Chapter 24 Flashcards
Union Pacific railroad
Go west from Omaha Nebraska
Central pacific
Started in Sacramento and went through Sierra Nevada
Backed by Leland Stanford and Collis Huntington
Northern pacific
Lake Superior –> puget sound
Atchison, Topeka, and Santa Fe
Through sw deserts to California
Southern pacific
New Orleans to San Francisco
Great northern
Duluth to Seattle
By James j hillran
Stock watering
Railroad stock promoters inflated their claims about a given lines assets and profitability and sold stocks and bonds in excess of the railroads actual value.
Railroad managers forced to charge high rates and wage battles in order to pay off exaggerated financial obligation
Pool
An agreement to divide the business in a given area and share the profits
Wabash case
Decreed individual states had no power to regulate interstate commerce
Federal government needs to fix railroad monopoly
Interstate commerce act
Prohibited rebates and pools
required the railroads to publish their rates openly
Forbade unfair discrimination against shippers
Outlawed charging more for a short haul than for a long one over the same line
Set up interstate commerce commission
Vertical integration
Bought companies for all the steps needed to make product
Horizontal integration
Buying out all the competitors
William Kelley
Discovered Bessemer process
Sherman anti trust act
Forbade combinations in restraint of trade w/out distinction of good trusts and bad trusts
Ineffective because contained so many loopholes
James Buchanan duke
Tobacco industry