Why were railroads struggling in the 1920s?

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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The root of the railroads' trouble is that they were ordered to spend more in increased wages than they were able to earn from increased rates. Consequently, net income for 1920 well-nigh disappeared.

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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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The most dramatic confrontation was the Shopcraft Strike. Throughout the war, there had been inflation and rising employment, but deflation, recession, and decreasing traffic beginning in the middle of 1920 led railroads to furlough workers and cut wages.

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Passengers were electing more and more to travel by car or bus; freight shippers were increasingly choosing trucks for short- or long-haul jobs. Trucks, buses and cars could take flexible travel routes from point to point; railroads could not. For 20 years the railroads' situation worsened.

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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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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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Abstract. In this chapter, we review the level of disturbance caused by railways due to noise and vibration, air, soil and water pollution, and soil erosion.

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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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In some cases, the railroads were perceived to have abused their power as a result of too little competition. Railroads also banded together to form pools and trusts that fixed rates at higher levels than they could otherwise command.

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In summer 1922, railroad shop men, and maintenance-of-way workers, were the target of wage cuts, that lowered their wages by an average of 12%. The wage cuts were particularly upsetting to the workers because the economy was on an upswing after the difficult years around World War I.

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Faster inter-city trains: 1920–1941 Rail transportation was not high-speed by modern standards but inter-city travel often averaged speeds between 40 and 65 miles per hour (64 and 105 km/h).

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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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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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Railroad workers put in long hours; a 1907 law restricted train crews to 16 hours work out of every 24. Well into the twentieth century, work was unsteady and unsafe. One railroad worker in every 357 nationally died on the job in 1889.

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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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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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Railways allowed people to travel further, more quickly. This allowed leisure travel, and contributed to the growth of seaside resorts. It also allowed people to live further from their places of work, as the phenomenon of commuting took hold.

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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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