1. Chapter 20, Section 1: Railroads Spur Industry
Main Idea: A boom in railroad building encouraged American industry to grow but gave vast amounts of power to a few railroad owners.

2. A. Creating a Railroad Network
Track Gauge
After the CW, RR companies built all over country (war showed importance of RRs.)
Most early RRs were local (not connected) until 1886, when a standard gauge (w) was adopted After this, RRs were networked (connected) = cheaper shipping
Trip from NY to SF went from mos to 1 wk.
Air brakes (Geo. Westinghouse) made rail travel safer & faster.
Dining & sleeping cars (Geo. Pullman) added for comfort.
Dining Car
Sleeping Car

3. Railroads in 1890 Growth of Railroads
- Once the gauge, or width, of tracks was standardized, railroads formed a network, or system of connected lines.
Railroads in 1890
Railroads in 1918

4. B. Consolidation
Companies began to combine to form larger companies that forced others out of business
Cornelius Vanderbilt used ruthless tactics to build RR empire between NYC & Chicago
Eventually, most RR lines were run by a few very rich & powerful men

5. Cornelius [“Commodore”] Vanderbilt
Can’t I do what I want with my money?
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.

6. C. Building New Lines
3 more transcontinental RRs were built after the first was completed in 1869
James Hill built RR empire in the Northwest by helping farmers & ranchers move there and got them established- Why?

7. D. Abuses
Cutthroat competition- to compete for business, RRs offered rebates (discounts) to their largest customers, which hurt small businesses & RRs & farmers
established pools, which divided up business and limited competition to keep prices high
farmers were angered by high prices- many joined the Populist Party, which called for government regulation of railroads (laws were often weak because officials were bribed)

8. E. Railroads & Industry
RRs made growth of industry possible- steel and iron for tracks, lumber for ties, coal for fuel, etc. Many jobs created as a result.
RRs connected the country and brought people & businesses together. They helped settle the West & made the US an industrial giant.
The Railroad fueled the growing US economy:
First big business in the US.
A magnet for financial investment.
The key to opening the West.
Aided the development of other industries.