The growth and consolidation of railroads benefit the nation but lead to corruption and regulation.

Big Idea

The growth and consolidation of railroads benefit the nation but lead to corruption and regulation.

The Age of Railroads (1870)

Railroads 1918

Transcontinental Railroad

First achieved in 1869 when the Central Pacific was joined with the Union Pacific at Promontory, Utah

Transcontinental Railroad

Benefits

Westward expansion of people and businesses  Allowed for the settlement of the West

  Helped establish four time zones in the United

States

Eastern Central Mountain Pacific

Railroad Time

BUT!!!!........Costs

Dangerous work for all involved  1888: 2,000 workers died and 20,000

injured

Very Low Pay (40-60 dollars a month)  African Americans and Chinese workers

paid less

Chinese Railway Workers

George M. Pullman

Built a factory for manufacturing railroad cars

Established a town for workers to live complete with homes, churches, hospitals, and libraries

Very Strict Rules (curfews and no alcohol)

Pullman Cars

Railroad Abuses

Credit Mobilier Scandal

Construction company: skimmed money off of railroads and made political donations

Estimate sum stolen: 23 million dollars

Government Response

Interstate Commerce Act 1887: Allowed the federal gov’t to supervise the

railroads  Was not effective until 1906

The Panic of 1893

Corporate abuse, mismanagement, and overbuilding led many railroad companies to bankruptcy

Led to the Panic of 1893 500 banks closed 15,000 businesses failed 3 million people lost their jobs

Effects of the Panic!!

Railroad companies were bought up by giant banks and companies.

The age of BIG BUSINESS was in full swing

Credit Mobilier Scandal“You Can’t have your cake and eat it too”