West and Industrialization
Identification (3 Points)
• 1.Central Pacific
Railroad
Answer One
• Central Pacific Railroad was one of
the two major railroads connecting
the Midwest and the west. It began
in Sacramento and ran east.
Identification (3 Points)
• 2.Union Pacific
Railroad
Answer Two
• Union Pacific Railroad was one of
the two major railroads connecting
the Midwest and the west. It began
in Omaha and ran west.
Identification (3 Points)
• 3.Wounded Knee
Answer Three
• Wounded Knee was where the final
battle between the Army and the
Indians occurred. This took place in
South Dakota and 190 unarmed
Indians were killed.
Identification (3 Points)
• 4.Dawes Act
Answer Four
• Dawes Act broke up the Indian
Nations. It gave each Indian 160
acres of land and the promise of
eventual full citizenship
Identification (3 Points)
• 5.“Long Drive”
Answer Five
• “Long Drive” was the route used by
cattle farmers to bring their steer to
market. This drive was very difficult
and long as the ranchers had to go
from Texas to Missouri and Kansas.
Identification (3 Points)
• 6.Homestead Act
Answer Six
• Homestead Act was a law that
stated that the head of a family
would be entitled to purchase 160
acres of land for $10. This law was
passed to encourage settlers to
move west to seek their fortunes.
Identification (3 Points)
• 7.Laissez Faire
Answer Seven
• Laissez Faire comes from a French
term meaning “let alone”. It was
used to describe the governments’
attitude towards business.
Government during the period of
industrialization had few restraints on
business practices.
Identification (3 Points)
• 8.Thomas Alva
Edison
Answer Eight
• Thomas Alva Edison was a great
innovator who improved existing
inventions such as the telephone,
electric power and the light bulb.
Identification (3 Points)
• 9.Economies of
Scale
Young John Rockefeller
Founder of Standard Oil
Answer Nine
• Economies of Scale is another term
used for mass production. By
employing the techniques of mass
production, business could produce
products more efficiently and pass
the savings along to the consumer
Identification (3 Points)
• 10.Jay Gould
Answer Ten
• Jay Gould was a businessman who
bought and sold small railroads. He
sold these to the big railroad
companies at a huge profit as the
large railroads were seeking to
consolidate and employ the
principle of economies of scale.
Identification (3 Points)
• 11.Cornelius
Vanderbilt
Answer Eleven
• Cornelius Vanderbilt was a
consolidator of railroads in the east.
He made many improvements on his
line which was based in New York
but later extended to Chicago.
Identification (3 Points)
• 12.Corporation
New York Stock
Exchange
Answer Twelve
• Corporation is a company formed
by a group of investors who receive
a share of the company in
proportion to the amount they have
invested. Corporations allowed the
risk of business owning to be shared
and stimulated the growth of
industry in the United States.
Identification (3 Points)
• 13.Holding
Company
Answer Thirteen
• Holding Company was a company
created to hold the stock of other
companies. They manufactured
nothing yet allowed wealthy
capitalists to own controlling
interests in many businesses.
Identification (3 Points)
• 14.Horizontal
Integration
Answer Fourteen
• Horizontal Integration exists when
several firms engaged in the same
kind of business are joined together.
If a horizontally integrated business
becomes large enough, it could
achieve a monopoly of that
industry.
Identification (3 Points)
• 15.Vertical
Integration
Answer Fifteen
• Vertical Integration is when businesses
engaged in different but related
businesses are joined. In a typical
example of vertical integration, a
company would own the businesses
which provide raw materials which are
used in the finished product produced by
the company.
Identification (3 Points)
• 16.Standard Oil
Answer Sixteen
• Standard Oil controlled 90% of the oil
business in the United States. Later,
the US government decided that
Standard Oil was a monopoly
abusing its’ powers and broke the
company up into several smaller oil
companies.
Identification (3 Points)
• 17.John D.
Rockefeller
Answer Seventeen
• John D. Rockefeller was the founder
of Standard Oil who was accused
by many people of being a brutal
and shrewd businessman. He made
Standard Oil into an efficient stable
company. Later in his life he gave
away millions of dollars to charity.
Identification (3 Points)
• 18.Rebate
Answer Eighteen
• Rebate is a discount. Standard Oil
received a discount of 25 to 50
percent on its’ shipping when they
agreed to use certain railroads. This
gave Standard Oil an unfair
advantage over its’ smaller
competitors.
Identification (3 Points)
• 19.Andrew
Carnegie
Answer Nineteen
• Andrew Carnegie was the founder
of US Steel. He created an efficient,
vertically integrated business which
gave him a near total monopoly of
the steel industry. He was based in
Pittsburgh, Pennsylvania.
Identification (3 Points)
• 20.Philanthropy
Answer Twenty
• Philanthropy are actions which
benefit society. Rockefeller and
Carnegie both gave away huge
parts of their fortunes to charity.
Short Answer One
• Who benefited from the expansion
of the railroads and who did not? Be
sure to back up your answer with
reasons for the benefits and losses
for each group you identify.
Ticket on the Central
Pacific
Answer
• Benefited
–
–
–
–
–
Steel Industry - Railroad Cars / Track
Lumber Industry - Houses / Ties
Farmers - Land/ Markets
Settlers - Land /Transportation
Government - Increased the value of the land
• Lost
– Indians - Land/ Lives
– Buffalo - Wiped Out
– Smaller Independent Lines - Bought up by bigger Lines
(Economies of Scale)
Short Answer Two
• What role did the railroads play in
the settlement of the Great Plains?
Railroads
Answer
• Railroads opened up routes of
transportation into previously unsettled
land. This allowed settlers to go there to
farm while being assured that they could
get their products to market. Railroads
also called on the army to subdue the
Indians which made the Great Plains
safer for settlement.
Short Answer Three
• What were the reasons for the
growth of American Industry after
the Civil War?
Child Laborer
Answer
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1. Natural resources
a. coal- Appalachians and Pennsylvania
b. iron ore- Michigan and Wisconsin
c. petroleum-Pennsylvania and Texas
2. Human resources
a. between 1860 and 1890- population doubled
b. 14 million immigrants in this period
c. males looking for work
1. kept labor prices down
3. Government Policies
a. few governmental restraints-laissez faire (let be)
b. business got special favors from congress
c. liberal immigration policies
1. cheap labor
d. federal government helped
1. sold resources laden land cheap to industry
2. cheap land to railroads
e. Investment- business seen as a good thing
Short Answer Four
• How did the evolution of
corporations help to spur growth
during the period of
industrialization?
New York Stock Exchange
Answer
• Corporations allowed for the
spreading of risk, pooling of risk,
limited liability, and the raising of
capital. Corporations also allowed
smaller investors to “pool” their
money in order to make an
investment in a company.
Short Answer Five
• Define the “Sherman Anti-Trust Act”
and explain why it was enacted.
Trust Busting
Answer
• The Sherman Anti-Trust Act wrote into law the
principle that private monopolies which led to
artificial restraints on trade or unfair trade
practices were wrong. This law was enacted in
order to address abuses by some big businesses
who abused their status as monopolies such as
Standard Oil and the American Sugar Refining
Company. This law remains important even
today as Microsoft has been taken to court in
violation of this law recently.