railroads
The development of RAILROADS was one of the most important phenomena of the Industrial Revolution. It was first developed in England in the 17th century.
In the year 1827, The Baltimore & Ohio Railroad (B&O) was the first to offer scheduled freight and passenger service to the public in the US and quickly became the prime mover of people and goods. Due to the rapid increase in demand, importance and feasibility, rail tracks could be laid anywhere and the volume of land potentially available for development expanded tremendously. In the beginning it was difficult to predict with certainty which sites with rail road access will be in demand and at what price.
Soon Railroads became the principle mode of transportation and areas started depending on rail access for growth and survival. Many municipalities also paid subsidies to private rail road firms to provide service to their communities.
The giant rail road companies not only received the right-of-way from the government but also millions of acres of land along their proposed route. The companies got half the land within 6 to 40 miles of the right-of-way and the government retained the other half.
The companies sold some of their land at appreciated prices and also retained vast acreage so that they can mortgage it and get capital. This turned out to be a good idea especially when politicians and citizens tried to force the sale of land.
Over the years, railroad companies have retained ownership of immense quantity of urban and rural land. The land has been sold, leased, developed and has been used for all purposes.
Even today, in many cities, rail road companies are still the biggest private land owners. Some of them have even formed real estate divisions to get greater returns on their assets.
In the year 1827, The Baltimore & Ohio Railroad (B&O) was the first to offer scheduled freight and passenger service to the public in the US and quickly became the prime mover of people and goods. Due to the rapid increase in demand, importance and feasibility, rail tracks could be laid anywhere and the volume of land potentially available for development expanded tremendously. In the beginning it was difficult to predict with certainty which sites with rail road access will be in demand and at what price.
Soon Railroads became the principle mode of transportation and areas started depending on rail access for growth and survival. Many municipalities also paid subsidies to private rail road firms to provide service to their communities.
The giant rail road companies not only received the right-of-way from the government but also millions of acres of land along their proposed route. The companies got half the land within 6 to 40 miles of the right-of-way and the government retained the other half.
The companies sold some of their land at appreciated prices and also retained vast acreage so that they can mortgage it and get capital. This turned out to be a good idea especially when politicians and citizens tried to force the sale of land.
Over the years, railroad companies have retained ownership of immense quantity of urban and rural land. The land has been sold, leased, developed and has been used for all purposes.
Even today, in many cities, rail road companies are still the biggest private land owners. Some of them have even formed real estate divisions to get greater returns on their assets.