American Business

1
American Business

• 19th Century

2

• Today, few realize the limitations that lack of
  artificial light placed on all human activity
  especially work and business.
• Candles provided limited light
• Whale oil lamps but whaling was dangerous and
  time consuming
• Kerosene was developed mid-century as scientists
  examine possible uses for petroleum. 1859,
  TITUSVILLE, PENNSYLVANIA Edwin Drake drilled
  the first oil well in the United States.

3

• The development of a burnable gas from coal led
  to gas lighting. The gas was transported through
  pipes into homes, factories, and along streets
  for lighting.
• Activity was not dependent upon sunlight.
  Streets were lit in the evening adding to the
  development of commercial/shopping districts in
  cities.
• Work from sun to sun now one could work
  whenever!

4

• The growing US population and the demands placed
  upon the north during the Civil War led to an
  increased urban workforce.
• Immigration continued to the US mainly from
  western Europe during the first part of the 19th
  century and eastern/southern Europe in the
  latter 19th century.

5
Horatio Alger

• Because there were no nobles or royals in the US,
  many people in Europe viewed the US as a society
  without strict class restrictions. One could be
  born poor and become rich. In Europe, one was
  born a noble and remained one despite wealth.
• This idea of the US being a rags to riches
  dream was fostered by the novels of HORATIO
  ALGER.
• In his books, Alger wrote of poor but honest boys
  who used thrift and skill to rise and become
  successful.

6
(No Transcript)
7
Entrepreneurs

• ENTREPRENEURS people who invested their money
  in a product or service to make a profit.
• The federal government adopted several economic
  plans that developed American capitalism
• Protective Tariffs kept foreign goods expensive
  in the US
• Laissez-faire very minimal governmental
  restriction son business within the US NOTE
  protective tariffs are the opposite of
  laissez-faire, but the government was developing
  unrestrained business within the US but wanted to
  isolate US business from British, French, and
  German industry. Today, most American business
  leaders would reject protective tariffs as they
  act globally.

8
Inventions/Innovations whats the difference?

• The telegraph developed by Samuel Morse linked
  the nation through nearly instant communication.
• 1866 TRANSATLANTIC TELEGRAPH an underwater
  line was established linking Europe and North
  America.

9

• 1846 ELIAS HOWE developed the manual sewing
  machine.
• Cheaper textiles
• Easier sewing
• Cheaper clothes more clothes

10

• 1852 ELISHA OTIS developed the safety elevator
  no more plunging to your death!!!!!!
• Now, taller buildings could be efficiently used
  by businesses.

11

• 1876 ALEXANDER GRAHAM BELL developed the
  telephone.
• Soon telephone and telegraph lines linked the US.

12
Wireless!!!!!!!!!!!!!!!

• In the late 1800s, Italian GUGLIELMO MARCONI
  developed the wireless radio.
• Signals could be sent and received through the
  air using Morse Code.
• This was especially beneficially for ships at
  sea.
• OK, hes not American but Thomas Edison used
  Marconis invention and developed important radio
  uses.

13
Bessemer Process

• Henry Bessemer in England developed a refining
  process that made a strong steel than had
  previously existed.
• Stronger steel allowed for higher buildings and
  more reliable steel structures.

14
THOMAS ALVA EDISON

• The Wizard of Menlo Park
• Established mass production to inventing
• First industrial research laboratory
• Held 1093 patents

15

• 1868 Invented the electrical vote recorder.
• 1869 Invented the universal stock ticker and the
  unison stop.
• 1872 Invented the automatic telegraph system.
• Invented multiplex telegraph systems.
• Invented paraffin paper.

16

• 1876 Invented the electric pen used for the first
  mimeographs.
• 1877 Invented the carbon telephone transmitter,
  making telephony commercially practical. This
  included the microphone used in radio.
• Invented the phonograph. This was Edison's
  favorite invention.
• 1879 Discovered incandescent light.
• Radically improved dynamos and generators.

17
(No Transcript)
18

• 1880 Invented the magnetic ore separator.
• 1885 Discovered a system of wireless induction
  telegraph between moving trains and stations. He
  also patented similar systems for ship-to-shore
  use.
• 1891 Invented the motion picture camera.
• 1896 Invented the fluoroscope.
• Invented the fluorescent electric lamp.
• 1900 Invented the nickel-iron-alkaline storage
  battery.
• 1914 Invented the electric safety miner's lamp.
• Discovered the process for manufacturing
  synthetic carbolic acid.

19
Suspension Bridges

• The building of the Brooklyn Bridge exemplified
  the modern technology of steel, commerce, and
  construction.
• The bridge was completed in 1883 by John
  Roebling. He died due to injuries building the
  bridge it was completed by his wife and son.

20
(No Transcript)
21
The Organization of Business

• Sole Ownership individual control of a business
  
• Partnership two or more people share ownership
  more people to use their own money for the
  business but limited among a few
• CORPORATION group ownership of a company
  through percentages known as STOCKS. The initial
  sale of stock could raise tremendous amounts of
  money (CAPITAL) for the company. Owners of stock
  may share in profits of business through
  DIVIDENDS. Stock owners may not be sued only
  the corporation itself. Stock may be bought and
  sold by owners at the owners discretion. Price
  of stock is determined by the value of the
  business and demand for the stock in the STOCK
  MARKET.

22
Corporations Attacking Competition

• Most business leaders in the 19th century claimed
  to be supporters of laissez-faire as far as
  government involvement was concerned but they
  did not want competition that could hurt their
  profits.
• Corporations organized themselves in ways that
  would maximize their profits at the expense of
  other businesses

23

• MONOPOLY one corporation controls the market of
  a product or service. Achieved through buying up
  the competition or by driving the competition out
  of business.
• TRUSTS
• HORIZONTAL INTEGRATION
• VERTICAL INTEGRATION
• CARTEL corporations worked together to regulate
  prices and divide the market consumers did not
  have competition.

24
Andrew Carnegie

• Andrew Carnegie was a Scottish immigrant who
  started poor and died the second richest person
  in history worth in todays money 298 billion
  (FORBES MAGAZINE)
• The Carnegie Steel Company produced massive
  amounts of cheap steel used to build the 19th
  century. He bought iron mines, coke factories,
  etc. so he could control all aspects of steel
  making.
• His workers were paid low wages as most
  industrial workers were.

25
Andrew Carnegie

• In 1901, Carnegie sold his business to J.P.
  MORGAN who created US STEEL the first billion
  dollar corporation.
• Carnegie wrote The Gospel of Wealth in 1889. He
  stated his belief that money in the hands of
  people who were not educated to use it was
  unwise. Therefore, it was the responsibility of
  the wealthy to create charitable organizations to
  give their money away.
• Carnegie gave over 3 billion dollars away to
  libraries, etc. by the time he died in 1919
• How do you get to Carnegie Hall? Practice

26
Some remember Carnegie as a billionaire whose
employees lived near poverty. Some remember him
as the man who gave the US steel to modernize and
jobs to immigrants who had no future in Europe
and the man who built libraries. So, who was
Andrew Carnegie?
27
John Pierpont Morgan

• JP Morgan made his fortune not through inventing
  or establishing businesses he was a banker and
  financier who bought businesses.
• In 1901, he bought Carnegie Steel and combined it
  with other steel companies to create US STEEL
• He arranged the merger of Thomas Edisons
  electric compnay with other to make GENERAL
  ELECTRIC
• When he died in 1913 he was only worth 1.4
  billion

28
Morgan had a personal library and art collection
superior to many museums throughout the world.
His library was donated to the public.
29
JOHN D. ROCKEFELLER

• John D. Rockefeller from Ohio built the STANDARD
  OIL COMPANY and became the richest man the world
  has ever seen 318 billion
• Standard Oil was famous for its destruction of
  its competition. Standard Oil was a trust a
  corporation of corporation. His son and
  grandchildren gave away billions to schools,
  hospitals and other charities.

30
(No Transcript)
31
(No Transcript)
32
THE VANDERBILT FAMILY

• Cornelius Commodore Vanderbilt grew up on
  Staten Island, New York.
• In 1805, at age 11 he quit school. He borrowed
  money from his mother and by age 16 he had
  established a shipping business between Staten
  Island and Manhattan Island.
• Vanderbilt quickly built a powerful shipping
  company as NYC grew. When the new invention of
  the locomotive appeared in the US, Vanderbilt
  invested his money and established the new York
  Central Railroad.
• When he died in 1877 he left a fortune worth 143
  billion - his children fought over his will
  but it was his son William Vanderbilt who really
  made money

33

• William Henry Vanderbilt took the 100 million
  (1877) left him by his father and invested in
  more railroads and other businesses.
• When William Henry Vanderbilt died in 1885, his
  fortune was worth 231 billion in todays money.
• William Vanderbilts children and grandchildren
  ran New York society through their massive
  fortunes and their donations to the arts and
  charity.

34
William Henry Vanderbilts eldest son was
Cornelius Vanderbilt II. Cornelius and his wife
Alice are remembered for their homes and
descendants. Their summer cottage was The
Breakers in Newport, Rhode Island
35
Cornelius Vanderbilt home 5th Avenue New York City
36
Cornelius Vanderbilt IIs daughter Gertrude
Vanderbilt Whitney established the famous Whitney
Museum in New York City
37
Cornelius Vanderbilts granddaughter is fashion
designer Gloria Vanderbilt her son is news
journalist Anderson Cooper
38
William Henry Vanderbilts other son was William
K. Vanderbilt his family also governed New York
society. His first wife Alva built the fabulous
MARBLE HOUSE in Newport, Rhode Island as their
summer cottage
39
(No Transcript)
40
Alva Vanderbilt divorced her philandering husband
and took up the cause of woman suffrage. She
married their daughter Consuelo to the Duke of
Marlborough
41
William Henry Vanderbilts son George Washington
Vanderbilt is remembered for having NOT sailed on
the Titanic because his wife had a premonition of
disaster AND for building the largest privately
owned home in the United States. Biltmore House
in Asheville, North Carolina
42

• The wealth of these families and the growth of a
  rich America while more and more poor workers
  and immigrants filled the United States led to
  the days from reconstruction to the turn of the
  20th century being called THE GILDED AGE. The
  business leaders were seen as CAPTAINS OF
  INDUSTRY as if they were captains leading great
  ships to port.
• Some saw the growing distance between rich and
  poor in the United States as un-American and
  undemocratic. They saw these businessmen as
  ROBBER BARONS Americas nobility based upon
  money not birth.

43
(No Transcript)
44
Urban Tenements? Or The Dining Room at The
Breakers?Some Were Worried for America