- Once the gauge, or width, of tracks was standardized, railroads formed a network, or system of connected lines.

- Large companies bought smaller ones or forced them out of business.

- Other companies began to consolidate, or combine.

- Cornelius Vanderbilt was one of the richest men in America, and the most powerful railroad baron.

Abuses

- Railroad companies offered rebates, or discounts, in order to keep or win customers.

- This forced many small railroad companies out of business.

- In order to end competition and keep prices high, railroad companies agreed to divide up business in an area and set high prices. This was known as pooling.

Effects on Industry

- The railroad industry created thousands of new jobs.

Examples: steelworkers, lumberjacks, miners, railroad workers

- The railroads opened up the country to settlement and growth.

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