4. (a) What methods did big railroads use to win and keep business?
(b) How did these practices affect small businesses and farmers?
Please help me with this question.
In the early days of railroads in the U.S., the big railroads bought out the small railroads. They expanded and did anything to make bigger and bigger profits. These railroads laid their tracks where they wanted, regardless of the needs of farmers and ranchers. Ranches were divided so that it was difficult for the cattle to have free range.
For more information, read this site.
http://history.howstuffworks.com/american-history/old-railroads6.htm
"These railroads laid their tracks where they wanted, regardless of the needs of farmers and ranchers. Ranches were divided so that it was difficult for the cattle to have free range."
Does that answered for the second part of the question?
BTW - Thank you for the info.
Yes. Also -- the railroads were able to charge high prices for shipping products so that small businesses were often hurt or driven out of business.
You're welcome.
Thank You! :)
To answer these questions, we need to understand the historical context of the big railroads during a certain time period, typically known as the Gilded Age in the late 19th and early 20th centuries. Here's how you can approach each question:
(a) What methods did big railroads use to win and keep business?
To determine the methods used by big railroads to win and maintain business during this era, you can start by conducting research on the Gilded Age and the railroad industry. Look for sources such as books, articles, and academic resources that discuss the business tactics employed by these corporations. Some potential methods that big railroads used to gain and retain business include:
1. Rebates and discriminatory pricing: Railroads offered attractive rebates to large customers or discriminatory pricing to undercut competitors, thereby encouraging businesses to choose their services.
2. Consolidation: Big railroads engaged in mergers and acquisitions to increase their networks and eliminate competition, creating monopolistic tendencies.
3. Vertical integration: They extended their control over various stages of the supply chain, which allowed them to manipulate prices and influence business decisions.
4. Creating loyalty: Railroads worked to establish long-term relationships with key clients by offering special perks, such as preferential treatment, priority shipment, or exclusive access to certain resources or destinations.
(b) How did these practices affect small businesses and farmers?
To understand the impact of the practices employed by big railroads on small businesses and farmers, you can explore the consequences these methods had on smaller players in the market. Here are some areas to investigate:
1. Price manipulation: The discriminatory pricing and rebate systems often led to higher rates for smaller businesses and farmers compared to larger corporations. This disadvantage undermined their ability to compete on a level playing field.
2. Limited choices: The consolidation of railroads diminished competition, making it challenging for small businesses and farmers to find alternative transportation options at reasonable prices.
3. Unfair treatment: The preferential treatment given to larger customers meant that small businesses and farmers often faced delays, inadequate services, or higher costs.
4. Loss of profits: The monopolistic practices of big railroads restricted market access and bargaining power for small businesses and farmers. Consequently, this reduced their ability to negotiate fair prices for their goods, leading to lower profits.
5. Restriction of markets: The dominance of big railroads could also limit the geographic reach of small businesses and farmers, restricting their ability to expand their markets or access more profitable regions.
By using these research approaches, you should be able to find valuable information answering both (a) and (b) in a detailed manner.