On the Fact that the Union Pacific, Central Pacific, and Northern Pacific Railroads Were Subsidized by the Federal Government with the Compensation Being by the Mile

  It was a disaster in that the concept of paying by the mile led to shoddy workmanship (which included the usage of cheap wrought iron rails, wooden culverts, etc.) and inefficiency, circuitous and nonsensical routes, abject stupidity (the laying of tracks on ice during the winter, for example), corruption on a massive scale (can you say, Credit Mobilier?), the building of lines that couldn't be sustained due to a lack of population, unnecessary conflict with Native-Americans, and finally to bankruptcy....................................................................................................And, yes, when you compare these boondoggles to James J. Hill's Great Northern line (a railroad that didn't consume government subsidies, that didn't fuck with the Native-Americans, that only used the best materials available, that didn't build until an area could sustain it, that avoided steep gradients, that built straight lines, that didn't kowtow to politicians and which avoided graft, and which ultimately avoided bankruptcy), the distinction is even more pronounced. If you're asking me here, a business (not to mention, the taxpayers), any business, is probably better off NOT taking subsidies.