Making a National Rail System The first railroads covered only a small area. Different railroads used tracks of different gauges, or distances between the rails. Trains of one railroad could not use another line's tracks. If a manufacturer wanted to ship goods over more than one railroad line, workers had to unload goods from one train and move them to another. This slowed rail travel and also made it more expensive.

As railroad companies consolidated, they began using a standard gauge (GAYJ) of 4 feet, 8.5 inches (1 m, 41.6 cm). The use of a standard gauge drove down shipping times and costs.

New Technology Improves Railroads

New technology also improved railway transportation. Four developments were especially important. Inventor George Westinghouse created air brakes that improved the system for stopping trains, making them safer. Janney car couplers, named after inventor Eli H. Janney, made it easier for railroad workers to link cars. Gustavus Swift developed refrigerated railroad cars, allowing railroads to ship meat and crops over long distances without spoiling. Finally, George Pullman developed the Pullman sleeping car. This was a luxury railway car with seats that changed into beds for overnight journeys.

Railroads Compete for Customers

Railroad companies competed fiercely to keep old customers and win new ones. Large railroads offered discounts called rebates (REE • bayts) to their biggest customers. Smaller railroads that could not match these prices were often forced out of business. Giving discounts to big customers, however, meant higher rates for farmers and other customers who shipped small loads.

The railroad barons also made secret agreements with one another to form pools. The companies in a pool divided up business among themselves and set identical rates. This eliminated competition that might drive rates down. Higher rates meant higher profits. There were some laws to regulate the railroads, but they did little to stop the barons.

Railroads Change America

The growing railroad network helped American industry expand into the West. For example, the manufacturing center for farm equipment moved from New York State to Illinois and Wisconsin. Railroads also changed where people lived. Trains brought homesteaders, merchants, and mine workers onto the Great Plains and into the West. They moved people from rural areas to cities as well.

Describing What were some new technologies that improved railroad travel in the late 1800s?