14.2 The age of railroads14.2 The age of railroads

OBJECTIVES:OBJECTIVES:

• Identify the role of the railroads in unifying Identify the role of the railroads in unifying the countrythe country

• List positive and negative effects of railroads List positive and negative effects of railroads on the nation’s economyon the nation’s economy

• Summarize reasons for, and outcomes of, the Summarize reasons for, and outcomes of, the demand for railroad reformdemand for railroad reform

Promontory Point: Golden Spike!!Promontory Point: Golden Spike!!

• UnionUnion Pacific (East to Pacific (East to West) construction West) construction begins during Civil Warbegins during Civil War

• Central Pacific (West to Central Pacific (West to East) begins afterEast) begins after

• Golden Spike driven in Golden Spike driven in Ogden, Utah 1869Ogden, Utah 1869

• Promontory PointPromontory Point

•

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Effect: Unites East and West; Opens trade with Asia

RAILROADS OPEN THE RAILROADS OPEN THE WESTWEST

• US govt. gives huge land grants to railroad US govt. gives huge land grants to railroad companies to encourage constructioncompanies to encourage construction

• Union Pacific and Central Pacific meet at Union Pacific and Central Pacific meet at Promontory Rock, Utah on May 10, 1869.Promontory Rock, Utah on May 10, 1869.

• Railroads built with Irish, Chinese, Mexican Railroads built with Irish, Chinese, Mexican and African American labor.and African American labor.

• Homesteaders and immigrants flood west on Homesteaders and immigrants flood west on new railways.new railways.

Introduction of time zonesIntroduction of time zones

• How did people keep track of How did people keep track of the time before times zones?the time before times zones?

• Why did they feel the need to Why did they feel the need to adapt time zones for the adapt time zones for the railroads?railroads?

Map: Transcontinental Railroads and Federal Land Grants, Map: Transcontinental Railroads and Federal Land Grants, 1850-19001850-1900

Transcontinental Railroads and Federal Land Grants, 1850-1900Despite the laissez-faire ideology that argued against government interference in business, Congress heavily subsidized American railroads and gave them millions of acres of land. As illustrated in the box, belts of land were reserved on either side of a railroad's right of way. Until the railroad claimed the exact one-mile-square sections it chose to possess, all such sections within the belt remained closed to settlement.

Copyright © Houghton Mifflin Company. All rights reserved.

New Towns and MarketsNew Towns and Markets

Examine the map on the next Examine the map on the next slide to understand how the slide to understand how the

transcontinental railroad transcontinental railroad changed the economy.changed the economy.

Map: Mining and Cattle Frontiers, Map: Mining and Cattle Frontiers, 1860-18901860-1890

Mining and Cattle Frontiers, 1860-1890The western mining and ranching bonanzas lured thousands of Americans hoping to get rich quick.

Copyright © Houghton Mifflin Company. All rights reserved.

Pullman, IllinoisPullman, Illinois

• George Pullman created George Pullman created a town for his workers a town for his workers

• Created this town to Created this town to ensure a steady ensure a steady workforceworkforce

• Medical officesMedical offices

• Legal officesLegal offices

• ChurchChurch

• LibraryLibrary

• TheaterTheater

• Athletic fieldAthletic field

CrCréédit Mobilier Scandaldit Mobilier Scandal

• Example of profiteering and greed of industrialistsExample of profiteering and greed of industrialists

• Union Pacific stole over $25 million from the Union Pacific stole over $25 million from the governmentgovernment

• Basically a “front company” formed by the Basically a “front company” formed by the financiers/builders of the Transcontinental Railroadfinanciers/builders of the Transcontinental Railroad

• Insiders of the Union Pacific Railroad hired and paid Insiders of the Union Pacific Railroad hired and paid themselves as much as $50,000 a mile for construction themselves as much as $50,000 a mile for construction that cost $30,000.that cost $30,000.

• Stock was sold to influential Congressmen to keep Stock was sold to influential Congressmen to keep them quiet.them quiet.

• New York Sun unearthed the scandal and kept New York Sun unearthed the scandal and kept attention on the “Trial of Innocents” = public figures in attention on the “Trial of Innocents” = public figures in the Grant Administration and Congress that were the Grant Administration and Congress that were involved. Only 2 Congressmen formally censured. involved. Only 2 Congressmen formally censured. Even Vice President Colfax escaped serious charges.Even Vice President Colfax escaped serious charges.

Granger lawsGranger laws

• Farmers were angry at the railroads for many Farmers were angry at the railroads for many reasonsreasons

• Businesses were given the land grants instead of Businesses were given the land grants instead of farmersfarmers

• Railroads entered into formal agreements to fix Railroads entered into formal agreements to fix prices to keep the farmers in debtprices to keep the farmers in debt

• Railroads would charge different rates at different Railroads would charge different rates at different times to make a bigger profit times to make a bigger profit (ex: RRs would charge (ex: RRs would charge a higher rate for a shorter trip, knowing there was a higher rate for a shorter trip, knowing there was no competition)no competition)

• Munn v. Illinois allowed the states to control the Munn v. Illinois allowed the states to control the railroad ratesrailroad rates• IMPORTANT because now the Federal government can IMPORTANT because now the Federal government can

intervene with private businesses for the public goodintervene with private businesses for the public good1010

Interstate commerce actInterstate commerce act

• Grangers success was short livedGrangers success was short lived

• Wabash decision in 1886 overturned Wabash decision in 1886 overturned Munn v. Illinois because it dealt with Munn v. Illinois because it dealt with interstate commerceinterstate commerce• Why does this matter?Why does this matter?

• BUT, they instead passed the BUT, they instead passed the Interstate Interstate Commerce Act Commerce Act to regulate ratesto regulate rates• Didn’t really gain the power it needed for Didn’t really gain the power it needed for

about 20 yearsabout 20 years

What are the effects of the finalization of What are the effects of the finalization of the transcontinental railroad?the transcontinental railroad?

• Closing of the “Wild West”-ecological disasterClosing of the “Wild West”-ecological disaster

• Spurs industrializationSpurs industrialization

• Tie the country together/decline in Tie the country together/decline in sectionalismsectionalism

• Decline in Native American societiesDecline in Native American societies

• Corruption/SpeculationCorruption/Speculation

• Population shiftPopulation shift

• Time zones created Time zones created

• Millionaire class created (i.e Vanderbilt)Millionaire class created (i.e Vanderbilt)

• 1886 – Supreme Court’s Wabash decision!!!1886 – Supreme Court’s Wabash decision!!!

• Interstate Commerce Act-1887!!! Interstate Commerce Act-1887!!! the the formation of the Interstate Commerce formation of the Interstate Commerce Commission Commission

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• TERMS:TERMS:

• Transcontinental Transcontinental RailroadRailroad

• George M. PullmanGeorge M. Pullman

• Credit MobilierCredit Mobilier

• Munn v. IllinoisMunn v. Illinois

• Interstate Commerce Interstate Commerce ActAct

OBJECTIVES:OBJECTIVES:

• Identify the role of the Identify the role of the railroads in unifying the railroads in unifying the countrycountry

• List positive and List positive and negative effects of negative effects of railroads on the nation’s railroads on the nation’s economyeconomy

• Summarize reasons for, Summarize reasons for, and outcomes of, the and outcomes of, the demand for railroad demand for railroad reformreform