Populists Vs. Railroads

The Populist Party was comprised of oppressed workers and functioned as a national union fighting for workers’ rights. The organization mainly focused on issues affecting farmers, the victims of many unfair arrangements between their bankers, politicians, manufacturers, and, especially, the railroad monopolies. These monopolies prided themselves on cutting costs to eliminate competition, sometimes at the expense of the farmers. Farming families were forced into poverty, making collaboration with others in similar situations their last resort and, later, forming the Populist Party.

During the late 1800’s, the party demanded that the government should be the sole owner of the railroads. This reform could have cut many of the high transport fares that the railroads charged exclusively in states with high farming populations. The differences in shipping costs between areas with known farming communities and other areas are displayed in the table below.

Railroad companies countered the Populists’ criticism by arguing that they needed compensation for the large costs associated with building railroads in less developed, western states, where farmers were a major source of income. This constant struggle for profit was difficult to solve, as each group supplied what the other demanded.

Over time, the Populist Party lost its power, resulting in a loss of traction in the railroad dispute. This led to little, if any, change in freight costs in the farming communities and a moderate decrease in business exchanges between the farmers and the railroad companies.