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MODERN AMERICA Railroads

MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

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Page 1: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

MODERN AMERICA

Railroads

Page 2: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

The Expansion of IndustryEnd of Civil War – US still largely agriculturalBy 1920 – World’s leading industrial powerWhy?• Natural Resources:

oil boom, coal & iron (steel)• Government support of business• Growing urban population:

cheap labor new markets

• New Inventions

Page 3: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

• Railroads became an important part of the American economy beginning in the 1850’s.

Page 4: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

- Once the gauge, or width, of tracks was standardized, railroads formed a network, or system of connected lines.

Growth of Railroads

Top: Railroads in 1890

Right: Railroads in 1918

Page 5: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

- Farmers and merchants could transport their goods quicker and cheaper.

Page 6: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

Pros and Cons of Railroad

Pros:• Influenced growth of

cities and towns• Created tousands of

new jobs• Opened new markets

for goods• Westward expansion• Unified regions of the

country

Cons:• Unchecked power led to

widespread abuses Ex. Pullman, Ill.• Huge land grants and

loans by government leads to corruption

Page 7: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

Railroads transformed the small farming community of Wanatah, MI, into one of the area's leading market centers. In the early 1900's, the depot was the hub of the city's activities.

Page 8: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

Corruption

• Credit Mobilier Scandal

• Farmers – Granger Laws Supreme Court Munn v. Illinois 1877

• Rebates and Pooling

Page 9: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

- This forced many small railroad companies out of business.

Abuses:

- Railroad companies offered rebates, or discounts, in order to keep or win customers.

- In order to end competition and keep prices high, railroad companies agreed to divide up business in an area and set high prices. This was known as pooling.

Page 10: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

- Large companies bought smaller ones or forced them out of business.

Cornelius Vanderbilt and James Fisk are shown in a race for control of New York's rails. Vanderbilt unsuccessfully tried to take over the Erie R.R. by buying out its stock.

Page 11: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

Panic and Consolidation

ICC was the least of the RR problems, by early 1890’s, many RR on brink of bankruptcy:

• Corporate Abuse• Mismanagement• Overbuilding• Competition

Panic of 1893

Page 13: MODERN AMERICA Railroads. The Expansion of Industry End of Civil War – US still largely agricultural By 1920 – World’s leading industrial power Why? Natural

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