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.
What were some challenges of making the railroad?
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.
Who was a notoriously corrupt railroad owner?
Jay Gould Infamous for manipulating stock, Jay Gould was the most notoriously corrupt railroad owner. He became involved in the budding railroad industry in New York during the Civil War, and in 1867 became a director of the Erie Railroad.
What wrong doing were railroads guilty of?
What wrongdoing were railroads guilty of? Stock watering (which enabled railroad stock promoters to inflate their claims about a given line's assets and profitability and sell stocks and bonds in excess of the railroad's actual value) as well as other corruption such as bribery.
What were some of the railroad abuses?
Who did the railroads harm?
The Railroad Devastated Buffalo Herds—and Native Americans' Way of Life. To facilitate the railroad's passage through the nation's central and western regions, the government granted millions of acres of land to the railroad companies that actually belonged to tribal nations.
What was an extreme example of railroad corruption?
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.
Why were farmers mad at railroads?
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.
How did railroads lead to corruption?
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.
What was the bad part of the Transcontinental Railroad?
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.