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CH 1] Business 101 1-13

tie plat to commemorate the Union Pacific Railroad and the Central Pacific Railroad
at Promontory Summit as the completed first Transcontinental Railroad as directed by
the Pacific Railway Act 1
The striking of the golden spike at Promontory Summit symbolized the nation
was now joined with 3500 miles of Transcontinental Railroad, a railroad from New
York to California. The Transcontinental Railroad road was built by men, using
hammers, hand picks, wheel barrels, their own muscle and lives. There were no steam
shovels, no massive earth-moving machines other than their hand tools and blasting
powder. It was the first transcontinental railroad in the world, and remains an amazing
American fete.
The Union Pacific Railroad and the Central Pacific Railroad contributed 2000
miles, which had been laid from Omaha to Sacramento.
th
Transcontinental Railroad passenger train service began May 15 , just five days
later from Omaha with the trip costing $111 for plush first class accommodations, and
scheduled to take 4 days, 4 hours and 40 minutes, second class was $80 with a few,
lesser defined amenities and the raw immigrant class of $40 had no amenities (you
brought your own sack lunch). Transcontinental Railroad trips were lengthened due to
washouts, buffaloes, train robberies and the occasional Indian attack.
On March 8, 1881 the second transcontinental railroad was completed linking the
Southern Pacific Railroad with the Atchison, Topeka and Santa Fe Railroad at
Deming in New Mexico Territory.
Five transcontinental railroads were once a dream, and with the completion of the
Great Northern Railway in January 6, 1893, completed the five sprawling
transcontinental railroads basically following the original surveys commissioned in
1853 by the government.
Railroad officials knew that unless they could attract permanent residents the Township Platt map from
company would lack freight and passengers. Not only did the UP offer land, it Central Pacific Rail Road
recruited settlers from Europe. In particular, the UP sought out hard-working
Germans and Scandinavians to come to Nebraska.
Besides offering what they thought was cheap land at inexpensive prices, the
railroad plotted towns, sold commercial lots and laid out streets. The plan was wildly
successful. Between 1870 and 1880, the mid-west population tripled; the immigrants
turned the once forbidding land into farm fields and small towns. A look at today's
map shows the results of their work: Dozens of cities and towns line up on the Union
Pacific track like grapes on a vine.

Opportunity Knocks: The Age of the Entrepreneur
Businesses in the 19th century made considerable advances. Eli Whitney
introduced the concept of interchangeable parts. This idea was employed in the
manufacture of muskets for the army. Eli Whitney mass produced the firing
mechanism using molds. With a little filing, a soldier could replace a worn trigger or
firing hammer and continue the fight. The idea of interchangeable parts would later
facilitate mass production and the assembly line. Peddlers, the traveling sales people
of the day, traversed from community to village to farm throughout the country.
Financiers became less dependent upon England, and the banking system became
better established after some early problems. Inventors created virtually an endless
array of commercially usable products.
People were encouraged to take risks and to become entrepreneurs. Cornelius
Vanderbilt, John D. Rockefeller, J. P. Morgan, and Andrew Carnegie all became
wealthy because of their organizational skills and a willingness to take business risks
during this period. Admittedly, some people were hurt by the speculation that
characterized the economy during the late 1800s, but, on balance, the entrepreneurial
spirit of the age did much to advance the business system and raise the standard of
living.

Consumers Need More: The Production Era
The early part of the twentieth century market, the production era, was an era
where managers concentrated almost solely on the firm's production tasks. Industry
recognized the need to produce more goods and satisfy growing consumer demand
and meet the challenge.

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