 By the second half of the 19 th century railroads had proven their value.  Up until this time the railroad lines were short.  Many localities had their own technologies that did not compliment each other.

 The biggest problem was the gauge or width of the railroad tracks  In the 1880s, railroads in the North and South became a network when they agreed to standardize their track width.

 This standardization of track width allowed for the development of a national railroad network.  This system of connected lines led to a more efficient, faster, and cheaper rail service.

 To compliment this new and growing network, other innovations helped to make rail use more attractive.  Sleeping and dining cars were added to make riding trains easier.

 Railroads owners began to look for other ways to make money.  Some of the larger railroads began buying out the smaller ones, this is known as consolidation or combine.

 Cornelius Vanderbilt one of the richest, and most powerful railroad barons, often used unethical tactics to buy out smaller rail lines.  This practice of consolidation led to a handful of wealthy men controlling all of the nation’s railroads

 New lines were built during this time.  Along with new lines came new business practices.  Leland Stanford built the Great Northern Railroad line. This rail service stretched from Minnesota to Washington state.  He offered incentives to attract customers.

 Some large railroad owners used dishonest tactics to attract customers.  Rebates or discounts were secretly given to favored customers.  To win more business, railroad companies gave rebates to big customers.

 Soon many railroads realized that competition was hurting too many of them. So some owners organized pools.  These pools were railroad companies who agreed to charge higher prices.  Farmers objected to pools and rebates because they made shipping prices higher.

 These kinds of practices led to the Populists and other groups to call for government action to stop the abuses.

 Railroad building provided many advantages to the US economy. Thousands of jobs in the steel, mining, and lumber industries were created. The West was truly opened and many new cities emerged.