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What are the pros and cons of railroad expansion? Speed Notes Political Cartoons Maps Homework: Ch. 24 Sec. 3 Pts. 1, 2, and 3.

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Presentation on theme: "What are the pros and cons of railroad expansion? Speed Notes Political Cartoons Maps Homework: Ch. 24 Sec. 3 Pts. 1, 2, and 3."— Presentation transcript:

1 What are the pros and cons of railroad expansion? Speed Notes Political Cartoons Maps Homework: Ch. 24 Sec. 3 Pts. 1, 2, and 3

2  Realizing their importance, railroad companies given huge land grants and loans  A National Network:  Transcontinental railroad – other regional lines to follow

3  Romance and Reality  Brought dreams of land, adventure, and fresh start for many  Chinese immigrants, Irish immigrants, and desperate veterans among the many to take on the dangerous job of laying track

4  Railroad Time  Unified the nation  Individual cities on their own time still (noon when the sun was directly above the head)  1869 – time problem fixed by Professor Dowd Earth’s surface was divided into 24 zones  1883 – clocks were synchronized  1884 – the world followed suit  1918 – Congress officially adopts this as standard for the nation

5  Iron, coal, steel, lumber, and glass grew  New Towns and Markets  Linking isolated cities, towns, and settlements promoted trade and interdependence  Cities began specializing in particular products

6  George Pullman  Built sleeper cars on Illinois prairie  Built nearby town for his employees that provided basic needs Clean well-constructed homes Doctors’ offices Shops Athletic fields  Town under strict control to ensure stable work force  Refusal to lower rents after cutting pay led to strike in 1894.

7  Credit Mobilier  Union Pacific Railroad formed construction company  Stockholders gave the company a contract to lay track at 2 to 3 times the actual cost  Donated shares to members of Congress  Investigation found that many well-known and respected federal officials (including future president) involved  They kept their profits and received a slap on the wrist

8  Farmers’ organization outraged by corruption  Railroad Abuses  Misuse of government land grants (to businesses rather than settlers)  Formal agreements to fix prices (kept farmers in debt)  Charged different customers different prices

9  Granger Laws  1871 – Illinois authorized commission to set rates and prohibit discrimination  Railroads fought constitutionality of such laws Supreme Court upheld laws 7 to 2 States won right to regulate the railroads for benefit of farmers and consumers  Established federal government’s right to regulate private business to serve the public

10  Interstate Commerce Act  1886 – Supreme Court ruled that a state cannot set rates on interstate commerce  Passed Interstate Commerce Act – established right of federal government to supervise railroads  Established Interstate Commerce Commission – watchdog for the Act (little effect or power) Not allowed to set maximum rail rates

11  Panic and Consolidation  Overbuilding and competition pushed many to bankruptcy  Played major role in economic collapse in 1893  600 banks and 15,000 businesses collapsed and 4 million lost their jobs


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