“Rackhorse Charlie” (also known as “
Racehorse Charlie”) came to be a slang term from the 1930’s now specifically known for the drug cocaine. In modern drug slang, “C” is one of the well-known references used for describing cocaine. The term “Racehorse” implies something fast, strong, high
performance (speed, power) — attributes users might
metaphorically apply to a stimulant like cocaine, or to a powerful narcotic.
The use of the word “Rackhorse Charlie” is primarily implied in scenarios where you wouldn’t want anybody to know that you’re using cocaine.