Time Zones Why didn’t time zones matter in colonial times? Before the advent of train travel and the need for set scheduling, and because the colonial population was situated along the eastern coastline, there was never an overriding need for time zones. Why did the ability of trains to travel hundreds of miles a day make time zones important? Over those hundreds of miles, each of the many different towns had its own local time, based on the sun’s position in the sky at its longitude. People needed to know when exactly to expect a train to arrive or depart, but the time the train was using might not be the same as local time. Variations in times in distant towns on the train line could cause people to miss trains or have to wait a long time for a train to arrive. Uncertainty about whether a stretch of track was open and free at a given time could also result in head-on collisions. With time zones, the time within a region was the same, so everyone knew what time it was all along the railroad line.

Linking the Nation Pacific Railway Act The Pacific Railway Act, signed by President Lincoln in 1862, provided for the construction of a railroad from Omaha, Nebraska, to Sacramento, California. Union Pacific Engineer Grenville Dodge, a former Union general, led the Union Pacific westward from Omaha across the Great Plains. The Union Pacific employed about 10,000 workers, mainly Civil War veterans and Irish immigrants. Central Pacific The Central Pacific Railroad began when engineer Theodore Judah got financial backing from four Sacramento merchants. The Central Pacific Railroad hired about 10,000 workers, mainly Chinese immigrants. Work began in January 1863 in Sacramento. From there, workers laid rails eastward, crossing or tunneling through the formidable Sierra Nevada Mountains. Challenges Both railroads faced challenges. Union Pacific workers had to cross scorching plains and stave off attacks by Native Americans. Central Pacific workers had to blast tunnels through solid mountains. All of their supplies had to be shipped from the East Coast by ocean. Promontory Summit On May 10, 1869, workers and spectators gathered at Promontory Summit, Utah. Dignitaries connected the Union Pacific and Central Pacific railroads—and East with West—by pounding five gold and silver spikes into the final rails.

Railroads What was the West probably like before the coming of the railroad? It was distant and disconnected from the United States proper, and note that much of the West was still organized into territories rather than states. What effects on the development of the West would you predict the transcontinental railroad to have? The railroad would have led to a greater population and economic growth in the areas it crossed.

Railroad Initially, Chinese railroad workers faced discrimination from their employers. White workers were paid about $35 a month with housing—in tents or cabins—provided, but Chinese workers were paid about $27 a month and were not given food or housing. The Chinese workers, however, became valuable because they rarely fell victim to the health problems that afflicted white workers, thanks to their superior personal hygiene habits and better diet including fresh meat, vegetables, and boiled tea. Each 20-worker team of Chinese pooled their money to hire a cook. As a result of their diligence, the pay of the Chinese workers eventually rose to $1 a day.

Federal Land Grants Land Grants To encourage railroad construction across the Great Plains, the federal government granted land to many railroad companies. The railroads sold the land to settlers, real estate companies, and other businesses to raise money to build the railroad. Crédit Mobilier Railroad growth also led to scandal. In 1872 Union Pacific Railroad investors set up the Crédit Mobilier construction company, which submitted overpriced bills to the railroad. The railroad paid itself and investors lined their pockets.

Railroad Discussion How did the federal government encourage the growth of railroads? By giving land to railroad companies upon which to construct large railroads How did the federal government’s land policies change the United States? Offering land to rail companies encouraged construction of rail lines between the East and West, which had the effect of “shrinking” distances between regions of the country and helping unite it. How might land grants have contributed to the Crédit Mobilier scandal? The money and land used to build the Union Pacific came partly from the federal government. Some government officials decided to take advantage of this to their own profit. By submitting inflated bills, the company took money dishonestly.

Consolidation Public and Private Financing Railroad construction required large amounts of capital that came in the form of government loans and grants or from Wall Street investors. Banks and financial institutions became railway backers, and their representatives influenced the operations of the companies. Big Business Because of their large geographical size, high volume of employees, and great costs and profits, railroads became the nation’s first big business. Railroads became the first industry subject to significant economic government regulation; the first to recognize labor unions on a broad scale; and the first to offer pensions, help for injured workers, and unemployment insurance. By the early 1870s, the Pennsylvania Railroad had become the nation’s largest company. Limiting Competition Competition among railroads in major markets was fierce. Some railroad entrepreneurs sought to improve their company’s market share by buying up competing railroads. Pools of associated railroads could then set rates and dominate the market.

Railroad Discussion Why were large companies needed to build railroads? The large amount of supplies and labor needed to construct long-distance railroads meant that big companies were more likely to be able to afford and manage such an enterprise. Students will probably note that the great distances covered by the railroad lines would have been difficult to coordinate among a series of small companies. How did railroads become the United States’s first big business? Railroads expanded greatly in terms of geography, labor, and finances as lines expanded across the country. This expansion, along with railroad consolidation, made railroad companies big, powerful businesses.

Reflection What predictions can you make about the social and economic effects of the railroad of the United States of the late nineteenth century? The growth of railroads would have changed how individuals traveled and brought the nation closer together. They should also predict that improved transportation and large-scale railroads would contribute to economic growth.