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1845, Asa Whitney presented to Congress a plan for the federal government to subsidize the building of a railroad from the Mississippi River to the Pacific.
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The settlement of the Oregon boundary in 1846, the acquisition of western territories from Mexico in 1848, and the discovery of gold in California (1849) increased support for the project; in 1853, Congress appropriated funds to survey various proposed routes
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Rivalry over the route was intense, however, and when Senator Stephen Douglas introduced (1854) his Kansas-Nebraska Act, intended to win approval for a line from Chicago, the ensuing sectional controversy between North and South forced a delay in the plans. During the Civil War, a Republican-controlled Congress enacted legislation (July 1, 1862) providing for construction of a transcontinental line.
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The law provided that the railroad be built by two companies; each received federal land grants of 10 alternate sections per mile on both sides of the line (the amount was doubled in 1864) and a 30-year government loan for each mile of track constructed. In 1863 the Union Pacific RR began construction from Omaha, Nebr., while the Central Pacific broke ground at Sacramento, Calif
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The two lines met at Promontory Summit, Utah, and on May 10, 1869, a golden spike joined the two railways, thus completing the first transcontinental railroad. Others followed. Three additional lines were finished in 1883: the Northern Pacific RR stretched from Lake Superior to Portland, Oreg.; the Santa Fe extended from Atchison, Kans., to Los Angeles; and the Southern Pacific connected Los Angeles with New Orleans.
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A fifth line, the Great Northern, was completed in 1893. Each of those companies received extensive grants of land, although none obtained government loans.
