Objective: To examine the growth of the railroad industry. Do Now: p. 574 Name at least two problems early railroads had, and explain how they were resolved. Problems: 1. The South had short rail lines that didn’t form a network. 2. The tracks in the North and the South had different widths, or gauges, so they couldn’t be connected. Railroads in 1890 Solution: Southern railroads adopted the rails of the North.

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

- 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.

- Railroad companies began to consolidate, or combine, in order to compete with large companies, such as Cornelius Vanderbilt’s. - Cornelius Vanderbilt was one of the richest men in America, and the most powerful railroad baron. Cornelius Vanderbilt

The Breakers, Newport, RI

The Breakers, Newport, RI - The 1895 Cornelius Vanderbilt II mansion, facing the Atlantic Ocean, is perhaps the finest example of American Renaissance architecture. - Cornelius Vanderbilt II became the Chairman and President of the New York Central Railroad system in 1885. - Cornelius Vanderbilt II was the grandson of Cornelius Vanderbilt. - The Breakers is the grandest of Newport’s summer “cottages” and a symbol of the Vanderbilt family’s social and financial preeminence in turn of the century America.

Marble House, Newport, RI

Marble House, Newport, RI - Completed in 1892 for Mr. and Mrs. William K. Vanderbilt, the interior Marble House is designed almost exclusively of imported Italian marble. - William K. Vanderbilt was the grandson of Cornelius Vanderbilt. - The mansion cost $11 million to build, $7 million of which was for the marble. - The house was given to Mrs. Alva Vanderbilt as a gift on her 39th birthday. - Alva used the house frequently to hold rallies in support of women’s suffrage.

Abuses: - 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.

Effects on Industry: - The railroad industry created thousands of new jobs. Examples: steelworkers, lumberjacks, miners, railroad workers - The railroads opened up the country to settlement and growth. Anti-railroad propaganda