October 16, 2021
The building of the Transcontinental Railroad in the 19th century linked America’s coasts, providing a transportation network that helped fuel many of the country’s industries. Prior to the transcontinental rail system, traversing the country took six months by ship around the tip of South America. It was either that or risk yellow fever and other diseases by crossing the Isthmus of Panama.
Very few chose the overland route crossing the dangerous mountains, plains, and rivers, not to mention bandits or rightfully vengeful Native American Indians. The monumental undertaking required two railroad companies and seven years to link the extensive east coast railway system with the wild wild west.
An Idea Years In The Making
In 1845 Asa Whitney first proposed the concept of a Transcontinental Railroad to Congress. Unfortunately, warring factions within Congress put an end to the idea. It wasn’t until 1860 when Theodore Judah mobilized a group of investors to form the Central Pacific Railroad Company. Crucially, he also identified Donner Pass in northern California as an ideal location to cross the imposing Sierra Nevada mountains.
Lincoln Approves the Transcontinental Railway
With plans in hand, Whitney appealed to Congress and President Lincoln to green-light his ambitious plan. In 1862 Lincoln signed the Pacific Railroad Act, which spelled out the grandiose project. Another railroad company, the Union Pacific Railroad, would begin laying track from the Missouri River heading west while Whitney’s company would start in Sacramento and head east.
A Rail-laying Race For Cash
The two lines would meet in an unspecified location in the middle. To fulfill their enormous task the government would allot 12,800 acres of land and $48,000 in bonds to the railroad companies for every mile built. Adjusted for inflation, the companies made just over $1 million per mile in today’s money. The arrangement effectively pitted the two companies together in a race to see who could lay more track. Whoever laid more tracks made more money.
In hindsight, pitting two companies against each other with such a clear emphasis on speed led to a litany of issues. Coming from the west, the Central Pacific Railroad Company was managed by Charles Crocker, Leland Stanford, Collis Huntington, and Mark Hopkins, known as the “Big Four.” All had zero railroad building experience but saw an incredible opportunity to make gobs of money.
Judah, who came up with the entire idea, tried to buy them out but died of yellow fever after passing through the Isthmus of Panama. On the other side, Dr. Thomas Durant illegally gained control over the Union Pacific Railroad Company coming from the east. Both sides worked feverishly to lay track at breakneck speed.
Immigration Labor Force
To meet their aggressive goals, the “Big Four” hired Chinese workers, who came to America during the Gold Rush. Initially, this was considered folly as Chinese workers were considered inferior due to pervasive racism at the time. As it turned out the Chinese worked tirelessly under brutal working conditions. Going through the Sierra Mountains required the building of giant wooden trestles and massive amounts of nitroglycerine to blast through the granite mountains.
On the Union side, though they didn’t have to deal with mountains, they suffered raids from Sioux, Arapaho, and Cheyenne tribes. Naturally, the massive project, explosions, and endless decrepit settlements popping up around the project unnerved the Native American tribes.
The Golden Spike Ceremony
As both companies raced toward Salt Lake City, President Ulysses S. Grant was forced to withhold federal payments until each company agreed upon a meeting point. Eventually, they settled on the Promontory Summit, north of the Great Salt Lake. The Central Pacific Railroad Company laid 690 miles of track beginning in Sacramento. By comparison, the Union Railway Company put down 1,086 miles starting in Omaha. Evidently, the Sierra Mountains considerably stymied the “Big Four,” despite their liberal use of Chinese workers.
Attempts by leaders of both companies to drive in the ceremonial final stake, made of 17 karat gold, predictably went poorly. Their celebratory hangovers and their unfamiliarity with manual labor forced them to give way. Eventually, a worker did finally drive the final stake into place on May 10, 1869.
Jumpstarting America
The Transcontinental Railway connected the country and allowed for massive expansion into the west, spurring America into incredible growth. The cost of making one’s way across the country went from nearly $1,000 to just $150 thanks to the railroad. Adjusted for inflation that’s approximately $20,000 cut down to just under $3000.