On July 1, 1862, President Abraham Lincoln signed the Pacific Railway Act into law. The act authorized the construction of a transcontinental railroad connecting the eastern and western United States. The railroad would be built by two private companies: the Union Pacific Railroad Company and the Central Pacific Railroad Company.
The Union Pacific Railroad Company would begin construction in Omaha, Nebraska, and build westward. The Central Pacific Railroad Company would begin construction in Sacramento, California, and build eastward. The two companies would meet somewhere in the middle, at a point to be determined later.
The Pacific Railway Act provided government subsidies to the two railroad companies. The Union Pacific Railroad Company would receive a loan of $16,000 per mile of track constructed. The Central Pacific Railroad Company would receive a loan of $48,000 per mile of track constructed.
The government also provided land grants to the two railroad companies. The Union Pacific Railroad Company would receive 10 square miles of land for every mile of track constructed. The Central Pacific Railroad Company would receive 20 square miles of land for every mile of track constructed.
The Pacific Railway Act was a major milestone in the development of the United States. It opened up the West to settlement and helped to create a more unified nation.
Here are some additional facts about the Pacific Railway Act:
* The first transcontinental railroad was completed on May 10, 1869, when the Union Pacific Railroad and the Central Pacific Railroad joined tracks at Promontory Summit, Utah.
* The transcontinental railroad was a major engineering feat. The Union Pacific Railroad had to lay track across the Rocky Mountains, while the Central Pacific Railroad had to lay track across the Sierra Nevada mountains.
* The transcontinental railroad had a profound impact on the development of the United States. It opened up the West to settlement and helped to create a more unified nation.
* The transcontinental railroad also had a major impact on the economy of the United States. It stimulated economic growth and helped to create new jobs.