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Abstract

Railway construction was a key factor in Germany’s rapid industrial growth during the third quarter of the nineteenth century. Here, we see that the total length of railroad track in the country quadrupled between 1850 and 1873. Initially, German railways transported more passengers than freight cargo. By the end of the period under consideration, however, that situation had been reversed. The railway also became the largest employer in Germany: between 1850 and 1870 the number of employees increased tenfold. This table also shows that railway construction, which demanded huge amounts of capital, played a central role in the development of Germany’s financial institutions.

Railway Construction (1850–1873)

  • Hans-Ulrich Wehler

Source

Figures Demonstrating the Success of German Railway Construction, 1850–1873

–

–

1850

1855

1860

1865

1870

1873

1

German Confederation/
German Reich

5,875

7,862

11,157

14,034

18,810

23,853

1

Prussia

2,967

3,822

5,762

6,895

11,460

14,461

2

Workers employed (Germany)

–

–

–

–

–

–

2

Ad hoc basis

78,700

112,800

171,300

189,100

220,400

396,900

2

Permanently

26,084

51,480

85,608

113,570

161,014

234,114

2

In Prussia, permanently

13,706

27,380

44,852

62,294

106,542

162,114

3

Passengers per km

783

1,090

1,733

2,676

4,447

5,693

3

Freight per km

303

1,095

1,675

3,672

5,876

10,060

4

Capital stock

891

1,329

2,152

2,772

3,945

5,531

5

Net investments

41

85

241

153

320

654

6

Average dividend of Prussian private railroads

4.4

6.6

5.4

8.9

7.6

5.6

7

Net domestic product

–

–

–

–

–

–

7

German Reich

48.2

102.4

173.2

275.9

397.8

537.5

7

Prussia

28.9

56.9

96.1

157.0

274.5

365.5

Explanatory note:
1. Length of rail network in the German Confederation/German Reich and Prussia in km.
2. Workers employed (ad hoc and permanent) by the German and Prussian railroad companies.
3. Passengers and freight transported by German railroads in passengers per km and freight per km.
4. Capital stock of German railroad companies at purchase prices (in million marks).
5. Net investments by German railroad companies at market prices (in million marks).
6. Average dividend of Prussian private railroads in percent.
7. Net domestic product of German and Prussian railroads at market prices (in million marks).

Source: Hans-Ulrich Wehler, Deutsche Gesellschaftsgeschichte, vol. 3, Von der „Deutsche Doppelrevolution“ bis zum Beginn des Ersten Weltkrieges 1849–1914. Table 63. Munich: Beck, 1995, pp. 69–70.