1. Unit 7: Industry and Expansion Railroads and Big Business

2. Growth of Railroads
The growth of railroads had a huge impact on the United States. Railroads made long distance travel a possibility.
Railroads also paved the way for other industries to grow and expand.
Top: Railroads in 1890
Right: Railroads in 1918

3. Transcontinental Railroad
In 1869, the Transcontinental Railroad was completed.
This was the first time that the railroad crossed the entire continent.
Pacific Railway Act of 1862 – U.S. Government hired Union Pacific and Central Pacific Railway Company to extend railways across the United States.

4. Transcontinental Railroad
The 2 railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869

5. Promontory, Utah May 10, 1869

6. Who built it?
Mostly Chinese immigrants, as well as Irish immigrants and desperate out-of-work Civil War veterans

7. Chinese railroad workers on the Transcontinental working in the snow.
The working conditions were very difficult because of weather and harsh terrains.
Chinese railroad workers on the Transcontinental working in the snow.

8. RAILROADS AND
BIG BUSINESS
- Railroad companies offered rebates, or discounts, in order to keep or win customers.
- This forced many small railroad companies out of business.
- In order to end competition and keep prices high, railroad companies agreed to divide up business in an area and set high prices. This was known as pooling.

9. - Large companies bought smaller ones or forced them out of business.
Cornelius Vanderbilt and James Fisk are shown in a race for control of New York's rails. Vanderbilt unsuccessfully tried to take over the Erie R.R. by buying out its stock.

10. The Breakers, Newport, RI (Vanderbilt estate)

11. Marble House, Newport, RI (Vanderbilt Estate)

12. RAILROADS AND STEEL INDUSTRY
The growth of railroads created a demand for steel.
Steel workers turned iron into steel for tracks and engines

13. The Steel Industry
Andrew Carnegie was a Scottish immigrant who became a giant in the steel industry
Through vertical integration he bought companies that supplied his raw materials such as iron and coal, and the railroads needed to transport the steel.
He used horizontal integration by buying out or merging with other steel companies.

14. How did the railroads impact the U.S.?
Helped Westward expansion
Made trade easier
Economic growth
Created many new jobs (steelworkers, lumberjacks, miners, railroad workers)
Rise of Big Business
Hurt farmers economically because of the higher costs for farmers
Land disputes and disruption of way of life for Plains Indians