What was the problem with early railroads?

The greatest problem for railroad developers was money. Building a line was very expensive—purchasing right of way, paying wages for large work forces, and buying rail and rolling stock. State and local governments offered what financial assistance they could in the hope of attracting railroads to their areas.



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The builders were inept and built shoddy products. There was abuse of labor and destruction of the labor movement. The transcontinentals harmed Native Americans, and hastened the destruction of the buffalo. They opened lands to farming before the production was needed leading to oversupply and economic collapse.

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Laying track and living in and among the railroad construction camps was often very difficult. Railroad construction crews were not only subjected to extreme weather conditions, they had to lay tracks across and through many natural geographical features, including rivers, canyons, mountains, and desert.

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Trains were crossing time zones much quicker, making it difficult to keep a standard schedule. When it came to telling time, it was clear the railroads, and those that utilized the railroads, were in desperate need of some order.

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By 1920 the United States possessed the most extensive railroad network in the world, with more than 250,000 miles of track. The railroads faced increasing problems, however, including the aftereffects of government operation during World War I, increased labor unrest, and growing competition from highway traffic.

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Monopolies as unfairly subsidized Railroads had the ability to condemn land to build their routes. They got subsidies of land, loans, bonds and other financial aid from federal, state and local governments. Their political contributions and favors secured them supporters in legislatures, Congress and the courts.

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Laying track and living in and among the railroad construction camps was often very difficult. Railroad construction crews were not only subjected to extreme weather conditions, they had to lay tracks across and through many natural geographical features, including rivers, canyons, mountains, and desert.

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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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As white explorers and settlers entered Western territory, they disrupted a centuries-old culture — that of the Plains Indians. The arrival of the railroad and, with it, more permanent and numerous white settlement, spelled growing conflict between whites and natives.

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Each company faced unprecedented construction problems—mountains, severe weather, and the hostility of Native Americans. On May 10, 1869, in a ceremony at Promontory, Utah, the last rails were laid and the last spike driven.

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The railroad opened the way for the settlement of the West, provided new economic opportunities, stimulated the development of town and communities, and generally tied the country together.

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But the Depression, and the switch to automobiles after World War II, dealt a blow from which the railroads still have not recovered. A deadly cycle set in. As the number of passengers using the trains decreased, causing revenues to fall, the railroads tried to survive by cutting back on maintenance and service.

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Jay Gould, original name Jason Gould, (born May 27, 1836, Roxbury, New York, U.S.—died December 2, 1892, New York, New York), American railroad executive, financier, and speculator, an important railroad developer who was one of the most unscrupulous “robber barons” of 19th-century American capitalism.

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The size and scale of the 1877 strike rattled company executives and elected officials. Nearly two decades later, the American Railway Union—considered the first major railroad union—played a pivotal role in the 1894 Pullman Strike and marked a turning point in national labor organizing.

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Builders of the transcontinental railroad faced geographical obstacles across the entire line. But none were quite as formidable as the snowy granite mountain range rising east of Sacramento. Getting through the Sierra Nevada would require fortitude, technology -- and the sacrifice of many workers' lives.

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In the middle of the nineteenth century, U.S. railroad companies were expanding at a breakneck pace, straining to span the continent as quickly--and cheaply--as they could. The work was brutally difficult, the pay was low, and workers were injured and killed at a very high rate.

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They had to face dangerous work conditions – accidental explosions, snow and rock avalanches, which killed hundreds of workers, not to mention frigid weather.

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Many attributed their problems to discriminatory railroad rates, monopoly prices charged for farm machinery and fertilizer, an oppressively high tariff, an unfair tax structure, an inflexible banking system, political corruption, corporations that bought up huge tracks of land.

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As a result, although rail transport has advantages such as high carrying capacity, economy, reliability and environmental impact, it also has some disadvantages such as limited flexibility, operating costs, necessity of intermodal connections and delivery time.

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Railroads became a major industry, stimulating other heavy industries such as iron and steel production. These advances in travel and transport helped drive settlement in the western regions of North America and were integral to the nation's industrialization.

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