Crony Capitalism and the Transcontinental Railroads - Ryan McMaken - Mises Daily

Posted by straightlinelogic 11 years, 1 month ago to History
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The only transcontinental that wasn't a complete boondoggle was James Hill's Great Northern Railway, built without subsidies or land grants, and profitable from day one. Hill was America's greatest railroad man, and he gets his own chapter in The Golden Pinnacle (Chapter 14, Mr. Hill's Railroad).


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  • Posted by 11 years, 1 month ago in reply to this comment.
    Hill couldn't very well buy the Northern Pacific without also buying the land that had been given to it by the government. That may make him an imperfect paragon, but he turned the Northern Pacific into a profitable part of his railroad empire. I would rather have someone like Hill come along and transform a waste of taxpayer money into an enterprise that can stand on its own, rather than see it in the hands of another moocher. As Martin's book makes clear, Hill wanted no part of land grants for his original creation, The Great Northern Railway. He did not want the government strings that came with those grants. I think Hill deserves the praise he got from Ayn Rand, and from me in The Golden Pinnacle. I also mentioned Kennedy, and one of my characters called him the best railroad finance man in New York.
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  • Posted by 11 years, 1 month ago in reply to this comment.
    Back in 1854, railroads were the crony capitalistic hope of the day, kind of like green energy or big urban sports stadiums are today. The K-N Act turned into a big mess, and so did the transcontinental 15 years later.
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  • Posted by khalling 11 years, 1 month ago
    lol. I read the article before I saw you posted it, and I was going to tie it to Golden Pinnacle! Interesting read.
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