Effectiveness of Labor Unions in Aviation Case Study Analysis Paper In this Case Analysis activity, you will select a recent journal article related to the
Effectiveness of Labor Unions in Aviation Case Study Analysis Paper In this Case Analysis activity, you will select a recent journal article related to the “Effectiveness of Labor Unions in Aviation” and conduct an analysis.Complete the following:Merriam Webster (n.d.) defines effectiveness as: “(1a) producing a decided, decisive, or desired effect an effective policy, (1b) impressive, striking, (2) ready for service or action, (3) actual; the need to increase effective demand for goods, (4) being in effect; operative ‘the tax becomes effective next year”. For this Case Analysis topic, keeping the definition of effectiveness in mind, locate a journal article that addresses a specific aviation labor union. You may wish to find additional sources that address the same organization. Analyze the effectiveness of the union. Be sure to include the membership trends’ impact and their ability to maintain fair and equitable employee treatment. Moreover, is the ‘effectiveness’ concerning Labor Unions in Aviation a measure (intrinsic, extrinsic, or both), a value, or an identity?Utilizing research retrieved, prepare a 3-5 page paper discussing the analyzed information in regard to the assigned topic. Include a cover page, abstract, and reference list page (not included in page requirement). Your paper must be written according to current APA style guideline. Ensure the words contained within the document are entirely your own and that all sources have been properly cited and referenced. Running head: 2.3 – CASE ANALYSIS: FUNDING THE RAILROADS
2.3 – Case Analysis: Funding the Railroads
Susan A. Student
Embry-Riddle Aeronautical University
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2.3 – CASE ANALYSIS: FUNDING THE RAILROADS
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Abstract
Funding the Transcontinental Railroad in the 19th century was a major issue for the United States
Government. There were several possible courses of action. Two of these are included here as
well as the problems and advantages of each. In conclusion, the rationale for government funding
is presented.
Keywords: railroads, intercontinental, funding, entrepreneur
2.3 – CASE ANALYSIS: FUNDING THE RAILROADS
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2.3 – Case Analysis: Funding the Railroads
I. Summary
The speculative benefits of a transcontinental railroad were easy enough to articulate:
there was fertile land out west for migrants to farm, gold and silver to be mined in California,
and of course it was a matter of national pride (Ambrose, 2000). According to Ambrose (2000),
the whole country was clamoring for it to be done, yet few were crazy enough to invest as the
risks of financial failure and ruin were huge (Union Pacific, n.d. para. 3). Ultimately, funding
was provided by the United States government via the Pacific Railroad Act of 1862, mostly in
the form of land grants to the railroads; the railroads would sell the unused land to fund the
construction (Ambrose, 2000, p. 47). Much of the land was all but worthless at the time, but it
was assumed that as transportation cost were reduced, the land would become more valuable
(Garrison & Levinson, 2014; Ambrose, 2000).
II. Problem
The problem is multifaceted. Unfortunately for the railroad companies, they could not
sell most of the land until after the railroad was built, and they could not build the railroad
without the proceeds of the land sales (Ambrose, 2000). Some relief came with the Pacific
Railroad Act of 1864 which doubled land grants and (more importantly) provided the ability to
borrow against the land grants by issuing bonds (Union Pacific, n.d.). However, even with
doubled bonds and the ability to borrow against them, the transcontinental railroad had major
financing difficulties (Ambrose, 2000; Union Pacific, n.d.).
On the other hand, Illinois representative E.B. Washburn (as quoted in Ambrose, 2000)
called the 1864 bill the most monstrous and flagrant attempt to overreach the government and
2.3 – CASE ANALYSIS: FUNDING THE RAILROADS
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the people
(p. 94), charging that the Wall Street elites pushing for funding were only out to
profit off the public (Ambrose, 2000). Eglin Air Force Base Archaeologist Benjamin Aubuchon
(personal communication, August 17, 2016) affirms that while the Pacific Railroad Acts were
instrumental in building the transcontinental railroad, many railroad corporations in the
Southeastern U.S. were formed with no intention of following through. In Northwest Florida,
the timber-rich land was usually promptly sold for lumber (or turpentine operations in the early
1900s) as soon as it was acquired, whereupon shareholders pocketed the profits as corporations
went bankrupt, abandoning the vast majority of the proposed railways (B. Aubuchon, personal
communication, August 17, 2016).
III. Significance of the Problem
While the public was eager to see the transcontinental line built, putting taxpayers
money behind the project was out of the question (Ambrose, 2000). Offering land grants was
seen as a way to fund construction with little public risk, but some felt that this was still too
much government meddling. Ultimately, those who acted in good faith by attempting to actually
build the proposed railroads had extreme difficulty funding the construction, with many risking
family fortunes and going deep into personal debt (Ambrose, 2000; Union Pacific, n.d.). Yet
others took the public land without providing anything of value in return.
IV. Development of Alternative Actions
Alternative Action 1. The U.S. government could have abstained from providing financial
assistance and allowed free market forces alone to drive development.
Advantages. This alternative would have eliminated the risk of Robber-Baron types
betraying the public trust.
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Disadvantages. Honest entrepreneurs were scarcely able to fund the rails west even with
the Pacific Railroad Acts. While the railroad certainly would have been built at some point, it
would have taken decades longer as it moved incrementally across the nation.
Alternative Action 2. The U.S. government could have limited the number of lines funded. For
example, companies could have bid on one or two lines to California, and maybe one north-south
line. The bidding could have been for the whole line or in sections. More generous land grants
would have better facilitated development and these would be feasible as total lands granted
would be drastically reduced.
Advantages. This alternative would have served to satisfy public demand with reduced
risk of Robber-Barron types betraying public trust. Furthermore, lines could be privately funded
off of the first lines as demand called for it.
Disadvantages. While the distance to California would be crossed more quickly,
privately funded lines with no land grants would have taken longer to spread. Limiting the
number of companies funded could prompt charges of government favoritism.
V. Recommendation
The demand for a transcontinental railroad was clear. It is reasonable to assume a majority of
entrepreneurs will strive to maximize profits by satisfying demand. Therefore, publicly funding
only the lines for which there was very clear public demand coupled with private refusal to
invest would have ensured that funds were used for their intended purposes. For example, if
there had been great demand for railroads in Northwest Florida, entrepreneurs who received the
land grants to build would have been foolish to simply sell the land and back out. This makes
Alternative Action 2 the superior solution to the transcontinental railroad-funding problem.
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References
Ambrose, S. E. (2000). Nothing like it in the world. New York, NY: Simon & Schuster.
Garrison, W. L., & Levinson, D. M. (2014). The transportation experience (2nd ed.). New York,
NY: Oxford University Press.
Union Pacific. (n.d.). Financing. Retrieved from
http://www.up.com/aboutup/history/overview/financing/index.htm
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