Union Pacific Railroad: Credit Mobilier Of America

The article, “Creating the System: Railroads and the Modern Corporation”, informs us all about the development of the transcontinental railroad and how it helped drive the nation west and also transformed western North America into a economy that had many opportunities. The railroads have always interested me when it comes to this period of time. What I learned from the reading that I didn’t know before was that the Western railroads were primary carriers of grain, other agricultural produce, livestock, coal, lumber and minerals. Also seeing the prices that the farmers shipped their products for, and what they paid for the freights rates was very interesting. Overall, if the railroads wouldn’t have been built in a time when there was so little

Business growth on both sides of the country was expedited by a new form of cheap distribution into profitable, expanding markets. Easy transportation facilitated the concept of business travel and expansion on an unprecedented scale. However, some of the largest impacts of the Transcontinental Railroad can be seen through the cross­country exchange of ideas. Before the railroad existed, the only fast exchange of information was written through the pony express. The Transcontinental Railroad created an outlet of communicating new ideas and information in person. A smooth and swift cross­country exchange of people and ideas not only made America more infrastructurally sophisticated ­­ it acted as a foundation for the Western United States to grow from very little to the political, social, economic, and technological center that it is today.

To fund this monster project, the government began to issue taxpayer-funded government bonds to corporations. Although the total project cost fifty-three million dollars, it cost the taxpayers seventy-two million dollars. The rail line set up scenarios where these corporations could turn to the government to subsidize their projects at the taxpayer’s expense. Here are a few examples of how the corporations took advantage of their opportunities that came with the transcontinental railroad; since the government funded all the work, executives stole from their own companies. They did this by manipulating the stocks; this was done by the action of the bosses buying stocks in struggling eastern rail companies, spread rumors that the transcontinental line would link to these companies, then selling those stocks as soon as they rose to their desired point; this specific scheme gained an estimated 5 million dollars. These actions brought the nation into an era of crony capitalism. This crony capitalism is still present today in the form of bank and industry bailouts, and the diversion of taxpayer funds to favor

Most of their success was contributed to laissez-faire’s economic system. The government played a large part in funding the accounts acting in the railroad industry. Document G exposes the bonds, grants, and money given out by the government to multiple railroad companies. This caused the citizens to have to pay a much higher tax in order for the government to contribute to railroad companies. Never the less in the 1870’s Congresses resolution was passed. This states “no subsidy in money, bonds, public lands, endorsement, or by pledges of the public credit, should be granted by Congress to associations or corporations engaged or proposed to engage in public or private enterprise” as seen in Document F. They were trying to limit certain aspects of the companies, directly contradicting the laissez-faire idea. After this resolution was passed the land was put on sale for 125-250 per acre. At this point the larger companies began to buy the land surrounding the railroads and selling it off piece by piece at much higher

Construction of the Transcontinental Railroad not only affected the United States itself but also anything that inhabited the lands that it was constructed on. As a necessary to build the railroad they had to go through mountains, Native American land, animals homes, etc. Native Americans being inhabitants of the land did not welcome the white settlers which resulted in violent conflict. When it came to building the railroad two companies were assigned the task, pinning them up against each other to lay the most track for more money. The Central Pacific company which started in California had to go through mountains while the Union Pacific which started in Nebraska only had to go through the Great Plains. For Central Pacific workers there was horrible working conditions, discrimination, and the chance dying for every mile laid.

The Canadian Pacific Railway (CPR), officially founded in 1881, marked a significant milestone in Canadian history. At the time it was legitimately formed, no one could have ever imagined the evolution and progression that it has made to present day. Over the past 150 years, the CPR has underwent and endured its fair share of sacrifices. However, there are countless reasons why the CPR should be viewed, remembered, and revered as a successful project. Throughout this essay, numerous topics, from the origins of the railway’s formation to its relevance and continued influence during present day, will be illustrated and examined in great detail, as well as why the project itself was an overall success.

In the years following the Civil War, railroads had become the primary form of transportation for both people and goods. They were privately owned and entirely unregulated which gave them a natural monopoly in the areas that only they serviced. Monopolies are normally viewed harmful as they obstruct the free competition that determines the price and quality of products and services offered. The railroad monopolies had the power to set prices, exclude competitors, and control the market in several geographic areas. There was competition among railroads for long-haul routes but there was none for the short haul runs. This allowed the railroads to discriminate in the prices by charging a higher price per mile for short hauls than long hauls. They also discriminated in the prices they charged to passengers and shippers in different localities by providing rebates to large shippers or buyers. These practices caused problems to the American farmers who lacked the shipment volume necessary to obtain more favorable rates. The prices charged and the practices adopted by the railroad services greatly influenced individuals and businesses. Railroads also banded

Its social and economic impacts dwell greatly in the 1800’s to the era of 2000’s as trains have always turned America into something greater in those times where travel and transport were at its hardest, but in 1862 congress passed a bill in which it would forge new history all together with the Pacific Railroad Bill and several grants that allowed financial support for Railroad companies primarily Central Pacific

In the late 1800, conflicts arose from farmers, workers, and railroad companies. These issues were resolved by significant battles among them, but never had an affect on the railroads. The railroads charged an extraordinary amount of money for transportation of products. This made farmers extremely outraged, and made them use their money more wisely than spend it on the transportation of their products. The railroad companies misused their money given by the government to gain profit of off land grants. The competition led to workers going on strike for their budgets being cut. These concepts show that railroads, in their wasteful competition, exploited farmers and workers because of budget cuts, transportation of products, and rates.(Introduction, Timeline)

The Credit Mobilier company was formed by George Francis Train Who was the vice president and in charge of publicity for the Union Pacific Railroad. The company was crated to limit the liability of its stockholders and to maximize the profits. The company gave cheap or free shares of stock to members of congress who would support additional funding. In 1872 the scandal was brought to the publics attention by Henry Simpson McComby. He claimed that $72 million in contracts had been given to the the mobilier company to build a railroad that only cost $53 million to create. The investors where left nearly bankrupt and it ruined the reputation of many of the congressmen who had accepted the bribes including James A. Garfield, Schuyler Colfax, James

Western expansionism of the United States fulfilled itself with the completion of the Transcontinental railroad in 1869. The railroad had been a thought since the early 1800s, but that tree bore no fruit until President Abraham Lincoln signed the Railway Act of 1862. This piece of legislation was a landmark for the United States, as it gave the financial responsibility of the railroad to the federal government. The Railway Act of 1862 also gave two companies the task of constructing and operating the Transcontinental railroad, these companies being the Union Pacific and the Central Pacific, respectively. In an article written for The Journal of Economic History, author Xavier Duran states, ‘During the second half of the 1840s and most of the 1850s, trade with the Pacific area boomed. China opened to trade and California experienced a gold rush and was annexed by the United States. Entrepreneurs and governments in different parts of the world competed to facilitate transportation to the Pacific Ocean.’ (Duran, 2013) The discovery of gold and the ensuing gold rush of 1849 (still famous today as the San Francisco NFL team the ‘49ers) created vast wealth and entrepreneurial opportunities. President

The Transcontinental Railroad was one of the most ambitious engineering projects, economic stimulants, and efficient methods of transportation in the early United States. If completed, the United States would be truly be united from east to west. The purpose of this paper is to examine how the Transcontinental Railroad helped develop new opportunities for many aspects of American life.

The transcontinental railroad was the most influential innovation of the United States, that brought a revolution of how people traveled. One year after the Civil War ended the people of the United States were looking for a way to unite their country back together. This helped mold the United States as to what it has become today. It helped people cross the country and improved how goods were transported. The man that was forming the transcontinental railroad was a merchant named Asa Whitney. He had asked the government for funding to construct one of the greatest innovation of the United States. “Two railroads, the Central Pacific starting in San Francisco and a new railroad, the Union Pacific, starting in Omaha, Nebraska, would build the rail-line.” (ushistory.org). One fear of building the railroad was the danger of the “Great American Desert” because of the lack of resources. The Central Pacific was primarily made by Chinese immigrants. The Union Pacific was primarily made up of Irish immigrants. By spring of 1866 the Central Pacific had only build 68 miles of track from Sacramento, while the Union Pacific going west from Omaha built 200 miles of track in less than a year. Therefore the Union Pacific made millions more. The next three years the railroads would continue to try and make history.

Railroads became extremely popular in America in the 1800’s. The railroad industry itself began to boom; it was supported by its reputation for speed and efficiency. But, along with the booming industry of railroads came the strong debate that

The Canadian Pacific Railway (CPR) is commonly argued to be the most important transportation route in Canadian history, but most do not know the substantial benefits it provided. More specifically, it provided benefits to farmers, financiers, and consumers. The financiers of the railway were the group of people that the railway benefitted the most, mainly because of the significant amount of use it received in the 19th century.