History of Rail Transport in Germany - Epoch I (1871-1919)

Epoch I (1871-1919)

German unification in 1871 stimulated consolidation, nationalization into state-owned companies, and further rapid growth. Unlike the situation in France, the goal was support of industrialization, and so heavy lines crisscrossed the Ruhr and other industrial districts, and provided good connections to the major ports of Hamburg and Bremen. By 1880, Germany had 9,400 locomotives pulling 43,000 passengers and 30,000 tons of freight, and forged ahead of France

Prussia nationalized its railways in an effort both to lower rates on freight service and to equalize those rates among shippers. Instead of lowering rates as far as possible, the government ran the railways as a profitmaking endeavor, and the railway profits became a major source of revenue for the state. The nationalization of the railways slowed the economic development of Prussia because the state favoured the relatively backward agricultural areas in its railway building. Moreover, the railway surpluses substituted for the development of an adequate tax system.