Chapter 10 Review Joe Puccio
1. Standard gauge
3. Installment plan
4. Vertical integration
People To Identify
Alexander Graham Bell- Scottish immigrant who moved to Boston in 1871, created the telephone on March 10, 1867
Henry Bessemer- a British inventor who discovered a new way to make steel, created the Bessemer process
Andrew Carnegie- worked as a railroad telegrapher, found a way to create steel more cheaply than his competitors and sell it for lower prices, bought out competing steel firms
Thomas Alva Edison- patented 1093 items in his lifetime, designed the country’s first electric power plant, invented the phonograph, the light bulb, and many others
J.P. Morgan- wealthy investment banker who bought Carnegie’s steel company after he retired, combined the company with other steel companies to form the United States Steel Corporation
Samuel F.B. Morse- portrait painter in New York, designed a machine that could send coded impulses over a copper wire, created the telegraph and Morse code
John D. Rockefeller- organized the Standard Oil Company in 1870, drove his competitors out of business and had a monopoly on the nation’s oil business
Places To Locate
Reviewing the Facts
In the decades following the Civil War the trends shaped American life. These were: the expansion of American Industry, the settling of the west, and the growth of cities. These trends related in a multitude of ways. For example the expansion of American Industry required laborers, causing the growth of cities. Also, the settling of the West helped to provide raw materials for the expansion of American Industry.
There were four factors that encouraged the growth of industry in America after 1860. They were: the abundance of natural resources, the growing number of workers, an increased supply of capital, and innovations and inventions.
In the 1860’s steel production was changed by John D. Rockefeller through the use of vertical integration. Steel was important to the industrialization of America because it was used in almost everything associated with it, from skyscrapers to hammers.
The growth of vast railroad networks affected American life in many ways. The biggest way was by helping the growth of industry in America and all of the effects from that, but also by allowing for faster transportation.
There were two major inventions that revolutionized communication in the 1800’s they were the telegram and telephone. THese inventions created new industries themselves and were very helpful for other industries.
Corporations have several advantages over other forms of business that include the ability to raise capital by selling stock, limited liability, and stability because the death of owners is relatively insignificant.
Combining the steps involved in turing raw material int a finished product is vertical integration, while horizontal integration is expanding in one area of production.
The theory of laissez-faire capitalism is to let business do what the do, with little or no government interference. Government helped businesses many times with the Morril Tariff, the National Banking Act of 1863, and through the use of subsidies.
Monopolies caused many problems. The lack of competition meant that corporations could pretty much do as they pleased. Also, it caused many small businesses to go bankrupt.
The Supreme Court limited state power to regulate corporations three times. In Wabash, St. Louis and Pacific Railroad Company v Illinois the count ruled that states could not regulate railroads moving across state lines, only Congress could. In Santa Clara County v Southern Pacific Railroad Company the court ruled that the 14th amendment also applied to corporations because they are “legal persons”. In chicago, Milwaukee & St. Paul Railway Company v Minnesota the court ruled that regulation of big business had to be “reasonable.”
Critical Thinking Skills
The author of this quote meant that corporate lawyers took advantage of loopholes in laws passed by Congress that restricted corporations.
Industrialization in general was a big advancement. It raised the quality of life in America significantly. However it also led to bad working conditions, and some people’s lives were ruined by the monopolies of big business.
The Morrril Tariff was passed to help Congress pay for the war. It brought so much money it did not have to tax big businesses. In fact, it helped businesses in America. Banking: the national banking act helped companies doing commerce in several states by establishing Federal Banks. It also established a Federal Currency. This resulted in a more stable banking system. Education helped business but not immediately. It granted Federal land to the states to create colleges focused on Agriculture and Mechanic Arts. It made the American work force one of the best educated. Postal reform: Congress reduced mailing rates which helped business. In 1896 Rural Free Delivery helped farmers. Government Incentives to Business: Subsidies helped encourage businesses to form in certain areas and they helped rail roads enormously.
Many Americans believed that monopolies would lead to a rise in prices because of supply and demand. If there’s one source of supply and lots of demand, the source can abuse pricing.