Was the Transcontinental Railroad corrupt?

Common knowledge has it that the transcontinental railroad was very much a product of its times – another Gilded Age monument to corruption, embezzlement, and the unjust enrichment of capitalists.



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Good and bad The railroad is credited, for instance, with helping to open the West to migration and with expanding the American economy. It is blamed for the near eradication of the Native Americans of the Great Plains, the decimation of the buffalo and the exploitation of Chinese railroad workers.

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On September 4, 1872, the Sun broke the story. The newspaper reported that Crédit Mobilier had received $72 million in contracts for building a railroad worth only $53 million. After the revelations, the Union Pacific and other investors were left nearly bankrupt.

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The completion of the transcontinental railroad led to heightened racial tensions in California, as white workers from the East Coast and Europe could more easily travel westward where immigrant laborers were prevalent, says Princeton University Assistant Professor of History Beth Lew-Williams, author of The Chinese ...

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Railroads Were at the Forefront of Political Corruption “Railroads need monopoly franchises and subsidies, and to get them, they are more than willing to bribe public officials,” White says. The Central Pacific Railroad, for example, spent $500,000 annually in thinly disguised bribes between 1875 and 1885.

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For others, however, the Transcontinental Railroad undermined the sovereignty of Native nations and threatened to destroy Indigenous communities and their cultures as the railroad expanded into territories inhabited by Native Americans.

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While much of the original transcontinental railroad tracks are still in use, the complete, intact line fell out of operation in 1904, when a shorter route bypassed Promontory Summit.

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In 1862 Congress passed the Pacific Railroad Acts which designated the 32nd parallel as the initial transcontinental route and gave huge grants of lands for rights-of-way.

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Initially, Chinese employees received wages of $27 and then $30 a month, minus the cost of food and board. In contrast, Irishmen were paid $35 per month, with board provided. Workers lived in canvas camps alongside the grade.

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Before, during and after the transcontinental line's construction, in southern states, thousands of enslaved and then freedmen worked on the railroads grading lines, building bridges, and blasting tunnels.

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Answer and Explanation: The entire United States benefited financially from the joining of two railroads to form one transcontinental railroad. However, two industries benefited the most from the Transcontinental Railroad. Those were cotton and cattle.

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However, the race was ultimately a runaway victory for the Union Pacific, which was able to lay 1,085 miles of track to the 690 miles put down by the Central Pacific.

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Transcontinental Railroad Facts
  • It was built to connect the United States' East and West Coasts. ...
  • Approximately 1,800 miles of track. ...
  • The transcontinental railroad cost roughly $100 million. ...
  • Workers came from a wide range of backgrounds and ethnicity. ...
  • President Abraham Lincoln signed the Pacific Railway Act.


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In 1870 it took approximately seven days and cost as little as $65 for a ticket on the transcontinental line from New York to San Francisco; $136 for first class in a Pullman sleeping car; $110 for second class; and $65 for a space on a third- or “emigrant”-class bench.

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As well as being paid less, Chinese workers were given the most dangerous tasks, such as handling the explosive nitroglycerin used to break up solid rock. Due to the harsh conditions they faced, hundreds of Chinese Canadians working on the railway died from accidents, winter cold, illness and malnutrition.

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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.

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