Railroad Companies

Who were the railroad companies?

The Union Pacific and Central Pacific railroad companies built the transcontinental railroad from 1862, under the Pacific Railroad Act.

What problems did the railroad companies have when building the railroads?

The railroad companies almost went bankrupt building the transcontinental railroad. This was because it was a huge and costly feat of engineering.

How did the railroad companies make money for their investors?

It was discovered Union Pacific was overcharging the government for its work on the railroad so the company could pay its investors more money.

How did the railroad companies encourage immigration?

The railroad companies encouraged immigration to the western states in two main ways:

• ❖ Both the Union Pacific and Central Pacific railroad companies had a Bureau of Immigration to persuade people from other countries to come to the western states.
• ❖ The bureau offered tours, loans, and lots of incentives to migrate.

How successful were the railroad companies in encouraging immigration?

The railroad companies were very successful in attracting migrants.

• ❖ The railroad companies settled more people in the west than the government did under the Homestead Act, allocating 200 million acres by 1880.
• ❖ 10,000 Scandinavians moved to Nebraska due to the activities of one bureau agent. Another agent, C B Schmidt, encouraged 60,000 Germans to go to Kansas.