This document summarizes key sources of industrial growth in the late 19th century, including technological innovations like the Bessemer Process that revolutionized steel production. It discusses the emergence of major industries like steel in Pennsylvania and Ohio, as well as new industries like airplanes and automobiles. The growth of large corporations through consolidation, integration, and trusts is also examined through examples like Standard Oil, U.S. Steel, and railroad monopolies. Research and development by corporations and the application of scientific management principles to production are highlighted as additional drivers of this period of industrial expansion.

1. Chapter 17, Pages 473-480

2. Sources of Industrial Growth
 Industrial Technology
 Revolutionizing of iron and steel production
 Bessemer Process
 Iron production soared in 1870’s-1880’s
 40,000 miles of RR track added
 Emergence of steel industry in PA and OH
 Iron ore was abundant there
 Pittsburgh, a steel town!

3. Pittsburgh Steelers

4. Pittsburgh, 1908

5. Sources of Industrial Growth
 Airplane and Automobile
 Creation of gasoline was key
 Henry Ford: produced his first car in 1896
 Wright Brothers first to fly in 1903
 Kitty Hawk, NC
 By 1904, they could fly 23 miles and took passengers
with them
 Lucky Lindy popularized commercial flying in late 1920s

6. Sources of Industrial Growth
 Research and Development
 Business leaders sponsored their own research
 General Electric: created first corporate lab-1900
 Bell Telephones, DuPont, GE, Eastman Kodak and
others
 Budgeting hundreds of thousands of dollar$ for research
by their own scientists and engineers
 Led to government decline in support for this
 Higher education transformed: p. 475

7. Sources of Industrial Growth
 Science of Production
 Scientific Management
 “Taylorism”—Frederick Winslow Taylor
 Urged workers to subdivide tasks
 Led to employers diminished independence on any one
worker
 Should allow for production at greater speed
 Emergence of mass production and moving assembly
line: Ford cut time and money!

8. Sources of Industrial Growth
 Railroad Expansion
 Main cause of industrial expansion in late 19th C
 Led to economic activity: farming, lumber, agriculture:
Chicago became livestock hub
 Time zones created in 1883 for RR’s
 Vanderbilt and Huntington are two major RR men
 Oligopoly????
 See map on p. 477 for RR lines

9. Sources of Industrial Growth
 The Corporation
 Emerged as major political force after Civil War
 Limited Liability: risking only the amount of the
investment
 Can have nothing to do with company but still be
involved
 Allowed individuals to gain large amounts of capital and
create many big projects out of it

10. Sources of Industrial Growth
 Corporation Con’t.
 Andrew Carnegie: steel
 Controlled the processing of steel from mine to market
 Vertical integration
 US Steel Corp. formed by Carnegie and JP Morgan
 Controlled 2/3 of nation’s steel production
 Horizontal integration; bought out competition

11. Sources of Industrial Growth
 Corporation Con’t.
 Gustavus Swift: meat packing
 Isaac Singer: Singer sewing
 New managerial techniques: read about on p. 478

12. Sources of Industrial Growth
 Consolidating Corporate America
 Horizontal Integration: combining of a number of firms
into a single corporation
 Ex. consolidation of many different RR lines into one
company
 Vertical Integration: taking over of all different
businesses in which a company relied for its primary
function
 Ex. Carnegie Steel

13. Sources of Industrial Growth
 Consolidating Con’t.
 Standard Oil: combo of horizontal and vertical
 Read about it on page 479

15. Sources of Industrial Growth
 The Trust
 Trust: A group of separate companies that are placed under
the control of a single managing board (trustees)
 State laws prohibited one company from owning the stock of
another, feared this would restrain “free trade”
 Trusts were a way to get around the law
An Example:
 Standard Oil Co. had a board of 9 trustees, headed by
Rockefeller
 Eventually Standard Oil had 40 companies in its “trust”
 The companies had not officially merged & therefore not
broken any laws.

16. Sources of Industrial Growth
 By 1900: 1% of corporations controlled over 33% of
manufacturing
 Robber Barons or Captains of Industry?????

17. Rockefeller & Standard Oil

18. Cornelius Vanderbilt, RR Tycoon

19. Carnegie, Tycoon & Philanthropist