the growth and consolidation of railroads benefit the nation but lead to corruption and regulation
TRANSCRIPT
Big Idea
The growth and consolidation of railroads benefit the nation but lead to corruption and regulation.
Transcontinental Railroad
First achieved in 1869 when the Central Pacific was joined with the Union Pacific at Promontory, Utah
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
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
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)
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