The railroads also fleeced the small farmer. Farmers were often charged higher rates to ship their goods a short distance than a manufacturer would pay to transport wares a great distance.
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Steel rails linked the farms and the mills. The railroads provided the efficient, relatively cheap transportation that made both farming and milling profitable. They also carried the foodstuffs and other products that the men and women living on the single-crop bonanza farms needed to live.
The Complaints of FarmersThey generally blamed low prices on over-production. Second, farmers alleged that monopolistic railroads and grain elevators charged unfair prices for their services. Government regulation was the farmers' solution to the problem of monopoly.
The railroads provided the efficient, relatively cheap transportation that made both farming and milling profitable. They also carried the foodstuffs and other products that the men and women living on the single-crop bonanza farms needed to live.
Railroads discriminated in the prices they charged to passengers and shippers in different localities by providing rebates to large shippers or buyers. These practices were especially harmful to American farmers, who lacked the shipment volume necessary to obtain more favorable rates.
At first, the farmers wanted the government to control prices on the railroads. Later, the farmers began to demand that the government own the railroads. The farmers decided they had to have an organization. They formed several organizations.
Misguided railroad regulation was a major factor behind the rail industry's decline. For example, the ICC set maximum and minimum rates for rail shipments, with rates often unrelated to costs or demand.
The Complaints of FarmersFirst, farmers claimed that farm prices were falling and, as a consequence, so were their incomes. They generally blamed low prices on over-production. Second, farmers alleged that monopolistic railroads and grain elevators charged unfair prices for their services.
Roanoke Rapids Herald (Roanoke, Rapids, NC), Image 6. Chronicling America: Historic American Newspapers. The crowd cheers as Governor Leland Stanford drives the Golden Spike at Promontory Summit, Utah to complete the transcontinental railroad on May 10, 1869.