Hmmm...
After dinner out this evening, Mrs. P and I stopped by our favorite independent bookstore. After I found the book I was looking for (Incognito, by David Eagleman)I was browsing the shelves and noticed "The Great American Railroad War: How Ambrose Bierce and Frank Norris Took On the Notorious Central Pacific Railroad" by Dennis Drabelle. Here's the bit from the jacket:
The notorious Central Pacific Railroad riveted the attention of two great American writers: Ambrose Bierce and Frank Norris. In The Great American Railroad War, Dennis Drabelle tells a classic story of corporate greed vs. the power of the pen. The Central Pacific Railroad accepted US Government loans; but, when the loans fell due, the last surviving founder of the railroad avoided repayment. Bierce, at the behest of his boss William Randolph Hearst, swung into action writing over sixty stinging articles that became a signal achievement in American journalism. Later, Norris focused the first volume of his trilogy, The Octopus, on the freight cars of a thinly disguised version of the Central Pacific. The Great American Railroad War is a lively chapter of US history pitting two of America’s greatest writers against one of America’s most powerful corporations.
from http://www.amazon.com/The-Great-American-Railroad-War/dp/0312667590
I didn't know this part of the story, but I did know that the Transcontinental Railway, while built by private companies, was financed by Uncle Sam. Not only through loans, but by huge land grants - the Right of Way given to the railroads was 4 miles wide. The railways are still some of the largest private landowners in the US - given to them by the government. In fact, the whole opening of the west was a huge stimulus program. The Homestead Act gave out huge tracts of land. The mineral wealth was there for the claiming, pretty much for free. There are still corporations around today that started from the fortunes resulting from this goverment gift. Dagneys's Daddy built his railway on goverment ground, with goverment loans.
Here's the Wiki page for the Central Pacific Railway to give a general picture, although it differs in places with the blurb above:
http://en.wikipedia.org/wiki/Central_Pacific_Railroad
I'll be back to the bookstore soon to pick up Drabelle's book.