Consolidation (Mergers) in the U.S. Railroad Industry

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1500 words APA format. On Consolidation (Mergers) in the U.S. Railroad Industry. 5 References. clear thesis statement providing an objective for the paper serving as a basis for the direction of the research

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Running head: CONSOLIDATION (MERGERS) IN THE US RAILROAD INDUSTRY

Consolidation (Mergers) in the US Railroad Industry
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CONSOLIDATION (MERGERS) IN THEUS RAILROAD INDUSTRY

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Introduction
Railroads were first built in the 1720s where the wooden railways were common
and the earliest transcontinental railroad was finished in 1869. The railroads played an important
role in the growth of the United States in the times where the industrial revolution began in the
Northeast. The railroad in America was established by Baltimore and Ohio railroad and was a
success until the bankruptcy that occurred in 1873 which affected the growth of the railroad
system temporarily. The Southern part constructed short rail lines which were meant to connect
cotton regions to ports. The impact of lack of interconnected networks was felt during the Civil
War. By 186o, the Midwest and the North had constructed networks that connected cities and
majority of the farms were within 8 km away from the railway making easier shipment of
produce. This is attributed to the fast development of financial systems that become conversant
with railway bonds. State and local government did not own any railroad but ensured that they
were subsidized. In 1940, there was the introduction of diesel-electric trains that were efficiently
operated and reduced the number of employees needed in the train and in the retail shops.
Consolidations and bankruptcies of the rail were shifted to operations that were owned by the
government and thus employment rate was significantly reduced from 2.1 million in 1920 to
215,000 in 2010. Train mergers in the US railroad industry have been a topic of concern over the
years due to remoteness and misuse by railroad robber-barons that is deep within the
subconscious of the US.
Forms of Railroad Consolidation
Railway consolidation is not a single concept but there are three aspects in which
railroads, which were independent and distinct, can be joined and interconnected. Each company

CONSOLIDATION (MERGERS) IN THEUS RAILROAD INDUSTRY

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