Notes on the Age of Railroads and Its Social Implications

One American's Story

  • Richard Ely, an economist, visited Pullman, Illinois in October 1884 for Harper’s Magazine.
  • Initially impressed by the planned town designed by George M. Pullman for railroad-car factory employees.
  • Upon speaking with a dissatisfied officer, Ely concluded the town had significant flaws:
    • Restrictions on residents with no say in rules.
    • Declared: "the idea of Pullman is un-American."

The Influence of Railroads

  • Railroads impacted many aspects of American life, including:
    • Standard time and time zones established due to the need for synchronization across distances.
    • Growth of towns and communities due to reliability in local transit and westward expansion.
  • However, the unchecked power of railroad companies resulted in abuses, prompting calls for federal regulation.
Major Terms and Concepts
  • Transcontinental Railroad: Facilitated movement across the continent.
  • George M. Pullman: Established the town of Pullman and controlled living conditions of workers.
  • Crédit Mobilier: Construction company associated with corruption involving the Union Pacific Railroad.
  • Munn v. Illinois: Supreme Court case that upheld state regulation of private industry.
  • Interstate Commerce Act: Law passed to regulate railroad activities at the federal level.

Growth of a National Network

  • By 1856 railroads reached the Mississippi River, expanded westward rapidly.
  • Joining of the Central Pacific and Union Pacific Railroads at Promontory, Utah (May 10, 1869) marked the first transcontinental railroad completion with a golden spike.
  • Track mileage grew from 30,000 miles at the start of the Civil War to nearly 180,000 miles by 1890.
  • Railroad stories of triumph continued alongside harsh working conditions endured by laborers, especially immigrants.
Railroad Conditions
  • Chinese immigrants worked for Central Pacific and Irish immigrants for Union Pacific.
  • Fatalities and injuries high:
    • 1888 railroad statistics: over 2,000 deaths and 20,000 injuries yearly.
  • Time zones proposed by Professor C. F. Dowd in 1869 led to synchronization of time across the nation by 1883.

Economic Opportunities

  • Railroad expansion resulted in the rapid growth of industries (iron, coal, steel, etc.) to meet demand.
  • New towns established along rail routes (e.g., Abilene, Flagstaff, Denver, Seattle).
The Pullman Company
  • George M. Pullman built a factory for railroad cars and a town that provided for workers’ needs (housing, shopping, services).
  • Despite clean, well-constructed homes, Pullman maintained strict control (e.g., prohibiting loitering, drinking).
  • A significant strike in 1894 occurred due to refusal to lower rents after wage cuts.

Corruption and the Credit Mobilier

  • Crédit Mobilier scandal: Union Pacific stockholders contracted their company at inflated prices, pocketing profits and bribing Congress.

  • Congressional investigations revealed widespread corruption involving high-ranking officials, damaging reputations.

  • The Grangers, a farmers’ organization, sought government relief against railroad abuses.

Farmer Response and Regulation

  • Granger Laws passed by various states to regulate railroad rates and practices following farmer dissatisfaction.
  • Munn v. Illinois (1877) confirmed states’ rights to regulate railroads.
  • In reaction to public dissatisfaction, the Interstate Commerce Act (1887) established federal oversight of interstate rail rates but faced resistance.
Economic Consequences
  • Economic turmoil in the 1893 panic led to significant bankruptcies and consolidation of railroads under a few powerful firms.
  • By the early 20th century, seven companies dominated two-thirds of the railroads.