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Beginning in the early 1870s, railroad construction in the United States increased dramatically. Prior to 1871, approximately 45,000 miles of track had been laid. Between 1871 and 1900, another 170,000 miles were added to the nation's growing railroad system.
In the West, railroads helped open new territory to economic exploitation, and then played a large part in the creation of the first national parks. They also pioneered modern forms of hotels, resorts, and restaurants. As the nineteenth century ebbed, every aspect of society and culture was reflected in the railroad.
Railroads allowed farmers to sell their goods in distant markets. Railroads led to the discovery of profitable minerals. Railroads brought more people to the East Coast.
First, farmers claimed that farm prices were falling and, as a consequence, so were their incomes. They generally blamed low prices on over-production. Second, farmers alleged that monopolistic railroads and grain elevators charged unfair prices for their services
What was a major benefit of railroads?
Cheaper Transportation Costs
- One of the primary effects of railroads on farmers is the decrease that railroads bring to farmers' transportation costs. Most obviously, it becomes cheaper to transport crops to the cities and ports. In addition, farmers can buy and transport industrial goods back to farms, including farm equipment and cattle. Railroads also allow farmers to have a mobile source of labor as temporary agricultural laborers can travel more easily by railroads.
Speedy Access to Markets
- Railroads are fast. Accordingly, framers can speedily transport high-value produce like fresh vegetables and fruits to the marketplace, without worrying that it might rot on the way. Modern-day farmers can also take advantage of refrigerated railroad-cars, giving farmers from developing countries like India or South Africa an opportunity to transport fresh produce to supermarkets in Europe, North America, Japan and Australia.
Greater Specialization
- Because of railways, farmers who formerly grew their own food, working in unproductive subsistence farming can now specialize in high-value crops. However, this specialization, while increasing farmers' incomes, makes them dependent on world prices for the food they grow.
Question: What is the expansion of railroads to unfair business practices?
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