Sept. 28, 2010 What are the pros and cons of railroad expansion? Speed Notes Political Cartoons Maps Homework: Ch. 24 Sec. 3 Pts. 1, 2, and 3

Railroads span time and space Realizing their importance, railroad companies given huge land grants and loans A National Network: Transcontinental railroad – other regional lines to follow

Railroads span time and space Romance and Reality Brought dreams of land, adventure, and fresh start for many Chinese immigrants, Irish immigrants, and desperate veterans among the many to take on the dangerous job of laying track

Railroads span time and space Railroad Time Unified the nation Individual cities on their own time still (noon when the sun was directly above the head) 1869 – time problem fixed by Professor Dowd Earth’s surface was divided into 24 zones 1883 – clocks were synchronized 1884 – the world followed suit 1918 – Congress officially adopts this as standard for the nation

Opportunities & opportunists Iron, coal, steel, lumber, and glass grew New Towns and Markets Linking isolated cities, towns, and settlements promoted trade and interdependence Cities began specializing in particular products

Opportunities & opportunists George Pullman Built sleeper cars on Illinois prairie Built nearby town for his employees that provided basic needs Clean well-constructed homes Doctors’ offices Shops Athletic fields Town under strict control to ensure stable work force Refusal to lower rents after cutting pay led to strike in 1894.

Opportunities and opportunists Credit Mobilier Union Pacific Railroad formed construction company Stockholders gave the company a contract to lay track at 2 to 3 times the actual cost Donated shares to members of Congress Investigation found that many well-known and respected federal officials (including future president) involved They kept their profits and received a slap on the wrist

The Grange and the Railroads Farmers’ organization outraged by corruption Railroad Abuses Misuse of government land grants (to businesses rather than settlers) Formal agreements to fix prices (kept farmers in debt) Charged different customers different prices

The Grange and the railroads Granger Laws 1871 – Illinois authorized commission to set rates and prohibit discrimination Railroads fought constitutionality of such laws Supreme Court upheld laws 7 to 2 States won right to regulate the railroads for benefit of farmers and consumers Established federal government’s right to regulate private business to serve the public

The grange and the railroads Interstate Commerce Act 1886 – Supreme Court ruled that a state cannot set rates on interstate commerce Passed Interstate Commerce Act – established right of federal government to supervise railroads Established Interstate Commerce Commission – watchdog for the Act (little effect or power) Not allowed to set maximum rail rates

The grange and the railroads Panic and Consolidation Overbuilding and competition pushed many to bankruptcy Played major role in economic collapse in 1893 600 banks and 15,000 businesses collapsed and 4 million lost their jobs