Reform & Railroads, Part 2
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Essential Questions:
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Identify significant individuals,
events, and issues regarding
the effects of the growth of
railroads and the contributions
of James Hogg
Explain the political,
economic, and social impact
of the agricultural industry and
the development of West
Texas resulting from the close
of the frontier
Main Idea:
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Railroads impacted the
growth of towns and industries
and the state government
regulated big businesses and
railroads.
Texans Demand Railroads
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Before 1900 most
people traveled by
wagons and buggies.
Poor transportation
slowed Texas’
development.
Farmers and Merchants
could only market
goods in nearby areas –
not many opportunities
to make profits.
A Network of Steel Connects Texas
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Before the Civil War,
only 400 miles of
railroad in Texas.
1872 – First Rail
connections with other
states made.
Towns paid railroads to
build tracks in their
cities.
A Network of Steel Connects Texas
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State encouraged
building through Land
Grant Law of 1876:
16 sections (10,240
acres) of land given to
rail company for every
mile of track built.
32 million acres given
until 1882.
A Network of Steel Connects Texas
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By 1900 10,000 miles of
track in Texas.
Travel times across the
state went from days or
weeks to hours.
New towns built near
railroads. Existing towns
near railroads grew up.
Towns located away or
outside of railroads dried
up.
Towns where rail lines
met became center of
business – Houston, Fort
Worth, Dallas, Austin, San
Antonio – grew into major
cities.
Downtown Dallas, TX 1900
Downtown Ft. Worth, TX 1900
Improving Transportation
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No state road
system existed in
1880s.
Every county built
and maintained its
own roads. Most
roads were unpaved
and became mud
pits, or were very
dusty and dirty.
Improving Transportation
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More and more roads
were built in 1880s and
1890s.
Streetcars and trolley
cars appeared in 1870s
and by 1900, cars were
starting to be seen in
Texas.
Growing popularity of
cars led state to
improve roads.
Monopolies Use Unfair Tactics
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In the late 1800s, large companies that
operated in Texas joined together and
formed trusts.
These trusts:
 helped
to prevent other companies from selling
the same product or service;
 reduced or eliminated competition and free trade;
 could hold a monopoly on a business, which
allowed them to pay very low prices for materials
they bought and charge very high prices for the
goods they sold = huge profits.
 Overall, companies formed trusts to ensure their
business partners would have control over an
industry.
The Cycle of Debt
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Farmers worried
about shrinking
profits received
from their crops.
They found
themselves in a
“cycle of debt” they
could not get out of.
How did the cycle of
debt run?
How did the “the Cycle of Debt” run?
1. Cotton prices fell during 1875 and remained low
through 1900.
2. To offset the drop in prices, farmers borrowed extra
money to buy more land, equipment, seed, and
other supplies to produce more crops =
overproduction.
3. This overproduction dropped the price of cotton
even more.
4. With lower crop prices and increased debts from
land/equipment/seed purchases, many farmers
could not get out of the cycle of debt. They must
produce more and more crops to try to pay debts
and make profits.
Casualty of Commercial Farming
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The rise of
commercial
farming in the
lower Rio Grande
Valley resulted in
displacement of
Mexican American
landowners.
Technological Advancements in
Agricultural Industries
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Barbed Wire – fencing that
prevented cattle and other
animals from destroying crops
Windmills – allowed cattle,
sheep, goats, and crops to be
watered on a farmer’s land,
they did not have to be near a
river or water source
Irrigation – is an artificial
application of water to the soil;
usually used to assist the
growing of crops in dry areas
and during period of
inadequate rainfall
New Laws Prohibits Trusts
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1889 - TX legislature
passed antitrust laws
stopping companies from
joining together to fix
prices or limit production.
Main reason for antitrust
laws – unfair business
practices by railroads.
The law often has been
used to prevent unfair
practices.
New Laws Prohibits Trusts
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In 1887, the U.S. Congress
created the Interstate
Commerce Commission
(ICC). The ICC set rules for
interstate railroads that
connected two or more
states.
As an authority to control
intrastate railroads was also
needed. Intrastate shipments
went from one part of the
state to another.
James Hogg Regulates the
Railroads
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At the request of
Governor James S. Hogg
in 1891, the legislature
created the Texas
Railroad Commission, a
state agency to regulate
railroads operating in
Texas.
Soon, many railroads
ceased unfair practices,
such as fixing prices and
charging more for short
hauls than for long hauls.
James Hogg Regulates the
Railroads
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Since then, the Railroad
Commission has been
expanded to regulate
other industries,
particularly the oil
industry.
Governor Hogg is
remembered as one of
Texas’s most important
governors, in part,
because of his
establishment of the
Texas Railroad
Commission (TRC).
Economic Impact of the
Agricultural Industry
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Products were moved, sold,
and transported across the
nation
New cash crops were
grown in Texas (ex: wheat,
sorghum)
Cotton and corn grown
across the state
Crops affect inflation
Income from agriculture
exceeded income from
cattle ranching by 1900s