Trusts and Big Business - Andrew Carnegie-Emigrated from...

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Andrew Carnegie: -Emigrated from Scotland at age 13 -Started working for the Pennsylvania Railroad in 1853 -Began investing and growing his fortune in 1856 -Retired from the railroad to start his own company after the Civil War -Carnegie moved toward a monopoly -monopoly=exclusive possession or control of the supply of or trade in a good or service -1856: Learned of Bessemer process -1875: Opened his first steel plant -1881: Invested in a coke company -1883: Bought Homestead Steel Works -1889: Bought Allegheny Steel -1892: Formed Carnegie Steel Which statement most accurately represents Carnegie’s effect on the steel industry between 1865 and 1892? Carnegie realized that steel was the metal of the future and began to invest in or buy up potential competitors. Carnegie’s Monopoly: Vertical Integration -In 1892, Carnegie combined his dozens of companies into 1 giant corporation: Carnegie Steel -Included iron mines, coke fields, steel mills, and railroads -Controlled raw materials, the means of production, and transportation-a practice called vertical integration -when a single company controls the raw materials, the factories, and everything else that it takes to produce its product Carnegie’s Effect on the Steel Industry -Cut costs to drive steel prices down, forcing competitors out of business

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