Andrew Carnegie

Andrew Carnegie was born in Scotland; he was the son of a poor hand weaver who moved to the U.S 1848. He became the president of the Pennsylvania Railroad he became very successful. Thomas Scott was impressed by Carnegies’ energy and success so he became the superintendent; he began buying shares in iron mills and factories that produced sleeping cars and locomotives. By age 30 Carnegie was earning 50,000 dollars a year and decided to quit his job and focus on business investments. He opened a new steel company that mass produced steel more efficiently and cheaply. Carnegie used Vertical Integration to make his company more efficient; Vertical Integration is when a company owns all the different companies that it depends on for production. John D. Rockefeller began constructing oil refineries when others began drilling for oil. He used Horizontal Integration which is when a company buys companies that do the same thing as they do. By 1870 Rockefeller's Company was the largest oil refinery in the nation. He began buying out all of his competitors and by 1880 he controlled 90% of the nation’s
oil refining industry creating a monopoly.