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Chapter 6 Sec. 2

Chapter 6 Sec. 2. What problems did employees of the railroad companies face? What was it like to live as a Pullman employee in the town of Pullman? Who was involved in Credit Mobilier , and what was the purpose of this company?

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Chapter 6 Sec. 2

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  1. Chapter 6 Sec. 2 • What problems did employees of the railroad companies face? • What was it like to live as a Pullman employee in the town of Pullman? • Who was involved in Credit Mobilier, and what was the purpose of this company? • In what ways did the railroad companies use their power to hurt farmers? • Why didn’t the Munn v. Illinoiscase succeed in checking the power of the railroads? • Why didn’t the Interstate Commerce Act limit the powers of the railroads?

  2. Benefits: R.R. companies built transcontinental and local lines Regions of the nations are now united R.R. time becomes the nation’s standard, linking the U.S. in one more way Jobs created Drawbacks: The unchecked power and greed of the railroad companies led to widespread corruption and abuse of power The Age of the Railroads

  3. Transcontinental Railroad

  4. Important event transcontinental railroad • The Union Pacific Railroad and Central Pacific Railroad met in 1869 at Promontory Point, Utah (east coast is linked to west coast) • May 10, 1869 a golden spike is laid to mark the spot where the rail lines met

  5. 1. What problems did employees of the railroad companies face? • Attacks by Native Americans • Disease, sickness, accidents • Low wages • Discrimination (Chinese/Irish workers)

  6. 2. What was it like to live as a Pullman employee in the town of Pullman? *Pullman Company produced railroad sleeping cars • Clean, safe environment • Lives were controlled by the company (no drinking, must attend church, must shop in company stores, etc.)

  7. 3.Who was involved in Credit Mobilier, and what was the purpose of this company? • Railroad magnates, stockholders in the Union Pacific Railroad and federal officials set up this company as a way to siphon off, (steal), railroad profits from the public for themselves

  8. 4. In what ways did the railroad companies use their power to hurt farmers? • Railroads sold their land grants to businesses instead of to the settlers • Controlled prices to keep farmers in debt to them • Practiced rate discrimination by overcharging farmers to ship their crops

  9. 5. Why didn’t the Munn v. Illinoiscase succeed in checking the power of the railroads? • The supreme court later reversed the Munn decision, ruling that a state could not set rates on interstate commerce = the public interest (farmers) were no longer protected from unfair railroad price setting

  10. 6. Why didn’t the Interstate Commerce Act limit the powers of the railroads? (Interstate Commerce Act = law granting congress the ability to regulate the activities of the railroad companies) • The ICC’s efforts were hampered by long legal processes, the resistance of the railroads, and a Supreme Court ruling that the ICC couldn’t set maximum railroad rates.

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