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Unformatted text preview: Ch. 24 INDUSTRIALIZATION AND CORPORATE CONSOLIDATION Bessemer Process began in 1850s Who: William Kelly, from Kentucky and Sir Henry Bessemer from Great Britain. What: The discovery that cold air blown on red-hot iron caused metal to become white hot by igniting the carbon and eliminating impurities. Sig: Allowed for mass production of inexpensive steel. Possessing the factors required in this process, gave the United States the ability to become a dominant manufacturing power. Source: Encarta, AP538-39 Vertical Consolidation or Integration Source: AP537 Who: Andrew Carnegie and Carnegies steel industry What: Carnegies tactic of vertical integration combined all steps involved in the manufacturing of steel, from mining to marketing, into a single organization. Sig: Vertical integration became a tactic by which a company could improve efficiency, control quality and reduce cost by eliminating middlemen fees. Andrew Carnegie 1835-1919 Where: Pittsburgh, Pennsylvania What: Carnegie developed the tactic of vertical integration. In the year 1900, he produced a fourth of the nations steel. He sold his holdings for $400 million in 1900 and spent the rest of his life donating to charities. (The U.S. Steel Corporation emerged from the sale of his business to J.P. Morgan.) Sig: Andrew Carnegie developed incredible wealth using tactics that are still used today. Source: AP537-40 John D. Rockefeller 1839-1937 Where: Cleveland, Ohio What: Rockefeller developed the technique of horizontal integration, by allying with competitors to monopolize a market. In 1870, he organized the Standard Oil Company. By 1877, Rockefeller controlled 95 percent of the countrys oil refineries. The systems of monopolies did not result in better quality or lower cost, only larger profits. Rockefeller flourished in an era of free enterprise. Sig: Laws were later passed to prevent others from using Rockefellers tactics. Source: Encarta, AP538, 540- 42 Gospel of Wealth Who: Andrew Carnegie and other wealthy men What: The Gospel of Wealth was the belief that God gave people wealth, and people should use their wealth to help those who were less fortunate. Entrepreneurs, such as Andrew Carnegie, believed those who acquired wealth were morally responsible to use it for the public good. Carnegie also believed that a person, who gained great wealth, should use it in his lifetime. [Note: the Gospel of Wealth is not directed at aiding the individual but in aiding society with parks, museums, etc. The Social Gospel of protestant social workers was directed at helping needy individuals. Do not confuse the Social Gospel with the Gospel of Wealth.] Sig: Many wealthy people of the Industrial Age began to establish large charities. Source: AP542 Social Darwinism/ 1900s Who: Rev. Russell Conwell and the Millionaires What: Defenders of wide-open capitalism, survival of the fittest theories of Darwin applied to the social and economic arenas....
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- Spring '07