The Railroad Era and Economic Growth
Funding
The transcontinental railroad was constructed between 1864 and 1869 that passed Nebraska, Sacramento, Omaha to California hence know as the largest project of such type in that era. The private interests took the initiative of building the railroad but after passing by the congress that agreed to help in financing the project. According to Wilson (2019), the big four comprised Mark Hopkins, Charles Croker, Collis P. Huntington and Leland Stanford, who performed various duties apart from financing the project. For instance, Crocker was in charge of the construction activities while Huntington handles the operations of raising capital and well as head of supplies and distributions (Klein, 2019). On the same note, Stanford persisted as all-round individuals hence involved in every activity in the project while Hopkins handles the issues of accounts back in California. Klein (2019) explains that the two companies Central Pacific and Union Pacific under the big four leadership lobbied various incentives for the government aid and assistance. As a result, the U.S. Congress passed the Pacific Railroad of 1861 and 1864, thus offering different financial support to the project (Klein, 2019). Furthermore, the company leaders received various bonds from the federal authority as project financial assistance.
California states changes from time to time while considering the aspect of politics, economic and constitutional. As per Gendzel (2013), railroads acted as the backbone of the California economy in which some filed such as industry, agriculture and business depended on it as a significant transport system. Moreover, various challenges faced the system, such as unfair sharing of benefits and revenues as well as controlling the rates. Klein (2019) posits that, rate of the railways operations varied due to different cargoes destination and customers. Based on such cases, California amended its constitution in 1879 that included policies and laws on regulating and taxing of the railroad system (Gendzel, 2013). Such action resulted in the introduction of the sector into politics hence rising of issues such as lobbying involving bribing the legislators to formulate favorable laws, policies and regulations (Wilson, 2019). Furthermore, railroads resulted in the high magnitude of corruption, making the state government make various legislations to control such activities. Despite multiple reforms in the constitution, the company continued to impose overcharged rates, monopolizing land and paying low rates of taxes.
The 1911 session acted as most significant in the state history resulting in passing the landmark legislation that ensures close monitoring and regulation of the Octopus. In the same sitting, the reforms critically increased the powers of California State as well as its voters (Klein, 2019). Due to the issues of corruption in the state, then Governor Johnson believed that democracy was only the way of preventing and eliminating corporate ruling and political corruption (Gendzel, 2013). Johnson further believed that with power in hand of people, the state could prevent power corporate such as Southern Pacific that could intend to dominate the state authorities. As a result, the state amended the constitution that increased women voting as a way of increasing democracy and handing power to civilians (Gendzel, 2013). On the same note, the railroad led to the amendment of the constitutional leading to the introduction of the direct democracy aimed at preventing briber of the delegates since members of the public would directly vote and majority wins.
Negative Impacts
The railroad, commonly known as the Octopus, accompanied various negative impacts to the state of California and its people. According to Gendzel (2013), the high expectation of high returns from the project turned into various challenges ranging from environmental, economic and political marking the beginning of the great depression. As a result of the Octopus, the manufacturers and business people in the states find themselves exposed to the high level of competitions from the eastern cities. As per Wilson (2019), Business socked waiting for the high demand at the onset of the Octopus. Still, the market experienced an influx of various products from other market facilitated by the railroad transport system. Furthermore, the oversupply of the worker more so those from China impacted negatively to the California labor industry resulting in high rates of unemployment and depressed wages (Klein, 2019). Furthermore, the projects resulted in various types of corruption, resulting in various constitutionals amendments (Wilson, 2019). On the same note, the construction process significantly affected the environmental system of the western side due to deforestation for the timbers required in the process.
Results of Corruption in California State Offices
The corruption issues accompanied many results in California state, which affected how thing operated from economics to politics. For example, the corruption made the attorneys and various lobbyists to bribes various California state stakeholders such as press coverage, judges, lawmakers, and related office holders band officials in exchange of legislations, ad ruling that favored their business interests (Wilson, 2019). Similarly, the leadership of the Southern Pacific controlled various state procedures like court hearings, elections results as well as legislation and party sessions and influences their conclusions. Furthermore, due to high level of cooption and Southern Political influence, Octopus continued to operate imposing high rates, blackmailing the civilians and giving out low taxes to the state authority as compared to what it generated (Wilson, 2019). Equally, corruption in the offices enabled the company to pay off politicians and authorities hence breaking different regulations and laws regarding taxes.
References
Wilson, M. G. (2019). The Octopus, Resurfaced: California and the Southern Pacific Railroad, 1874–1894 (Doctoral dissertation, California State University, Fresno).
Klein, M. (2019). Financing the Transcontinental Railroad. Gilder Lehrman Institute of American History, viewed July, 17.
Gendzel, G. (2013). The People versus the Octopus: California Progressives and the Origins of Direct Democracy. Siècles. Cahiers du Centre d’histoire «Espaces et Cultures», (37).