Page 1

Railroads & Big Business or... how the rich got richer.

Tuesday, February 2, 2010


Building the Railroads • • • •

Tuesday, February 2, 2010

Black Gold. Bessemer Process By 1890 210,000 miles. Immigrants and poor.


What the Railroad Brings • Money • Job opportunities. • Towns. • Cattle Transportation. • Product Transportation. • Standard Time (Four Time Zones) Tuesday, February 2, 2010


Tuesday, February 2, 2010


Price Gouging •

Railroads charge different prices to different customers.

• •

1877 Munn v. Illinois

Tuesday, February 2, 2010

1887 Interstate Commerce Act


Corporations, Companies, and Corruption •

Corporations - sell stock. Incorporate.

Companies - privately held by one or a small group.

Crédit Mobilier scandal 1867.

Tuesday, February 2, 2010


Economics Terms • Specialization • Interdepedence • Comparative Advantage • Vertical Integration • Horizontal Integration Tuesday, February 2, 2010


Monopoly! Tuesday, February 2, 2010


Trusts and Pools •

Pools: Gentlemen’s agreements regarding prices within an industry. Outlawed in 1887.

Trusts: Larger companies would hold “in trust” the finances of another company.

Tuesday, February 2, 2010


Holding Companies •

Act as owners of multiple trusts.

Hold stock in multiple corporations within an industry.

Potentially leads to combinations.

Tuesday, February 2, 2010


Government Action Against Railroad Corporations • •

Munn v. Illinois 1887

1890 Sherman Anti-Trust Act.

Tuesday, February 2, 2010

Interstate Commerce Act 1887

Railroads and Big Business  

Notes for Mr. Byrne's US History students.

Read more
Read more
Similar to
Popular now
Just for you