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nation's first big business -answer Railroads created a nationwide market for goods.
This encouraged mass production, mass consumption, and economic specialization. (p. 320)
Cornelius Vanderbilt -answer He merged local railroads into the New York Central
Railroad, which ran from New York City to Chicago. (p. 320)
Eastern Trunk Lines -answer In the early days of the railroads, from the 1830s to the
1860s, railroad lines in the east were different incompatible sizes which created inefficiencies.
(p. 320)
transcontinental railroads -answer During the Civil War, Congress authorized land
grants and loans for the building of the first transcontinenal railroad. Two new companies were
formed to share the task of building the railroad. The Union Pacific started in Omaha, Nebraska,
and the Central Pacific started in Sacramento, California. On May 10, 1869, at Promontory Point,
Utah, a golden spike was driven into the rail ties to mark the completion of the railroad. (p. 321)
Union Pacific and Central Pacific -answer Two railroad companies, one starting in
Sacramento, California and the other in Omaha, Nebraska were completed in Utah in 1869 to
create the first first transcontinental railroad. (p. 321)
American Railroad Association -answer In 1883, this organization divided the country
into four different time zones, which would become the standard time for all Americans. (p.
320)
,railroads and time zones -answer The United States was divided into four time zones
by the railroad industry. (p. 320)
speculation and overbuilding -answer In the 1870s and 1880s railroad owners
overbuilt. This often happens during speculative bubbles, created by exciting new technology.
(p. 321)
Jay Gould, watering stock -answer Entered railroad business for quick profits. He
would sell off assets inflate the value of a corporation's assets and profits before selling its stock
to the public. (p. 321)
rebates and pools -answer In a scramble to survive, railroads offered rebates
(discounts) to favored shippers, while charging exorbitant freight rates to smaller customers.
They also created secret agreements with competing railroads to fix rates and share traffic. (p.
321)
bankruptcy of railroads -answer A financial panic in 1893 forced a quarter of all
railroads into bankruptcy. J.P. Morgan and other bankers moved in to take control of bankrupt
railroads and consolidate them. (p.321)
Panic of 1893 -answer In 1893, this financial panic led to the consolidation of the
railroad industry. (p. 321)
causes of industrial growth -answer After the Civil War, a "second Industrial
Revolution" because of an increase in steel production, petroleum, electrical power, and
industrial machinery. (p. 323)
Andrew Carnegie -answer A Scottish emigrant, in the 1870s he started manufacturing
steel in Pittsburgh. His strategy was to control every stage of the manufacturing process from
, mining the raw materials to transporting the finished product. His company Carnegie Steel
became the world's largest steel company. (p. 323)
vertical integration -answer A business strategy by which a company would control all
aspects of a product from raw material mining to transporting the finished product. Pioneered
by Andrew Carnegie. (p. 323)
U.S. Steel -answer In 1900, Andrew Carnegie sold Carnegie Steel to a group headed by
J. P. Morgan. They formed this company, which was the largest enterprise in the world,
employing 168,000 people, and controlling more than three-fifths of the nation's steel business.
(p. 323)
John D. Rockefeller -answer He started Standard Oil in 1863. By 1881, Standard Oil
Trust controlled 90 percent of the oil refinery business. His companies produced kerosene,
which was used primarily for lighting at the time. The trust that he created consisted of various
acquired companies, all managed by a board of trustees he controlled. (p. 323)
horizontal integration -answer Buying companies out and combining the former
competitors under one organization. This strategy was used by John D. Rockefeller to build
Standard Oil Trust. (p. 323)
Standard Oil Trust -answer In 1881, the name of John D. Rockefeller's company, which
controlled 90 percent of the oil refinery business in the United States. (p. 323)
interlocking directorates -answer The term for the same directors running competing
companies. (p. 322)
J. P. Morgan -answer A banker who took control and consolidated bankrupt railroads
in the Panic of 1893. In 1900, he led a group in the purchase of Carnegie Steel, which became
U.S. Steel. (p. 321, 323)