History Of Rail Transport In The United States
Railroads have played a large role in the development of the United States of America, from the industrial revolution in the North-east to the colonization of the West. The American railway mania began with the Baltimore and Ohio Railroad in 1828 and flourished until the Panic of 1873 bankrupted many companies and temporarily ended all growth.
Although the South started early to build railways, it concentrated on short lines linking cotton regions to oceanic or river ports, and the absence of an interconnected network was a major handicap during the Civil War. The North and Midwest constructed networks that linked every city by 1860. In the heavily settled Corn Belt (from Ohio to Iowa), over 80 percent of farms were within 5 miles of a railway, facilitating the shipment of grain, hogs and cattle to national and international markets. A large number of short lines were built, but thanks to a fast developing financial system based on Wall Street and oriented to railway securities, the majority were consolidated into 20 trunk lines by 1890. State and local governments often subsidized lines, but rarely owned them.
The system was largely built by 1910, but then trucks arrived to eat away the freight traffic, and automobiles (and later airplanes) to devour the passenger traffic. The use of diesel electric locomotives (after 1940) made for much more efficient operations that needed fewer workers on the road and in repair shops.
A series of bankruptcies and consolidations left the rail system in the hands of a few large operations by the 1980s. Almost all long-distance passenger traffic was shifted to Amtrak in 1971, a government owned operation. Freight traffic increasingly focused on bulk items such as grain, coal, oil and containers. Computerization and improved equipment steadily reduced employment, which peaked at 2.1 million in 1920, falling to 1.2 million in 1950 and 215,000 in 2010. Route mileage peaked at 254,000 in 1916 and fell to 94,000 in 2009.
Read more about History Of Rail Transport In The United States: Technology, Industrial Organization, Labor
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