Question

2 .Explain why southern railroads had a much more difficult financial time then did railroads in the north. 3. What were the issues created by the development of the railroads that created the need for a new and different management and business structure for railroads?

Answer 1

2.

Though South started early to build railroads it only concentrated on short lines linking cotton regions to ports. Whereas North constructed railroads which connected most of the cities. The southern railroads begun to deteriorate early after the civil war. The southern railroad were importing iron ore from England before the war. But as the war began, union blockade of the Atlantic and Gulf ports shut off that supply. The rail road companies became badly understaffed due to shifting of skill labor force from railroad to military & defense industry. The south also faced regular disruptions in the operations due to Union forces. Since all the mills & factories supplying railroad equipment were in the North, the south faced a severe shortage of rail equipment for maintain ace & repairs.

3.

There were various issues created by the development of rail road.

The railroad companies built their railroads to suit their needs and to specifications they determined. Tracks were built in a variety of gauges ranging from two and one-half feet to six feet. This created inefficiency in transporting people & goods over long distance. This also resulted in increased incidents of accidents on rail roads. Cattle on the tracks caused accidents, sparks from the locomotives' wood fires burned cars, and boilers exploded.

Due to the global economic depression many lines went bankrupt & workers were laid off on a mass scale. A series of bankruptcies and consolidations left the rail road system in the hands of a few large banking companies. This also led to strikes against many railroads. Many railroads were driven out of business due to competition from airlines and Interstate highways. The rise of the automobile led to the end of passenger train service on most railroads. Therefore there was a need to bring regulations & create a new management and business structure for railroads.