Pacific Railway Act

The Pacific Railroad Acts were a series of acts of Congress that promoted the construction of a "transcontinental railroad" (the Pacific Railroad) in the United States through authorizing the issuance of government bonds and the grants of land to railroad companies. Although the War Department under then Secretary of War Jefferson Davis was authorized by the Congress in 1853 to conduct surveys of five different potential transcontinental routes from the Mississippi ranging from north to south and submitted a massive twelve volume report to Congress with the results in early 1855, no route or bill could be agreed upon and passed authorizing the Government's financial support and land grants until the secession of the Southern states removed their opposition to a central route. The Pacific Railroad Act of 1862 (12 Stat. 489) was the original act. Some of its provisions were subsequently modified, expanded, or repealed by four additional amending Acts: The Pacific Railroad Act of 1863 (12 Stat. 807), Pacific Railroad Act of 1864 (13 Stat. 356), Pacific Railroad Act of 1865 (13 Stat. 504), and Pacific Railroad Act of 1866 (14 Stat. 66).

The Pacific Railroad Act of 1862 began federal government grant of lands directly to corporations; before that act, the land grants were made to the states, for the benefit of corporations.

The original Act's long title was An Act to aid in the construction of a railroad and telegraph line from the Missouri river to the Pacific ocean, and to secure to the government the use of the same for postal, military, and other purposes. It was based largely on a proposed bill originally reported six years earlier on August 16, 1856, to the 34th Congress by the Select Committee on the Pacific Railroad and Telegraph. Signed into law by President Abraham Lincoln on July 1, 1862, the 1862 Act authorized extensive land grants in the Western United States and the issuance of 30-year government bonds (at 6 percent) to the Union Pacific Railroad and Central Pacific Railroad (later the Southern Pacific Railroad) companies in order to construct a continuous transcontinental railroad between the eastern side of the Missouri River at Council Bluffs, Iowa (opposite from Omaha, Nebraska) and the navigable waters of the Sacramento River in Sacramento, California. Section 2 of the Act granted each Company contiguous rights of way for their rail lines as well as all public lands within 200 feet (61 m) on either side of the track.

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