TX History Ch 22.1

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Chapter 22: Railroads & Farming Section 1: The Growth of Railroads

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Railroads were big business in the mid to late 1800s in the United States. Explain why railroads were so important to citizens of America at this time. Be sure to include in your answer railroads monopolies and other economic abuses of the railroads (short answer question). Solution Railroads were big business in the mid to late 1800s in the United States. In the mid to late 1800s or in Beginning in the nineteenth century in the United States. Until the late 1800s the federal government encouraged the growth of big business. By the end of the century.A huge system of railroads was developed that to moved goods and people across great distances, facilitated the settlement of large portions of the country, created towns and cities, and unified a nation. The earliest railways in the United States were short, wooden railways. The first locomotive for use on railways was imported from England in 1829. By 1840, railroad track in the United States had reached almost three thousand miles. There were Several other innovations helped foster the growth of railroads between 1840 and 1860. Between 1890 and 1900 another 40,000 miles of track were added to the railroad net; after 1900, still another 60,000 miles of line were built railroads monopolies and other economic abuses of the railroads Developing of railroads rapidly became huge businesses, imperative to the success of American enterprise. The main need of the railroads helped create several other many industries like steel, copper, glass, tools, and oil etc. The need for all of these industries to stay successful was worrisome for railroad owners. The result was a revolution in the organization and scale of enterprise: \"Big business reached greater markets than were ever conceived of before and could benefit from the ability to raise vast amounts of capital that made possible the cost economies of large-scale production\" With these huge amount of capital, the railroad companies were able to finance the political campaigns through whatever and whomever was needed in government. With this control in Washington, there was no way to stop the overwhelming control of this industry over society. So we can say that the entire nation was subject to the whims of this monopoly. We can highlighteconomic abuses of the railroads as follow the railroads acquired control of many facets of the new economy. This body now had the ability to \"squeeze out competitors, force down prices paid for labor and raw materials the railroads companies were charged customers more they get special favors and treatments from National and State government\" . The railroads had all the power, because they controlled all the prices. as we all know that citizens of the west could not survive without the use of the railroads, they were forced to pay whatever rates the raildroad companies set. ..

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9/7/2015 IEB Wireframe http://textflow.mheducation.com/parser.php?secload=19.2&fake&print 1/3 RAILROADS: AMERICA'S FIRST BIG BUSINESS In 1882, the year T. S. Hudson scampered across America, clocks in New York and Boston were 11 minutes 45 seconds apart. Stations often had several clocks showing the time on different rail lines, along with one displaying “local mean time.” In 1883, without consulting anyone, the railroad companies divided the country into four time zones an hour apart to clean up this inefficient mess. Congress did not get around to making the division official until 1916. Page 380 At the center of the new industrial systems lay the railroads, moving people and freight, spreading communications, reinventing time, tying the nation together. Railroads also stimulated economic growth, simply because they required so many resources to build—coal, wood, glass, rubber, brass, and, by the 1880s, 75 percent of all U.S. steel. By lowering transportation costs railroads allowed manufacturers to reduce prices, attract more buyers, and increase business. Perhaps most important, as America's first big business they created techniques of modern management, soon adopted by other companies. A Managerial Revolution A Managerial Revolution To the men who ran them, railroads provided a challenge in organization and finance. In the 1850s one of the largest industrial enterprises in America, the Pepperell textile mills of Maine, employed about 800 workers. By the early 1880s the Pennsylvania Railroad had nearly 50,000 people on its payroll. From paying workers to setting schedules and rates to determining costs and profits, everything required a level of coordination unknown in earlier businesses. The so–called trunk lines devised new systems of management. Scores of early companies had serviced local networks of cities and communities, often with fewer than 50 miles of track. During the 1850s longer trunk lines emerged east of the Mississippi to connect the shorter branches, or “feeder” lines. By the outbreak of the Civil War, with four great trunk lines under a single management, railroads linked the eastern seaboard with the Great Lakes and western rivers. The operations of large lines spawned a new managerial elite, beneath owners but with wide authority over daily operations. Daniel McCallum, superintendent of the New York and Erie in the 1850s, laid the foundation for this system by drawing up the first table of organization for an American company. A tree trunk with roots represented the president and board of directors; five branches constituted the main operating divisions; leaves stood for the local agents, train crews, and others. Information moved up and down the trunk so that managers could get reports to and from the separate parts. 9/7/2015 IEB Wireframe http://textflow.mheducation.com/parser.php?secload=19.2&fake&print 2/3 MAP 19.1: RAILROADS, 1870–1890RAILROADS, 1870–1890 By 1890 the railroad network stretched from .

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How did the concept of strict constructionism affect the development of banking and transportation during the antebellum years? Solution TRANSPORTATION Two canals were built in the 1790s: the Santee in South Carolina and the Middlesex in Massachusetts. More, the most successful of which was the Erie, which connected between New York City and the upper Midwest, were built later. Canals\' great advantage was that one work animal could move as much freight as 50 could on land. They were, however, very expensive to build and possible to build in only a few places. Their highfixed costs made them economic only where the volume of traffic would be high. Fixed costs are costs which do not vary with the level of output or (in this case) service. The higher is the level of output or service, the lower are fixed costs per unit of output or service. Other costs are called variable costs. Technologically, building canals were a challenge. Most of the money invested in canals was provided by state and local governments, mostly with funds acquired via taxation Low cost transportation, of course, boosted economic activity, and this is how spending this money was justified Atack and Passel estimate that they drove the cost of transportation down from 20 cents per ton mile in 1810s to 2 to 3 cents per ton mile in the 1820s. The last canals built were failures.Another major improvement in transportation was the development of the steamboat, which made it possible to cheaply transport freight and people upstream and speed downstream trips. Prior to their development the muscle power of humans or animals was required to drag boats upriver. Robert Fulton demonstrated the first successful steamboat in 1807. In 1815, the feasibility of using them to transport freight up the Mississippi was demonstrated. The removal of snags in rivers and reductions in steamboats\' draft made more areas reachable. Night travel eventually became possible. Larger steamboats reaped economies of scale. Boiler explosions and a short useful life were problems. Competition became fierce, driving down price. The first railroads faced not only technological problems, but hostility from those associated with competing forms of transportation. Also, some feared traveling over 20 miles per hour would kill a person. Some didn\'t want these noisy, smoky things around. Decatur, Georgia, for example, turned down the opportunity to have a rail line the State of Georgia was building from the Tennessee River terminate there. As a result, it ended a few miles away, where a new town called Terminus came into being. Today this town is the City of Atlanta. More fortunate than Atlanta transportation wise was Chicago, a mid-continent, Great Lakes port that became a major rail center. Railroads could travel uphill. They could reach inland areas not near rivers. They could be built at a fraction of the cost of a canal. Their speed exceeded that of a wagon, and they could transport a ton at a far lower cost th.

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TX History Ch 22.1

1. Chapter 22: Railroads & Farming Section 1: The Growth of Railroads

3. New Railroad Lines

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TX History Ch 22.1

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