Briefly explain ONE historical effect that resulted from the view presented by Carnegie

Oil was not the only commodity in great demand during the Gilded Age. The nation also needed steel.

The railroads needed steel for their rails and cars, the navy needed steel for its new naval fleet, and cities needed steel to build skyscrapers. Every factory in America needed steel for their physical plant and machinery. Andrew Carnegie saw this demand and seized the moment.

Humble Roots

Like John Rockefeller, Andrew Carnegie was not born into wealth. When he was 13, his family came to the United States from Scotland and settled in Allegheny, Pennsylvania, a small town near Pittsburgh. His first job was in a cotton mill, where he earned $1.20 per week.

His talents were soon recognized and Carnegie found himself promoted to the bookkeeping side of the business. An avid reader, Carnegie spent his Saturdays in the homes of wealthy citizens who were gracious enough to allow him access to their private libraries. After becoming a telegrapher for a short while, he met the head of a railroad company who asked his services as a personal secretary.

During the Civil War, this man, Thomas Scott, was sent to Washington to operate transportation for the Union Army. Carnegie spent his war days helping the soldiers get where they needed to be and by helping the wounded get to hospitals. By this time, he had amassed a small sum of money, which he quickly invested. Soon iron and steel caught his attention, and he was on his way to creating the largest steel company in the world.

Vertical Integration: Moving on Up

The Bessemer Process

When William Kelly and Henry Bessemer perfected a process to convert iron to steel cheaply and efficiently, the industry was soon to blossom.

Carnegie became a tycoon because of shrewd business tactics. Rockefeller often bought other oil companies to eliminate competition. This is a process known as horizontal integration. Carnegie also created a vertical combination, an idea first implemented by Gustavus Swift. He bought railroad companies and iron mines. If he owned the rails and the mines, he could reduce his costs and produce cheaper steel.

Carnegie was a good judge of talent. His assistant, Henry Clay Frick, helped manage the Carnegie Steel Company on its way to success. Carnegie also wanted productive workers. He wanted them to feel that they had a vested interest in company prosperity so he initiated a profit-sharing plan.

All these tactics made the Carnegie Steel Company a multi-million dollar corporation. In 1901, he sold his interests to J.P. Morgan, who paid him 500 million dollars to create U.S. Steel.

Giving Back

Retirement did not take him out of the public sphere. Before his death he donated more than $350 million dollars to public foundations. Remembering the difficulty of finding suitable books as a youth, he helped build three thousand libraries. He built schools such as Carnegie-Mellon University and gave his money for artistic pursuits such as Carnegie Hall in New York.

Andrew Carnegie was also dedicated to peace initiatives throughout the world because of his passionate hatred for war. Like Rockefeller, critics labeled him a robber baron who could have used his vast fortunes to increase the wages of his employees. Carnegie believed that such spending was wasteful and temporary, but foundations would last forever. Regardless, he helped build an empire that led the United States to world power status.

In this article we provide tips for learning the AP US History Exam Period 6 curriculum and the key topics that are 10-17% of the AP US History exam weight.

1. Large scale industrialization and advances in technology gave rise to capitalism and the era of big business. Businessmen such as Cornelius Vanderbilt, Andrew Carnegie, and John D. Rockefeller amassed huge fortunes. Aggressive financial methods caused multiple economic downturns and financial panics.
2. Due to the rise of big business, many groups such as farmers and unions called for stronger governmental protections to regulate the economy and safeguard the rights of workers.
3. Migration increased, both to and within the United States. Cities became areas of economic growth that attracted African Americans and migrants from Asia and Europe. Multiple ethnic groups vied for control of the Western frontier, and cultural tensions continued nationwide.
4. New intellectual and cultural movements arose during this period, often dubbed the “Gilded Age.” One view, called Social Darwinism, attempted to justify a wealthy elite class as natural and inevitable. Another view, known as the Gospel of Wealth, urged the wealthy and big business to help the less fortunate.
5. Debates intensified over citizens’ rights, especially in relation to gender and race. The Supreme Court case Plessy v. Ferguson (1896) marked a major setback for African Americans, as it upheld racial segregation and ended some of the progress made in the decades following the Civil War. African American reformers continued to strive for political and social equality in the face of escalating violence and discrimination.

Remember that the AP US History exam tests you on the depth of your knowledge, not just your ability to recall facts. While we have provided brief definitions here, you will need to know these terms in even more depth for the AP US History exam, including how terms connect to broader historical themes and understandings.

The Industrialization of America

• Transcontinental Railroad: The Transcontinental Railroad linked the U.S. from Atlantic to Pacific by both rail and telegraph. This railroad accelerated the development and eventual closure of the frontier. See: Promontory Point.
• Cornelius Vanderbilt: A business tycoon who amassed a fortune in the steamboat business and invested this fortune in the consolidation of many smaller rail lines under one company, the New York Central Railroad.
• New York Central Railroad: A railroad company founded by Cornelius Vanderbilt. It consolidated many smaller rail companies, standardized gauges, and popularized steel rails. It linked major cities on the East Coast and in the Midwest.
• Union Pacific Railroad: One half of the Transcontinental Railroad. It began building its portion from Omaha, Nebraska, and moved westward. See: Central Pacific Railroad, Promontory Point.
• Central Pacific Railroad: Led by Leland Stanford, it set out to build the most difficult stretch of the transcontinental railroad from Sacramento, California, through the Sierra Nevada mountains and eastward. Chinese laborers built most of the Central Pacific’s line. See: Chinese Exclusion Act, Promontory Point, Union Pacific Railroad.
• Leland Stanford: He became a wealthy merchant during the California Gold Rush, and later served as Governor of California (1862–183) and as its Senator (1885–1893). Leader of the Central Pacific Railroad, Stanfold oversaw the construction of part of the transcontinental railroad. Considered a robber baron, he wielded tremendous wealth and influence due to his control over railroads in the American West. Later founded Stanford University.
• Promontory Point: The point at which the rail lines of the Union Pacific Railroad and Central Pacific Railroad finally met on May 10, 1869. This marked the completion of the Transcontinental Railroad. Promontory Point, Utah, is just north of the Great Salt Lake.
• Robber barons: A pejorative name for investors who artificially inflated the value of their company’s stock, sold the stock to the public, and pocketed the profits. The company would then go bankrupt, leaving stockholders with nothing. Additionally, the fierce competition of the Gilded Age coupled with lack of federal regulation often led to dishonest business practices.
• Alexander Graham Bell: A Scottish-born scientist. He is best known for patenting the telephone in 1876. He also founded the Bell Telephone Company in 1879 and the American Telephone and Telegraph Company (AT&T) in 1885.