COMPLETE QUESTIONS AND SOLUTIONS
◉Cornelius Vanderbilt. Answer: He merged local railroads into the
New York Central Railroad, which ran from New York City to
Chicago. (p. 320)
◉Eastern Trunk Lines. Answer: In the early days of the railroads,
from the 1830s to the 1860s, railroad lines in the east were different
incompatible sizes which created inefficiencies. (p. 320)
◉transcontinental railroads. Answer: During the Civil War, Congress
authorized land grants and loans for the building of the first
transcontinenal railroad. Two new companies were formed to share
the task of building the railroad. The Union Pacific started in Omaha,
Nebraska, and the Central Pacific started in Sacramento, California.
On May 10, 1869, at Promontory Point, Utah, a golden spike was
driven into the rail ties to mark the completion of the railroad. (p.
321)
◉Union Pacific and Central Pacific. Answer: Two railroad companies,
one starting in Sacramento, California and the other in Omaha,
Nebraska were completed in Utah in 1869 to create the first first
transcontinental railroad. (p. 321)
, ◉American Railroad Association. Answer: In 1883, this organization
divided the country into four different time zones, which would
become the standard time for all Americans. (p. 320)
◉railroads and time zones. Answer: The United States was divided
into four time zones by the railroad industry. (p. 320)
◉speculation and overbuilding. Answer: In the 1870s and 1880s
railroad owners overbuilt. This often happens during speculative
bubbles, created by exciting new technology. (p. 321)
◉Jay Gould, watering stock. Answer: Entered railroad business for
quick profits. He would sell off assets inflate the value of a
corporation's assets and profits before selling its stock to the public.
(p. 321)
◉rebates and pools. Answer: In a scramble to survive, railroads
offered rebates (discounts) to favored shippers, while charging
exorbitant freight rates to smaller customers. They also created
secret agreements with competing railroads to fix rates and share
traffic. (p. 321)
◉bankruptcy of railroads. Answer: A financial panic in 1893 forced a
quarter of all railroads into bankruptcy. J.P. Morgan and other