5.3The Rise ofBig Business in America<br />
By 1900 America was an Industrial super power<br />
The Rise of Big Business<br />Technology allowed for huge factories to be built for massive standardized items as opposed ...
The Rise of Big Business<br />Corporations had several advantages:<br />			1.  Produce goods cheaply<br />			2.  Cut price...
How did this happen?<br />Business men learned and larger forms of business organizations and new ways to promote their pr...
Vertical Integration<br /><ul><li>A company buys or merges with companies that fill each need it relies on to do business
Great at saving money because you own both the buyer and sellers</li></li></ul><li>
Industrial Leaders, the New Millionaires<br />Carnegie<br />
Andrew Carnegie and Steel<br />“rags to riches” story<br />Scottish immigrant as a boy<br />1st job = $1.20 per week<br />...
The Growth of Railroads: Railway Mileage of the U.S. 1830 -1890<br />50,000 miles<br />100,000 miles<br />150,000 miles<br...
Andrew Carnegie was one of the 40 Richest Americans in History<br />American Heritage, October 1998. <br />
Andrew Carnegie<br />- From Explore PAHistory - http://explorepahistory.com/displayimage.php?imgId=2831<br />
"Forty-Millionaire Carnegie in his Great Double Role. As the tight-fisted employer he reduces wages that he may play phila...
Videoizzle for my studentizzles<br />
Horizontal Integration<br />Horizontal integration – buying out your competitors.  <br />Occurred through competition, as ...
Horizontal Integration<br />Independent steel mills<br />Integrated steel company<br />
John D. Rockefeller and Standard Oil<br />Oil discovered in Penn., he decided to begin a oil refinery business<br />1870 h...
His Parents<br />Deaf, blind mute salesman<br />“Snake oils” for 25 bucks….2 months salary at the time<br />Raped a women…...
His Story<br />In spite of his father’s absences and frequent family moves, young Rockefeller was a well-behaved, serious ...
Johnny Rock Video<br />
Age 86…He wrote a poem about his life<br />“ I was early taught to work as well as play,My life has been one long, happy h...
Rockefeller as the Richest Man in US History….BY A LOT!<br />American Heritage, October 1998. <br />
Standard Oil<br />
J.P. Morgan<br />The most successful banker from the late 1800’s was John Pierpont Morgan.<br />He made his fortune by buy...
% of Billionaires in 1900<br />
% of Billionaires in 1918<br />
Relative Share of World Manufacturing<br />
Millionaire's Row, New York City in the 1880s<br />The Frick Mansion, 5th Ave. & 70th St.<br />The Carnegie Mansion, 5th A...
Advertising and Shopping<br />Advertising quickly became a big money maker.<br />By 1900, retailers were spending $90 mill...
Singer Sewing Machines<br />
“A Busy Bee Hive"<br />
Interior of an early department store<br />
Mail Order Catalogs<br />Department stores would send out catalogs with colored pictures to people living in rural areas.<...
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5.3 big business in america

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5.3 big business in america

  1. 1. 5.3The Rise ofBig Business in America<br />
  2. 2. By 1900 America was an Industrial super power<br />
  3. 3. The Rise of Big Business<br />Technology allowed for huge factories to be built for massive standardized items as opposed to the traditional personalized items <br />Big Business dominated the economy with factories, warehouses, and distribution facilities.<br />Corporations raised money by selling stocks (stockholders actually own the company) and then using that money to invest in new technologies, larger workforce, and new machines to impact efficiency<br />
  4. 4. The Rise of Big Business<br />Corporations had several advantages:<br /> 1. Produce goods cheaply<br /> 2. Cut prices to stay in operation<br />during hard economic times.<br /> 3. Negotiate rebates from thelarge railroad companies.<br /> 4. Spread out the financial risk to many people<br />Many smaller businesses felt these larger corporations were driving them out of business.<br />
  5. 5. How did this happen?<br />Business men learned and larger forms of business organizations and new ways to promote their products.<br />Business consolidation<br />Advertising and catalogs<br />
  6. 6. Vertical Integration<br /><ul><li>A company buys or merges with companies that fill each need it relies on to do business
  7. 7. Great at saving money because you own both the buyer and sellers</li></li></ul><li>
  8. 8. Industrial Leaders, the New Millionaires<br />Carnegie<br />
  9. 9. Andrew Carnegie and Steel<br />“rags to riches” story<br />Scottish immigrant as a boy<br />1st job = $1.20 per week<br />Age 33 he was worth 4 million<br />Opened a steel mill in Pittsburgh and then began buying up quarries, mines, etc<br />By the 1890s, his company was the most profitable industrial company in the world<br />1900…Carnegie steel out produced all of Britain<br />Sells company to JP Morgan for 480 million and then gives much of it away<br />“Gospel of Wealth”<br />“A man who dies rich dies disgraced”<br />
  10. 10. The Growth of Railroads: Railway Mileage of the U.S. 1830 -1890<br />50,000 miles<br />100,000 miles<br />150,000 miles<br />1840<br />1850<br />Central Pacific locomotive No. 1, the first engine to be placed in construction service on the western end of the transcontinental railroad. <br />1860<br />1870<br />1880<br />1890<br />http://railroads.unl.edu/documents/view_document.php?id=rail.str.0252<br />
  11. 11.
  12. 12. Andrew Carnegie was one of the 40 Richest Americans in History<br />American Heritage, October 1998. <br />
  13. 13. Andrew Carnegie<br />- From Explore PAHistory - http://explorepahistory.com/displayimage.php?imgId=2831<br />
  14. 14. "Forty-Millionaire Carnegie in his Great Double Role. As the tight-fisted employer he reduces wages that he may play philanthropist and give away libraries, etc."<br />
  15. 15. Videoizzle for my studentizzles<br />
  16. 16. Horizontal Integration<br />Horizontal integration – buying out your competitors. <br />Occurred through competition, as one company would begin to lose market shares, they would often sell themselves to create large corporations<br />
  17. 17. Horizontal Integration<br />Independent steel mills<br />Integrated steel company<br />
  18. 18. John D. Rockefeller and Standard Oil<br />Oil discovered in Penn., he decided to begin a oil refinery business<br />1870 he founded the Standard Oil Company which by 1890 controlled 90% of the oil business in the US<br />Considered the richest man in the history of the world<br />Worth $318 billion at death<br />Gave away $527 million<br />Philanthropist vs Robber Baron <br />
  19. 19. His Parents<br />Deaf, blind mute salesman<br />“Snake oils” for 25 bucks….2 months salary at the time<br />Raped a women…left town and changed name…<br />Never benefitted from his son’s wealth<br />Said to be a bigomist<br />"I cheat my boys every chance I get. I want to make ‘em sharp."<br />
  20. 20. His Story<br />In spite of his father’s absences and frequent family moves, young Rockefeller was a well-behaved, serious and studious boy.<br />VERY religious guy saying “God gave me money”<br />As a boy gave 6% of money to church…later it was 10%<br />
  21. 21. Johnny Rock Video<br />
  22. 22. Age 86…He wrote a poem about his life<br />“ I was early taught to work as well as play,My life has been one long, happy holiday;Full of work and full of play-I dropped the worry on the way-And God was good to me everyday.”<br />
  23. 23. Rockefeller as the Richest Man in US History….BY A LOT!<br />American Heritage, October 1998. <br />
  24. 24.
  25. 25.
  26. 26. Standard Oil<br />
  27. 27. J.P. Morgan<br />The most successful banker from the late 1800’s was John Pierpont Morgan.<br />He made his fortune by buying and selling stock of large corporations.<br />He bought out Andrew Carnegie in 1901 and created the largest company in America called United States Steel Company. <br />
  28. 28. % of Billionaires in 1900<br />
  29. 29. % of Billionaires in 1918<br />
  30. 30. Relative Share of World Manufacturing<br />
  31. 31. Millionaire's Row, New York City in the 1880s<br />The Frick Mansion, 5th Ave. & 70th St.<br />The Carnegie Mansion, 5th Ave. & 91st St.<br />Mrs. Astor’s House, 5th Ave. & 65th St.<br />The Vanderbilt Chateau, 5th Ave. & 52nd St.<br />- American Experience - http://www.pbs.org/wgbh/amex/carnegie/gallery/index.html<br />
  32. 32. Advertising and Shopping<br />Advertising quickly became a big money maker.<br />By 1900, retailers were spending $90 million a year attracting new customers.<br />Department stores became popular which helped make shopping more fun.<br />These new stores offered a wide variety of products. <br />
  33. 33. Singer Sewing Machines<br />
  34. 34. “A Busy Bee Hive"<br />
  35. 35. Interior of an early department store<br />
  36. 36. Mail Order Catalogs<br />Department stores would send out catalogs with colored pictures to people living in rural areas.<br />The idea of “shopping from home” appealed to thousands of people.<br />Two large mail-order retailers:<br /> 1. Montgomery Ward<br /> 2. Sears and Roebuck<br />

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