Chapter 24 Flashcards
How did the government help railroad companies?
Granted them acres of land
Withheld land from other industries for the railroads
How did cities rise?
Railroads transported supplies and food to support big populations in one area
Paddies
Irishmen that worked on the Union Pacific Railway
Indians vs. Railroad Workers
Often as railroads expanded Westward, they would come into contact with Indians and fight eachother
The Big Four
Chief financial bankers of the Central Pacific Railroad
Used two construction companies to gain profit
Stayed clean by not bribing politicians
What workers did the Central Pacific use?
Chinese
Great Northern Railroad
Thought by James J. Hill
Ran from Duluth to Seattle
Understood that in order for a railroad to be successful the land around it had to be successful, so he built up agriculture
Cornelius Vanderbilt
Offered superior railway service at lower rates
Used steel rails
What factor spurred the most industrialization?
The railroads
How did railroads impact the West?
Transported miners and supplies to the mines
Transported farmers to their fields
Destroyed the enviornment
Time zones
Previous to railways, each town had its own time zone based on the sun’s position
The railways made “standard times”
Jay Gould
swindled money out of the railroads
manipulated the system
Stock watering
railroad stock promoters made lines look better than they actually were
sold stocks and bonds far in excess of the railroad’s actual value
Pool
An agreement to divide business in a given area and share the profits
Originated in the railroads
What did the depression of the 1870s cause?
Farmers to demand a change of railroad aristocracy
Wabash Case
Individual states had no power to regulate interstate commerce
made the federal government in control of big business
Interstate Commerce Act
Prohibited rebates and pools
Required the railroads to publish their rates openly
Forbade unfair discrimination against shippers (cannot charge more for same travel based on company)
Pros and Cons of Interstate Commerce Act
Con: Most of the time federal government did not persecute businesses
Pro: allowed competing businesses to resolve conflicts in peaceful ways
Red letter law
The Interstate Commerce Act gave the federal government the daunting task of regulating business in the future
Mesabi Range
Iron ores found in Minnesota
Became the cornerstone of the steel industry
Immigration
provided a labor force
Interlocking directorates
Used by JP Morgan
Placing officers of his own on the boards of other companies