In what ways did the federal government encourage the development of a transcontinental railroad?

In what ways did the federal government encourage the development of a transcontinental railroad?
The U.S. federal government has at times encouraged the development of roads, canals, and railroads when it was beneficial to the nation's expansion. When the U.S. government decided a transcontinental railroad was necessary, it stimulated private industry to build one.

Railroads, as private companies, needed to engage in profitable projects. So the federal government passed the Pacific Railroad Act that provided land grants to railroads. This provided public lands to railroad companies in exchange for building tracks in specific locations. The idea was that with railroad expansion in new territory, settlers would follow, establish communities, and increase the value of land. Railroads could sell their portions of land and profit from their investment. The federal government hoped the railroad profits would be reinvested for further expansion.

The U.S. government provided the survey of public lands and divided them into one-mile square sections. The government kept a portion of the sections. The railroads received alternate sections, in a kind of checkerboard pattern. The government lands could be offered for homesteading or sold for a profit. Supporters of the land grants program believed it would be successful for all parties.

Others were concerned about the relationship between the federal government and private companies. Most railroads provided service to specific regions, but they could profit from shipping goods to and from communities. Those who opposed the land grant program felt railroads were receiving too much of a subsidy. Between 1850 and 1870, seven percent of the land in the United States was given to 80 railroads; mostly in the west. Railroad companies were given one-sixth of the land in Kansas.

Portions from The Kansas Journey.

Entry: Railroad Land Grants

Author: Kansas Historical Society

Author information: The Kansas Historical Society is a state agency charged with actively safeguarding and sharing the state's history.

Date Created: March 2011

Date Modified: March 2019

The author of this article is solely responsible for its content.

This act, passed on July 1, 1862, provided Federal subsidies in land and loans for the construction of a transcontinental railroad across the United States.

The question of "internal improvements" was frequently before Congress in the 19th century: Should Congress assist in improving the country’s transportation system? One such improvement was the dream of constructing a railroad that would cross the entire country.

In the 1850s, Congress commissioned several topographical surveys across the West to determine the best route for a railroad, but private corporations were reluctant to undertake the task without Federal assistance. In 1862, Congress passed the Pacific Railway Act, which designated the 32nd parallel as the initial transcontinental route, and provided government bonds to fund the project and large grants of lands for rights-of-way. The Act aided in the construction of a railroad and telegraph line from the Missouri River to the Pacific Ocean and secured the use of that line to the government.

The legislation authorized two railroad companies, the Union Pacific and the Central Pacific, to construct the lines. Beginning in 1863, the Union Pacific, employing more than 8,000 Irish, German, and Italian immigrants, built west from Omaha, NE; the Central Pacific, whose workforce included over 10,000 Chinese laborers, built eastward from Sacramento, CA. Each company faced unprecedented construction problems, severe weather, and conflict with American Indians, whose ancestral lands were transected by the railroads.

On May 10, 1869, the last rails were laid and the last spike was driven in during a ceremony at Promontory, UT. The completion of the transcontinental railroad shortened a journey of several months to about one week. Congress eventually authorized four transcontinental railroads and granted 174 million acres of public lands for rights-of-way.

On May 10, 1869, the presidents of the Union Pacific and Central Pacific railroads meet in Promontory, Utah, and drive a ceremonial last spike into a rail line that connects their railroads. This made transcontinental railroad travel possible for the first time in U.S. history. No longer would western-bound travelers need to take the long and dangerous journey by wagon train.

READ MORE: 10 Ways the Transcontinental Railroad Changed America

Since at least 1832, both Eastern and frontier statesmen realized a need to connect the two coasts. It was not until 1853, though, that Congress appropriated funds to survey several routes for the transcontinental railroad. The actual building of the railroad would have to wait even longer, as North-South tensions prevented Congress from reaching an agreement on where the line would begin.

One year into the Civil War, a Republican-controlled Congress passed the Pacific Railroad Act (1862), guaranteeing public land grants and loans to the two railroads it chose to build the transcontinental line, the Union Pacific and the Central Pacific. With these in hand, the railroads began work in 1866 from Omaha and Sacramento, forging a northern route across the country. In their eagerness for land, the two lines built right past each other, and the final meeting place had to be renegotiated.

Harsh winters, staggering summer heat and the lawless, rough-and-tumble conditions of newly settled western towns made conditions for the Union Pacific laborers—mainly Civil War veterans of Irish descent—miserable. The overwhelmingly immigrant Chinese work force of the Central Pacific also had its fair share of problems, including brutal 12-hour work days laying tracks over the Sierra Nevada Mountains (they also received lower wages than their white counterparts). On more than one occasion, whole crews would be lost to avalanches, or mishaps with explosives would leave several dead.

READ MORE: Building the Transcontinental Railroad: How 20,000 Chinese Immigrants Made It Happen

For all the adversity they suffered, the Union Pacific and Central Pacific workers were able to finish the railroad–laying nearly 2,000 miles of track–by 1869, ahead of schedule and under budget. Journeys that had taken months by wagon train or weeks by boat now took only days. Their work had an immediate impact: The years following the construction of the railway were years of rapid growth and expansion for the United States, due in large part to the speed and ease of travel that the railroad provided.

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How did the US government encourage the transcontinental railroad?

In 1862, Congress passed the Pacific Railway Act, which designated the 32nd parallel as the initial transcontinental route, and provided government bonds to fund the project and large grants of lands for rights-of-way.

How did the government encourage the growth of railroads?

The federal government gave land grants to many railroad companies. Railroads would then sell the land to settlers, real estate companies, and other business to raise money they needed to build the railroad.