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.
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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.
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.
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.
Throughout the 1950s and 1960s, the rapid growth of truck and barge competition (aided by tens of billions of dollars in federal funding for construction of the interstate highway and inland waterway systems) and huge ongoing losses in passenger operations led to more railroad bankruptcies service abandonments and ...
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.
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.
Some Americans disliked this new means of transportation because they saw it as a modern monstrosity that belched black smoke and was noisy. They were suspicious of the change it brought to society.