Updated: Sep 15, 2020
"Perhaps the most notorious examples of impropriety on the part of the railroads surround the process of land acquisition and sales. Since the federal government granted to the companies alternate tracts of land that ran along the tracks they had laid, it was generally assumed that the land would in turn be sold at its fair market value at the time the land was subdivided; circulars distributed by the SP (which was at the time a holding company formed by the Central Pacific Railroad) certainly implied as much. However, at least some of the tracts were put on the market only after considerable time had passed, and the land improved well beyond its raw state.
Families faced with asking prices of ten times or more of the initial value more often than not had no choice but to vacate their homes and farms, in the process losing everything they worked for; often it turned out to be a railroad employee who had purchased the property in question. A group of immigrant San Joaquin Valley farmers formed the Settlers' League in order to challenge the Southern Pacific's actions in court, but after all of the lawsuits were decided in the favor of the railroads, one group decided to take matters into their own hands. What resulted was the infamous Battle at Mussel Slough, in which armed settlers clashed with railroad employees and law enforcement officers engaged in eviction proceedings. Six people were killed in the ensuing gunfight. The Southern Pacific would emerge from the tragedy as the prime target of journalists such as William Randolph Hearst, ambitious politicians, and crusade groups for decades to follow.” - Wikipedia