In the late 1800s, iron was used to build bridges, buildings, and railroads. As motives got bigger and heavier, iron tracks were no longer strong enough. Steel tracks were needed, but steel was much more expensive to make than iron. By the 1850s, inventers came up with a way to make steel cheaper.
In the late 1860s,Andrew Carnegie built a steel mill in Pittsburgh, Pennsylvania. By the 1870s,business was good for him. With his profits he built steel mills and made even more money. He bought ships to carry resources to the mills.
He made steel at a lower cost then others could. The other steel mills were not able to compete with Carnegie’s low prices. Then they joined his business and formed the Carnegies steel company; the largest in the U.S. He became very rich at 250 billion dollars a year.
In 1863, John D. Rockefeller set up an oil refinery in Cleveland , Ohio. He was 24 years old. A refinery is a factory that makes oil into products we use. The first products made in his refinery were grease and kerosene for lamps. His refinery was one of 30 in Cleveland. Later on he was able to buy most of them.
In 1870, he consolidated them into on business he called the standard oil company. Others could not match his low prices.
John D. RockefellerHe had amonopoly orwas in controlof the oil. At age 99,Rockefellerwas worth 1.4billion dollars.
Most factories were located near harbors or rivers. With the growth of railroads, oil, and steel industries, new cities developed land away from the coast.
They were one of the most rich people in the world at the time.