The Railroad Builders: A Chronicle of the Welding of the StatesMoody, John
History
The Railroad Builders: A Chronicle of the Welding of the States
Moody, John
Railroads -- United States -- History
Many of the railroad evils were inherent in the situation; they were
explained by the fact that both managers and public were dealing with a
new agency whose laws they did not completely understand. But the mere
play of personal forces in themselves aggravated the antagonism. The
fact that most of the railroad magnates lived in the East added that
element of absentee landlordism which is essential to most agrarian
problems. Many of the Western capitalists were real leaders; yet it is
only necessary to remember that the most active man in Western railroads
in the seventies was Jay Gould, to understand the suspicion in which the
railroad promoter of that day was generally held. It is significant
that of all the existing railroad abuses, the one which seemed to
arouse particular hostility was the free pass. There were many greater
practical evils than this, yet the fact that most editors and public
officials and politicians and legislators and even many judges rode
"deadhead" was a constant reminder of the influence which this "alien"
power exercised over the government and the public opinion of the
communities of which it was theoretically the servant. Many of these
roads had a greater income than the States they served; their payrolls
were much larger; their head officials received higher salaries than
governors and presidents. The extent to which these roads controlled
legislatures and, as it seemed at times, even the courts themselves,
alarmed the people. The stock-jobbing that had formed so large a part
of their history added nothing to their popularity. Yet, when all these
charges against the railroads are admitted, the fundamental difficulty
was one which, at that stage of public enlightenment, was beyond the
power of individuals to control. Nearly all the deep-seated evils arose
from the fact that the railroads were attempting to do something which,
in the nature of the case, they were entirely unfitted to do--that
is, compete against one another. When the great trunk lines were
constructed, the idea that competition was the life of trade held sway
in America, and the popular impression prevailed that this rule would
apply to railroads as well as to other forms of business. To the few
farseeing prophets who predicted the difficulties which subsequently
materialized, the answer was always made that competition would protect
the public from extortion and other abuses. But competition between
railroads is well-nigh impossible. Only in case different companies
operated their cars upon the same roadbed--something which, in the
earliest days, they actually did on certain lines--could they compete,
and any such system as a general practice is clearly impracticable. One
railroad which paralleled another in all its details might compete with
it, but there are almost no routes that can furnish business enough for
two such lines, and the carrying out of such an idea involves a waste
of capital on an enormous scale.
Public-domain text, read in full here on John Shaqi.
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