The New Industrial Revolution and Railroad Boom

US History: SpiconardiThe New Industrial Revolution and Railroad Boom

Factors That Led To The BoomNew TechnologyThe Air BrakeInvented by George Westinghouse, the air brake allowed all railcars to stop at oncePrior to this, a train traveling 50 mph would have to start braking two miles before the station

Factors That Led To The BoomGauges the distance between to parallel railsAllowed American railroads to join together to create networks. Prior to this, certain trains could not travel on certain tracks

Gauge sizes throughout the world

Roman Chariot and its influence on the development of gauges

Factors That Led To The BoomOilThe development of oil into gasoline gave engines a new source of power

Factors That Led To The BoomSteelThe Bessemer Process allowed steel to be made stronger at a much lower cost (85% decrease in costs).

Factors That Led To The BoomMore Comfortable TravelPullman Sleeping CarsDining CarsIncreased ridership

The Railroad BoomTwo more transcontinental railroads builtNew JobsNeeded people toProduce steelMine iron & coal for steelDrill oilConstruct gaugesConstruct new tracks

The Railroad BoomCompanies and PracticesElimination of CompetitionConsolidation combine smaller railroad companies to create large railroad corporations Believed this would lead to more efficient operations of the railroads

The Pennsylvania Railroad Co. was actually comprised of 73 smaller railroad companiesThe Railroad BoomRebates a special discount given to a railroad companys best customersIf a shipper promised to exclusively use a railroad company, they would be granted the special low freight rateThis allowed a shipper to undercut their competitorsSmaller railroad companies and shipping companies would go out of business due to rebates

Modern day rebate for an HP LaserJet printerThe Railroad BoomPools Railroad companies in the same market would agree to divide up business to avoid competitionThis led to price fixingPrice fixing Railroad companies would conspire to charge the same high shipping rates to customers

The Railroad BoomCornelius VanderbiltRailroad tycoon known as the CommodoreWould buy massive amounts of stock in Railroad companies to take them overControlled all the railroad lines into Manhattan New York Central and Hudson, Harlem, New Haven linesKnown as a ruthless business manWound up buying most of the rail lines between Buffalo and Chicago

Grand Central Depot