The Railroads

Ch.9 Sec.2The RailroadsLinking the NationPost Civil War Railroad SystemIn 1865 almost all railroad track was east of the MississippiWestward expansion spurred the demand for railroad expansion in the WestPacific Railway ActPassed by Lincoln in 1862Provided funds to build a transcontinental railroadThe govt hired two companies to build it:Union PacificCentral Pacific

The Transcontinental RailroadThe Union PacificStarted & owned by Grenville DodgeBegan in Omaha, NebraskaCompany faced blizzards, desert heat, & Native AmericansCentral PacificBought and expanded by four merchants from CaliforniaCo-owner Leland Stanford went on to become a governor & senatorBegan in Sacramento CaliforniaHired & imported workers from China to cut labor costsRailroads Spur GrowthRailroad NationalizationMany investors began buying up smaller railroad companies to create one unified rail systemThe U.S. railway system eventually became divided into 7 companiesCornelius VanderbiltOne of the richest railroad investors of the timeCommissioned the building of New Yorks Grand Central TerminalRailroads Spur GrowthTime Zones U.S. was divided into four zonesMade rail service safer and more reliableBecame recognized federally in 1918Land GrantsThe U.S. Govt had to entice companies to build more rail lines in the WestFree land was given to railroad companies in exchange for construction & maintenance of railroads

The Railroad BoomRobber BaronsNickname given to many railroad investors of the 1800sThe nickname robber barons was given due to their reputation of swindling others for personal gainInvestor Jay Gould was the most notoriousCredit Mobilier ScandalSeveral railroad investors set up a dummy construction company that could overcharge other companiesMade several million dollars before being exposed