THE INDUSTRIAL REVOLUTION: The Rise of Big Business
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This metal was very expensive to make
until the BESSEMER PROCESS was perfected in the 1850s by Henry Bessemer and
William Kelly of KY. It involves blasting air into molten iron, which burns off
carbon and other impurities. By 1880, the leading iron and steel producer in the US was ANDREW CARNEGIE, who
recognized the need for efficiency in business. He cut costs while buying up
bankrupt mines, which led to the rise of his Carnegie Steel Co. Carnegie wanted
to work for charity after becoming rich. This help to the poor is called
PHILANTHROPY. He sold his company to J.P. Morgan in 1901, gaining $250 million
for himself. Morgan then created U S. Steel. Carnegie’s companies out~ sold
all the competition because he owned all of its parts. Building one phase of the
business upon the next is called VERTICAL INTEGRATION.
John D. Rockefeller's
Standard Oil Company sold oil at low prices, forcing smaller companies out of
business. Oil was lust discovered by EDWARD DRAKE in Titusville, PA in 1859. It
soon became an important source
of heat and electricity. Rockefeller paid close
attention to detail, and after the Civil War, he bought up all of his
competition. He created the first TRUST when he started STANDARD OIL Co.
and Effects] [Big Business] [Economic
and Electric Power] [Inventions]