page_title: History of Indiana
section_title: Economic modernization
hierarchical_section_title: History of Indiana / Twentieth century / Economic modernization
caption_attribution_description: Restored Monon Railroad boxcar CIL 1620 at the Linden Railroad Museum, Linden, Indiana
context_page_description: The history of human activity in Indiana, a U.S. state in the Midwest, began with migratory tribes of Native Americans who inhabited Indiana as early as 8000 BC. Tribes succeeded one another in dominance for several thousand years and reached their peak of development during the period of Mississippian culture. The region entered recorded history in the 1670s when the first Europeans came to Indiana and claimed the territory for the Kingdom of France. After France ruled for a century, it was defeated by Great Britain in the French and Indian War and ceded its territory east of the Mississippi River. Britain held the land for more than twenty years, until after its defeat in the American Revolutionary War, then ceded the entire trans-Allegheny region, including what is now Indiana, to the newly formed United States.
  The U.S. government divided the trans-Allegheny region into several new territories. The largest of these was the Northwest Territory, which the U.S. Congress subsequently subdivided into several smaller territories. In 1800, Indiana Territory became the first of these new territories established.
context_section_description: Although industry was rapidly expanding throughout the northern part of the state, Indiana remained largely rural at the turn of the 20th century with a growing population of 2.5 million. Like much of the rest of the American Midwest, Indiana's exports and job providers remained largely agricultural until after World War I. Indiana's developing industry, backed by inexpensive natural gas from the large Trenton Gas Field, an educated population, low taxes, easy access to transportation, and business-friendly government, led Indiana to grow into one of the leading manufacturing states by the mid-1920s.
  The state's central location gave it an dense network of railroads. The line most identified with the state was the Monon Line. It provided passenger service for students en route to Purdue, Indiana U. and numerous small colleges, painted its cars in school colors, and was especially popular on football weekends. The Monon was merged into larger lines in 1971, closed its passenger service, and lost its identity. Entrepreneurs built an elaborate "interurban" network of light rails to connect rural areas to shopping opportunities in the cities. They began operation in 1892, and by 1908 there were 2,300 miles of track in 62 counties. The automobile made the lines unprofitable unless the destinaction was Chicago. By 2001, the "South Shore" was the last one; it still operating from South Bend to Chicago. 
  In 1907, Indiana became the first state to adopt eugenics legislation, that allowed the involuntary sterilization of dangerous male criminals and the mentally defectives. It was never put in effect and in 1921 Indiana became the first state to rule such legislation unconstitutional when the Indiana Supreme Court acted. A revised eugenics law was passed in 1927, and it remained in effect until 1974.
  The Indianapolis Motor Speedway complex was built in 1909, inaugurating a new era in history. Most Indiana cities within 200 miles of Detroit became part of the giant automobile industry after 1910. The Indianapolis speedway was a venue for auto companies to show off their products. The Indianapolis 500 quickly became the standard in auto racing as European and American companies competed to build the fastest automobile and win at the track. Industrial and technological industries thrived during this era, George Kingston developed an early carburetor in 1902; in 1912, Elwood Haynes received a patent for stainless steel.
caption: A restored Monon boxcar at the Linden Railroad Museum in Linden, Indiana
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