Why did railroad leaders consolidate their lines in the 1880s?
(1 point)
Responses
to reduce competition and increase efficiency
to reduce competition and increase efficiency
to keep from becoming “too big too quickly”
to keep from becoming “too big too quickly”
to ensure vertical integration
to ensure vertical integration
to increase rapid construction of railroad lines
1) To reduce competition and increase efficiency: Railroad leaders consolidated their lines in the 1880s to eliminate competition among different railroads and create a more efficient and coordinated transportation system. By merging or acquiring smaller railroad companies, larger companies could control pricing and avoid duplicate routes, resulting in cost savings and improved service.
2) To keep from becoming "too big too quickly": Consolidation also allowed railroad leaders to manage the growth of their companies and prevent them from expanding too rapidly. By merging with or absorbing smaller companies, larger railroad companies could regulate their growth and ensure they could effectively manage and operate their networks.
3) To ensure vertical integration: Some railroad leaders consolidated their lines to achieve vertical integration. This meant integrating different aspects of the railroad business, such as owning the rail lines, locomotives, train cars, and related infrastructure. By consolidating, railroad companies could vertically integrate and better control the entire process of transportation and distribution, leading to more profits and control over the industry.
4) To increase rapid construction of railroad lines: Consolidation also allowed railroad leaders to increase the rapid construction of railroad lines. By merging with or acquiring smaller companies, larger companies could leverage their resources and expertise to quickly expand their networks, laying down new tracks and connecting previously unconnected regions. This facilitated economic growth and the movement of goods and people across the country.