5.2 The Development of the American Railroads

Linking the East and West

Manifest Destiny• Manifest Destiny -- 19th century belief that it was

the US god-ordained destiny to rule North America from the east to the west coast

• The term “Manifest Destiny” would be used over and over again through out American history to justify stealing land from the Indians, stealing land from the Mexicans, and later, conquering islands such as the Philipines and Hawaii.

US Railwaysin 1860

So here is what we know…• The heart of America is still in the East• Lots of money in the West• East and West are disconnected• So…

The Solution – Transcontinental Railroad• Pacific Railway Act – signed by president Lincoln

in 1862, it provided for the construction of a transcontinental railroad

• Two companies were in charge of building this rail line from opposite directions:

1. Union Pacific 2. Central Pacific

• To encourage speedy construction, the government granted:– Money per mile of track– All the land surrounding the tracks in the right of way– HOW MIGHT THIS BECOME A PROBLEM?

Omaha, NebraskaUnion Pacific RR

Utah, the meeting point

Sacramento, CACentral Pacific

The Race was On!• Besides land grants along the right-of-way, each

railroad was subsidized $16,000 per mile ($9.94/m) built over an easy grade, $32,000 mile ($19.88/m) in the high plains, and $48,000 per mile ($29.83/m) in the mountains.

• The race was on to see which railroad company could build the longest section of track.

• They would build crooked tracks (federal government had to send in men to keep them straight)

• Central Pacific build 10 miles in a day!

The Union Pacific• Engineer Grenville Dodge

was in charge of the UP• Education in civil

engineering• Union military companion• Found pass through Black

Hills while escaping Indians• Leaves military to help the

construction of the transcontinental RR

The Union Pacific hired Civil War soldiers, ex-criminals, and Irish immigrants.

The Central Pacific• The original man in

charge was Theodore Judah

• People thought building through the Sierra Nevadas was impossible

• Convinced four Sacramento based business men to back him financially

• Eventually forced him out

The man who pushed Judah out• Leland Standford – led a

push to get Judah out• Lawyer in the east, lost

everything in a fire• Moved west in the

California Gold Rush• Become a grocery story

mogul in Sacramento• Big 4 CP• Stanford University

Central Pacific Railroad Map

Central Pacific – 1869 – notice the hats of the workers

The Central Pacific mostly hired Chinese immigrants.

Early Immigrants Came Looking for Gold

• Large scale Chinese immigration to California began after news of the discovery of gold reached China. In 1851, nearly 3,000 Chinese came to California; more than 20,000 came in 1852.

• For the next two decades almost 8,000 new immigrants arrived from China each year.

• Chinese miners established themselves throughout the gold fields, especially in Calaveras, El Dorado and Amador counties.

• Many were independent miners or worked for Chinese companies. Some worked for non-Chinese. Others contributed indirectly as suppliers of goods and services.

The expendability of Chinese workers

• Generally paid one dollar per day• Tunneling was a necessity through the Rockies• Nitroglycerin had just been invented• Tunnels became easier to blast• But death rates of Chinese workers

skyrocketed

The Last Spike• It only took 4 years to complete the biggest Industrial

project in American history• The “final spike” ceremony was held on May 10th 1869

in Promontory Point Utah.• Leland Stanford hammered in the last spike• Telegraphs on hand made it the first “live” media event

in US history• Cannons blasted in NY, parade in Chicago, Liberty Bell

was rang in Philly• East to west coast used to take 6 months, now

1 week!

Train bringing Leland Sanford and the rest of the Big 4 to Promontory Summit, UT

“The Last Spike”

“The Last Spike”

“The Last Spike”

1887

1918

Railroads Spur Growth and Change• Railroads helped the economy by putting large

amounts of money into steel, coal, timber, and by simply creating thousands and thousands of jobs

• In 1883, The American Railway Association divided the country into 4 time zones.

WHY?• Before, communities set their own times according

to the sun• Train wrecks kept occurring!• This standardized US time

The Original Railroad Gangsta• Cornelius Vanderbilt

made millions by connecting Chicago to New York and creating the New York Central rail line.

• He bought several smaller rail companies and combined them together.

• In 1871 he began construction of New York’s Grand Central Terminal.

Grand Central Station in NY

Vanderbilt • Poor family, quite school at age 11, used money from dad

to buy a boat and started making money• Notorious for being stingy with his money…never gave to

poor until the very end of his life• Drunk, adulterer, arrogant, and rude• Honest, upfront, brave, and SUPER competitive• His goal was to force competitors to be bought out…he

once shut down all RR to Manhattan and cut off our biggest city…he won

• He gave away 1.5 million in his life to charity…then 107 million to his son when he died

• Donated 1 million to create Vanderbilt University

The Biltmore House

Biltmore House• still the largest home in the US with over 175,000 sq feet• intercoms, elevators, fire alarms, and a two story library…big deals in the late 1800s

Rail Road Corruption• Credit Mobilier was a construction company that was

owned by the men who owned the Union Pacific• The owners hired themselves to do the construction

work for the UP, and charged whatever they wanted because the RR’s were backed by federal dollars

• Men made millions and almost bankrupted the Union Pacific

• It involved Oakes Ames who was a member of Congress and the Credit Mobilier.

• This scandal was revealed during the 1872 elections. • No member of the company was charged due to Ames

relationship with Congress.

Consequences of Credit Mobilier• The scandal created the impression amongst the

public that all the railroad entrepreneurs were “robber barons”

Jay Gould bowls on Wall Street with balls labeled “Trickery,” and “False Reports.” The pins are labeled “Banker,” “Inexperienced Investors,” “Small Operator,” and “Stock Broker.”