George Hudson

George Hudson, a Yorkshire farmer’s son, became a prominent figure in Victorian England’s railway industry, controlling one-third of the country’s railway lines at his peak. Known as the “Railway King,” Hudson played a significant role in the British Railroad Boom, a period of rapid railway expansion from the 1830s to the 1840s. This era saw England’s railway network grow from 98 miles in 1830 to 6,000 miles by 1849, driven by substantial capital investment and the transformative potential of railways. However, the boom ended abruptly in the mid-1840s when railway shares, which had peaked in 1845, crashed and lost over half their value by 1850. Hudson’s improper business practices, including bribery and embezzlement, were exposed, leading to his downfall and the collapse of many railway companies.

Interpretations of Hudson’s role in ending the boom vary. Some analysts blame Hudson and other corrupt financiers for creating a bubble through fraudulent practices, such as paying dividends from capital rather than profits. Others argue that the crash was due to macroeconomic factors, including the Irish Potato Famine and rising interest rates, which exacerbated economic pressures. Additionally, some believe that the railway industry’s overexpansion and higher-than-expected construction and maintenance costs contributed to the crash. While Hudson was vilified at the time, some modern historians suggest he was a scapegoat for broader systemic issues, noting that the mania was driven by overoptimistic financial projections and investor enthusiasm rather than solely by Hudson’s actions.