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The Impact of Railroads on the Nation

This lesson explores the role of railroads in unifying the country, the positive and negative effects of railroads on the economy, and the demand for railroad reform. It discusses the growth and consolidation of railroads, the benefits and drawbacks of their expansion, the influence on other industries, and the impact on cities and towns.

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The Impact of Railroads on the Nation

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  1. STANDARD(S): 11.1 Students analyze the significant events in the founding of the nation. LESSON OBJECTIVES/ GOALS/ SWBAT • Identify the role of the railroads in unifying the country. • List positive and negative effects of railroads on the nation’s economy. • Summarize reasons for and outcomes of the demand for railroad reform.

  2. A BULLDOG ALWAYS Commitment Attitude CARES Respect Encouragement Safety

  3. Section 2 The Age of the Railroads The growth and consolidation of railroads benefits the nation but also leads to corruption and required government regulation. NEXT

  4. SECTION 2 The Age of the Railroads Railroads Span Time and Space Railroads Encourage Growth • Rails make local transit reliable, westward expansion possible • Government makes land grants, loans to railroads - to help settle West - to develop country Continued . . . NEXT

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

  6. Railroads and Land Grants Realizing that railroads were critical to the settlement of the West and the development of the nation, the federal government made huge land grants and loans to the railroad companies.

  7. Chapter 6; Section 2 • A – What were the effects of railroad expansion? • The growth of industries that could ship to new market; • Hazardous jobs for railroad workers; • An increase of immigration and migration to the West.

  8. SECTION 2 The Age of the Railroads Railroads Span Time and Space • A National Network • 1859, railroads extend west of Missouri River • 1869, first transcontinental railroad completed, spans the nation Continued . . . NEXT

  9. A NATIONAL NETWORK By 1869, tracks had been laid across the continent (Golden Spike was placed at Promosory Point – Utah)

  10. A NATIONAL NETWORK 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

  11. SECTION 2 continuedRailroads Span Time and Space • Romance and Reality • Railroads offer land, adventure, fresh start to many • People of diverse backgrounds build railroad under harsh conditions: • - Central Pacific hires Chinese immigrants • - Union Pacific, Irish immigrants, Civil War vets • Accidents, disease disable and kill thousands every year NEXT

  12. BENEFITS The railroad companies built transcontinental and local lines. The nation was transformed from a collection of regions into a united nation. Railroad time became the nation’s standard, linking Americans in one more way.

  13. DRAWBACKS The unchecked power and greed of the railroad companies led to widespread corruption and abuse of power.

  14. SECTION 2 continuedRailroads Span Time and Space • Railroad Time • 1869, C. F. Dowd proposes dividing earth’s surface into 24 time zones • 1883, U.S. railroads, towns adopt time zones • 1884, international conference sets world zones, uses railroad time • - Congress adopts in 1918 NEXT

  15. 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

  16. THE UNITED STATES IS DIVIDED INTO 4 TIME ZONES

  17. THE WORLD IS DIVIDED INTO 24 TIME ZONES

  18. SECTION 2 Opportunities and Opportunists • New Towns and Markets • Railroads require great supply of materials, parts • Iron, coal, steel, lumber, glass industries grow to meet demand • Railroads link isolated towns, promote trade, interdependence • Nationwide network of suppliers, markets develops • Towns specialize, sell large quantities of their product nationally • New towns grow along railroad lines Continued . . . NEXT

  19. RAILROADS LED TO GROWTH OF CITIES Many of today’s major cities owe their legacy to the railroad Chicago, Minneapolis, Denver, and Seattle all grew up thanks to the railroad

  20. Chapter 6; Section 2 • B – How did the railroads affect cities? • Railroads led to the growth of cities in the Northwest and Midwest and led to the development of new cities in the West.

  21. SECTION 2 continuedOpportunities and Opportunists • Pullman • 1880, George M. Pullman builds railcar factory on Illinois prairie • Pullman provides for workers: housing, doctors, shops, sports field • Company tightly controls residents to ensure stable work force NEXT

  22. PULLMAN: FACTORY & TOWN In 1880, George Pullman built a factory for manufacturing sleepers and other railroad cars in Illinois

  23. The nearby town Pullman built for his employees was modeled after early industrial European towns

  24. PULLMAN: FACTORY & TOWN Pullman workers felt his puritanical town was too strict When he lowered wages but not rent – it led to a violent strike in 1894

  25. SECTION 2 continuedOpportunities and Opportunists • Crédit Mobilier • Wish for control, profit leads some railroad magnates to corruption • Union Pacific stockholders form construction company, Crédit Mobilier • - overpay for laying track, pocket profits • Republican politicians implicated; reputation of party tarnished NEXT

  26. 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 members of Congress in 1867 POSTER FOR BOGUS CONSTRUCTION COMPANY

  27. Credit Mobilier, and what was made up of Railroads magnates, stockholders in the Union Pacific Railroad, & federal officials. The goal was to siphon off railroad profits for themselves.

  28. Chapter 6; Section 2 • C – How did railroad owners use Credit Mobilier to make huge, undeserved profits? • By charging too much for railroad construction and paying off govt officials.

  29. SECTION 2 The Grange and the Railroads • Railroad Abuses • Farmers angry over perceived railroad corruption • - railroads sell government lands to businesses, not settlers • - fix prices, keep farmers in debt • - charge different customers different rates Continued . . . NEXT

  30. Shipping Goods Farmers were especially affected by corruption in the railroad industry

  31. SECTION 2 The Grange and the Railroads Granger Laws • Grangers sponsor state, local political candidates • Press for laws to protect farmers’ interests • Munn v. Illinois—Supreme Court upholds states’ right to regulate RR • Sets principle that federal government can regulate private industry Continued . . . NEXT

  32. THE GRANGE & THE RAILROADS 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 Munn v. Illinois—Supreme Court upholds states’ right to regulate RR GRANGERS PUT A STOP TO RAILROAD CORRUPTION

  33. Chapter 6; Section 2 • D – How did the Grangers, who were largely poor farmers, do battle with the giant railroad companies? • The farmers took political action in one united front. • They pressed legislators to pass laws to protect them

  34. SECTION 2 continuedThe Grange and the Railroads Interstate Commerce Act • 1886, Supreme Court: states cannot set rates on interstate commerce • Public outrage leads to Interstate Commerce Actof 1887 - federal government can supervise railroads - establishes Interstate Commerce Commission (ICC) • Legal battle with railroads; difficult for ICC to take action NEXT

  35. 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

  36. SECTION 2 continuedThe Grange and the Railroads • Panic and Consolidation • Abuses, mismanagement, competition almost bankrupt many railroads • Railroad problems contribute to panic of 1893, depression • By mid-1894, 25% of railroads taken over by financial companies NEXT

  37. The Panic of 1893 • A serious economic depression in the United States that began in 1893. • Similar to the Panic of 1873, it was marked by the overbuilding and shaky financing of railroads, resulting in a series of bank failures. • Compounding market overbuilding and the railroad bubble was a run on the gold supply. • Next worse to Great Depression.

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