1. LESSON OBJECTIVES/ GOALS/ SWBAT
STANDARD(S) ADDRESSED: Students analyze the relationship among the rise of industrialization, large-scale rural to urban migration, and massive immigration from Southern & Eastern Europe.
CH 6-SEC 2
LESSON OBJECTIVES/ GOALS/ SWBAT
Identify the role of the railroads in unifying the country.
List positive and negative effects of railroads on the nation’s economy.
Summarize reasons for and outcomes of the demand for railroad reform.

2. A BULLDOG ALWAYS
Commitment
Attitude
CARES
Respect
Encouragement
Safety

3. The Age of the Railroads
Section 2
The Age of the Railroads
The growth and consolidation of railroads benefits the nation but also leads to corruption and required government regulation.
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4. The Age of the Railroads2
SECTION
The Age of the Railroads
Railroads Span Time and Space
Railroads Encourage Growth
• Rails make local transit reliable, westward expansion possible
• Government makes land grants, loans to railroads
- to help settle West
- to develop country
Continued . . .
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5. RAILROADS SPUR OTHER INDUSTRIES
The rapid growth of the railroad industry influenced the iron, coal, steel, lumber, and glass businesses as they tried to keep up with the railroads demand for materials
The spread of the railroads also led to the growth of towns, new markets, and opportunity for profiteers

6. Railroads and Land Grants
Realizing that railroads were critical to the settlement of the West and the development of the nation, the federal government made huge land grants and loans to the railroad companies.

7. Chapter 6; Section 2 A – What were the effects of railroad expansion?
The growth of industries that could ship to new market;
Hazardous jobs for railroad workers;
An increase of immigration and migration to the West.

8. The Age of the Railroads2
SECTION
The Age of the Railroads
Railroads Span Time and Space
A National Network
1859, railroads extend west of Missouri River
1869, first transcontinental railroad completed, spans the nation
Continued . . .
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9. A NATIONAL NETWORK
By 1869, tracks had been laid across the continent (Golden Spike was placed at Promosory Point – Utah)

10. IMMIGRANTS FROM CHINA LAID TRACK
A NATIONAL NETWORK
Immigrants from China and Ireland and out-of-work Civil War vets provided most of the difficult labor
Thousands lost their lives and tens of thousands were injured laying track
IMMIGRANTS FROM CHINA LAID TRACK

12. 2
SECTION
continued Railroads Span Time and Space
Romance and Reality
Railroads offer land, adventure, fresh start to many
People of diverse backgrounds build railroad under harsh conditions:
- Central Pacific hires Chinese immigrants
- Union Pacific, Irish immigrants, Civil War vets
Accidents, disease disable and kill thousands every year
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13. BENEFITS
The railroad companies built transcontinental and local lines.
The nation was transformed from a collection of regions into a united nation.
Railroad time became the nation’s standard, linking Americans in one more way.

14. DRAWBACKS
The unchecked power and greed of the railroad companies led to widespread corruption and abuse of power.

16. 1. What problems did employees of the railroad companies face?
GUIDED READING:
1. What problems did employees of the railroad companies face?
Life-threatening working conditions;
low pay;
discrimination by race or nationality

17. 2
SECTION
continued Railroads Span Time and Space
Railroad Time
1869, C. F. Dowd proposes dividing earth’s surface into 24 time zones
1883, U.S. railroads, towns adopt time zones
1884, international conference sets world zones, uses railroad time
- Congress adopts in 1918
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18. RAILROAD AND TIME
Before 1883, each community still operated on its own time
For example: Noon in Boston was 12 minutes later than noon in New York City
Indiana had dozens of different times
No standard time reference

20. THE UNITED STATES IS DIVIDED INTO 4 TIME ZONES

22. THE WORLD IS DIVIDED INTO 24 TIME ZONES

23. Opportunities and Opportunists2
SECTION
Opportunities and Opportunists
New Towns and Markets
Railroads require great supply of materials, parts
Iron, coal, steel, lumber, glass industries grow to meet demand
Railroads link isolated towns, promote trade, interdependence
Nationwide network of suppliers, markets develops
Towns specialize, sell large quantities of their product nationally
New towns grow along railroad lines
Continued . . .
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24. RAILROADS LED TO GROWTH OF CITIES
Many of today’s major cities owe their legacy to the railroad
Chicago, Minneapolis, Denver, and Seattle all grew up thanks to the railroad

25. Chapter 6; Section 2 B – How did the railroads affect cities?
Railroads led to the growth of cities in the Northwest and Midwest and led to the development of new cities in the West.

26. 2
SECTION
continued Opportunities and Opportunists
Pullman
1880, George M. Pullman builds railcar factory on Illinois prairie
Pullman provides for workers: housing, doctors, shops, sports field
Company tightly controls residents to ensure stable work force
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28. PULLMAN: FACTORY & TOWN
In 1880, George Pullman built a factory for manufacturing sleepers and other railroad cars in Illinois

29. The nearby town Pullman built for his employees was modeled after early industrial European towns

30. PULLMAN: FACTORY & TOWN
Pullman workers felt his puritanical town was too strict
When he lowered wages but not rent – it led to a violent strike in 1894

31. GUIDED READING:
2. What was it like to live as a Pullman employee in the town of Pullman?
clean and safe environment, but too controlling,
residents had no say in the town rules
their daily life was strictly controlled

32. 2
SECTION
continued Opportunities and Opportunists
Crédit Mobilier
Wish for control, profit leads some railroad magnates to corruption
Union Pacific stockholders form construction company, Crédit Mobilier
- overpay for laying track, pocket profits
Republican politicians implicated; reputation of party tarnished
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34. CREDIT MOBILIER SCANDAL
Stockholders of Union Pacific Railroad formed a construction company in 1864
Stockholders then gave contracts to the company to lay track at 3 times the actual costs and pocketed the difference
They donated shares of the stock to 20 members of Congress in 1867
POSTER FOR BOGUS CONSTRUCTION COMPANY

35. Credit Mobilier, and what was made up of Railroads magnates, stockholders in the Union Pacific Railroad, & federal officials.
The goal was to siphon off railroad profits for themselves.

36. GUIDED READING:
3. Who was involved in Crédit Mobilier, and what was the purpose of this company?
Who: Railroad magnates, stockholders in the Union Pacific Railroad, federal officials;
What: to steal railroad profits for themselves

37. Chapter 6; Section 2
C – How did railroad owners use Credit Mobilier to make huge, undeserved profits?
By charging too much for railroad construction and paying off govt officials.

38. GUIDED READING:
4. In what ways did the railroad companies use their power to hurt farmers?
Sold grant lands to other businesses,
instead of to settlers;
fixed prices to keep farmers in debt to them;
practiced rate discrimination

39. The Grange and the Railroads2
SECTION
The Grange and the Railroads
Railroad Abuses
Farmers angry over perceived railroad corruption
- railroads sell government lands to businesses, not settlers
- fix prices, keep farmers in debt
- charge different customers different rates
Continued . . .
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40. Shipping Goods
Farmers were especially affected by corruption in the railroad industry

41. The Grange and the Railroads2
SECTION
The Grange and the Railroads
Granger Laws
• Grangers sponsor state, local political candidates
• Press for laws to protect farmers’ interests
• Munn v. Illinois—Supreme Court upholds states’ right to regulate RR
• Sets principle that federal government can regulate private industry
Continued . . .
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42. THE GRANGE & THE RAILROADS
Grangers - a farmers organization
protested land deals, price fixing, and charging different rates to different customers
Granger Laws were then passed protecting farmers
States were given regulation control of railroads by the Courts
Munn v. Illinois—Supreme Court upholds states’ right to regulate RR
GRANGERS PUT A STOP TO RAILROAD CORRUPTION

43. GUIDED READING:
5. Why didn’t the decision in the Munn v. Illinois case succeed in checking the power of the railroads?
The Supreme Court later reversed the Munn decision, ruling that a state could not set rates on interstate commerce.

44. Chapter 6; Section 2
D – How did the Grangers, who were largely poor farmers, do battle with the giant railroad companies?
The farmers took political action in one united front.
They pressed legislators to pass laws to protect them

45. Interstate Commerce Act2
SECTION
continued The Grange and the Railroads
Interstate Commerce Act
• 1886, Supreme Court: states cannot set rates on interstate commerce
• Public outrage leads to Interstate Commerce Act of 1887
- federal government can supervise railroads
- establishes Interstate Commerce Commission (ICC)
• Legal battle with railroads; difficult for ICC to take action
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46. INTERSTATE COMMERCE ACT
In 1887, the Federal government re-established their control over railroad activities
Congress passed the Interstate Commerce Act and established a 5-member Interstate Commerce Commission (ICC)
The ICC struggled to gain power until 1906
1887 – CONGRESS PASSED THE ICA

47. GUIDED READING:
6. Why didn’t the Interstate Commerce Act immediately limit the power of the railroads?
The ICC's efforts were hampered by:
-long legal processes,
-the resistance of the railroads, and
-a Supreme Court ruling that the ICC couldn't set maximum railroad rates.

48. Panic and Consolidation2
SECTION
continued The Grange and the Railroads
Panic and Consolidation
Abuses, mismanagement, competition almost bankrupt many railroads
Railroad problems contribute to panic of 1893, depression
By mid-1894, 25% of railroads taken over by financial companies
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49. The Panic of 1893
A serious economic depression in the United States that began in 1893.
Similar to the Panic of 1873, it was marked by the overbuilding and shaky financing of railroads, resulting in a series of bank failures.
Compounding market overbuilding and the railroad bubble was a run on the gold supply.
Next worse to Great Depression.

50. Explain the importance to the United States of the transcontinental railroad.
Then, describe who George M. Pullman was and why he is a significant historical figure