Before the advent of steam locomotives, railroads were powered by muscle power, usually horses. Animals pulled coal and ore cars from mines to docks along fixed rails made of wood or iron. In time, these so-called trolleys became the primary means of transporting coal from the large mines throughout Europe. 
In 1827, shortly after the South Carolina Canal and Railroad Company was founded, it held a horse-powered locomotive competition and offered a $500 prize for the best design. The most unusual design won the competition. 
Mule train of the Namaqualand Railway, circa 1876
Built by American engineer Christian Edward Detmold, the Flying Dutchman consisted of a single carriage with a horse on a treadmill in the center. There were benches on either side of the horse. As the horse walked on the treadmill, the energy generated was transferred through a series of gears on the axle of the carriage, moving the structure forward. 
"The Flying Dutchman"
The "Flying Dutchman" debuted in 1830 on a 10-kilometer stretch of railroad. It carried 12 passengers at a time at a respectable speed of 20 kilometers per hour. 
Model of the Flying Dutchman
Despite the success of the Flying Dutchman, Chief Engineer Horatio Allen convinced the railroad executives to switch to steam locomotives because he believed that the amount of power that could be obtained from horses was limited. The railroad executives agreed and passed a resolution stating that "the locomotive alone should be used. The improvement of this power in its application to railroads is rapidly progressing, and will doubtless reach such a degree of perfection during the period of our road's construction that the use of animal power would be a gross abuse of the gifts of genius and science." 
Before settling on the final design, the railroad experimented with another power source: wind. On March 19, 1830, the first sail-powered car, carrying about 15 passengers, reached speeds of up to 15 mph. The wind was so strong that the mast was blown overboard.
Eventually, a steam locomotive was purchased, dubbed the "Charleston's Best Friend." Capable of carrying 40-50 passengers at speeds of up to 35 mph, it was considered one of the fastest modes of transportation at the time. The locomotive's service ended just five months after it entered service when its boiler exploded. 
Cycloped
It was reported at the time that a fireman got tired of hearing the steam pressure relief valve whistle, and blocked the relief valve with a strong piece of lumber to stop it from hissing. As a result, the boiler exploded, sending metal shards flying and killing the disgruntled fireman. After the accident, the railroad replaced it with another locomotive and never took horses on the train again. But that was not the end of the horse-drawn locomotive.
A similar locomotive called the Cyclopede took part in the Rainhill Trials in October 1829, competing against steam locomotives. Unfortunately, the horse fell through the wooden platform and was disqualified. 
Sketch of Masserano's Impulsoria
At the Great Exhibition at the Crystal Palace in London in 1851, Italian engineer Clemente Masserano exhibited a horse-drawn locomotive called the Impulsoria. The locomotive was powered by four horses arranged in two pairs on an inclined track. The driver sat on one of the rear pairs of horses, and the second person was on the rear platform and, presumably, controlled the brakes. 
Impulsoria
The Impulsoria was never used, but it caught the attention of an Italian professor of philosophy, Dr. Andrea Crestadori. He improved the design of this unusual device and even received the corresponding patents. But progress took its toll, and soon horses as a motive force completely disappeared from the railway.
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