3-1 Growth of Railroads 1865 (end of the Civil War) – 1914 (start of WWI) Warm-up • Imagine you own a railroad in the 1800’s where do you build a railroad? Why? • Imagine you are a business in the west in the 1800’s – do you want a railroad in / through your town? Why? What would be the challenges of building here? Growth of Railroads • • • • Before the Civil War – Why? – not interested in investing where few people live Money from local business owners and farmers. Wanted goods shipped quickly and easily Where are all the Railroads? Early Railroads • in Northeast • Short lines • Government helped build • Congress gave – gifts of land to rr companies who sold to settlers and used the $ to build The Transcontinental Railroads RR that stretches across a continent 10 sq miles of land for each mile of track More track = more land = more $ from land sales • Central Pacific – Sacramento Ca -Up, over through mountains then across . -Low pay and dangerous -Hired immigrants Union Pacific – Omaha Nebraska – Through – Hired immigrants Railroads Spur Industry • adopted the same • join together in a , or system of connected lines • To run more efficiently companies began to • Larger companies bought smaller companies • used ruthless tactics to buy up most of the rail lines between Buffalo and Chicago. made railway travel and • George Westinghouse’s air brake stopped all the railroad cars at once • George Pullman’s berths and bathrooms. • added dining cars • thousands of miles of new tracks • railroad companies built three more lines • James Hill completed the last one—the Great Northern • • • • Time Zone No standard time Noon in St. Louis but another time a few miles away 1883 – American Railway Association divided US into Clocks in every place in a time zone are set to the same time Pullman Sleeping car The interior of a Pullman car on the Chicago and Alton Railroad circa 1900. In this photo the car is configured for daytime operation The first American sleeping car, the "Chambersburg" started service on the CVRR in 1839 Eliminating Competition Overbuilding made railroad companies look for ways to get rid of the competition. • secret to their biggest customers forced small companies out of business. • Pooling - In a , several railroad companies agreed to divide up the business in an area. Then, they fixed shipping prices at a high level. What would be the benefit of consolidation? What would be the benefit of not consolidating? Reaction to rebates and pools • angered farmers - both practices kept shipping prices high for them. • farmers joined the government regulation of rail rates. . The party called for • Congress did pass laws regulating railroad companies, but the laws did not end abuses. Railroads Contribute to the Growth of the American Economy Created thousands of jobs new ways of managing business Other big businesses soon copied these management techniques Opened every corner of the country to settlement and growth TEST YOUR KNOWLEDGE Railroad companies were able to form a network of rail lines across the nation because a) loggers cut down whole forests that were in the way of railroad building. b) railroads standardized the size of the track they used. c) many short lines served only local communities. d) northern lines and southern lines had different kinds of track. Small farmers in the South and the West called for the government to regulate railroads because a) railroad building gave jobs to miners and lumberjacks but not to farmers. b) the noise of air brakes was frightening livestock along the track. c) rather than competing for customers, railroads were dividing up the business in an area, then fixing high shipping rates. d) James Hill was encouraging some farmers and ranchers to settle near his railroad by helping them buy equipment.