Why did farmers blame railroads?

The Complaints of Farmers First, 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.



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They primarily zeroed in on two villains – banks and railroads. In their view banks charged outrageous interest rates, and monopolistic railroads not only charged outrageous rates but their rates were unfair and arbitrary in that the railroads charged farmers higher rates than they charged fellow industrialists.

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The Complaints of Farmers They 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.

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Ranging from 3,000 to 30,000 acres, these huge farms needed fleets of harvesters and armies of workers to gather their crops. Steel rails linked the farms and the mills. The railroads provided the efficient, relatively cheap transportation that made both farming and milling profitable.

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By diminishing the cost of transportation, the railroad has made agriculture possible in a large part of the Northwestern States. The extension of railroads has given to the farmers a great part of their wealth, and the natural alliance, a blessing to both, cannot be broken without great disaster to both.

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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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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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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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Railroads helped farmers by shipping crops to new markets but hurt farmers by charging high shipping rates.

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