Steel and Oil Industry

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Questions and Answers

Which industries were trust companies particularly powerful in?

Textile, agriculture, pharmaceuticals, and electronics

Construction, automotive, mining, and fishing

Copper, railroad, tobacco, and sugar (correct)

Publishing, tourism, finance, and education

What was a significant advancement that contributed to the growth of the meatpacking industry?

Chemical preservatives

Electric meat slicers

Refrigerated railroad cars (correct)

Automated conveyor belts

Who was known as 'The Empire Builder' for his contributions to railroad construction?

Cornelius Vanderbilt

James J. Hill (correct)

Andrew Carnegie

John D. Rockefeller

Which invention was NOT developed by Thomas Alva Edison?

The telephone Signup and view all the answers

What was a key factor in the success of the cattle ranching industry in the Midwest?

The construction of railroads Signup and view all the answers

Which of the following best describes the impact of inventions after the Civil War?

Great growth in new technologies Signup and view all the answers

Which railroad system was the first to implement steel rails, steel bridges, and double tracks?

New York Central Signup and view all the answers

How frequently did Thomas Alva Edison's team produce a minor invention?

Every 10 days Signup and view all the answers

What business structure dominated before the Civil War?

Partnerships or sole ownership Signup and view all the answers

What is one consequence of a corporation functioning as a monopoly?

Control over product quality and pricing Signup and view all the answers

How do corporations provide a safer investment option for individuals?

By limiting the liability of investors Signup and view all the answers

Which business strategy did Andrew Carnegie implement to control steel production?

Vertical combination of supply chain processes Signup and view all the answers

What was John D. Rockefeller's primary strategy in building Standard Oil Corporation?

Eliminating competition through acquisitions Signup and view all the answers

What characterizes trust companies in the context of historical business practices?

Large entities that often act as monopolies Signup and view all the answers

What is capital in the context of corporations?

Investments made into the corporation Signup and view all the answers

Which of the following statements about corporations is false?

Corporations always charge lower prices due to competition. Signup and view all the answers

What crop innovations did George Washington Carver promote for Southern farmers?

Pecans, peanuts, and sweet potatoes Signup and view all the answers

Which invention was developed by Alexander Graham Bell?

Telephone Signup and view all the answers

What negative consequence accompanied industrial development in the late 19th century?

More air and water pollution Signup and view all the answers

Which organization focused on environmental conservation and was established in 1892?

Sierra Club Signup and view all the answers

Which invention made it easier to construct tall buildings?

Electric elevator Signup and view all the answers

Who was known as 'The Empire Builder' for constructing the Great Northern Railway System?

James J. Hill Signup and view all the answers

What significant transformation did inexpensive steel bring to construction?

It allowed for the construction of larger bridges and skyscrapers. Signup and view all the answers

What marked the beginning of America's giant oil industry?

Edwin Drake striking oil in Titusville. Signup and view all the answers

What major unit of transportation expanded significantly during the industrial era?

Railroads Signup and view all the answers

Who was instrumental in launching conservation programs after becoming president in 1901?

Theodore Roosevelt Signup and view all the answers

Which of the following materials did steel NOT prove useful for?

Wooden furniture Signup and view all the answers

How did John D. Rockefeller approach the oil business?

By organizing Standard Oil Company to refine oil. Signup and view all the answers

What was the primary product of refined oil in the early oil industry?

Kerosene Signup and view all the answers

What major shift occurred with the introduction of electric lights around 1900?

The decline in popularity of kerosene. Signup and view all the answers

Which structure was completed in 1883 and was the longest suspension bridge in the world at that time?

Brooklyn Bridge Signup and view all the answers

What was a key factor in the growth of the oil industry in Titusville?

The establishment of pipelines and railroads. Signup and view all the answers

What is referred to as a monopoly in the context of business?

A large company with little or no competition Signup and view all the answers

How did railroads contribute to the development of the meatpacking industry?

By enabling transport of meat across the country Signup and view all the answers

Which invention is Thomas Edison best known for developing?

The phonograph Signup and view all the answers

What role did natural resources play in the industrial growth of the United States?

They provided raw materials necessary for manufacturing Signup and view all the answers

How did George Eastman impact photography?

By simplifying the Kodak camera for public use Signup and view all the answers

Study Notes

How Did Steel Become an Important Building Material?

Steel became an important building material because it was more durable than iron and cheaper to produce
Steel enabled the construction of larger bridges, such as the Brooklyn Bridge, which was the longest suspension bridge in the world at the time
Steel was also used in the construction of skyscrapers, which were nicknamed "skyscrapers" because of their imposing height
Steel was also a valuable material for everyday objects, such as pins, nails, washtubs, and barbed wire for fences

Edwin Drake

Edwin Drake was interested in a scientist's report that claimed oil could be used to create fuel for lamps
He traveled to Titusville, Pennsylvania and drilled 69 feet into the earth looking for oil
In August 1859, Drake struck oil, marking the beginning of America's giant oil industry

John D.Rockefeller

John D.Rockefeller traveled to Titusville from Cleveland, Ohio, to find a way to make money from the new oil business
He believed refining oil was less risky than prospecting for oil
In 1870, Rockefeller organized a new oil company called the Standard Oil Company of Ohio
Standard Oil became the most powerful oil company in the United States within 10 years by controlling the production and price of oil
Kerosene, a fuel used for lamps, was the most common product of refined oil
The wide use of kerosene ended with the introduction of electric lights around 1900
The popularity of the motor car led to a new demand for gasoline, which is also a product of refined oil

Criticisms of Corporations

Corporations were criticized by some who argued that they were too powerful for small businesses to compete with
Big businesses that have little competition are called monopolies
Monopolies were criticized for charging higher prices for products of low quality

How were Corporations Important to Business Growth?

Corporations provide people with a safe form of investment that limits their liability or risk
Individuals can invest money in corporations because their liabilities are limited if the corporation fails
Money used for investment is called capital
Through corporations, many individuals can contribute to the economic growth of a company by buying shares of stock
When corporations succeed, the value of those shares grows, and the investors make money on their investment

How Did Companies become Larger?

Business leaders sought ways to organize their companies in order to become more powerful
Andrew Carnegie sought to avoid relying on other companies to produce his steel
Carnegie adopted a new business strategy: buying mining and transportation companies and combining them into one large company - This approach gave him complete control of every step in the steel manufacturing process, from obtaining raw materials to distributing the final product
This strategy became known as a vertical combination
John D .Rockefeller decided to focus on eliminating competition
He bought companies that refined oil, controlling the entire oil refining industry
This method became known as a horizontal combination
Each time Rockefeller purchased a new refinery, Standard Oil Corporation became more powerful

Trust Companies

Companies seeking control over an industry began to utilize a strategy known as trust companies, which are large, powerful companies that often are monopolies
Trust companies provided a popular method for businesses to increase their wealth due to the level of control they provided.
Trust companies were often found in the copper, railroad, tobacco, and sugar industries, where they were very powerful and employed a vast workforce.
The growth of these industries proved the effectiveness of a trust company system and transformed the United States into an industrial country.

Leaders in Railroad Construction

Cornelius Vanderbilt connected short railroads in the Northeast to create America's first great railroad system called the New York Central
The New York Central was the first system to use steel rails, steel bridges, and double tracks
James J.Hill, who was dubbed “The Empire Builder”, led the construction of the Great Northern Railway System in the Northwest
Hill encouraged immigrant workers in his region, teaching them new farming methods and helping start numerous businesses

Thomas Alva Edison

Thomas Alva Edison, nicknamed “The Wizard of Menlo Park”, led a team of inventors that turned out a minor invention every 10 days and a major one every six months
Edison's inventions include the light bulb, the phonograph, and motion picture machines
In 1877, Edison used his phonograph to record the first words reproduced by a machine
He made improvements to the telephone by allowing people to speak naturally instead of shouting, a requirement of earlier telephone models

George Washington Carver

George Washington Carver, an African American scientist, made a great impact on farming in the South
He graduated from Iowa State Agricultural College in 1894 and joined the Tuskegee Institute in Alabama
He taught and completed research that led to the development of new products based on pecans, peanuts, and sweet potatoes
His work gave Southern farmers more options for crops besides cotton

What Were Other Important Inventions?

Alexander Graham Bell invented the telephone in 1876
Elisha Otis invented the electric elevator in 1889
George Eastman simplified the Kodak camera in 1880
Ottmar Mergenthaler invented a machine in 1884 that made typesetting easier for books and newspapers
Henry Ford experimented with gasoline-powered automobile engines
He developed an assembly line, which allowed for the creation of more affordable automobiles

How Did Industrial Development Affect the Environment?

Industrial development led to more air pollution from factories and water pollution from waste products of factories and mines

The Environmental Movement

Concerns about the environment began to emerge in the 1890s which led to legislation to protect forests, wildlife, and rivers
National parks, such as California’s Yosemite National Park in 1890, were established for preservation purposes
Groups such as the Sierra Club in 1892 focused on conservation
Theodore Roosevelt, who became president in 1901, launched many important conservation programs.

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Description

Explore the significance of steel as a pivotal building material and its role in infrastructure development. Delve into the discoveries and contributions of key figures like Edwin Drake and John D. Rockefeller in the oil industry. This quiz will enhance your understanding of industrial advancements and economic impacts.