The Growth of the Railroads: Railroads Lead the Way

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The Growth of the Railroads Railroads Lead the
Way

• 1865-1900

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Railroad Expansion

• Growth of the Rail System
• The first transcontinental railroad was completed
  in 1869
• By the 1890s five railway lines crossed the
  country. Smaller lines branched off from them.
• Expansion was accompanied by consolidation-the
  practice of combining separate companies
• Large companies bought smaller companies or put
  them out of business

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Railroad Expansion

• Railroad Barons
• After consolidation a few individuals controlled
  the nations rail traffic. They were aggressive
  and competitive. With few laws to regulate
  business, some methods used were questionable
  (i.e. pools).
• Cornelius Vanderbilt
• New York Central Line
• James J. Hill
• Great Northern Line
• Collis P. Huntington and Leland Stanford
• Central Pacific Line

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Use of Questionable Methods by Railroad Barons

• Rebates
• Large railroads offered secret discounts to their
  biggest customers
• Smaller railroads were forced out of business
• Discounts to big customers raised freight rates
  for farmers and those shipping small amounts of
  goods.
• Pools
• Secret agreement among railroad barons that set
  rates for a region
• With limited competition railroads could charge
  higher rates and make a larger profit.

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Railroads Spur the Economy

• Carried raw materials (iron ore, coal, timber) to
  factories and manufactured goods to markets.
• Spurred the growth of the iron, steel and timber
  industry.
• Railroad companies provided work for thousands
  of people.

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Improving the Railroads

• Long distance railroad travel was difficult
  because of the different gauges or widths of
  track.
• Trains of one line could not use another lines
  track.
• With the consolidation of companies came the
  adoption of a standard gauge (4, 8.5)
• Allowed faster shipment of goods

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Railroad Technology

• New technology improved railway transportation
• George Westinghouse
• Devised air brakes that improved the system for
  stopping trains.
• Eli H. Janey
• Invented car couplers making it easier to link
  cars
• Gustavus Swift
• Hired an engineer to develop a refrigerated
  railroad car.
• 1877 first refrigerated meat was shipped.
• George M. Pullman
• Developed the Pullman sleeping cara luxury
  railway car with seats that converted into beds.

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Railroad Technology
Janney Coupler
Pullman Sleeping Car
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Railroads Change America

• American industry such as flour milling and
  agricultural equipment expanded west.
• Trains redistributed the population.
• Carried Homesteaders West
• Made it easy for people to move from the rural
  areas to the cities
• A national system of time was developed
• Opened up the entire U.S. to settlement and
  economic growth.
• United different regions of the country into a
  single network