The railroad opened the way for the settlement of the West, provided new economic opportunities, stimulated the development of town and communities, and generally tied the country together.
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Waterways and a growing network of railroads linked the frontier with the eastern cities. Produce moved on small boats along canals and rivers from the farms to the ports. Large steamships carried goods and people from port to port. Railroads expanded to connect towns, providing faster transport for everyone.
Railroads discriminated in the prices they charged to passengers and shippers in different localities by providing rebates to large shippers or buyers. These practices were especially harmful to American farmers, who lacked the shipment volume necessary to obtain more favorable rates.
Many attributed their problems to discriminatory railroad rates, monopoly prices charged for farm machinery and fertilizer, an oppressively high tariff, an unfair tax structure, an inflexible banking system, political corruption, corporations that bought up huge tracks of land.
Railroads became a major industry, stimulating other heavy industries such as iron and steel production. These advances in travel and transport helped drive settlement in the western regions of North America and were integral to the nation's industrialization.
They unified countries, created great fortunes, enabled the growth of new industries, and thoroughly revolutionized life in every place they ran. Yet the human tolls for some projects were ghastly, with deaths of native laborers running into the tens of thousands.
Railroad companies in the North and Midwest constructed networks that linked nearly every major city by 1860. In the heavily settled Corn Belt (from Ohio to Iowa), over 80 percent of farms were within 5 miles (8.0 km) of a railway.
Many workers contributed to the construction of railroads. On the East Coast, Native Americans, recently freed black people, and white laborers worked on the railroads. On the West Coast, many of the railroad workers were Chinese immigrants. New Jersey issued the first railroad charter in 1815.
Thousands of workers, including Irish and German immigrants, former Union and Confederate soldiers, freed slaves, and especially Chinese immigrants played a part in the construction. Chinese laborers first went to work for the Central Pacific as it began crossing California's Sierra Nevada Mountains in 1865.
The completion of the Transcontinental Railroad dramatically catalyzed the development of the West, a process that both extended settlement and mining into otherwise unreachable areas and caused desertification (or, dry and arid conditions) in places along the route.
Railroads became a major industry, stimulating other heavy industries such as iron and steel production. These advances in travel and transport helped drive settlement in the western regions of North America and were integral to the nation's industrialization.
Railroad companies operate a pretty straightforward business. They charge companies for carrying cargo over their network of rails and railcars. Their rates and other aspects are overseen by the Surface Transportation Board.
Monopolies are generally viewed as harmful because they obstruct the free competition that determines the price and quality of products and services offered to the public. The railroad monopolies had the power to set prices, exclude competitors, and control the market in several geographic areas.
The railroads provided the efficient, relatively cheap transportation that made both farming and milling profitable. They also carried the foodstuffs and other products that the men and women living on the single-crop bonanza farms needed to live.