Chapter 14 Section 2

Warm-Up What did Alexander Graham Bell use as the model for the telephone receiver? What problems did Alexander Graham Bell overcome to invent the telephone? Explain the circumstance that led to the first phone call.

Age of Railroads I. Railroad benefits to the U.S. A. Transcontinental railroad led to more transcontinental railroads (spread people and products) B. Encouraged industries: a. Iron b. coal c. steel d. lumber e. glass

a. Example: Pullman Town 1. George Pullman C. Encouraged new towns and markets 1. Jobs: a. Example: Pullman Town 1. George Pullman a. Town of workers to manufacture railroad parts (sleeper cars) b. Company owned houses, stores, doctor’s offices, athletic field 2. Markets: consumers buying products **Class question: What products do you think are shipped by railroad today?

II. Railroad Problems: A. Time: 1 II. Railroad Problems: A. Time: 1. Different in different parts of the United States 2. Solution: a. U.S. professor proposed dividing earth in 24 time zones b. International conference 1883 – set worldwide time zones

B. Corruption: 1. Railroad owners paid government officials for favors 2. “Fixed” prices (high) for hauling products a. Farmers stayed in debt b. Farmers (Grangers) fought high prices 1. Munn v. Illinois: Supreme Court Decision: a. States won right to regulate railroads – no prices c. Interstate Commerce Commission: ICC – 1887 1. Federal gov. to stop unfair railroad business practices 2. Could not keep rates low – Why? ** Supreme Court ruled that neither state nor federal government could not regulate rates (freedom of private business)

Class Question: Why did the Supreme Court rule that neither the state for federal government could set prices?

What does this cartoon mean? How do you think it reflects the need for the ICC?