Ch. 15-16 (Quiz1) America's Story 2

America's Big Business

• The 1870s were a time of booming business with prominent business men who built and "ruled" over several major American industries.
• Oil, railroads, steamships, and the steel industry made these men extremely wealthy and brought thousands of jobs to the American workforce.

The Rise of Oil

• Before automobiles, oil was used for every machine.
• Oil is the substance from which gasoline is made.
• The Seneca Indian tribe, from what is now the state of New York, discovered a dark, oily substance floating on ponds and small forest streams.
• They called this substance "rock oil" and it was sold as tonic for almost 200 years.
• Later, wells were dug for more of the oil.
• In 1855, oil was refined into a usable lighting and heating solution.
• Afterward oil became a precious commodity, with oil wells drilled across the country.

John D. Rockefeller

• In 1870, John D. Rockefeller formed and headed up the first major American oil company.
• Within two years, his company, Standard Oil, controlled more than a quarter of all American oil refining.
• Rockefeller set up deals with the railroad companies to make distribution cheaper.
• Taught not to be lazy or stingy, Rockefeller was a hard worker and consistent giver.
• Throughout his life, he gave at least ten percent of his income to his church and huge sums of money to various organizations.
• Many organizations, such as schools, colleges, hospitals, and medical research were greatly helped by Rockefeller's philanthropy.
• A philanthropist is someone who gives money to help worthy causes.
• Due to controversial business methods, Rockefeller was criticized about how he earned his money.
• Like George Pullman, Rockefeller had a lot of power and did not always use it fairly.

Cornelius Vanderbilt

• Cornelius Vanderbilt was another American big business man with “business savvy" from a young age.
• In the 1800s, he started in the ferry service business at the age of 16.
• His ferry ran between Staten Island and Manhattan, New York.
• Vanderbilt grew his business by buying out his steamboat competitors and taking over the management of railroads connected to his steamboat routes.
• In 1847, Vanderbilt took over the presidency of the Stonington Railroad company.
• Following the gold rush in 1849, Vanderbilt changed from a local steamboat business to ocean-faring steamships.
• His steamships carried people to California by way of the Isthmus of Panama.
• From this point, passengers traveled by mule train or canoe across the isthmus.
• Vanderbilt had a thriving business transporting passengers to Panama.
• On return trips, his ships were full of passengers and their gold.
• During the Civil War, Vanderbilt helped the Union Navy by donating one of his ships and helping to outfit it.
• After the war, Vanderbilt rebuilt his power over the railroads; he later received control of many railroads in the country.
• Though the competition Vanderbilt created improved service in the railroad industry, many people did not appreciate his business techniques.
• He was called a ruthless "robber baron”.
• Vanderbilt's methods to make money was controversial and that he had too much power.

Andrew Carnegie

• In 1834 Andrew Carnegie was born in Scotland.
• The Carnegie family moved to the US when Andrew was 13 years old.
• The family was poor, so Andrew worked in a factory as a bobbin boy.
• He worked as a telegraph messenger and was soon promoted to operator.
• Like Benjamin Franklin and Abraham Lincoln, Andrew taught himself many things through reading good books.
• In 1853, 18-year-old Andrew started working for the Pennsylvania Railroad Company as a secretary and telegraph operator.
• His new salary doubled his bobbin boy salary, despite this, Andrew wasnt planning on staying in this position.
• He worked his way up to superintendent of the Pittsburgh Division of the railroad.
• As Andrew earned more money, he invested in the steel industry.
• As steel industry grew, Andrew knew the value of steel.
• Soon, he became the most powerful man in the steel industry and owned the biggest steel operation in the country.
• Railroad tracks, the framework for tall buildings, bridge pilings and bonnets was made of Steel.
• Andrew also gave his fortune away like Rockefeller.
• Over 3,000 libraries, schools, colleges and universities received funding from Andrew Carnegie.
• Andrew's motto was to give money away to worthy causes.

Chicago is on Fire

• The Great Chicago Fire started around 11:00 PM, on October 8, 1871.
• The autumn of 1871 was unusually hot and windy, which caused the flames to spread rapidly.
• Unlike nowadays, the fire department systems were very different in 1871.
• The fire department watchman, Mathias Schafer, sat in the high “cupola” of the courthouse tower.
• Schafer watched the city for fires and saw a glowing light in the southwest section of the city.
• He used a voice tube, to contact William Brown, the night operator, to strike the fire alarm box.
• The fire alarm box would ring the courthouse bell and the bells in the fire department houses throughout the city.
• At the Chicago Fire on October 8, 1871, Schafer told Brown to strike box 342, a mile away from the origin of the fire.
• After inspecting the fire, Schafer had made a mistake, so he called Brown to strike box 319 instead.
• Brown refused to do this and said that firemen would be going in that direction anyway, so they would see where the fire really was.
• Firefighters were exhausted from fighting a large fire at the mill.
• Fire hoses were in bad shape, with a low water supply.
• The confusion on the fire's location caused a half-hour delay in getting to the scene.
• By the time firefighters arrived, the fire was out of control.
• Chicago was largely made of wooden structures, thus the fire consumed one building after another.
• Wooden sidewalks and roads, wood sheds, coal yards, and lumber yards all fed the fire's frenzy.
• Hot winds turned the city into an inferno of flames and crashing houses
• At first, residents watched firefighters from windows and roofs unaware of the danger presented.
• As the reality sunk in, mass panic broke out, and people fled to the Chicago River for refuge.