Warm Up. 1) Create a bubble map on everything you know about Railroads/ facts that you can find online. 2) Your map should have 20 bubbles

Transcription

1 Warm Up 1) Create a bubble map on everything you know about Railroads/ facts that you can find online 2) Your map should have 20 bubbles

2 Warm Up I. Watch the crash course video on the Industrial Economy on Youtube and answer the questions on Google Classroom

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4 Railroads & Big Business

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7 The Rise of Railroads I. As American industry increased during the 19 th century so did the size and power of railroads II. Railroads offered a fast way to transport goods and people quickly across the nation III. Railroads connected the different regional economies of the USA leading to nationwide economic prosperity

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12 Railroad and Time: I. Prior to 1883 every city operated on its own time A. 12 (Noon) was when sun was highest. B. Was not a problem when transportation was slow II. With rapid transport time became an issue in the U.S. III. Railroad companies adopted time zones A. The U.S. was divided into 4 zones: Eastern, Central, Mountain, and Pacific

13 THE UNITED STATES IS DIVIDED INTO 4 TIME ZONES

14 Railroads Spur Other Industries: I. Railroads growth led to: A. Rapid growth of industries like coal, steel & lumber B. New markets for regional products C. Rapid settlement of the West D. Growth of cities (Chicago, Denver, Atlanta) i. New towns are created on ii. Railroad lines Don t have to be on the coast to become a major trading place

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16 Pullman Factory & Town I. In 1880, George Pullman built a factory for manufacturing sleeper and other railroad cars in Illinois II. Pullman also built a town his employees modeled after industrial European towns A. Town offered nice apartments, amenities, shops, doctors office and athletic fields B. Residents were expected to follow strict rules to ensure profits III. Pullman workers began a violent strike when he lowered wages but not rent in 1894 (Pullman Strike)

17 Credit Mobilier Scandal I. The Credit Mobilier Scandal was one of the worst examples of the growing power of RRs in the USA II. Stockholders of Union Pacific Co. created a construction company called Credit Mobilier A. Union Pacific gave RR contracts to Credit Mobilier to lay track at 3X the actual cost B. Union Pacific donated some shares to Republicans in the US government C. Defrauded over $23,000,000 (some from US tax payers) III. The Credit Mobilier scandal tarnished the Republican Party s reputation nationwide

18 Farmers & The Railroad I. Farmers were negatively affected by corruption in the railroad industry II. Grangers (a farmers organization) protested high shipping costs for farmers III. Granger Laws were passed protecting farmers from RR IV. Supreme Court case of Munn vs. Illinois allowed states to control railroads to benefit the people

19 Interstate Commerce Act: I. Prior to 1887 states were given control to regulate railroads II. In 1887 the US government reestablished their control over railroads III. Congress passed the Interstate Commerce Act A. Established an Interstate Commerce Commission B. Federal government regulation of railroads C. Federal > states IV. The federal government now has control over any business that operates between states

20 The Impact of Railroads I. Railroads allowed the US economy to grow dramatically in the 19 th century II. Railroads provided the necessary means to move products throughout the nation leading to the rise of big businesses III. Without RR industrialization could not grow and develop in the USA leaving the US behind the other industrial prosperous nations