Rise Of Industrialization

According to Kevin Schultz, "the Industrial Revolution can be defined as a transformation in the way goods were made and sold" (2014). Between 1865 and 1915, the United States came to have the most powerful economy in the world based on the key role of industrialization. The Industrial Revolution shaped the nation's economy, politics, and social life. The industrial growth led to many great advancements in the three major industries: railroad, steel, and petroleum. Each of these industries had leaders that took over the control of the industry's development creating a corporate society.

The growth and expansion of the railroad industry were led by several businessmen, like Leland Stanford, Collis Huntington, Charles Crocker, and Mark Hopkins.
Steel had previously been produced in small quantities by Artisans to make things like weapons due to the laborious and expensive process. In the mid-1850's, Sir Henry Bessemer invented a way to transform large quantities of iron ore into steel by using extremely hot air. After seeing this process first-hand, Andrew Carnegie decided to open up a steel factory in the U.S. using cheap, unskilled laborers who were willing to learn how to operate the hot, dangerous machines at very low wages. By 1900, Andrew Carnegie had built the largest steel company, U.S. Steel, in the world and produced more than 25% of the steel used in the United States, including that in many landmarks like the Brooklyn Bridge. Andrew Carnegie's greatest contribution to the business world was his use of vertical integration. This placed all of the aspects of steel production under his control from the making of the steel to the distribution. By integrating all of the processes, he avoided having to deal with other companies, thereby increasing his profits. The success of this process eventually led Carnegie to sell his company for over $400
In 1855, Professor Benjamin Silliman discovered that kerosene, which was a useless by-product of petroleum, was a powerful illuminant. This led to Entrepreneurs searching to find great supplies of crude oil and after a successful drilling in Titusville, Pennsylvania, the American oil boom was discovered. The challenge came in how to develop the best way to extract the crude oil, transport it to refineries, package and transferring it to cities and towns across the country, as well as marketing the finished product. All of these challenges were accomplished by John D. Rockefeller by consolidating refining operations in Cleveland and paying attention to cost-cutting details driving down the cost of producing usable commodities. While Rockefeller utilized Carnegie's practice of vertical integration, he was also successful in horizontal integration. This lead to him taking over other oil companies or working with them to control the competition, lower the cost of petroleum, and increasing his profits. Rockefeller focused on limiting competition with other competitors within the same industry. Rockefeller's legal advisors developed an entity known as "the trust", which acted as a board of directors for all of the oil refineries. Recognized as an entrepreneurial philanthropist, Rockefeller had an