QOD #3

QOD #3QOD #3

Read pg. 260-261Read pg. 260-261Answer:Answer:

1. What personal qualities and talents 1. What personal qualities and talents played a part in Andrew Carnegie’s rise played a part in Andrew Carnegie’s rise to success?to success?

2. How did personal contacts 2. How did personal contacts contribute to Carnegie’s financial contribute to Carnegie’s financial success?success?

3. In what industry did Carnegie make 3. In what industry did Carnegie make his immense fortune?his immense fortune?

Railroads Spur Railroads Spur Industrial GrowthIndustrial Growth

I) Reasons for Growth I) Reasons for Growth in Industryin Industry

I) Reasons for Growth I) Reasons for Growth in Industryin Industry

A) Following the Civil War, A) Following the Civil War, large factories began to large factories began to replace small workshops replace small workshops

I) Reasons for Growth I) Reasons for Growth in Industryin Industry

A) Following the Civil War, A) Following the Civil War, large factories began to large factories began to replace small workshops replace small workshops 1. The # of factories went from 1. The # of factories went from

140,000 in 1865 to 510,000 by 140,000 in 1865 to 510,000 by 1900 1900

I) Reasons for Growth I) Reasons for Growth in Industryin Industry

A) Following the Civil War, A) Following the Civil War, large factories began to large factories began to replace small workshops replace small workshops 1. The # of factories went from 1. The # of factories went from

140,000 in 1865 to 510,000 by 140,000 in 1865 to 510,000 by 1900 1900

2. The US had become the world’s 2. The US had become the world’s leading industrial nation leading industrial nation

I) Reasons for Growth I) Reasons for Growth in Industryin Industry

B) Coal, Iron Ore, and lumber B) Coal, Iron Ore, and lumber all made there way to factories all made there way to factories via the booming RR industry via the booming RR industry

I) Reasons for Growth I) Reasons for Growth in Industryin Industry

B) Coal, Iron Ore, and lumber B) Coal, Iron Ore, and lumber all made there way to factories all made there way to factories via the booming RR industry via the booming RR industry 1. There were 30,000 miles of 1. There were 30,000 miles of

track in 1865 and 200,000 miles track in 1865 and 200,000 miles in 1900 in 1900

II) Railroads Link the II) Railroads Link the NationNation

A) Goods from different A) Goods from different parts of the country parts of the country could now be shipped could now be shipped to one locationto one location

A) Goods from different A) Goods from different parts of the country parts of the country could now be shipped could now be shipped to one locationto one location

1. 1. This meant that coal from West This meant that coal from West Virginia could be sent to Virginia could be sent to Cleveland to fire the furnaces to Cleveland to fire the furnaces to melt iron ore from Minnesota and melt iron ore from Minnesota and be turned into steel which could be turned into steel which could be shipped to New York City to be shipped to New York City to make buildingsmake buildings

B) B) In addition, mail In addition, mail order business thrivedorder business thrived

B) B) In addition, mail In addition, mail order business thrivedorder business thrived

1. 1. Goods could be shipped to Goods could be shipped to homes across the countryhomes across the country

B) B) In addition, mail In addition, mail order business thrivedorder business thrived

1. 1. Goods could be shipped to Goods could be shipped to homes across the countryhomes across the country

2. 2. Companies such as Companies such as Montgomery Ward and Sears Montgomery Ward and Sears Roebuck would send farmers Roebuck would send farmers catalogs to purchase all kinds of catalogs to purchase all kinds of goodsgoods

C) Problems with RRC) Problems with RR

C) Problems with RRC) Problems with RR

1. 1. 100’s of RR companies caused 100’s of RR companies caused conflictconflict

C) Problems with RRC) Problems with RR

1. 1. 100’s of RR companies caused 100’s of RR companies caused conflictconflict

2. 2. North and South used different North and South used different gauge (thickness) trackgauge (thickness) track

C) Problems with RRC) Problems with RR

1. 1. 100’s of RR companies caused 100’s of RR companies caused conflictconflict

2. 2. North and South used different North and South used different gauge (thickness) trackgauge (thickness) track

3. Environmental issues: lumber 3. Environmental issues: lumber to build RR ties, coal to powerto build RR ties, coal to power

III) III) RR CompetitionRR Competition

A) A) Cutthroat Cutthroat competition between competition between companiescompanies

A) A) Cutthroat Cutthroat competition between competition between companiescompanies

1. 1. Rate wars, reduce fares as low Rate wars, reduce fares as low as possibleas possible

A) A) Cutthroat Cutthroat competition between competition between companiescompanies

1. 1. Rate wars, reduce fares as low Rate wars, reduce fares as low as possibleas possible • a. a. Once you eliminate competition, Once you eliminate competition,

you up fares as high a you wantyou up fares as high a you want

A) A) Cutthroat Cutthroat competition between competition between companiescompanies

1. 1. Rate wars, reduce fares as low Rate wars, reduce fares as low as possibleas possible • a. a. Once you eliminate competition, Once you eliminate competition,

you up fares as high a you wantyou up fares as high a you want

2. 2. Rebates-Rebates- refund of payment refund of payment

A) A) Cutthroat Cutthroat competition between competition between companiescompanies

1. 1. Rate wars, reduce fares as low Rate wars, reduce fares as low as possibleas possible • a. a. Once you eliminate competition, Once you eliminate competition,

you up fares as high a you wantyou up fares as high a you want

2. 2. Rebates-Rebates- refund of payment refund of payment • a. a. offer rebate if company promises offer rebate if company promises

to use on your RRto use on your RR

A) A) Cutthroat Cutthroat competition between competition between companiescompanies

1. 1. Rate wars, reduce fares as low Rate wars, reduce fares as low as possibleas possible • a. a. Once you eliminate competition, Once you eliminate competition,

you up fares as high a you wantyou up fares as high a you want

2. 2. Rebates-Rebates- refund of payment refund of payment • a. a. offer rebate if company promises offer rebate if company promises

to use on your RRto use on your RR

3. 3. Consolidation-Consolidation- several several companies combined into onecompanies combined into one

A) A) Cutthroat Cutthroat competition between competition between companiescompanies 2. 2. Rebates-Rebates- refund of payment refund of payment

• a. a. offer rebate if company promises to offer rebate if company promises to use on your RRuse on your RR

3. 3. Consolidation-Consolidation- several companies several companies combined into onecombined into one • a. a. Cornelius Vanderbilt bought lines Cornelius Vanderbilt bought lines

from NY to Chicagofrom NY to Chicago

A) A) Cutthroat Cutthroat competition between competition between companiescompanies 2. 2. Rebates-Rebates- refund of payment refund of payment

• a. a. offer rebate if company promises to offer rebate if company promises to use on your RRuse on your RR

3. 3. Consolidation-Consolidation- several companies several companies combined into onecombined into one • a. a. Cornelius Vanderbilt bought lines Cornelius Vanderbilt bought lines

from NY to Chicagofrom NY to Chicago•b. The trip usually meant 17 train b. The trip usually meant 17 train

changes, under Vanderbilt, 1 changes, under Vanderbilt, 1