failure of poolsLead to consolidation
Trustpioneered by Rockefeller (standard oil) perfected by J. P. Morgan
J. P. Morgan perfectionunder a trust agreement, stockholders in individual corporations transferred their stocks to a small group of trustees in exchange for stocks. Owners of trust certificates often had no direct control over the decision of the trustees they simply received a share of the profits.
1889: New Jerseyallowed its laws of incorporation to permit companies to buy up other companies
Holding companya company whose primary business is owning a controlling share of stock in other companies
Turn of the century1 percent of the corporations in America were able to control more than 33 percent of manufacturing
LEAD TOa raging debate over concentrated economic and political power