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.
Read more about this topic: History Of Rail Transport In Germany
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“There is one great fact, characteristic of this our nineteenth century, a fact which no party dares deny. On the one hand, there have started into life industrial and scientific forces which no epoch of former human history had ever suspected. On the other hand, there exist symptoms of decay, far surpassing the horrors recorded of the latter times of the Roman empire. In our days everything seems pregnant with its contrary.”
—Karl Marx (1818–1883)