Railroads

Transcontinental Railroad Union Pacific Led by Greenville Dodge; Civil War General Started in Omaha, Nebraska and went west Irish immigrants, farmers, Civil War veterans 10,000 workers Laid 1,086 miles of track

Transcontinental Railroad Central Pacific Led by Theodore Judah who sold interest to four others “Big Four” including Leland Stanford (Later became Gov of California; Stanford University) Shortage of labor; hired 10,000 Chinese immigrants Laid 688 miles of track

Chinese Immigrants on the Central Pacific 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, were 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, Chinese workers’ pay eventually rose to $1 a day.

Promontory Summit, Utah Took 4 years and 400 rails per mile with 10 spikes per rail to build. "The two trains pulled up facing each other, each crowded with workmen. . . . The officers and invited guests formed on each side of the track. . . . Prayer was offered; a number of spikes were driven in the two adjoining rails . . . and thus the two roads were wedded into one great trunk line from the Atlantic to the Pacific." — from How We Built the Union Pacific Railway, 1910

Railroads Spur growth Large rail companies consolidate hundreds of small unconnected railroads to create integrated railroad systems. To encourage railroad construction, the government gave land grants. Railroad companies then sold the land grants to settlers and businesses to raise money. 120 million acres of public land (larger than New England, New York, and Pennsylvania combined) The land paid for the cost of building the railroads. The Frontier was closed! All land and settlement was complete with the railroads.

Robber Barons Railroad companies built fortunes! Jay Gould Corrupt railroad owner who lied, practiced insider trading, and sold free land grants to make more money. Also bribed politicians for more free land. Jay Gould Biography in Text book.

Credit Mobilier Scandal Construction company set up by stockholders of the Union Pacific Railroad, including Oakes Ames. To Convince Congress to give more land grants, Ames sold members of Congress shares at a price below market value. 1872 New York Sun listed members of Congress who had bought shares. Public outrage led the impression that railroad entrepreneurs were “robber barons” people who loot an industry and become rich unethically.

James Hill and The Great Northern Railroad Wisconsin to Minnesota to Washington without any federal land grants. Planned railroad’s route to pass by existing towns and offered low fares to settlers. He hauled goods and products to Washington to be shipped to (cotton, textiles, flour) so that the train would be carrying goods both east and west. The Great Northern was never forced into bankruptcy.