 The growth and consolidation of railroads benefit the nation but lead to corruption and regulation.

 First achieved in 1869 when the Central Pacific was joined with the Union Pacific at Promontory, Utah

 Westward expansion of people and businesses  Allowed for the settlement of the West  Helped establish four time zones in the United States  Eastern  Central  Mountain  Pacific

 Dangerous work for all involved  1888: 2,000 workers died and 20,000 injured  Very Low Pay (40-60 dollars a month)  African Americans and Chinese workers paid less

 Built a factory for manufacturing railroad cars  Established a town for workers to live complete with homes, churches, hospitals, and libraries  Very Strict Rules (curfews and no alcohol)

 Credit Mobilier Scandal  Construction company: skimmed money off of railroads and made political donations  Estimate sum stolen: 23 million dollars

 Interstate Commerce Act 1887:  Allowed the federal gov’t to supervise the railroads  Was not effective until 1906

 Corporate abuse, mismanagement, and overbuilding led many railroad companies to bankruptcy  Led to the Panic of 1893  500 banks closed  15,000 businesses failed  3 million people lost their jobs

 Railroad companies were bought up by giant banks and companies.  The age of BIG BUSINESS was in full swing