a new interest in long-distance roads on account of the automobile. All the states and the Federal authorities are now giving attention to road-building. Good roads bring pleasure to thousands and result in better prices for the farmers and lower prices and better service for city consumers of farm products.

Canal-Building. While the building of turnpikes was under way, another method of transportation was receiving attention. Canals cost more to build, but when once built goods can be sent by canal much cheaper than by road. A mule can draw more goods loaded in a canal-boat than twenty horses can haul in a wagon. The people of the United States knew the advantages of canals over roads and gave their attention to the construction of canals as soon as their resources permitted. Though several canals had been constructed before the Erie Canal, this was the first great success in canal-building. It connected the Hudson River with Lake Erie and was completed in 1825. Its success was immediate. Freight rates were lowered, time of transit was shortened, and new districts were opened to trade. In addition to this it was profitable to its builder, the State of New York, and paid for itself in ten years. The Erie Canal continued to produce a revenue for the State of New York until the competition of railroads took away most of its patronage. It is still in operation, having recently been converted into a barge canal. Though the Erie Canal now produces no revenue it still has an influence in keeping down the cost of transportation in New York State, and would prove invaluable if for any cause transportation by rail were interrupted.

Other states followed New York. Pennsylvania completed an extensive canal system in 1834. The Ohio Canal, built by the State of Ohio, connected Lake Erie and the Ohio River. Massachusetts, New Jersey, and Virginia were among the states that led in canal-building. The states built canals directly by appropriating money and loaned their credit to private canal companies.

The immediate result was favorable to all sections of the country. The farmers in the West were able to send their goods to Eastern markets and receive better prices than had prevailed in their local markets. They also purchased farm machinery for less than they had formerly paid. The cities of the Eastern states also profited by lower prices for flour and an enlarged market for their manufactured goods.

Most of the canals were not successful financially, owing to the competition of railroads. When the railroads made the canals unprofitable most canals were sold to railroad companies or abandoned.

Railroads. Railroads have become the chief means of transporting goods over long distances in the United States. No country in the world has so many miles of railroads as America. It is difficult to believe that the grandfathers of many men still active in business never saw a railroad.

The Baltimore and Ohio Railroad, the pioneer in America, opened a few miles of road in 1830. Horse-power and sails were tried as motive power, but after a year and a half of experience with these, steam-power was adopted. The first locomotives were imported from England, but proved unsuited to American rails and road-beds, and

American engineers soon designed engines better suited to
American conditions.

Railroad-building proceeded rapidly after 1840. Soon every Eastern city of much importance had railroad connection with other cities, and by 1850 railroads had penetrated west of the Allegheny Mountains. The railroads in 1850 were local roads. Frequent changes of cars were necessary in order to travel long distances.

The decade from 1850 to 1860 was characterized by great activity in railroad-building. By the end of this decade there were 28,919 miles of railroad in operation. Local lines were beginning to be linked together. For example, several local lines between Albany and Buffalo were united to form the New York Central Railroad. This resulted in greater economy of operation and greater convenience to travellers.

The Civil War brought a stop to railroad construction. After the war railroad construction was revived and soon the states east of the Mississippi had a network of railroads connecting all important cities. Railroads to the Pacific coast were planned while the Civil War was being waged. No private company was willing to begin the work without government aid and Congress voted to give large grants of land and to loan millions of dollars. The Union Pacific Railroad, extending from Omaha to Ogden, was granted 12,000,000 acres of public land. The Central Pacific, reaching from Ogden to Sacramento, received 8,000,000 acres. Grants to other railroads brought the total land grants by the Federal Government to 159,000,ooo acres before land grants were discontinued in 1871.

On May 10, 1869, the Union Pacific and the Central

A TOW OF GRAIN-LADEN BARGES ON THE MISSISSIPPI RIVER

Now the railroads do not fight river transportation as they did in the old days. It is cheaper to send grain from
St. Louis to New Orleans by barges than by train

Pacific Railroads were joined at Promontory Point near Ogden. It now was possible to travel by rail from New York to California.

Railroad Competition.-Soon after the Civil War most of the short railroads were linked together. Competition became intense between rival lines. The theory of the time was that competition should be encouraged. "Cutthroat competition" led to the weaker lines being forced to sell out to the stronger. The New York Legislature, like legislative bodies in other states, tried to prevent consolidation of rival lines by passing a law making such an act illegal. When the West Shore Railroad was beaten in a war of rates by the New York Central, it was leased to the latter railroad for a period of 999 years.

Where consolidation was not feasible "pooling" agreements were made. Under their terms business and profits were divided and the same rates charged by each line. Competition in rates ceased.

Railroad Abuses.-Under unrestricted private ownership a number of abuses developed. The most serious was discrimination in regard to persons and places. Favored shippers were given special advantages in assignment of cars and special rates. The regular rate was usually collected from a favored shipper and then a part returned to him. This was called a rebate. Passes were freely granted to favored persons and denied to others. Discrimination against places was no less common. The granting of lower rates to some places than were given to others was a great advantage to the favored communities.

Public Regulation of Railroads. In 1887 was passed the Interstate Commerce Act. Its object was to compel the