In Philadelphia, self-made steel magnate Hank Rearden develops Rearden Metal, an alloy lighter and stronger than conventional steel. Dagny opts to use Rearden Metal in the Rio Norte Line, becoming the first major customer for the product. After Hank refuses to sell the metal to the State Science Institute, a government research foundation run by Dr. Robert Stadler, the Institute publishes a report condemning the metal without identifying problems with it. As a result, many significant organizations boycott the line. Although Stadler agrees with Dagny's complaints about the unscientific tone of the report, he refuses to override it. To protect Taggart Transcontinental from the boycott, Dagny decides to build the Rio Norte Line as an independent company named the John Galt Line.
