1. Eden Moskona APUSH-3 Hafter 2-2-14
RAILROADS
Eden Moskona
APUSH-3
Hafter
2-2-14

3. Captains of Industry OR Robber Barons: Cornelius Vanderbilt and Railroads
Acquired his wealth in steamships and expanded into railroads in 1860s
Revamped northeast railroads through consolidation and standardization
New York Central Railroad
Regional railway system from New York to Chicago
Replaced and built lines with standard gauges
Implementation of steel
Stronger to carry heavier loads
Safer due to no corrosion
Vanderbilt University

4. Railroads Drive the Economy
Growth and Influence
35,000 miles (1865) to 200,000 miles (1900)
First Transcontinental Railroad (1869)
Leland Stanford’s Union Pacific and Central Pacific meet at Promontory Summit, UT
Market connections, boomtowns, and jobs
Federal Government Involvement
Pacific Railway Acts
Land grants and government bonds to railroad companies
Requirement of standardized gauges
By 1871, federal and state governments sold 300,000,000 acres of land to railroads
Innovation and Improvement
Standardized gauges
Westinghouse air brakes
Steel
Time zones

7. The Business of Railroads
Rate Wars
Competition among railroad companies was fierce and intense
Stronger companies lowered rates to drive out weaker companies
Led to monopolies
Increased rates dramatically
Long haul and short haul rates
Price discrimination favored commercial farmers over small farmers
Stock watering/watered stock
Inflated stocks led to higher consumer rates
Pools
Competing lines fixed prices and divided business for max profits
Grange Lines
Midwest farmers dependent on rail lines for shipping
High freight rates impoverished farmers

8. Jay Gould
In the age of great railroad barons, no man was more infamous than Jason “Jay” Gould.
Gould earned his unsavory reputation for his shady dealings with the Erie Railroad in 1867, and a failed attempt in 1869 to corner the American gold market.

9. Great Railroad Strike of 1877
July 14-September 4, 1877
Causes
Panic of 1873
Class conflict with wage cuts and unemployment
Events
Strikers forced rail stoppages
Federal troops engaged strikers
Riots and massacres
Impact
Would lead to better organization of workers and labor unions
Legislation to limit unions and preparations for potential conflicts