1. Ch.9 Sec.2 The Railroads

2. Linking the Nation Post Civil War Railroad System In 1865 almost all railroad track was east of the Mississippi Westward expansion spurred the demand for railroad expansion in the West Pacific Railway Act Passed by Lincoln in 1862 Provided funds to build a transcontinental railroad The govt hired two companies to build it: Union Pacific Central Pacific

3. The Transcontinental Railroad The Union Pacific Started & owned by Grenville Dodge Began in Omaha, Nebraska Company faced blizzards, desert heat, & Native Americans Central Pacific Bought and expanded by four merchants from California Co-owner Leland Stanford went on to become a governor & senator Began in Sacramento California Hired & imported workers from China to cut labor costs

4. Railroads Spur Growth Railroad Nationalization Many investors began buying up smaller railroad companies to create one unified rail system The U.S. railway system eventually became divided into 7 companies Cornelius Vanderbilt One of the richest railroad investors of the time Commissioned the building of New York’s Grand Central Terminal

5. Railroads Spur Growth Time Zones – U.S. was divided into four zones Made rail service safer and more reliable Became recognized federally in 1918 Land Grants The U.S. Govt had to entice companies to build more rail lines in the West Free land was given to railroad companies in exchange for construction & maintenance of railroads

6. The Railroad Boom Robber Barons Nickname given to many railroad investors of the 1800s The nickname “robber barons” was given due to their reputation of swindling others for personal gain Investor Jay Gould was the most notorious Credit Mobilier Scandal Several railroad investors set up a dummy construction company that could overcharge other companies Made several million dollars before being exposed