An electromagnetic system for detecting cracked rail and enhancing traction when necessary, includes wiring coils around wheel axles, and a corresponding power source for supplying power to the coils for producing electromagnetic flux. The produced electromagnetic flux is routed through the wheel axles, wheels and rails in a closed circuit. When a cracked rail is encountered along the route, the circuit will be interrupted or open, resulting in a changed flux pattern. This pattern change is detected by a flux sensor, and the geographic location of the crack in the rail is determined. The electromagnetic system further includes an electromagnetic wheel loading means for generating an attraction to the rails. The generated attraction to the rails increases friction between the wheels and the rails, thereby increasing traction to enable hauling greater loads up steep grades.