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p. 6 RAILROADS : Corruption & Scandal!

p. 6 RAILROADS : Corruption & Scandal!. The unchecked power of the railroad companies led to widespread abuses and then reforms. PULLMAN: A FACTORY & TOWN. In 1880, George Pullman built a factory for manufacturing sleepers and other railroad cars in Illinois

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p. 6 RAILROADS : Corruption & Scandal!

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  1. p. 6 RAILROADS: Corruption & Scandal!

  2. The unchecked power of the railroad companies led to widespread abuses and then reforms.

  3. PULLMAN: A FACTORY & TOWN In 1880, George Pullman built a factory for manufacturing sleepers and other railroad cars in Illinois The nearby town Pullman built for his employees was modeled after early industrial European towns Pullman workers felt his puritanical town was too strict When he lowered wages but not rent – it led to a violent strike in 1894 THE TOWN GEORGE PULLMAN

  4. 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

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

  6. DEPRESSION • The depression of 1893 and 1894 changed the industry. • Many railroads failed, and a few survivors seized many of the rest. • By 1900, seven companies owned most of the nation’s railways.

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