The Pacific Railroad Act

What was the Pacific Railroad Act?

The Pacific Railroad Act was a government scheme to encourage the building of transcontinental railroads to the west of America.

When was the Pacific Railroad Act introduced?

The Pacific Railroad Act was passed in 1862.

Why was the Pacific Railroad Act introduced?

The railroads in the USA were extensive. but only went as far west as the Missouri River. It was believed that if transcontinental railroads could be built, migration to the west would be easier and towns would develop more quickly.

Who did the Pacific Railroad Act assign to build the railroad?

Two companies were set up to build the railroad, starting at different ends. Union Pacific started in Omaha and built west, while Central Pacific started in Sacramento and built east.

How did the Pacific Railroad Act ensure the railroad was completed?

The Pacific Railroad Act ensured the railroad would be completed in several ways:

• ❖ It encouraged companies to take on a risky project where profits might be non-existent.
• ❖ The Act removed Native American rights to land on any part of the route.
• ❖ The government loaned each company $16,000 for every mile of railroad it laid. This increased to $48,000 for mountainous parts of the route. Over $61 million was loaned in total.
• ❖ The Act allocated 45 million acres of public land to the companies, for them to sell or otherwise do with as they wished.