COMMERCE

Railroads, Commerce and American Industry

Railroads created a transportation network capable of moving raw materials, manufactured goods and consumer products at a scale that helped transform the United States into an industrial economy.

A national marketplace

Before dependable long-distance transportation, many producers were tied closely to local or regional markets. Railroads lowered transportation barriers and helped businesses sell into much larger territories.

Coal, iron and steel

Railroads carried the fuel and raw materials of industrialization while also becoming major customers for rails, bridges, locomotives, cars and machinery. Railroad demand helped stimulate heavy industry.

Factories and distribution

Manufacturers could receive raw materials by rail and ship finished products to distant customers. Warehouses, freight houses, industrial sidings and terminals became essential pieces of urban commerce.

Rates and economic power

Railroad pricing had enormous influence over farmers, merchants and communities. Disputes over rates and discriminatory practices helped drive political movements and federal regulation.

The modern freight network

Today's railroads remain especially important for bulk commodities, automobiles, chemicals, energy products and intermodal freight. Rail is one part of a larger supply chain linking ships, trucks, warehouses and consumers.

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