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Railroads and Industrialization

In the years immediately following the Civil war, new railroad lines were constructed throughout almost every section of the United States. In 1860, Texas had only 307 miles of track. In the next ten years, this number increased very little, totaling 583 miles of railroad lines. By 1880, Texas had approximately 3,244 miles of railroad track. By 1890, the number of miles increased to 8,700 total miles. By 1900, the Texas railroad system had 9,866 miles of lines.

Texans viewed the railroad as an absolute necessity for transportation in the state. Local government knew how important railroads were to the prosperity of cities. A railroad ensured the success of a town. A railroad provided an improved system of transportation which allowed people and goods to travel to and from almost any place in the United States. 

Railroads in Texas were financed in a number of different ways. Some cities, such as San Antonio, sold bonds to the public. The money raised from the sale of these bonds was then used to finance railroad construction. Other cities made offers of loans to railroad companies. 

The most common form of railroad financing was the "land grant." The Texas legislature passed a general law in 1876 for railroad development. For every ten miles of track a company built, it received 160 sections of land. The railroad companies were then required to sell the land to finance their surveying and construction cost.

Early locomotive of the Rio Grande Railroad
(Photo courtesy of the Institute of Texan Cultures)

In the 1880s, many new railroad companies began constructing rail lines in Texas. These new companies included the Rio Grande and El Paso, Texas and Pacific Railway Company (T&P); the Southern Pacific (SP); the Atchison, Topeka and Santa Fe (ATSF); the Missouri Pacific (MP) and the Chicago, Burlington and Quincy (CB&Q).

The development of a railroad system led to other industrial developments. Agriculture became more commercialized, and Texans began shipping their products throughout the United States and to markets overseas. Agriculture also became more mechanized during this period. Farmers used horse-drawn threshers, steam-powered tractors and various other machines to plant and harvest their crops. In addition, by the turn of the century, irrigation enabled farmers to grow crops on the arid land in southwest and western Texas. The main commercial crop grown in the state was cotton, but farmers also produced rice, sugarcane, corn and wheat.

Circle irrigation system found today in many parts of Texas
(Photo by Jack Lewis/TxDot)

Despite changes in agricultural production, farmers still faced many hardships. With increasing competition from farmers in other states and in European countries, Texas farmers often found themselves in financial trouble. They frequently had to borrow large amounts of money to buy land and equipment. Tenant farmers, who rented land on which to grow crops, and sharecroppers, a tenant farmer who gave a share of his crops to landowners in return for tools, seeds or a house, had the greatest difficulty making a living farming during this era.

Other industries also developed in Texas between 1876 and 1900. They included flour and cottonseed mills, coal-mining operations and lumber saw mills. The oil industry in Texas also began in the late 1800s. In 1866, Lyne Barret drilled the first oil well in Texas. His well in Nacogdoches County was drilled with a steam driven engine. Barret made very little profit from his discovery because there was limited demand for oil at the time. However, during the 1870s and 1880s, the demand for the black liquid steadily increased. 

In 1894, a large oil field was discovered near Corsicana, Texas. After the fields at Corsicana began producing large amounts of crude oil, J. S. Cullinan built the first large commercial oil refinery near the oil fields. The oil was used for a variety of purposes, including locomotive fuel, machinery lubricant and in the production of kerosene for lamps.

Aside from growth in Texas industries, the citizens also witnessed the introduction of new inventions in their state. These inventions included telephones and electric power. 

Additional Resources

bulletRead more about the early history of the oil industry in Texas.
bulletRead more about Texas in the late 19th Century.

Study Guide Questions:

  1. What benefits did railroads bring to Texas?(7.9:C)
  2. How were early railroads financed in Texas?(7.6:A)
  3. Name some railroad companies that began operating in Texas during this era.(7.6:A)
  4. What technological advances improved agriculture during this period?(7.20:C,D)
  5. Why did farmers have a difficult time during this period?(7.6:A)
  6. Besides the railroads, what other industries developed in Texas between 1876 and 1900?(7.6:A)
  7. Who were Lyne Barret and J.S. Cullinan?(7.6:A)

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