What were the ways in which the railroad industry was corrupt?

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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The great wealth many railroad entrepreneurs acquired in the late 1800s led to accusations that they had built their fortunes by swindling investors and taxpayers, bribing officials, and cheating on their contracts and debts.

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But freight railroad abuses grew rampant. Money lined the pockets of greedy public officials who awarded generous terms to the railroads. Railroad companies set their own shipping rates. Sometimes it was more expensive for a small farmer to ship goods to a nearby town than to a faraway city.

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Crédit Mobilier Scandal, in U.S. history, illegal manipulation of contracts by a construction and finance company associated with the building of the Union Pacific Railroad (1865–69); the incident established Crédit Mobilier of America as a symbol of post-Civil War corruption.

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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. They brought in open range cattle a poorly run industry.

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Some of the most prominent dangers for railroad workers and in train accidents include the following:
  • Faulty equipment or tools.
  • Dangerous working conditions.
  • Exposure to hazards.
  • Toxic substances.


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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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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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Once some railroad owners consolidated, combined, they gave secret rebates, or discounts to their “better” customers in an attempt to keep them in business with the railroad. This hurt many small businesses that could not compete.

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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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Due to the railroad's construction, there was a very high demand for enslaved laborers during the mid-19th century in Western North Carolina. Enslaved people were assigned many tasks such as digging track beds, laying tracks, working as cleaners, brakemen, maintenance workers, and cooks.

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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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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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