U2L8 Industry and Corporations Flashcards
Who made the Bessemer Process?
William Kelly in the United States and Henry Bessemer in England
What was the Bessemer Process?
The Bessemer process, as it came to be called, was a process that used oxygen and minerals from limestone or other sources to purify molten iron ore into steel.
What did the Bessemer Process do to the economy?
It enabled steel makers to produce strong steel at a lower cost than earlier methods. As a result, railroads began to lay steel rails. Other industries also took advantage of the cheaper steel. Manufacturers made steel nails, screws, needles, and other items. Steel girders supported the great weight of the new “skyscrapers”.
_______ became the steel-making capital of the nation.
Pittsburg
What part did Pittsburg play in the steel industry?
Nearby coal mines and good transportation helped Pittsburgh’s steel mills to thrive.
What were the negative things about the boom (of jobs and prosperity) in Pittsburg?
The yellow-colored river that Charles Trevelyan saw on his visit to Pittsburgh in 1898 was the result of years of pouring industrial waste into waterways. Steel mills belched thick black smoke that turned the air gray. Soot blanketed houses, trees, and streets.
Who was the richest in the steel industry?
Andrew Carnegie, a Scottish immigrant
What did Andrew Carnegie do to the steel industry?
Andrew Carnegie used the money to buy out rivals. He also bought iron mines, railroad and steamship lines, and warehouses. Soon, Carnegie controlled all phases of the steel industry—from mining iron ore to shipping finished steel.
What is vertical integration?
Gaining control of all the steps used to change raw materials into finished products.
Why did vertical integration give Carnegie an advantage?
Because his company did every themselves, he didn’t have to spend money on other companies to make the materials for him. Carnegie could just make his would steel and make his own railroads and other products for much cheaper since he does it all himself.
Fun Fact! :D
By 1900, Carnegie’s steel mills were turning out more steel than was produced in all of Great Britain.
…that was it ;-;
What was the Carnegie’s idea that he called “gospel of wealth”?
Carnegie believed that the rich had a duty to help the poor and to improve society. He gave millions of dollars to charities. After selling his steel empire in 1901, he spent his time and money helping people.
What happened to small factories after big factories began popping up? How did this happen?
Before the railroad boom, nearly every American town had its own small factories. They produced goods for people in the area. By the late 1800s, however, big factories were producing goods more cheaply than small factories could. Railroads distributed these goods to nationwide markets. As demand for local goods fell, many small factories closed. Big factories then increased their output.
What helped factories grow?
Revenue
What did factories use revenue for?
To expand operations or buy out rivals
What increased a companies capital?
Companies using revenues to expand increased their capital.
What is capital?
Capital is money used to invest in the long-term health and success of a company.
What did some companies do in turn for capital?
Some companies gave investors stock in return for capital.
What is stock?
Partial ownership of the company
What do companies use capital for?
- build factories
- buy new equipment
- buy out other companies
