Business Tycoons In US
"The Business of the United States is Business," a great man once
said. The United States has heralded around the globe for its incredible
economic system. The growth of the United States started off small with minor
discoveries and inventions, such as oil and electricity, and with those in place
emergence of new technologies and innovations came underway. The railroads came
about very slowly and became very popular. A man named Henry Bessemer came up
with a way to make steel cheaply and efficiently (Bessemer Process). With the
prices of steel dropping railroads were being built all across the nation. Major
business tycoons, such as John D. Rockefeller and Andrew Carnegie, took
advantage of the demand for oil and steel and started their own companies and
later developed a monopoly in their own area of business. New laws and business
practices were also enforced. These topics will be addressed in the following
pages. ENERGY FROM OIL & ELECTRICITY Common in all industries was the
consumption and high use of electricity. The United States strived to find a
cheap and efficient source of electricity to power its companies. Oil and the
invention of the dynamo greatly aided industries need for power. Edwin Drake (a
railroad conductor) was the first to drill for oil. Edwin Drake made quick
profits and many others followed his path. There were many uses for oil, which
became very useful and cost-effective. Oil was used to lubricate machinery parts
and later became a major part in the internal combustion engine. This engine
later made the emergence of automobile possible. Large-scale use of electricity
was not fully tapped until about the mid 1800\'s. Michael Faraday and Joseph

Henry invented an invention called the dynamo. The dynamo produced enough
electricity to run factories from the use of steam, and water. With electricity
fully understood Thomas Edison began his work. Thomas Edison made more than a
thousand different inventions in his lifetime. His work helped make the use of
electricity more efficient and also contributed many major inventions. AMERICAN

RAILROADS Colonel John Stevens first conceived the concept of constructing a
railroad in the United States, in 1812. He described his theories in a
collection of works called "Documents tending to prove the superior
advantages of railways and steam carriages over canal navigation." The
earliest railroads constructed were horse drawn cars running on tracks, used for
transporting freight. The first to be established and built was the Granite

Railway of Massachusetts (1826), that ran approximately three miles. The first
regular carrier of passengers and freight was the Baltimore and Ohio railroad,
completed on February 28, 1827. It was not until Christmas Day, 1830, when the

South Carolina Canal and Railroad Company completed the first mechanical
passenger train, that day the modern railroad industry was born. This industry
would have a profound effect on the nation in the coming decades, often
determining how an individual lived his life. By 1835, dozens of local railroad
networks had been put into place. Each one of these tracks went no more than a
few miles, but the true potential for this mode of transportation was finally
being realized. With every passing year, the number of these railway systems
grew incredibly. By 1850, over 9,000 miles of track had been lain. Along with
the generating of railroads came increased standardization of the field. An
ideal locomotive was developed which served as the model for all subsequent
trains. Various companies began to cooperate with one another, to both maximize
profits and minimize expenditures. This interaction of various companies
initiated the trend of combination, which would continue through the rest of the

Nineteenth Century. In 1850, the New York Central Railroad Company was formed by
the merging of a dozen small railroads between the Hudson River and Buffalo.

Single companies had begun to extend their railway systems outside of the local
domain. Between 1851 and 1857, the federal government issued land grants to

Illinois to construct the Illinois Central railroad. The government made the
growth of one of the largest companies in the nation possible. With the Civil

War, production of new railroads fell dramatically. At the same time, however,
usage of this means of transportation increased greatly. By the conclusion of
the war, the need for an even more diverse extension of railways was extremely
apparent. Soon after the war, the first transcontinental railroad was
constructed. The Union Pacific Railroad Company started building from the east,
while the Central Pacific began from the west. The two companies met at

Promontory Point, Utah, on May 10, 1869. As they drove the Golden Spike uniting
the two tracks, a new age