Unit 7: Industry and Expansion Railroads and Big Business

Growth of Railroads The growth of railroads had a huge impact on the United States. Railroads made long distance travel a possibility. Railroads also paved the way for other industries to grow and expand. Top: Railroads in 1890 Right: Railroads in 1918

Transcontinental Railroad In 1869, the Transcontinental Railroad was completed. This was the first time that the railroad crossed the entire continent. Pacific Railway Act of 1862 – U.S. Government hired Union Pacific and Central Pacific Railway Company to extend railways across the United States.

Transcontinental Railroad The 2 railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869

Promontory, Utah May 10, 1869

Who built it? Mostly Chinese immigrants, as well as Irish immigrants and desperate out-of-work Civil War veterans

Chinese railroad workers on the Transcontinental working in the snow. The working conditions were very difficult because of weather and harsh terrains. Chinese railroad workers on the Transcontinental working in the snow.

RAILROADS AND BIG BUSINESS - Railroad companies offered rebates, or discounts, in order to keep or win customers. - This forced many small railroad companies out of business. - 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.

- 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.

The Breakers, Newport, RI (Vanderbilt estate)

Marble House, Newport, RI (Vanderbilt Estate)

RAILROADS AND STEEL INDUSTRY The growth of railroads created a demand for steel. Steel workers turned iron into steel for tracks and engines

The Steel Industry Andrew Carnegie was a Scottish immigrant who became a giant in the steel industry Through vertical integration he bought companies that supplied his raw materials such as iron and coal, and the railroads needed to transport the steel. He used horizontal integration by buying out or merging with other steel companies.

How did the railroads impact the U.S.? Helped Westward expansion Made trade easier Economic growth Created many new jobs (steelworkers, lumberjacks, miners, railroad workers) Rise of Big Business Hurt farmers economically because of the higher costs for farmers Land disputes and disruption of way of life for Plains Indians