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The Age of the American Railroad

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1 The Age of the American Railroad

2 The Transcontinental Railroad
Pacific Railway Act - signed by President Lincoln, allowed the construction of a transcontinental railroad by 2 corporations Completed at Promontory Point, Utah - 5 gold and 5 silver spikes for the final rails - May 10, 1869 Each mile required 400 rails, each rail took 10 spikes Corporations involved - Union Pacific miles Central Pacific miles Union Pacific - Greenville Dodge (former union general) - westward from Omaha, Nebraska Central Pacific - hired chinese workers for $1/day - all equipment - rails, cars, machinery - shipped from eastern us - Cape Horn of S.Am or over the isthmus of panama

3 Railroad reality Cheap labor Casualties Racism
Chinese, Irish, and Confederate veterans are hired to work on the railroads Casualties 2,000 men die and 20,000 men are injured in railroad construction ANNUALLY Racism Average wages and hours Minorities…$35/month & 80 hours/week Whites…$45/month & 50 hours/week

4 What did railroads do to time?
Railroad Time 1883 the U.S. adopts 4 time zones 24 times zones are then created for the world Each time zone is 15 degrees latitude wide Standard Time adopted world wide…still in use today Railway time was the standardized time arrangement first applied by the Great Western Railway in England in November 1840, the first recorded occasion when different local times were synchronized and a single standard time applied. Railway time was progressively taken up by all railway companies in Great Britain over the following two to three years. Standard time is the synchronization of clocks within a geographical area or region to a single time standard, rather than using solar time or a locally chosen meridian (longitude) to establish a local mean time standard. Historically, the concept was established during the 19th century to aid weather forecasting and train travel.

5 How did railroads change the U.S.?
New towns Businesses pop up alongside the tracks and soon become towns, then cities, then megalopolises Examples: Minneapolis, Seattle, and Denver Opportunity Track side stands grow into massive businesses and create some of America’s massively wealthy citizens Cornelius Vanderbilt – 1st to offer a direct rail service between NY and Chicago – begins NY’s Grand Central Terminal (Station) Grand Central Terminal is a commuter, rapid transit railroad terminal at 42nd Street and Park Avenue in Midtown Manhattan in New York City, United States. Built by and named for the New York Central and Hudson River Railroad in the heyday of American long-distance passenger rail travel, it covers 48 acres and has 44 platforms, more than any other railroad station in the world. Its platforms, all below ground, serve 41 tracks on the upper level and 26 on the lower, though the total number of tracks along platforms and in rail yards exceeds 100.

6 What types of problems did railroads encounter?
Corruption Overcharging - Farmers are overcharged (it cost more to ship good from Chicago to Detroit that from London to New York) Bribery, Gov’t land grants Crédit Mobilier scandal -Construction companies set up by Union Pacific Railroad and a member of Congress. Basically signing contracts with themselves, inflating bills to make money. The same investors controlled both companies. Robber Barons – Men that make as much money as possible in an industry and give nothing back. Land grants – 120 million acres of private land – larger than New England, New York and PA combined. Union and Central Pacific received enough land to cover most of the cost of building their lines – what to do with the extra money??? Bribe members of Congress to get more grants – make more $ acquiring gov’t land grants than operating railroads. Crédit Mobilier – construction company set up by stockholders of Union Pacific, Oakes Ames (member of Congress). Signed contracts with themselves and inflated bills to Union Pacific. To get more grants – sold shares to other members of congress at well below market value. 1872 letter sent to New York Sun listing members of congress who accepted shares – speaker of the house James G Blaine, Representative James Garfield (later president Garfield), Vice President Schuyler Colfax. No criminal or civil charges filed, or any problems with election outcomes.

7 Captain of Industry Not all entrepreneurs were Robber Barons
James J Hill – Great Northern Railroad from Wisconsin/Minnesota to Washington. No federal land grants or subsidies. Low fares. Hauled goods both east and west. Only transcontinental railroad not forced into bankruptcy Land grants – 120 million acres of private land – larger than New England, New York and PA combined. Union and Central Pacific received enough land to cover most of the cost of building their lines – what to do with the extra money??? Bribe members of Congress to get more grants – make more $ acquiring gov’t land grants than operating railroads. Crédit Mobilier – construction company set up by stockholders of Union Pacific, Oakes Ames (member of Congress). Signed contracts with themselves and inflated bills to Union Pacific. To get more grants – sold shares to other members of congress at well below market value. 1872 letter sent to New York Sun listing members of congress who accepted shares – speaker of the house James G Blaine, Representative James Garfield (later president Garfield), Vice President Schuyler Colfax. No criminal or civil charges filed, or any problems with election outcomes.

8 Interstate Commerce Act of1887
Limited and regulated railroad business practices Panic of 1893 Economic depression that also demonstrates the power and influence of the railroad big business


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