Economic Developments: Railroads, Steel and Oil Flashcards
What industry did Vanderbilt start in?
Steamboats
How much money did Vanderbilt make from the Steamboat Inudstry?
$11 million
What did Vanderbilt do with his money when he ended his time in the Steamboat Industry?
He invested all of his money in railroads
When did Cornelius Vanderbilt die and what was his networth when he died?
He died in 1877 with a Networth of $100 million
How many MILES of railroads were there in the USA in 1865? Where were most rails located?
35,000 miles mostly in the North and East
How many miles of rails were there by 1893? Where were they located?
200,000 miles connected throughout all of North America
Why was there lots of competition in relation to willingness of investment by private banks?
Private banks were keen to invest in any railroad networks
Give an example of a failed railroad network which the New York Private Bank invested in
Jay Cooke’s railroad network
Why would the rise in steel and oil production mean that it was essential for rails to keep being made?
So that transportation of raw materials could continue as well as transportation of the finished steel and oil
How many tons of steel were produced in 1875 compared to 1900?
360,000 tons of steel in 1875. 60 million tons produced in 1900
What was the annual growth rate on average for steel production from 1875-90?
7% a year on average
What was a significant discover which massively helped increase Steel Production? Why?
The discovery of the Bessemer Process. Because it meant good quality steel could be produced quickly
How did Andrew Carnegie start off?
He was a poor Scottish Immigrant
What did Carnegie do with his Steel Company in 1900?
He sold it to J.P Morgan for $400 million
What was significant with the way that Carnegie took over the steel industry different to other monopolies?
Instead of buying up other companies he focussed on keeping prices low and quality high for his steel
