Aim – How did railroad building encourage the growth of the American economy? Railroads Lead the Way

Inventors and New Railroad Technology George Westinghouse- air brakes, which made the trains safer. Eli H. Janney- Janney car couplers made it easier for railroad workers to link train cars. Gustavus Swift- refrigerated cars helped railroads to ship meat, and other perishable goods over long distances. George M. Pullman- the Pullman sleeping car- a luxury railway car with seats that converted into beds for overnight journeys. Pullman also made improved dining cars, raising train travel to a new level of comfort.

Growth of Industries Lumber industry- The industry boomed as lumber was needed for RR ties as well as for buildings in the new towns across the country.

Growth of Industries Coal industry- Provided fuel for locomotives and heat for homes. This industry had incredible growth.

Time Zones Railroads affected the way Americans tell time. measuring distances by how many hours the trip would take rather than the number miles This led to a national system of time with four time zones Prevented trains crashing due to local time being different in every town

Railroads Move the Nation West! The growth of railroads pave the way for American Industries to move west. Agriculture development moved west as well from New York to Wisconsin Trains allowed movement of people out west – people began to move from rural areas to urban areas Urbanization – The movement of people from rural to urban areas

Improvements in the Railroads Train tracks of the various new railroads were not built to a standard size. Different railroads used different gauge track sizes which prevented one railroad from using the tracks of another. Train travel required moving passengers and freight from one train to another over very short distances. This was inefficient. By the 1880s a standard gauge which is 4 feet, 8.5 inches, the width of the railroad tracks. This made railroad travel faster, with reduced cost. Standard gauge allowed trains to make an entire trip, no longer needing trains to be loaded and unloaded to other trains.

Competition Destroyed by Rebates and Pools Railroad companies often fought each other for old customers, and for new customers. To their biggest companies, railroad companies offered rebates- these were secret discounts. Smaller companies could not compete with rebates that bigger companies offered, and were forced out of business. Giving these discounts forced companies to put freight rates for farmers and other customers who shipped a small amount of goods. Railroad Barons also made secret agreements among themselves, known as pools. They divided the railroad business, and set rates on the region. And with no other competition in the region, the company could charge higher rates and earn larger profits than ever! Congress tried to control this situation by passing laws, but it did not stop the railroad barons!

Railroad Transform the Nation’s Economy Railroads transported raw materials- iron, coal, timber steel… these industries BOOMED! The mining industry increased and farmers were able to ship products across the country all year long machines sent to farmers for faster jobs (tractors)

Robber Barons Rich business owners (known as robber barons) controlled the market buy using ruthless tactics to hurt their competitors and workers. Consolidated companies and created monopolies Overpowered small companies Government refused to get involved believed in Laissez Faire economic policy (no government regulation of business). Laissez Faire – “Hands off”