Pros and Cons of the Railroads
Railroad Industry
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The first major business of the U.S. was the railroads.
Railroads contributed greatly to the growth of
industrialization.
The railroad industry boomed after the Civil War.
Railroads were also the first businesses to begin
consolidation, or combining smaller companies into
one larger company.
Consolidation helped eliminate competition in an
industry and allowed the business to charge higher
rates.
Pros of the
Railroads
• Transportation
– Faster
– Go places steamboats
and horses could not
go.
– Move goods.
• Time Zones
• Promoted Trade
Cons of the
Railroads
• Poor working
conditions for railroad
employees.
• Corruption
– Credit Mobilier
– Selling land grants
– Fixed shipping rates
Credit Mobilier
• Construction company formed by
stockholders of the Union Pacific Railroad.
• They charged two or three times what it
cost to lay track and pocketed the profits.
• Many influential members of President
Grant’s administration were involved.
• $23 million was pocketed in the scam.