1. STANDARD(S) ADDRESSED: 11.2 Students analyze the relationship among the rise of industrialization, large-scale rural to urban migration, and massive immigration from Southern and Eastern Europe. LESSON OBJECTIVES/ GOALS/ SWBAT 1.Identify the role of the railroads in unifying the country. 2.List positive and negative effects of railroads on the nation’s economy. 3.Summarize reasons for and outcomes of the demand for railroad reform.

3. 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. NEXT

4. 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 The Age of the Railroads 2 SECTION NEXT Continued...

5. RAILROADS SPUR OTHER INDUSTRIES The spread of the railroads also led to the growth of towns, new markets, and opportunity for profiteers 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

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. Railroads Span Time and Space The Age of the Railroads 2 SECTION NEXT Continued... A National Network 1859, railroads extend west of Missouri River 1869, first transcontinental railroad completed, spans the nation

9. A NATIONAL NETWORK By 1869, tracks had been laid across the continent (Golden Spike was placed at Promosory Point – Utah)

10. 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. 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 2 SECTION NEXT

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? Life-threatening working conditions; low pay; discrimination by race or nationality

17. continued Railroads Span Time and Space 2 SECTION NEXT 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

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 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 2 SECTION NEXT Continued...

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. 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 2 SECTION NEXT

27. PULLMAN: FACTORY & TOWN In 1880, George Pullman built a factory for manufacturing sleepers and other railroad cars in Illinois

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

29. 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. 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. continued Opportunities and Opportunists 2 SECTION NEXT 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

33. 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

34. 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. 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. 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 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 2 SECTION NEXT Continued...

40. Shipping Goods Farmers were especially affected by corruption in the railroad industry

41. The Grange and the Railroads 2 SECTION NEXT 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...

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. 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. 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 2 SECTION NEXT

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. 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. continued The Grange and the Railroads 2 SECTION NEXT 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

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