Transcontinental railroad help please!?
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i need some help.we are doing this project in history about the transcontinental railroad.basically we have to come up with a starting location somewhere along the miss.river,and end ...show more
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Answer:
Both the UP and the CP had investors to start surveying for the project at first, to see if was even do-able. When construction started, the companies were funded in large by the Pacific Railway Act, signed into law by President Lincoln. Large tracts of land were included along the way. The railroads then sold much of the land to farmers and ranchers at low rates, to increase their business along the route. After all, a railroad is worthless unless it is hauling people, livestock or goods. So, they essentially created their own market. Both companies sold "stock" to people who wanted to buy in to the company, just as they do today.
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Other answers
To raise construction funds you sell stock in your railroad to investors.The U,S.Government also granted sections of land adjacent to the railroad right of way ,That can be and was sold as town sites .The transcontinental railroads still have extensive land holdings in the western U.S. that were granted them for construction.Make Andrew Carnegie , owner of U.S Steel a partner. He had the steel for rails and would have a great new market. George Weyerhauser The Timber King would be another good investor , He would be able to supply cross-ties for construction and be a good customer when railroad is complete.Cattle barons also would fit this same profile as investor and potential customer. They did not use Slave Labor. They used Chineese labor from west and Irish labor from east. Low payed but paid. Good luck
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Railroads in the US were built by a combination of private investment and government funding. Private investers would buy shares - certificates showing how much money they'd invested. If the railroad made a profit, a portion of this would be paid to the shareholders - known as the dividend. So people who had money to invest would buy shares, in the hope that their dividend would increase. If the shares rose in value they had the option of selling and cashing in on the profit - but if too many people do this, the capital dwindles, the firm loses money and could collapse - this is called a slump. Government funding would either be by setting aside money collected from taxes, or encouraging people to invest in bonds. These are a way of depositing your money with the government. Later when you need the money you can cash in the bonds. The rate of interest is much lower than private investment but on the other hand, the money is more secure, because it is backed up by government reserves. See link below:- http://en.wikipedia.org/wiki/Transcontinental_Railroad
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