Industrial Giants

19 Pages·2008·2.119 MB·English

by  Debra J. Housel

Industrial
Giants
TCM10661
Debra J. Housel
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Industrial
Giants
Debra J. Housel, M.S.Ed.
Table of Contents
WWhheenn IInndduussttrryy BBeeggaann ................................................... 4–5
AAnnddrreeww CCaarrnneeggiiee
A Man of Steel ........................................................ 6–7
An Original Thinker ................................................ 8–9
Publishing Credits
Strike! ...................................................................10–11
Historical Consultant
Jeff Burke, M.Ed. JJoohhnn DD.. RRoocckkeeffeelllleerr
Editors
Wendy Conklin, M.A. A Big Saver ..........................................................12–13
Torrey Maloof
Getting Started in Oil ...........................................14–15
Editorial Director
Emily R. Smith, M.A.Ed.
Wise Businessman or Robber Baron? ...................16–17
Editor-in-Chief
Sharon Coan, M.S.Ed. JJ.. PP.. MMoorrggaann
Creative Director
Lee Aucoin Born to Be a Banker .............................................18–19
Illustration Manager
A Powerful Man ...................................................20–21
Timothy J. Bradley
Publisher Making a Monopoly ............................................22–23
Rachelle Cracchiolo, M.S.Ed.
HHeennrryy FFoorrdd
The Car Maker ....................................................24–25
The Assembly Line Is Born ..................................26–27
GGiivviinngg AAwwaayy MMoonneeyy ..................................................28–29
GGlloossssaarryy .........................................................................30
Teacher Created Materials Publishing
IInnddeexx ..............................................................................31
5301 Oceanus Drive
Huntington Beach, CA 92649-1030
IImmaaggee CCrreeddiittss .................................................................32
http://www.tcmpub.com
ISBN 978-0-7439-0661-6
© 2008 Teacher Created Materials Publishing
2 3
Fast-Paced Growth
When Industry Began
At one time, the United States
depended on other countries for
goods. By 1890, the country
By the early 1800s, America had machines and factories. could produce almost everything
Yet, many things were still made by hand. After the Civil War, it needed!
things changed. Railroads spread across the nation. Goods
Sweatshops
could move more easily. Machines became more important.
Inventors created new items. Then, businesses recreated them The rise of factories was not
free of problems. Many
in great quantities. Bankers lent money to help companies grow.
people, including young
By the 1900s, big businesses sold oil, steel, and cars.
children, worked in bad
Natural resources played a part, too. Forests provided lumber.
conditions. They had long
Rivers offered water power. Miners brought coal and iron ore Lumbermen use a steam locomotive to hours in hot, dirty, and
out of the ground. These are the materials needed for steel. Steel move huge logs. dangerous locations.
These places were called
was used to build machines, bridges, railroad tracks, and cars. Oil
sswweeaattsshhooppss.
from underground was changed in rreefifi nneerriieess (rih-FINE-uh-reez).
Then, it could be used to run cars and machines.
The fastest growth occurred in the North. This change
came about because of powerful men. Together they created an
eeccoonnoommyy (ih-KAWN-uh-mee) that was the envy of the world.
Men repair steel railroad
tracks in 1863. A child works in a
sweatshop in Virginia.
In 1888, men work with large machines
inside a sawmill.
4 5
Sleepy Travelers A Man of Steel
Although trains were the
fastest way to travel at the
time, it could take days to Andrew Carnegie was 12 years
get someplace. People needed old when he came to the United
to sleep while they rode the
States in 1847. His family had no
train. That’s why sleeping
money. His father had lost his job
cars made a lot of money for
in Scotland. From the start,
railroad investors.
Carnegie had to work. He delivered
Owning a Company telegrams. He soon taught himself
People could buy stock in a how to use a telegraph machine.
company. A person gave the At that time, it was the fastest way
business owner money in return
to send a message.
for stock. It stated that the
When Carnegie was 17 years old,
person owned a small part of
Four men sleep while traveling a rail eexxeeccuuttiivvee (ig-ZEK-yuh-tiv)
the business and would get a
small part of the profi ts. The more across country on a train. noticed him. The executive kept
stock a person held, the more he Carnegie working with him as he
There is a telegraph line next to this
owned of the company.
moved up the chain of command.
railroad that is being built.
He also lent Carnegie money.
Carnegie took the money and
invested in the Woodruff Sleeping
Car Company. This company made
Stock certifi cate sleeping cars for trains.
from the late
Carnegie also bought ssttoocckk in the
nineteenth
Keystone Bridge Company.
century
Keystone built iron train bridges.
These two iinnvveessttmmeennttss gave Carnegie
a good income at a young age. He
would soon use that money to make
an even better investment in steel.
6 7
A 5’3” Blonde
Takes Charge
Other business leaders towered over
the short blonde Carnegie. But
Carnegie was smart, hard working,
forceful, and decisive. No one who
met him ever forgot him.
Don’t Drink This Coke!
Coke is a solid fuel made by
heating coal in the absence of
air. It fueled blast furnaces in
steel-making plants. These
Mr. and Mrs. Carnegie in 1908 Henry Frick furnaces separate iron ore into
iron and steel. This is very
diff erent than the drink you
An Original Thinker
know of as Coke® today!
Carnegie became involved in running the Pennsylvania
Railroad. He knew that the trains must keep moving or
goods would spoil. He would even set fi re to stalled cars
to get them off the tracks! This is just one example of the
kind of outside-the-box thinking that Carnegie did. This
kind of thinking made him very successful. He became This painting gives an
inside look at one of
one of the richest men in America.
Carnegie’s steel factories.
Carnegie left the railroad business in 1865. He started
his own business. He opened a big modern steel mill. He
was smart enough to make correct guesses about what the
future would bring. So even when the economy dipped,
his company kept growing.
Carnegie bought out other steel mills. Then he bought
a ccookkee company. This company’s owner, Henry Frick,
became Carnegie’s partner.
8 9
Strike!
In 1892, Carnegie went on The strike at Carnegie’s
Labor Unions
steel mill became
vacation to Scotland. While
A labor union is a group of violent. Many people
he was gone, his steel workers
workers. This group stands up were hurt.
went on ssttrriikkee. That means
to the boss if the company does
not give them better working they stopped working. Their
conditions or fair pay. By pay had been cut with their new
joining together, they make a
contracts. Carnegie wanted to
diff erence. The company knows
pay them more, but Henry Frick
that if the workers go on strike,
did not. He did not like uunniioonn
the factory does not produce.
workers. Frick tried to open
A Historic First the plant by force. The strikers
J. P. Morgan bought Carnegie attacked some guards at the mill.
Steel. He combined it with other Some people died. The National
companies to form U.S. Steel. This
Guard had to be called in to
was the fi rst business in the world
help. Carnegie had said that
to be worth one billion dollars.
he believed in workers’ rights.
But in this case, he did not step
in to help the workers. Many
people felt Carnegie could have
prevented this crisis.
In 1901, Carnegie sold the
Carnegie Steel Company for
$480 million. Then he retired.
There were many strikes during this time
period. This strike occurred in New York
J. P. Morgan City ten years after the steel workers’
strike at Carnegie’s mill.
10 11
A Big Saver
In 1839, John D. Rockefeller was born on a farm in New
Saving Money
York State. Even as a child, he had a good mind for business.
It was amazing that Rockefeller
At the age of seven, he found a wild turkey’s nest. When the
saved $50 by the age of 10.
chicks were big enough to leave the nest, he took them home.
In 1849, the average weekly
He fed them for a few weeks. Then he sold them. He put the pay for adults was less
money in a jar. That was the beginning of his savings. than $5. Rockefeller only
earned $.35 a day. How many
Rockefeller worked for a farmer for 35 cents a day. By the
days did he work to save that
age of 10, Rockefeller had $50 in his money jar. A man asked
much money?
to borrow the money. He told Rockefeller that he would pay
iinntteerreesstt. After a year, Rockefeller received $53.50 back from
How Interest Works
the man. At that moment, he knew that he would go into
Interest is a fee paid when
business. But, he had no idea that he would become one of you borrow money.
the richest men of his time. Rockefeller earned $3.50 in
interest. That’s 7% percent
of the original $50. That’s
not a bad rate of interest
even today!
John D. Rockefeller Jr.
built Rockefeller
Center in New York
City during the
Great Depression. As a child, Rockefeller did
not put his money in a
bank. He kept it in a jar!
John D. Rockefeller in 1910
12 13
Getting Started in Oil
Refi ning Crude Oil
Oil cannot be used directly
Rockefeller got his education at a time when many children
out of the ground. It must
did not go to school. He learned to be a bookkeeper. He saved
be broken down into parts.
his money and found two partners. When he was 22, he had
A refi nery separates crude oil
into gasoline, fuel oil, kerosene, saved enough money to help build Excelsior (ik-SELL-see-or) Oil
and diesel. Then, it can be sold Company. The company drilled oil. The company had a good
to people.
refi nery. The refi nery was near rail and water transportation. This
would help him transport his oil.
Muckraker Ida Tarbell
Excelsior became the best, most modern American refi nery.
A mmuucckkrraakkeerr was a person who
After just three years, Rockefeller bought his partners’ stock in the
wrote about problems in society.
Crude oil is separated using chemicals
company. That meant he owned the whole company.
Ida Tarbell wrote a book that
or different temperatures.
claimed Rockefeller was a cheater. In 1870, he and some new partners started the Standard Oil
It increased public distrust of Company. It was soon the world’s biggest refi nery. The refi nery
him. From that point on, he slept
Oil gushing from the ground in Texas was very effi cient. It saved time and money. The cost of refi ning
with a gun. He felt he needed to
oil lowered. But, the money still poured in from consumers.
protect himself.
Rockefeller used his money to buy other refi neries, oil fi elds, oil
tank cars, and pipelines.
A 1913 Standard Oil Company plant in California
Ida Tarbell
14 15