Introduction to Business Law - 2808 Words

Business law LAW OF CARRIAGE:- Defination of law of carriage: Law of carriage means carrying goods from one place to another against the price. It is the branch of business. Carriage is the basis for the management and operation of business successfully and effectively. It is the factor of business activity that helps to mobilize the labor, raw material, and tools and machinery etc. Modern business activity are based on the exchange of goods and transportation of goods from one place to another. According to section 65 of Nepal contract act.2056 ,†a contract is related to carriage shall be deemed to have been concluded, if it provides for transportation of goods from one place to another.† Classification of carriage: carriage can be†¦show more content†¦Specific goods:- specific goods are those which are agreed and identified at the time of contract of sale. ii. Unascertained goods: - unascertained goods are those which are not agreed and identified at the time of contract of sale. These types of goods indicated and defined by description at the time of contract of sale. iii. Ascertained goods: the term ‘ascertained’ is used to those goods; which are ascertained after making the contract of sale. 2. Future goods:- future goods are those goods which are manufactured, produced and acquired by the seller after making the contract of sale. 3. Contingent good: contingent goods are those goods whose acquisition is depend upon the happening and non happening of certain event. i.e., contingent event. Difference between contract of sale and agreement to sale. Basis of difference | Contract of sale | Agreement to sale. | Ownership of goods | Buyer is said to the real owner | Seller is said to the real owner. | Natue of contract | Executed in nature | Executory in nature | Transfer of risk | Seller can transfer the risk to the buyer in the condition of sale | Seller can’t transfer the risk to the buyer up to the time of contract of sale. | Loss and damages of goods | All the losses and damages are bound by the actual buyer | All the losses and damages are bear by the actual seller. | Right to sell the goods by the seller. | Seller has no right to sellShow MoreRelatedIntroduction Of Business Law Coursework Assignment1717 Words   |  7 PagesIntroduction to Business Law Coursework Assignment Question 1 Part 1: In the English system, there are two laws that have a huge and fundamental impact on the English law. These two laws are the most common type of laws that are carried out within the court, either in Crown Court or the Magistrate’s Court. Depending on the seriousness of the damage caused by the breaking the law, not all prosecutions are carried out in the Crown Court. The English Law coincides within two countries of Great BritainRead MoreCourse Work in Introduction to Business Law1048 Words   |  5 Pagesin goods to the buyer for a money consideration, called the price†. The definition is proved in â€Å"Sale of Goods Act 1979†, Part II – â€Å"Formation of the contract†, section 2 – â€Å"Contract of sale†,(1) The â€Å"Sale of Goods Act 1979† is part of the civil law. This means that problems you have with any goods you have purchased are not a criminal matter, so the police will not be involved. You have to take action yourself. This is the Act you can quote if you have a problem with goods you have purchased,Read MoreThe Principle Of Marketing : Bus 3305 Essay1599 Words   |  7 PagesASSIGNMENT TABLE OF CONTENT 1.0 Introduction 2.0 Nature and Sources of Business Law 2.1 The Common Law 2.2. U.S. Constitution 2.3 Statutory law 1.4 Judicial Precedent 3.0 Impacts of the Law On Business 4.0 Ways that the law could be improved. 5.0 Conclusion 1.0 INTRODUCTION In reality the law covers an enormous range of situations and the legal system has a variety of courts and methods for dealing with different types of cases. 1.1 Meaning of Law There is no single meaning of law that is universally adoptedRead Morethis is an essay1741 Words   |  7 Pages[PDF] 11011 Business Law 100 Semester 1, 2012 - Curtin ... https://business.curtin.edu.au/downloadFile.cfm?fileId=D4471A94...‎ Feb 10, 2012 - 3 Construct a coherent and logical legal argument using the four step process approach. 4 Apply relevant legal concepts and principles to  ... 2. 4 main steps in the legal research process - Introduction to ... unimelb.libguides.com/content.php?pid=172459sid=1451390‎ Jun 11, 2013 - You might also go to an encyclopedia such as Halsburys Laws of AustraliaRead MoreCopelandR MKTG600 MidTerm Essay969 Words   |  4 Pagesequity is a business having the clout and power of its product(s) to leverage that equity or clout for its need to raise capital or increase customers. Developing brand equity is important because it allows companies to interact with their customers in order to induce loyalty which increases the growth of a company. Every company, established ones as well as start-ups have the ability to create brand equity. It is especially important for start-ups because in the first step of business, they wouldRead MoreFidos Bistro737 Words   |  3 PagesEntrepreneurs will be innovative new dog treats, ideas such as new ways of advertising also enhance organization of the gourmet dog treats. At Fido’s Bistro, there will be three employees. In my company I will be in charge over all business decisions. By having control over the busines s I will delegate scheduling and training. Trained employees will be responsible for taking customers’ orders, deliveries and helping with the baking and packaging of the treats. All advertising will be conducted through socialRead MoreGlobal Code Of Ethics And Ethics938 Words   |  4 PagesMBA 605: Unit 4 Exercise Global Code of Ethics Introduction All employees and senior level executives are expected to uphold to the Global Code of Ethics in the highest ethical standards of this corporate international organization. Each employee is to abide by the laws of their country and the regulations of the organization in which they work. The Global Code of Ethics helps ensure compliance with the standards of business, ethics, and governing regulation requirements put in place. All employeesRead MoreEnvironmental Ethics And Environmental Safety895 Words   |  4 PagesEnvironmental ethics can be formally defined in many sources as the study of human interaction with nature. In a business sense, however, environmental ethics is concerned with the business’ duty or responsibility to protect our overall environment. Our society is beginning to become more involved with the environmental movement. Because of this, people are more concerned with the companies and businesses that they support in regards to their concern towards ou r environment. Some argue that businessesRead MoreUniform Commercial Code and Common Law Contracts1156 Words   |  5 PagesUCC and COMMON LAW CONTRACTS Introduction Uniform Commercial Code (UCC) entails many underlying laws and requirements governing it in trading within a country and internationally. The international trade part has in recent years raises the question as to whether states should change the laws or not. The current laws can bring about many issues causing the downfall of many large businesses. This makes it hard to conclude on the effect of U.C.C. on international commerce coming along with manyRead MoreGlobal Software Piracy Case Study639 Words   |  3 Pages16-03-2010 Executive Summary: This case is taking software piracy under the light that explained at the end of the third chapter of the book International Business environments and operations by Daniels in the 11th edition. Software piracy is the mislicensing, unauthorized reproduction and illegal distribution of software, whether for business or personal use. When someone copies software without buying the appropriate number of licenses, it is copyright infringement. Individual copying software

Bendix Case Study Free Essays

The Bended Corporation is a parts supplier for five separate business units: automotive, the Frame Corporation (filters), aerospace, industrial and energy, and international. In 1951, the Bended Corporation is credited with the invention of electronic fuel injection (EFFIE) and was in sole possession of the accompanying patent until 1978. The company had not utilized this innovation to its fullest potential due to the lack of interest in automotive manufacturers in the United States. We will write a custom essay sample on Bendix Case Study or any similar topic only for you Order Now In 1976, Douglas Crane, president of Bended Corporation’s automotive division, was mulling ever the idea of embarking on the construction of a $10 million injector manufacturing plant, the main component involved EFFIE. Major Problems and Issues There are many problems facing Bender’s customers in 1976, the first and most predominant being government regulations. The government has been tightening and tightening the control over pollution levels in automotive emissions as well as minimum gas mileage requirements for each manufacturers’ fleets. The major car manufacturers were unable to meet these requirements with their current fuel delivery system technology. These demands put added pressure on Bended to revived a solution in order to provide future success and to create a competitive advantage. Another major problem facing Bended was competition from a Busch, a company that Bended earlier had made an agreement with to use Bender’s EFFIE technology to manufacture for the European market. Busch was planning on creating a manufacturing plant in the United States, threatening to take away some of the market share away from Bended. Another issue facing the implementation of EFFIE into the American automotive market is the phenomena that affect innovation in a large corporation. The phenomenon is that with larger economies of scale, the less the many is willing implementing a radically different solution to an old and well- known problem. The company is more willing to improve processes with their innovations, and then to create a whole new product line. The implementations of product innovations are more common in startups than in well-established firms such as Bended. This phenomenon can explain why EFFIE was put on the back burner and never utilized fully. [1] Possible Solutions There are three possible scenarios for the Bended Corporation when it comes to the new injector manufacturing plant. The first is Bended could build a new state of the art facility. The contract between Busch and Bended allowed them full disclosure, and each company shared their technologies and processes. Bended had a man spend several months studying the methods Busch was using in their production of injectors. The lessons that were learned during this time can be used to make a plant using new technology Second, Bended could restructure an existing facility to produce injectors. This remodel would take less time and cost less than building a brand new facility. Bended tried this strategy when they started producing their own electronic control units (CEO) by adding production to their radio manufacturing facility. This initial failure was remedied when Crane took control over the SEC production and got the right team together in order to meet a contract with Cadillac. Lastly, Bended could cancel the new facility and supply the injectors from an outside firm. This strategy that Bended used early in its EFFIE production. Although it does not contain the capital costs of tooling and/or building a facility. This solution has the issue that the current suppliers cannot meet the numbers Bended is looking to supply when/if EFFIE becomes the standard. Recommended Actions The issues that are facing the automotive industry are a factor that will change the environment for these companies causing them to have to make fundamental changes in fuel delivery systems. These changes will become an opportunity for Bended to pursue EFFIE as the solution for the future regulations and performance standards expected by the American customers. For Bended to become a leader in EFFIE, they will need to have a competitive, and they will not be able to when they are supplying injectors from their competitors. Bended will have to become more vertically integrated by producing their own injectors and using the knowledge they have from their time observing Busch, they can produce them more efficiently and tit less waste. The action I would recommend for Crane to pursue is creating their own brand new injector facility. The facility will be able supply the future needs for EFFIE due to regulations. Bended will be able to compete and beat Busch in the market due to superior processes. To get past the phenomena such as stated earlier their needs to be a strong leader championing this endeavor and Crane has already proven himself with the SEC project. [2] Conclusion In conclusion, there are a plethora of factors outside of the control of the market such as government regulation and management phenomena inside a large corporation. A company can come up with a solution that may not useful at the time such as in this case. There was no need at the time for EFFIE at its invention because of the less stringent pollution and mileage standards but as time progresses EFFIE became a more and more plausible solution. Whatever choice Bended made, EFFIE is now standard on all cars and carburetors are a thing of the past. Bibliography [1] Abernathy, W. , Turtleback, J. (2014). Pattern of Industrial Innovation. Innovation Management (1-9). Romania, NY: Lines Learning. [2] Schumacher, T. (2014, May 22). Gunfire at Sea. Youth. Retrieved June 16, 2014, from HTTPS://www. Youth. Com/ How to cite Bendix Case Study, Free Case study samples

Management Accounting Budgeting and Variances

Question: Describe about the Management Accounting Budgeting and Variances. Answer: 1. Calculating the flexed and actual budget: Flexible Budget Particulars Amount Amount Sales 769,500 Variable Cost Direct materials 194,400 Direct labour 202,500 396,900 Contribution 372,600 Fixed overhead 128,000 Net profit 244,600 Table 1: Depicting the flexible budget (Source: as created by author) Actual Budget Particulars Amount Amount Sales 753,300 Variable Cost Direct materials 192,500 Direct labour 221,000 413,500 Contribution 339,800 Fixed overhead 130,000 Net profit 209,800 Table 2: Depicting the Actual budget (Source: as created by author) With the help of table 1 and 2, the overall flexible and actual budget could be effectively evaluated. Moreover, from the flexible budget the overall profit of the company has been seen increasing, which states that flexible budget might help in improving the overall budget value. Quan et al. (2013) mentioned investor to reduce the variance in overall budget mainly uses that flexible budget. The table 3 mainly states the variance analysis of flexible and actual budget of the company. The variable cost and fixed overhead cost have positive amount, which states the favourable assumption taken in the budget. However, the sales price and sales units has negative value, which depicts the low profit generation capital of the company. Variance Particulars Actual Flexible Variance Sales 753,300 769,500 (16,200) Variable Cost 413,500 396,900 16,600 Contribution 339,800 372,600 (32,800) Fixed overhead 130,000 128,000 2,000 Net profit 209,800 244,600 (34,800) Table 3: Depicting the Variance (Source: as created by author) 2. Calculating the variance: Sales variances; volume and price: Sales volume variance Particulars Amount Actual unit sold 810 Budgeted unit sold 800 Budget price per unit 950 Sales volume variance 9,500 Table 4: Depicting the Sales volume variance (Source: as created by author) Sales price variance Particulars Amount Actual price 930 Budgeted price 950 Actual unit sales 810 Sales price variance (16,200) Table 5: Depicting the Sales price variance (Source: as created by author) With the help of table 4 and 5, the overall sales price and volume could be evaluated. In addition, the sales volume variance has been detected as positive, while the sales price variance is negative. This only indicates that company is selling more products by reducing the prices of the products. Lee et al. (2012) mentioned that price of the products is mainly calculated based on demand and supply of the product. Direct material variances; usage and price: Direct material price variance Particulars Amount Actual quantity 7,000 Actual price 28 Standard price 30 Direct material price variance (17,500) Table 6: Depicting the Direct material price variance (Source: as created by author) Direct material usage variance Particulars Amount Actual quantity 7,000 Standard quantity 6,400 Standard price 30 Direct material usage variance 18,000 Table 7: Depicting the direct material usage variance (Source: as created by author) With the help of table 6 and 7, the overall variance of direct material usage and price can be evaluated. Moreover, the material price variance is mainly negative, which depicts the overall decline in costs of the overall material. In addition, the material usage variance has mainly increased from the expected budget, which states the demand of quantity is high. The actual production is relatively high, which states the high amount of quantity needed by the company to support the rising demand. Kaplan and Atkinson (2015) stated that with the help of variance analysis companies are able to improve the budget process and reduce the overall negative impact from external forces. The decline in actual production price is relatively adequate, however, the assumption of the material usage is negative, which might reduce continuity of the production process. Direct labour variances; efficiency and rate: Direct labour efficiency variance Particulars Amount Actual hours 8,500 Standard hours 8,000 Standard rate 25 Direct labour efficiency variance 12,500 Table 8: Depicting the Direct labour efficiency variance (Source: as created by author) Direct labour rate variance Particulars Amount Actual quantity 8,500 Actual rate 26 Standard rate 25 Direct labour rate variance 8,500 Table 9: Depicting the Direct labour rate variance (Source: as created by author) Table 8 and 9, mainly states the overall direct labour rate and efficiency variance, which might be used by the company to depict a more fruitful budget in future. Both direct labour rate and efficiency has a positive variance, which states that the budgeted rate was not adequate to support activities of the company. The increase in production led to the rise in demand for labour hours, which raised the overall direct production cost of the company. Hofstede and Shinzato (2012) stated the evaluation of direct labour hours and labour rate helps in detecting the cost reduction, which might be conducted by the company to support the overall profitability. Gabillon, Ghavamzadeh and Lazaric (2012) argued that variance in direct labour rate is viable as the overall cost mainly comes from the excess or shortage of labour available to the company. Fixed overhead variance and spending: Fixed overhead variance spending Particulars Amount Actual fixed overhead 130,000 Budget fixed overhead 128,000 Fixed overhead variance spending 2,000 Table 10: Depicting the fixed overhead variance spending (Source: as created by author) With the help of table 10, fixed overhead variance spending could be evaluated, which might be used in understanding the overall changes in budget assumption. Moreover, the 2000 excess amount is spend in the fixed overhead by the company, which states the rising cost incurred from the production process. This value mainly states the rise in quantity will also raise the overall fixed cost of production. Chong and Mahama (2014) stated that determination of changes in fixed cost might mainly help companies to prepare an effective budget, which might support its future endeavours. Depicting the suggestion to improve cost control: After the evaluation of overall budget of Orchid Ltd, the relative variance is seen rising, which might negatively affect the overall profitability of the company in the end. Moreover, the use of Zero based budgeting system might mainly help the company to reduce the overall cost and improve its profit generation capacity. The zero based budgeting system might mainly help in reducing and controlling the overly cost of the company, which in turn might help in depicting an effective budget that could support its future endeavors (Boudt, Carl and Peterson 2012). Reference and Bibliography: Boudt, K., Carl, P. and Peterson, B.G., 2012. Asset allocation with conditional value-at-risk budgets.Journal of Risk,15(3), pp.39-68. Chong, K.M. and Mahama, H., 2014. The impact of interactive and diagnostic uses of budgets on team effectiveness.Management Accounting Research,25(3), pp.206-222. Gabillon, V., Ghavamzadeh, M. and Lazaric, A., 2012. Best arm identification: A unified approach to fixed budget and fixed confidence. InAdvances in Neural Information Processing Systems(pp. 3212-3220). Hofstede, G.H. ed and Shinzato, T., 2012.The game of budget control. Routledge. Kaplan, R.S. and Atkinson, A.A., 2015.Advanced management accounting. PHI Learning. Lee, L.H., Pujowidianto, N.A., Li, L.W., Chen, C.H. and Yap, C.M., 2012. Approximate simulation budget allocation for selecting the best design in the presence of stochastic constraints.IEEE Transactions on Automatic Control,57(11), pp.2940-2945. Quan, N., Yin, J., Ng, S.H. and Lee, L.H., 2013. Simulation optimization via kriging: a sequential search using expected improvement with computing budget constraints.Iie Transactions,45(7), pp.763-780. WorksLand, C., 2015. The current year to date budget variance is mainly due to a large land purchase that has occurred earlier than expected when the 2015/16 Budget was prepared.There is also an additional land purchase that is funded from a Development Contribution Plan, that was not expected at the time of preparing the,16.

The railroad in the United States Essay Example

The railroad in the United States Essay In the simplest manner: the railroad changed the face of a nation. The railroad in the United States changed how people traveled, did business, and how Washington governed people. The railroad created new standards and new laws that still affect the way we live today. It helped create a new type of wealth that had never been seen before and became the first big business in the United States. Without the railroads impact, it would be difficult to fathom where the United States and the world would be today.The golden age of the railroad is considered to be by many the period that stretched between the end of the Civil War and the beginning of the First World War.1 Railroading from 1865 to 1929 covers the great expansion, the golden age and the beginning decline of the railroad. The emergence of the modern America, and the beginning of the Great Depression of the United States also can be seen within these dates; this emphasizes the large role that the railroads had in the industrializa tion of the America. It is clear that the history of the United States coincides with the history of the railroad; during these times the railroad played a vital a vital role in thebuilding of the United States. But, the relationship was symbiotic, because it is also possible to see that the direction in which the country was going played a role in how the railroad was formed, controlled, and regulated. Truly, the railroad is a form of transportation that helped make the United States what it is today.The year 1865 finally brought an end to war that had sliced a nation in half. The war, however, was not a destructive force to the railroads. With the exception of the southern lines, American railroads were generally in excellent shape in 1865.2 The Civil War brought new strength to the American railroads. The need to provide for the war had caused the railroads of the United States to expand by as much as 35,500 miles at the end of the war.3 The War had brought new strength to the ra ilroads and the railroads were now standing before their golden age. This golden age began with a big bang: the completion of the transcontinental railway.The story of the transcontinental railway could very well be suited for a Hollywood movie. It involves corruption, greed, great visions, and great strength. Public demand for a transcontinental railway was originally inspired by a proposal made in 1836 by the American statesmen John Plumbe and Robert John Walker.4 The demand for therailway was later increased with the arrival of the gold rush in 1849. In 1861, the Pacific Railway Bill was passed, this bill called for the building of the transcontinental line to be done by two companies, Union Pacific Company and the Central Pacific Company. The job of the Union Pacific Company was to build west from Omaha, while the job of the Central Pacific Company was to build east from Sacramento5. The bill also called for the companies to receive a right-of-way strip for their line (and whate ver they needed for rail yards, sidings, and other facilities), as well as five alternate land sections on each side of the track.6 The companies were also offered loans that went from $16,000 per mile of track in the lowlands to as much as $48,000 a mile in the mountainous regions.7The Union Pacific got of to slow start until they acquired a good engineer by thename of General Dodge, who was one of Shermans Civil War railroad men. UnderGeneral Dodges direction the work on the Union Pacific soon took on a furious pace and a military atmosphere; military preparedness and quickness were exactly what was needed to deal with the hostile Indians.Life on the Central Pacific was by no means pleasant, but they did not have much a problem with the Indians.8 However, one thing that was a problem on the Central Pacific was the lack of labor. California, being largely uninhabited at the time, did not provide a large labor resource; and so the managers of the Central Pacific had to look elsewher e for their labor needs. One of the places they looked for new labor was China. The Chinese turned out to be well suited for the job, and at one point nine-tenths of the labor force of the Central Pacific was Chinese.Eventually the two the companies came within sight of each other, and a meeting place for the two rails was designated. The meeting place chosen was a waterless basin of sagebrush just north of the Great Salt Lake in Utah. This place was called Promontory Point. It was decided that the two companies would meet and there would be a greatceremony to connect the railways. The ceremony was planned, and all of the railroad officials and dignitaries came to drive in the final spike. On May 10, 1869, this event finally took place. The driving in of the final spike came with a little embarrassment: First, one of the leaders of Central Pacific went up to drive in the golden spike and missed; next, the leader of the Union Pacific stepped up to drive in the golden spike and he too missed.9 Eventually, the final spike was driven in: though it is not clear who actually did it. Despite all this, the nation celebrated for the Atlantic coast and the Pacific coast had at last become connected by rail; and the railroad now stood on threshold of its golden age.The years following the completion of the transcontinental line brought an abundance of new railways. The rail network in the United States went from 35,000 miles in 1865 to 164,000 miles in 1890. This building was brought to an all-time high, when in 1916 the total length of the rail network in the United States reached 254,000 miles.10With such a rapid pace of construction, the building in the half-century after the Civil War led to an average annual construction, of over 4,000 miles a year. Even though this rapid construction was not equally spread throughout the country, every area did see some expansion.The transcontinental rail also led to great expansion in the West. The transcontinental railway, and th e railways following, brought eastern markets within a few days of western grain and cattle lands, and eventually helped create great cities in the West itself.11 The new railways of the West also brought about the virtual extermination of the buffalo. The new rails cut the herds in half and destroyed their natural habitat. It also became a game for people heading west on the railway to shoot the animal from their train window.12Now that the railroad spanned across the continent, the railroad was becoming a major player in the expansion of industry. The industry of the United States was rapidly expanding, and the railroad was becoming more than just a small factor in a great group of expanding industries. Railroads encouraged growth not only through the offering of their transport services, but also through the transportation need, of other industries. Railroads were not only the biggest shippers of industrial products; they were also American industrys best customers.13 The railroa ds became a huge buyer of steel, coal, lumber, and oil. To say that the railroad was an important factor in the industrialization of America is a huge understatement. The railroad became the pulse of industry and was considered by many the leading factor in the expansion of industry in the United States.While the network of rails was spreading, great financial networks were also developing. Groups of once independent railroad companies were grabbed up and consolidated to form large railroad systems.14 One prime example of this was The New York, New Haven, and Hartford Railroad, which were formed by the consolidation of about 200 originally independent lines.The large consolidation brought about the need for new standards and new technology that would help the railroad continue to grow and operate more efficiently. One of the new standards that was needed was a standard gauge for the railroads to operate on. This was needed because the expansion of the rails had now brought the need to move the freight from one line to another. This was not possible because throughout the country there were different gauges. For example in the south the popular gauge was five feet, but on other railroads like the Erie the gauge was six feet. It was decided amongst railroads that a standard must decided on, and that standard became four feet, eight and one half inches.15Another standard that was created and is still used today is standardized time. Until the movement for Standard Time, each town had its own time. There were, for example, thirty-eight different times in the state of Wisconsin alone. Given the amount of different times, the speed of trains, and the distance these trains traveled. This spelled one thing: complete chaos. Eventually the problem was solved in 1883, when the General Time Convention was held by the railroads. At this convention it was decided that the continental United States would be broken up into four standard time zones. People soon found it easy t o set their clocks by railroad time, and thus the railroad standard became a national standard.Other technological innovations that were created to aid the expansion and consolidation of the railways were: the use of steel rails, the automatic coupler, and the air brake. The automatic coupler allowed a coupler to close on impact, but still be able to open from the side of the car. The air brake, invented by George Westinghouse, allowed trains to stop much quicker than they had been able to in the past.Besides bringing about new technology, the consolidation of the railways also brought about the great railroad barons. The railroad had become a likely stop for the strong businessmen interested in making millions by manipulating the rail system. But in gaining such immense power, many railroad builders and consolidators became unethical and ruthless in their business practices. Watered stock, stock market rigging, corrupt rate wars, rebating and labor violence all became part of the n ew railroad picture. 16Railroad barons like Jay Gould James Fisk were masters at these tricks. One example of how money was made was by stock watering, which was the process of increasing the number of shares of a company without adding to the companys assets.17Perhaps one of the greatest of the great railroad barons was Commodore Cornelius Vanderbilt. Originally from the steamboat business, Vanderbilt gained control of such railroads as the New York Central and the Erie through ruthless business practices. A prime example of Vanderbilts ruthless practices is how he obtained control over the New York Central Railroad. Vanderbilt was frustrated with the current managers of the New York Central because they often bypassed his railroad when sending freight into New York City. So, Vanderbilt simply stopped shipping their freight and passengers one day. The New York Central stock rapidly began to drop on Wall Street because of Vanderbilts actions. Seeing that the stock was now cheap, Van derbilt began buy up the stock while it was cheap, and the company eventually fell into his hands.18 But practices like this could only go on for so long.The railroads activities had become too corrupt for most people and were beginning to become a financial burden for many farmers and business owners. Business owners and farmers began to resent the railroad and decided that something must be done. Taking the initiative was a group called the Patrons of Husbandry, popularly known as the Grange. The Grange was originally formed as a social group to bring farmers out of the isolation of their farmhouses.19 They had picnics, suppers, and other events, that well frequently held at the local Grange Hall. However, as railroad abuse increased the group shifted from entertainment purposes to more political purposes.The Grangers bonded together to establish many things that helped farmers, but their primary purpose eventually became to bring reform to the railroads.20 The Grangers quickly gr ew in size and gained enough power to elect people free of railroad influence, in the state legislatures. They pushed for new laws that would regulate the railroads monopolies, and eventually succeeded. But the Grangers success only came at the state level through what were called Granger laws. Even though these laws were aimed to regulate monopolies, though such things as freight and passenger rates, they were easily evaded by the railroads. However, some progress had been won. The nation was beginning to shift from an attitude of laissez-faire capitalism to a more progressive state of mind.One of the biggest things people learned from the Granger laws was that reform of the railroads was going to have to take place on a national level. In 1885, a Senate committee conducted an investigation of railroad business practices. The final report from the committee listed the familiar abuses of the railroads, such as watered stock and unreasonably high rates. This investigation made it cle ar that Federal Government must do something and in 1887 it did. The Interstate Commerce Act, in language that was perhaps deliberately vague, required that all interstate rates be reasonable and just and prohibited the familiar competitive practices of rebates, drawbacks, and pools.21 The act also required that the railroad publish their rate schedules and file them with the government. An Interstate Commerce Commission was created to administer the act and enforce it. The success of the Interstate Commerce Act was short lived and was easily evaded because of its loose wording.22 In 1890 the Sherman Antitrust Act was passed, but it too failed in regulating the railroads because of loose wording.23The move for railroad regulation was ultimately lost until the arrival of Theodore Roosevelt and a strong Progressive movement. Roosevelt considered railroad regulation to be a major issue and strongly moved for the greater empowerment of the Interstate Commerce Commission. His wish was gr anted in 1906 when the Hepburn Act was passed. The Hepburn Act greatly extended the power of the Interstate Commerce Commission. It also abolished the granting of passes and made the laws against rebates stronger.24 Following the Hepburn Act, were more and more laws aimed at regulating therailroads. As the new regulations went into effect, the railroad slowly began to slip down hill. But concern with the regulations was turned away from with the arrival of the First World War.Many problems faced the railroads as America entered World War I in 1917. One was the increase of rail traffic caused by the war. The railroads became very busy and subsequently operating cost rose. The railroads began to lose money due to the Interstate Commerce Commissions hold on the rates.25 Another problem that faced the railroads during World War I was that of management. Railroad executives found it very difficult to operate their rail lines together during the war. The creation of a railroad War Board w as an attempt to help the situation, but it did not work very well. Eventually it was decided by the government that they must take over, so an act was passed that allowed the Interstate Commerce Commission to control the movement, distribution, and exchange of railroad cars. This too failed because the commission was inept in exercising its authority. Given all the failed attempts, the government decided in 1918 to take complete control of the railroad.26 The government remained in charge of the railroad until the Transportation Act of 1920, which called for their return to private management.The future was not bright for the railroads: ever since the arrival of the First World War the railroads had experienced a general decline. This was due mostly to the development of new types of transportation. Millions now owned Henry Fords model T automobile, and various other cars.27 The twenties brought the arrival of motorbuses, which also took away from the railroads business. Other new forms of transportation, such as trucks and airplanes, also took their toll on the business of the railway. So, as the nation was roaring through the Twenties and heading for the Great Depression, the railroad was becoming ever increasingly a thing of the past.If there is to be an a lasting lesson from the history of the railroads from 1865-1929 it is that major industrial innovations can only live an unregulated life for so long. The United Stated was a booming country experiencing wide spread industrialization. The railroad was an essential part of this boom, but railroads had to change just as the to country had to change. The free going attitude of laissez-faire can only last so long in a country where equality and fairness before the law are valued. The railroads fully rode the first wave of industrialization and faded into the background when their time had come. The significance of the railroad will probably never be fully realized, but their impact will always be felt. The railroad in the United States Essay Example The railroad in the United States Essay In the simplest manner: the railroad changed the face of a nation. The railroad in the United States changed how people traveled, did business, and how Washington governed people. The railroad created new standards and new laws that still affect the way we live today. It helped create a new type of wealth that had never been seen before and became the first big business in the United States. Without the railroads impact, it would be difficult to fathom where the United States and the world would be today.The golden age of the railroad is considered to be by many the period that stretched between the end of the Civil War and the beginning of the First World War.1 Railroading from 1865 to 1929 covers the great expansion, the golden age and the beginning decline of the railroad. The emergence of the modern America, and the beginning of the Great Depression of the United States also can be seen within these dates; this emphasizes the large role that the railroads had in the industrializa tion of the America. It is clear that the history of the United States coincides with the history of the railroad; during these times the railroad played a vital a vital role in thebuilding of the United States. But, the relationship was symbiotic, because it is also possible to see that the direction in which the country was going played a role in how the railroad was formed, controlled, and regulated. Truly, the railroad is a form of transportation that helped make the United States what it is today.The year 1865 finally brought an end to war that had sliced a nation in half. The war, however, was not a destructive force to the railroads. With the exception of the southern lines, American railroads were generally in excellent shape in 1865.2 The Civil War brought new strength to the American railroads. The need to provide for the war had caused the railroads of the United States to expand by as much as 35,500 miles at the end of the war.3 The War had brought new strength to the ra ilroads and the railroads were now standing before their golden age. This golden age began with a big bang: the completion of the transcontinental railway.The story of the transcontinental railway could very well be suited for a Hollywood movie. It involves corruption, greed, great visions, and great strength. Public demand for a transcontinental railway was originally inspired by a proposal made in 1836 by the American statesmen John Plumbe and Robert John Walker.4 The demand for therailway was later increased with the arrival of the gold rush in 1849. In 1861, the Pacific Railway Bill was passed, this bill called for the building of the transcontinental line to be done by two companies, Union Pacific Company and the Central Pacific Company. The job of the Union Pacific Company was to build west from Omaha, while the job of the Central Pacific Company was to build east from Sacramento5. The bill also called for the companies to receive a right-of-way strip for their line (and whate ver they needed for rail yards, sidings, and other facilities), as well as five alternate land sections on each side of the track.6 The companies were also offered loans that went from $16,000 per mile of track in the lowlands to as much as $48,000 a mile in the mountainous regions.7The Union Pacific got of to slow start until they acquired a good engineer by thename of General Dodge, who was one of Shermans Civil War railroad men. UnderGeneral Dodges direction the work on the Union Pacific soon took on a furious pace and a military atmosphere; military preparedness and quickness were exactly what was needed to deal with the hostile Indians.Life on the Central Pacific was by no means pleasant, but they did not have much a problem with the Indians.8 However, one thing that was a problem on the Central Pacific was the lack of labor. California, being largely uninhabited at the time, did not provide a large labor resource; and so the managers of the Central Pacific had to look elsewher e for their labor needs. One of the places they looked for new labor was China. The Chinese turned out to be well suited for the job, and at one point nine-tenths of the labor force of the Central Pacific was Chinese.Eventually the two the companies came within sight of each other, and a meeting place for the two rails was designated. The meeting place chosen was a waterless basin of sagebrush just north of the Great Salt Lake in Utah. This place was called Promontory Point. It was decided that the two companies would meet and there would be a greatceremony to connect the railways. The ceremony was planned, and all of the railroad officials and dignitaries came to drive in the final spike. On May 10, 1869, this event finally took place. The driving in of the final spike came with a little embarrassment: First, one of the leaders of Central Pacific went up to drive in the golden spike and missed; next, the leader of the Union Pacific stepped up to drive in the golden spike and he too missed.9 Eventually, the final spike was driven in: though it is not clear who actually did it. Despite all this, the nation celebrated for the Atlantic coast and the Pacific coast had at last become connected by rail; and the railroad now stood on threshold of its golden age.The years following the completion of the transcontinental line brought an abundance of new railways. The rail network in the United States went from 35,000 miles in 1865 to 164,000 miles in 1890. This building was brought to an all-time high, when in 1916 the total length of the rail network in the United States reached 254,000 miles.10With such a rapid pace of construction, the building in the half-century after the Civil War led to an average annual construction, of over 4,000 miles a year. Even though this rapid construction was not equally spread throughout the country, every area did see some expansion.The transcontinental rail also led to great expansion in the West. The transcontinental railway, and th e railways following, brought eastern markets within a few days of western grain and cattle lands, and eventually helped create great cities in the West itself.11 The new railways of the West also brought about the virtual extermination of the buffalo. The new rails cut the herds in half and destroyed their natural habitat. It also became a game for people heading west on the railway to shoot the animal from their train window.12Now that the railroad spanned across the continent, the railroad was becoming a major player in the expansion of industry. The industry of the United States was rapidly expanding, and the railroad was becoming more than just a small factor in a great group of expanding industries. Railroads encouraged growth not only through the offering of their transport services, but also through the transportation need, of other industries. Railroads were not only the biggest shippers of industrial products; they were also American industrys best customers.13 The railroa ds became a huge buyer of steel, coal, lumber, and oil. To say that the railroad was an important factor in the industrialization of America is a huge understatement. The railroad became the pulse of industry and was considered by many the leading factor in the expansion of industry in the United States.While the network of rails was spreading, great financial networks were also developing. Groups of once independent railroad companies were grabbed up and consolidated to form large railroad systems.14 One prime example of this was The New York, New Haven, and Hartford Railroad, which were formed by the consolidation of about 200 originally independent lines.The large consolidation brought about the need for new standards and new technology that would help the railroad continue to grow and operate more efficiently. One of the new standards that was needed was a standard gauge for the railroads to operate on. This was needed because the expansion of the rails had now brought the need to move the freight from one line to another. This was not possible because throughout the country there were different gauges. For example in the south the popular gauge was five feet, but on other railroads like the Erie the gauge was six feet. It was decided amongst railroads that a standard must decided on, and that standard became four feet, eight and one half inches.15Another standard that was created and is still used today is standardized time. Until the movement for Standard Time, each town had its own time. There were, for example, thirty-eight different times in the state of Wisconsin alone. Given the amount of different times, the speed of trains, and the distance these trains traveled. This spelled one thing: complete chaos. Eventually the problem was solved in 1883, when the General Time Convention was held by the railroads. At this convention it was decided that the continental United States would be broken up into four standard time zones. People soon found it easy t o set their clocks by railroad time, and thus the railroad standard became a national standard.Other technological innovations that were created to aid the expansion and consolidation of the railways were: the use of steel rails, the automatic coupler, and the air brake. The automatic coupler allowed a coupler to close on impact, but still be able to open from the side of the car. The air brake, invented by George Westinghouse, allowed trains to stop much quicker than they had been able to in the past.Besides bringing about new technology, the consolidation of the railways also brought about the great railroad barons. The railroad had become a likely stop for the strong businessmen interested in making millions by manipulating the rail system. But in gaining such immense power, many railroad builders and consolidators became unethical and ruthless in their business practices. Watered stock, stock market rigging, corrupt rate wars, rebating and labor violence all became part of the n ew railroad picture. 16Railroad barons like Jay Gould James Fisk were masters at these tricks. One example of how money was made was by stock watering, which was the process of increasing the number of shares of a company without adding to the companys assets.17Perhaps one of the greatest of the great railroad barons was Commodore Cornelius Vanderbilt. Originally from the steamboat business, Vanderbilt gained control of such railroads as the New York Central and the Erie through ruthless business practices. A prime example of Vanderbilts ruthless practices is how he obtained control over the New York Central Railroad. Vanderbilt was frustrated with the current managers of the New York Central because they often bypassed his railroad when sending freight into New York City. So, Vanderbilt simply stopped shipping their freight and passengers one day. The New York Central stock rapidly began to drop on Wall Street because of Vanderbilts actions. Seeing that the stock was now cheap, Van derbilt began buy up the stock while it was cheap, and the company eventually fell into his hands.18 But practices like this could only go on for so long.The railroads activities had become too corrupt for most people and were beginning to become a financial burden for many farmers and business owners. Business owners and farmers began to resent the railroad and decided that something must be done. Taking the initiative was a group called the Patrons of Husbandry, popularly known as the Grange. The Grange was originally formed as a social group to bring farmers out of the isolation of their farmhouses.19 They had picnics, suppers, and other events, that well frequently held at the local Grange Hall. However, as railroad abuse increased the group shifted from entertainment purposes to more political purposes.The Grangers bonded together to establish many things that helped farmers, but their primary purpose eventually became to bring reform to the railroads.20 The Grangers quickly gr ew in size and gained enough power to elect people free of railroad influence, in the state legislatures. They pushed for new laws that would regulate the railroads monopolies, and eventually succeeded. But the Grangers success only came at the state level through what were called Granger laws. Even though these laws were aimed to regulate monopolies, though such things as freight and passenger rates, they were easily evaded by the railroads. However, some progress had been won. The nation was beginning to shift from an attitude of laissez-faire capitalism to a more progressive state of mind.One of the biggest things people learned from the Granger laws was that reform of the railroads was going to have to take place on a national level. In 1885, a Senate committee conducted an investigation of railroad business practices. The final report from the committee listed the familiar abuses of the railroads, such as watered stock and unreasonably high rates. This investigation made it cle ar that Federal Government must do something and in 1887 it did. The Interstate Commerce Act, in language that was perhaps deliberately vague, required that all interstate rates be reasonable and just and prohibited the familiar competitive practices of rebates, drawbacks, and pools.21 The act also required that the railroad publish their rate schedules and file them with the government. An Interstate Commerce Commission was created to administer the act and enforce it. The success of the Interstate Commerce Act was short lived and was easily evaded because of its loose wording.22 In 1890 the Sherman Antitrust Act was passed, but it too failed in regulating the railroads because of loose wording.23The move for railroad regulation was ultimately lost until the arrival of Theodore Roosevelt and a strong Progressive movement. Roosevelt considered railroad regulation to be a major issue and strongly moved for the greater empowerment of the Interstate Commerce Commission. His wish was gr anted in 1906 when the Hepburn Act was passed. The Hepburn Act greatly extended the power of the Interstate Commerce Commission. It also abolished the granting of passes and made the laws against rebates stronger.24 Following the Hepburn Act, were more and more laws aimed at regulating therailroads. As the new regulations went into effect, the railroad slowly began to slip down hill. But concern with the regulations was turned away from with the arrival of the First World War.Many problems faced the railroads as America entered World War I in 1917. One was the increase of rail traffic caused by the war. The railroads became very busy and subsequently operating cost rose. The railroads began to lose money due to the Interstate Commerce Commissions hold on the rates.25 Another problem that faced the railroads during World War I was that of management. Railroad executives found it very difficult to operate their rail lines together during the war. The creation of a railroad War Board w as an attempt to help the situation, but it did not work very well. Eventually it was decided by the government that they must take over, so an act was passed that allowed the Interstate Commerce Commission to control the movement, distribution, and exchange of railroad cars. This too failed because the commission was inept in exercising its authority. Given all the failed attempts, the government decided in 1918 to take complete control of the railroad.26 The government remained in charge of the railroad until the Transportation Act of 1920, which called for their return to private management.The future was not bright for the railroads: ever since the arrival of the First World War the railroads had experienced a general decline. This was due mostly to the development of new types of transportation. Millions now owned Henry Fords model T automobile, and various other cars.27 The twenties brought the arrival of motorbuses, which also took away from the railroads business. Other new forms of transportation, such as trucks and airplanes, also took their toll on the business of the railway. So, as the nation was roaring through the Twenties and heading for the Great Depression, the railroad was becoming ever increasingly a thing of the past.If there is to be an a lasting lesson from the history of the railroads from 1865-1929 it is that major industrial innovations can only live an unregulated life for so long. The United Stated was a booming country experiencing wide spread industrialization. The railroad was an essential part of this boom, but railroads had to change just as the to country had to change. The free going attitude of laissez-faire can only last so long in a country where equality and fairness before the law are valued. The railroads fully rode the first wave of industrialization and faded into the background when their time had come. The significance of the railroad will probably never be fully realized, but their impact will always be felt.