Transcontinental Railroad
May 10, 1869 Promontory, Utah
Power of the Railroad Companies
Transcontinental Railroad
Credit Mobilier
Created by the
stockholders of the Union
Pacific Railroad.
• Influenced the growth of towns and communities
especially in the west.
• Made Local & transcontinental travel reliable
• Created a standard time and time zone
Charged 2 to 3 times as
the actual cost to lay
track.
The stockholders
pocketed the profits.
– Watch times were set by the sun. Noon was when the sun was
directly overhead. Noon was 12min later in New York than in
Boston. Travelers from east to west would have to set their
watches 20 times.
• Power of the railroad companies caused the need for
government regulation of the industry.
Gave stock in Credit
Mobilier as gifts to
Congressman. (1867)
Harper's Weekly March 15, 1873
In this brilliant double-edged sword of a print, Justice stands defiant pointing the finger at the group of now
disgraced Congressmen while scolding the editors of the nation's major newspapers: the New York Herald, New
York Tribune and Chicago Tribune. Justice says to the "Saints of the Press": "Let Him who has not betrayed the
trust of the People, and is without stain, cast the first stone."
Railroads v. the Grange
Fighting against the Railroads
Granger Laws
The Grange convinced states to pass laws to regulate railroad rates.
Farmers claimed that Railroads:
Munn v. Illinois (pg. 239)
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Misused government land grants.
Railroads fixed prices that kept farmers in debt.
Railroads charged different customers different rates.
Railroads charged more for short hauls then long hauls.
1877 Supreme Court upheld the Granger Laws.
Giving the federal government the right to regulate private industry.
Interstate Commerce Act 1887
Established the Interstate Commerce Commission to supervise
railroad activities across state lines.
The ICC regulated railroad rates. Unfortunately the power of
the ICC was tied up in court battles with the railroad
companies.
1
1880 George M. Pullman created the town of Pullman,
Illinois to house his employees. The company produced
railroad cars.
Pullman created this town for control of his employees
as well as profit.
The town provided for all of the
employees basic needs.
Doctors Offices
Shops
Schools & A Library
Athletic fields and parks.
Everything was tightly controlled by
the company.
Homes were clean & well
constructed brick houses
& apartment buildings.
In all the homes each
room was required to have
at least one window.
Mr. Pullman thought a tightly
controlled environment would equal a
stable work force.
Residents were not allowed to
loiter on front steps or drink
alcohol.
2