Why Did Railroad Companies Build So Many Cities?

The rise of railroads in the 19th century dramatically reshaped the American landscape, not just in terms of transportation but also in the creation of new communities. It might seem surprising that railroad companies, primarily focused on transportation, would also be involved in building cities. However, there were several compelling reasons why they did so.

Land Grants and Economic Incentives

The US government, eager to encourage westward expansion, offered railroad companies vast land grants along their routes. These grants were a key incentive for railroads, providing them with a valuable resource they could use to generate revenue. Instead of simply selling the land, railroads realized they could maximize their profits by developing it themselves. They strategically built towns along their lines, creating hubs of commerce and industry that would benefit from the railroad's presence.

These towns often served as supply depots for the construction and operation of the railroads. They also became important centers for agriculture, mining, and other industries that sprung up in the newly accessible territories. By creating these cities, railroad companies ensured a steady flow of customers for their services, further increasing their profitability.

The Impact on Westward Expansion

The construction of railroad towns played a crucial role in the westward expansion of the United States. These towns provided essential services like housing, food, and supplies to settlers and workers who were pushing into new territories. The railroads also facilitated the movement of goods and people, making it easier for businesses to establish themselves and for communities to grow.

The creation of these towns was not without its challenges. The rapid growth of some cities led to overcrowding, inadequate sanitation, and social problems. However, the overall impact of railroad-built cities was significant. They transformed the American West from a sparsely populated frontier into a thriving region with a diverse network of interconnected communities.

Examples of Railroad Cities

Many cities in the American West owe their existence to the railroads. Some notable examples include:

• Denver, Colorado: Founded in 1858, Denver's growth was fueled by the arrival of the Denver Pacific Railroad in 1870. The railroad connected Denver to the transcontinental rail network, turning it into a major transportation hub.
• Omaha, Nebraska: Established in 1854, Omaha became a key point on the transcontinental railroad route, leading to its rapid development. The Union Pacific Railroad, headquartered in Omaha, played a significant role in the city's growth.
• Salt Lake City, Utah: Founded in 1847 by Mormon settlers, Salt Lake City became a major hub for the transcontinental railroad in the late 19th century. The arrival of the railroad spurred the city's economic growth and population expansion.

Conclusion

The construction of numerous cities by railroad companies was a strategic move that shaped the American West. By leveraging land grants, economic incentives, and the power of transportation, railroads played a vital role in the settlement and development of new territories. While the rise of these cities had its challenges, they fundamentally transformed the landscape of the United States and left a lasting legacy on its history.