Pgiam A Brief History Of The Railroad Industry Railroads were first built in the US in the 19th century, rapidly and everywhere: by 1916, there was a peak of 254,037 miles of rail, and 1,200 railroad carriers, which collectively employed 1.7 million workers in the US. However by the 1920s - 1930s, automobiles became popular as road construction was subsidized, and in the 1950s - 1960s the rise of jet airlines both competed with (and won against) passenger rail in the US, leaving just freight rail standing. ...