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Local Rail Innovations: Antebellum States and Policy Diffusion

Published online by Cambridge University Press:  31 August 2011

Zachary Callen*
Affiliation:
Carroll College

Abstract

Antebellum states were critical in supporting the emerging rail system of the nineteenth century, yet not all states engaged in active rail promotion efforts. In this analysis, I consider how local economic and political conditions, as well as the rail promotion activities of a state's contiguous neighbors, impacted a legislature's rail promotion decisions. The findings suggest that states only engaged in rail promotion when local infrastructure was of poor quality and a state's tax revenues were sufficient to support rail expenditures. These findings reveal that diffusion, powered by social learning, does not drive all state policy innovations. Instead, local conditions and parallel thinking are important factors in state policy development. Furthermore, the analysis underscores the power of local governments in the antebellum period, while also raising the question of whether such diffuse state building was effective.

Type
Research Article
Copyright
Copyright © Cambridge University Press 2011

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61. The cautious approach of state legislatures was well founded. In the early days of the nineteenth century, many states nearly went bankrupt investing in ambitious canal projects (See Goodrich, Government Promotion of American Canals and Railroads).

62. Additionally, the political cost for a failed railroad, or abandoning a failing rail program, could be tremendous. Thus, cautious lawmakers would be expected to hesitate before rashly committing to miles upon miles of track development.

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69. Another key aspect of political culture that could have played a role in determining local attitudes on rail promotion was a state's age. Frontier states may have been measurably different than colonial states. Most notably, their rural nature would have compelled them to avoid rail promotion programs. However, state age, whether measured as the year the state joined the Union or years spent in the Union, would autocorrelate with numerous other measures. Hence, while a compelling variable, no measure of state age was included to avoid the autocorrelation problem.

70. Mulcare, D. M., “Restricted Authority: Slavery Politics, Internal Improvements, and the Limitation of National Administrative Capacity,” Political Research Quarterly 61, no. 4 (2008): 671–85CrossRefGoogle Scholar. Slavery was a major issue in its own right, and deserves a more complete theoretical discussion vis-à-vis its role in internal improvements. For instance, many southern states actually resisted federal action on railroads, in part, because they feared a stronger national state would threaten legal slavery. Hence, my own inclusion of slavery, while necessary, is also minimal and does not fully grapple with this issue. But given the magnitude of the slavery issue, any further discussion of slavery in rail promotion would distract from my own claims on state politics. Thus, the issue is, to a degree, bracketed for future research.

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73. Theoretically, the notion is that the critical decision was whether or not to attempt rail promotion. The method of rail promotion, such as direct investment versus tax incentive, was a distinct and separate political question. Therefore, rail promotion adoption is treated as a binary rather than an ordinal variable.

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75. In offering rail support, states may have only given a single grant to one railroad or they may have engaged in a long-term rail promotion program. Regardless of which route a state pursued, once the state gave aid it was considered as having “failed.” The data are structured in this way because states often intermittently provided rail support. For example, Missouri provided rail support in a series of discrete projects over many years. Tracking these small actions is difficult, and states are instead treated as simply either providing rail support or not. In addition, most states did offer some kind of benefit during the chartering, notably common were eminent domain powers and exemptions from taxation (Taylor, The Transportation Revolution). However, in the present analysis I am primarily interested in states offering additional, substantive aid, such as grants, banking rights, or construction funded entirely through public monies. The commonality of eminent domain powers makes them less insightful to understanding social learning diffusion processes. In addition, actions that involved a state actually spending funds or expanding a company's rights are deemed more substantive overall than the de facto eminent domain privilege. Finally, this focus on substantive aid over these more basic chartering privileges is common, as many of the historical studies that focus on the diffusion of antebellum rail promotion programs have a similar emphasis on larger rail aid plans, beyond eminent domain (Rubin, “Canal or Railroad?”; Scheiber “Federalism and the American Economic Order”).

76. Communication between states can be measured through a range of proxies, including publications that cross borders, economic ties, and citizen mobility. While all of these approaches offer insight into intrastate communication, the current analysis examines specifically connectivity through transportation infrastructure. By examining the impact of railroads and canals on policy development, the overlooked role of space and geography in policy diffusion as well as state building can be brought to light.

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83. In some cases, the census data point for the prior decade was not available, either because that value was not collected in an earlier census or a given state was not admitted to the Union. In those instances, the slope for projecting between the last census available and the next decade was used to predict backward as well. When that simulated value was negative, it was treated as missing data.

84. Haines, Historical, Demographic, Economic and Social Data.

85. National Governor's Association, National Governor's Association List of Historical Governors (July 2008), http://www.nga.org/portal/site/nga.

86. Box-Steffensmeier and Jones, Event History Modeling.

87. Wong and Langevin, “Policy Expansion of School Choice.”

88. Since the temporal dependence measure is primarily a control, the results for this coefficient are not reported.

89. I would like to thank an anonymous reviewer for highlighting additional rail promotion programs overlooked in the initial analysis.

90. Another potential internal economic factor driving state legislatures' decisions on rail promotion policies was local debt. For instance, Ohio's costly canal system could have prevented future state railroad promotion. However, state per capita debt is actually a poor predictor of local rail promotion choices. Utilizing state debt per capita for the year 1841, the correlation between state debt and rail policy adoption after 1841 is 0.011. This finding implies that states with higher debt were more likely to engage in rail promotion, however the relation is fairly weak (Rodden, J. A., Hamilton's Paradox: The Promise and Peril of Fiscal Federalism (Cambridge: Cambridge University Press, 2006Google Scholar).). Table 6 summarizes the relationship between state debt and local rail promotion policies. Significantly, there were only five states that engaged in rail promotion policies after 1841. While all five states that engaged in rail policies after 1841 tended to have low debt levels, the table also reveals that states with both high and low debt levels elected to not engage in rail promotion policies. Though it plausibly could impact local development plans, compared to other internal economic factors, internal debt was not a driving factor in states' rail promotion policy choices.

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92. One plausible explanation for this lack of policy convergence is that rail promotion programs may only have appeared in states with large urban centers. In this scenario, rail promotion, and subsequent policy convergence, only occurred among states with the largest urban populations, and was primarily a mechanism utilized by large cities to exert control over the rural hinterland. This would explain why so many highly urbanized states, such as Pennsylvania and New York, possessed active rail promotion programs. Yet, many states with large urban centers, including Rhode Island (Providence) and Ohio (Cleveland and Cincinnati), refused to engage in rail promotion. Furthermore, many decidedly nonurban states did have rail promotion. In particular, Chicago was not an especially developed urban center when Illinois engaged in a rail promotion project in 1832 (Corliss, Main Line of Mid-America). Therefore, competition between states with large urban centers alone cannot explain state legislatures' approach to the problem of local rail development.

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96. Harlow, The Road of the Century.

97. The value mapped for 1840 is actually industrial workers per county. Manufacturing capital per county was not measured in the 1840 census, and this alternative measure is used in the figure to maintain accuracy.

98. Derrick, Centennial History of the South Carolina Railroad.

99. Heath, Constructive Liberalism.

100. Ibid.

101. Ibid.

102. Derrick, Centennial History; Heath, Constructive Liberalism.

103. Heath, Constructive Liberalism.

104. Cline, Alabama Railroads.

105. Mills, J. T., Power and Politics in a Slave Society: Alabama, 1800–1860 (Baton Rouge: Louisiana State University Press, 1978)Google Scholar.

106. Ibid.

107. Usselman, Regulating Railroad Innovation.

108. Cline, Alabama Railroads; Griffith, L., Alabama: A Documentary History to 1900 (University: University of Alabama Press, 1972)Google Scholar.

109. Reed, New Orleans and the Railroads, 13.

110. This does not mean that local conditions were the only feature in determining local rail promotion strategies. As indicated, neighbors' did play a role in agenda setting. Furthermore, internal political conflicts between parties or regional interests also determined the odds of rail promotion adoption. Thus, while the present analysis sheds light on how local factors alone shaped state rail promotion activities, the process of local rail subsidy in the antebellum era was complex and involved a multitude of forces. Further work is needed to fully illuminate how all of these distinct processes were related to and interacted with one another.

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