Chap. 24

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  1. What was Andrew Carnegie's vertical integration?
    By controlling and owning every aspect of the steel industry from mining the iron ore and coal to the steel mill where steel was made, Carnegie was able to control prices and make his mills the most efficient
  2. What was steel used for in the late 19th century?
    Rails for railroas, skyscaper skeletons
  3. What is the Bessemer-Kelly process and why is it important?
    It is a process develiped in both England and the US in which cold air is blown on melton iron. The impurities burn out creating a purer, stronger steel
  4. What did Carnegie control in the steel industry?
    He controlled about a fourth of the US Bessemer steel industry
  5. How was US Steel created?
    Carnegie made JP Morgan think he was going to take over his steel tubing business and get Morgan interested in buying Carnegie out. Morgan paid Carnegie over $400 milliion for his holdings and capitalized it as US Steel with $1.4 billion in worth - the first billion dollar corporation in the US
  6. What is the horizontal integration and how did John D. Rockefeller use it in the petroleum industry?
    It is controlling the essential step in an industry so that you control the entire industry. Rockefeller controlled almost every petroleum refinery in the US. By controlling the refineries, he controlled the industry. No petroleum was refined without his OK.
Card Set
Chap. 24
The Steel Industry, Petroleum, Theories of Wealth, Government and Industry
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