Growth of Business and Industry Objective: Cover the development of business and industry after the Civil War

Industrial Revolution Started in England in 1700s Change from making products at home to making them in factories Industrial Rev. Started in America in textile mills in New England

Started in England in 1700s

Change from making products at home to making them in factories

Industrial Rev. Started in America in textile mills in New England

Industrial Rev. U.S. industrialize for many reasons 1 st People had capital (money) 2 nd lots of natural resources (coal, iron, oil, water) 3 rd U.S. had lots of Railroads 4 th New Inventions 5 th Lots of people 6 th American economy based on Capitalism

U.S. industrialize for many reasons

1 st People had capital (money)

2 nd lots of natural resources (coal, iron, oil, water)

3 rd U.S. had lots of Railroads

4 th New Inventions

5 th Lots of people

6 th American economy based on Capitalism

Ways of Organizing Business Many years one person or a family owned a business Partnership- two or more people own a business If business fails owners pay any debts Lack of capital in partnerships

Many years one person or a family owned a business

Partnership- two or more people own a business

If business fails owners pay any debts

Lack of capital in partnerships

Corporations Can raise lots of money by selling shares If corporations fail shareholders only lose what they put in If profitable can sell shares for more money

Can raise lots of money by selling shares

If corporations fail shareholders only lose what they put in

If profitable can sell shares for more money

New Inventions Henry Bessemer discovers fast cheap way to turn iron into steel Granville Woods invents way for trains to run electricity Elijah McCoy invents lubricating cup Thomas Edison invents light bulb Alexander Graham Bell invents telephone

Henry Bessemer discovers fast cheap way to turn iron into steel

Granville Woods invents way for trains to run electricity

Elijah McCoy invents lubricating cup

Thomas Edison invents light bulb

Alexander Graham Bell invents telephone

Growth of Big Business Oil, Steel, and Railroads become huge industries Where called big business because they controlled many other smaller businesses Try to establish a Monopoly A monopoly controls an entire industry

Oil, Steel, and Railroads become huge industries

Where called big business because they controlled many other smaller businesses

Try to establish a Monopoly

A monopoly controls an entire industry

Growth of Big Business Several Companies could become a monopoly by forming a Trust A trust is a group of companies run by a board of directors Three powerful leaders of big business were: Vanderbilt, Carnegie, and Rockefeller

Several Companies could become a monopoly by forming a Trust

A trust is a group of companies run by a board of directors

Three powerful leaders of big business were: Vanderbilt, Carnegie, and Rockefeller

Captains of Industry or Robber Barons Cornelius Vanderbilt – Railroads Andrew Carnegie – Steel Industry John D. Rockefeller – Oil Industry

Cornelius Vanderbilt – Railroads

Andrew Carnegie – Steel Industry

John D. Rockefeller – Oil Industry

Government Tries to Control Big Business Laissez-Faire means hands- off Many Americans believe government should stay out of business Big Business was too BIG Congress wanted to pass laws to control business

Laissez-Faire means hands- off

Many Americans believe government should stay out of business

Big Business was too BIG

Congress wanted to pass laws to control business

Interstate Commerce Act Controls business crossing state lines Tries to regulate rates charged by railroads Interstate Commerce Commission created to enforce law Takes 15 cases to court and loses

Controls business crossing state lines

Tries to regulate rates charged by railroads

Interstate Commerce Commission created to enforce law

Takes 15 cases to court and loses

Sherman Anti-Trust Act Made Monopolies illegal Goal to break up Big Business Law not written clearly was hard to enforce

Made Monopolies illegal

Goal to break up Big Business

Law not written clearly was hard to enforce