1. Section 2
Railroads
Transform
the
Nation

2. Section 2 Objectives
To analyze the funding for the first transcontinental railroad
To identify the groups that worked on the first transcontinental railroad
To describe the linking together of the two railroads
To evaluate the changes brought about by the railroads

3. Why did Americans want to build a transcontinental railroad?
A railroad that spanned the entire continent would encourage people to settle the West and develop its economy. The economies of the East and the West would be linked through trade. (1)

5. How was the transcontinental railroad financed?
The government lent both the Union Pacific & Central Pacific millions of dollars. It also gave them 20 square miles of public land for every mile of track they laid. The railroad companies then would sell the land to raise money. (2)

6. THE AGE OF THE RAILROADS
The growth and consolidation of the railroad industry influenced many facets of American life
However, the unchecked power of the railroad companies led to widespread abuses and then reforms

7. Railroads Become Scandalous CREDIT MOBILIER SCANDAL
Stockholders of Union Pacific Railroad formed a construction company in 1864
Stockholders then gave contracts to the company to lay track at 3 times the actual costs and pocketed the difference
They donated shares of the stock to 20 Republican members of Congress in 1867
POSTER FOR BOGUS CONSTRUCTION COMPANY

8. INTERSTATE COMMERCE ACT
In 1887, the Federal government re-established their control over railroad activities
Because of railroad abuses Congress passed the Interstate Commerce Act and established a 5-member Interstate Commerce Commission (ICC) (3)
The ICC struggled to gain power until 1906
1887 – CONGRESS PASSED THE ICA

9. THE GRANGE AND THE RAILROADS
Farmers were especially affected by corruption in the railroad industry
Grangers (a farmers organization) protested land deals, price fixing, and charging different rates to different customers
Granger Laws were then passed protecting farmers
States were given regulation control of railroads by the Courts
Grange member formed cooperatives which were owned and run by their members
The bought grain elevators and sold crops directly to merchants (4)
GRANGERS PUT A STOP TO RAILROAD CORRUPTION

10. What problem did the Central Pacific face when hiring workers?
The Central Pacific faced labor shortages because most men wanted to try and strike it rich as miners.

11. How did Chinese workers benefit the Central Pacific?
The Chinese were efficient, fearless and hardworking. Because they followed their own customs and drank tea instead of unboiled water, they were sick less often than other workers.
A great number of Central Pacific’s workers were from China. (5)

12. Where did the Union Pacific get workers?
Union Pacific workers came from a variety of backgrounds including former soldiers from the North & South and freed slaves. One of the largest groups of workers was immigrants, many from Ireland. (5)

13. A NATIONAL NETWORK
By 1869, tracks had been laid across the continent (Golden Spike- Utah)
Immigrants from China and Ireland and out-of-work Civil War vets provided most of the difficult labor
Thousands lost their lives and tens of thousands were injured laying track
IMMIGRANTS FROM CHINA LAID TRACK

14. How did the Union Pacific and Central Pacific companies celebrate the completion of the transcontinental railroad?
A big celebration was held in Promontory, Utah, on May 10,1869. Hundreds of railroad workers, managers, spectators, and journalists gathered. Millions of Americans waited to hear the news by telegraph.

15. The transcontinental railroad was completed in 1868
The transcontinental railroad was completed in The Central Pacific and Union Pacific railroads met in Promontory Point, Utah and laid a Golden Spike

16. What happened in the railroad industry after the transcontinental railroad was built?
Between 1869 and 1890, the amount of money earned by railroads carrying freight grew from $300 million to $734 million per year. (6)

17. Why did the country need a standard time?
It was too difficult to make train schedules when every community determined its own time, based on calculations about the sun’s travels. (7)

18. RAILROAD AND TIME
Before 1883, each community still operated on its own time
For example: Noon in Boston was 12 minutes later than noon in New York City
Indiana had dozens of different times
No standard time reference

19. PROFESSOR DOWD CREATES TIME ZONES
In 1869, to remedy this problem, Professor C.F. Dowd proposed dividing the earth into 24 time zones
The U.S. would be divided into 4 zones: the Eastern, Central, Mountain, and Pacific
1883 – Railroads synchronized their watches across U.S.
1884 – International Conference adopts zones
PROFESSOR DOWD EXPLAINS HIS TIME ZONES

20. THE WORLD IS DIVIDED INTO 24 TIME ZONES

21. THE UNITED STATES IS DIVIDED INTO 4 TIME ZONES

22. How did the railroads benefit the economy?
Railroads linked the economies of the East & West. (8)Raw materials such as lumber, grain, and livestock were carried eastward and processed in Midwestern cities such as Chicago and Cleveland. In turn, manufactured goods from eastern cities were sold to Westerners.

23. RAILROADS SPUR OTHER INDUSTRIES
The rapid growth of the railroad industry influenced the iron, coal, steel, lumber, and glass businesses (9) as they tried to keep up with the railroads demand for materials
The spread of the railroads also led to the growth of towns, new markets, and opportunity for profiteers

24. RAILROADS LED TO GROWTH OF CITIES
Many of today’s major cities owe their legacy to the railroad
Chicago, Minneapolis, Denver, and Seattle (10) all grew up thanks to the railroad
Part of transportation network that crossed the country
“MY KIND OF TOWN”