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Big Business in the Late 1800s. Pgs. 205-211. Entrepreneurs. During the late 1800s, many people took chances to make lots of money. There was an even greater chance of losing lots of money. An entrepreneur is a person who sets up a new business with the hope of making money.
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Big Business in the Late 1800s Pgs. 205-211
Entrepreneurs • During the late 1800s, many people took chances to make lots of money. • There was an even greater chance of losing lots of money. • An entrepreneur is a person who sets up a new business with the hope of making money. • These entrepreneurs contributed to the growth of the American economy.
Iron vs. Steel • In the early 1800s, iron was used to build bridges, buildings, and railroads. As locomotives got bigger and heavier, iron tracks were no longer strong enough. • Steel tracks were needed, but steel was much more expensive to make than iron. • By the 1850s inventors had developed a way to make steel more cheaply.
Andrew Carnegie • In the 1860s Andrew Carnegie built a steel mill in Pittsburgh, Pennsylvania. • By the 1870s business was good for Carnegie. With his profits he built more steel mills and made even larger profits. • He bought mines to supply his steel mills with coal and iron. • He bought ships to carry natural resources to his mills.
Andrew Carnegie • With his mines and ships, he could make more steel at a lower cost than other mills could. • He could afford to lower the price of his steel. • Other steel mills were not able to compete with Carnegie’s lower prices so he bought their mills and joined them with his business forming the Carnegie Steel Company.
Andrew Carnegie • The company became one of the biggest steel businesses in the United States, and Andrew Carnegie became one of the riches people in the world. • By 1901 he earned about $250 million each year. Look at the graph on page 208.
The Oil Industry • In 1863 John D. Rockefeller set up an oil refinery near Cleveland, Ohio. He was 24 years old. • A refinery is a factory that makes oil into products people can use. • The first products made by Rockefeller’s refinery were grease and kerosene for lamps.
John D. Rockefeller • His refinery was one of 30 in the Cleveland area. Within a few years, he had bought most of the other refineries. • In 1870 he consolidated them into one business he called the Standard Oil Company. • Other companies could not match Rockefeller’s low prices for oil products.
John D. Rockefeller • He had a monopoly, or almost complete control of the oil business. • At the age of 99, Rockefeller was worth $1.4 billion. • Look at the graph on page 209.
Industrial Cities • Most factories were located near good rivers and harbors. • With the growth of the railroads and industries such as steel and oil, new industrial cities developed inland, far from the coast.