1. Chapter 20, Lesson 1 Railroads Lead the Way
Learning Objective:
Analyze the importance of the railroad in the Industrial Age.

2. The transcontinental railroad was soon followed by 5 others with hundreds of smaller lines branching off.
Railroad expansion was accompanied by consolidation- the practice of combining separate companies into one.
Large railroad companies bought smaller ones or drove them out of business.

3. Railroad barons- powerful individuals who controlled the nations rail traffic & helped build the nation’s transportation network.
- Cornelius Vanderbilt
- James J. Hill
- Collis P. Huntington
-Leland Stanford.

4. Railroads Stimulate the Economy
Railroads carried raw materials and manufactured goods to markets.
Industries that boomed as a result of RR expansion:
Steel
Lumber
Coal
Provided jobs!

5. Improving the Railroads
Standard gauge tracks-same width! Allowed all railroads to use the same tracks.
Allowed faster shipment of goods.
Didn’t have to unload from one train to another.

6. Railroad Technology
George Westinghouse- air brakes; improved stopping.
Eli Janney- car couplers made it easier to link cars.
Gustavus Swift- refrigerated cars could ship meat and crops long distances without spoiling.
George Pullman- railroad sleeping car for overnight journeys.

7. Competition- To keep customers and get new ones.
Rebates- secret discounts were offered by large RR companies. Small companies couldn’t keep up!
Pools- secret agreements among RR barons; divided business among companies and set rates allowed higher rates/profits; tried to outlaw.

8. Railroads Change America
Expansion into the West.
Growth of agriculture out West and manufacturing in the East.
People move from rural areas to cities.
Opens US to settling in new areas, changes transportation and communication.