Pacific Railroad Act 1862
The Legacy
The success of railroad act is mobilization of money, resources, and people, all spurred by the federal government, was remarkable for the time. The fact that the riches of the companies were built on the backs of underpaid Americans and immigrants is also a telling point. The construction could not have happened without the teamwork of politicians, businessmen, engineers, financiers, immigrants, and average Americans.
"Next to winning the Civil War and abolishing slavery, building the first transcontinental railroad from Omaha, Nebraska, to Sacramento, California, was the greatest achievement of the American people in the nineteenth century." (Ambrose)
the government reform efforts to increase competition in the rail industry caused new market failures. The mobility of the rail companies was hindered, they could not expand into more profitable service areas or abandon unprofitable ones without ICC approval. In addition, there was no guarantee the rates approved by the ICC would be sufficient to cover operations and it could take a long time to get a rate increase.
