Railroad Expansion and Economic Growth in New York State

Introduction: Railroads and New York's Frontier Communities

The varied communities that existed in the state of New York demonstrated a frontier existence — excluding the state's largest city, New York City itself. The economic growth the entire state experienced as a result of railroad infrastructure can be seen in the exponential growth of relatively rural cities within its borders, which went from populations of sustained and slow growth to urban centers teeming with industry. One example of just such a growth pattern, as a direct result of railroad proliferation, is the city of Oneonta. Established in 1796 with a population of 1,416 in 1820, Oneonta achieved steady growth until 1865, when its population began to increase exponentially, reaching 8,910 people by 1900. In 1865, the Delaware and Hudson Railroad became an established economic entity in Oneonta. Primary source documents from the New York Historical Society show a community that, by 1884, was shaped entirely by the presence of the railroad, with growth in industry and population continuing from there.^[1]

As New York was one of the first settled regions of the United States, the infrastructural development of the New York railway system boasted a diversity unlike the later western developments, in that more carriers were present there than in almost any other state. Though this initially served as a source of confusion — prior to the standardization of lines and rolling stock — the railroad environment in New York served as a trial system that in part demonstrated the need for standardization in later national development.

In the overall population growth of New York State, one can see exponential increases, especially in relation to railroad development, which by 1853 had developed into a collective network crossing the entire state.

New York State Population Growth, 1790–1870

Population Growth and the Railroad Network

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The state's development was quickened and broadened by the building of the Erie Canal. The canal, completed in 1825, and railroad lines constructed from 1831 parallel to it made New York the major east-west commercial route of the nineteenth century, and helped account for the growth and prosperity of the port of New York. Cities along the canal — Buffalo, Syracuse, Rome, Utica, and Schenectady — prospered. Albany grew, and New York City, whose first bank had been established by Alexander Hamilton in 1784, became the financial capital of the nation.^[3]

In the United States, a turnpike era and then a canal era had immediately preceded the coming of the railroads, which proved to be fast, direct, and reliable in all weather. After 1830, the railroads grew so quickly that within a decade their mileage surpassed that of the canals. While the stagecoach-style railroad car was giving way to the square type in the 1830s, many short-run railroads began to appear throughout the United States. The major cities on the Atlantic Coast became the nerve centers, while inland points were readily connected with one another. Only the Erie Railroad was projected on a grand scale.^[4]

Consolidation, Standardization, and the New York Central

The state planning of New York was, in great part, carried out on the premise that existing and new railroads would create an economic and social thoroughfare that would rival all others in its coverage and availability. In general, planners in 1913 mixed high expectations with professional caution. As Werner Hegemann, the noted German city planner, told his New York colleagues: "Your suburbs are your only hope, and your suburbs can only be reached through much improved transportation facilities. Two things will be necessary in your city planning system if it is to be rightly worked out. First, your railroads must be made the main part of it; second, the fares charged on them must be very low."^[5] Transportation routes and transit fares were indeed matters of central concern in New York City planning.

The transportation aspects of railroads were certainly not their only function, though they were crucial in the early days when alternative transportation was lacking. The railroads not only brought people to the suburbs — drawing residents out of New York City and other highly urbanized centers — but they also brought commerce to these resettled populations.

Consolidations were an early feature of the rail system in New York, arising from the diversity of early systems and the need for standardization noted above. Though at times controversial, standardization created a vast network of interconnected systems that could routinely rely on one another for commerce and trade routes,^[6] as well as for collective bargaining on fare and freight rates. This continued to demonstrate that rail systems were economical and effective in meeting the needs of the state — and specifically in supporting the city of New York. It has been argued that New York City could never have grown to its present size without the development of railroad infrastructure to support it.

The New York Central Railroad was a U.S. transportation company formed in 1853 by the consolidation of many small New York State railroads. In 1867, Cornelius Vanderbilt became president of the railroad and, through a series of mergers, formed the New York Central and Hudson River Railroad Company, linking New York City with Buffalo. Vanderbilt continued to expand his railroad empire through financial maneuvers, and in the twentieth century New York Central trains reached as far west as St. Louis, with trunk lines in six states. In 1914 the railroad reverted to its original name. By 1930, having absorbed other large railroads, the New York Central was one of the leading railroads connecting the Eastern Seaboard with Midwestern cities. As the only railroad with freight connections into Manhattan, it was an important factor in New York City's food supply.^[7]

Conclusion: The Railroad as Foundation of New York's Economy

The foundational expansion of the transportation system in New York State made possible economic growth that was unmatched in many regional locations and allowed for the support of one of the largest metropolitan areas in the world. With the culmination of railroad infrastructure came jobs in manufacturing and the maintenance of rail lines, open to diverse populations that had been underserved in the labor market. Additionally, the agricultural composition of many of the state's local markets was able to diversify and intensify, developing entire systems of distribution that had not previously been possible.