Tag Archives: route

How Omaha Railroaded Council Bluffs

April 6, 2017 by
Photography by Provided by Union Pacific Museum

Thirteen years before Nebraska achieved statehood in 1867, a group of Council Bluffs businessmen helped establish “Omaha City.” They didn’t view Omaha as a rival to Council Bluffs; rather, they saw Omaha as a prime route for the transcontinental railroad—and a road to riches. Their efforts laid the groundwork for the nation’s most ambitious construction project, while forever forging a unique bond between the two cities and Union Pacific.

The saga begins in the 1850s, when Dr. Thomas Clark Durant and Henry Farnam partner to construct a rail extension across Iowa, called the Mississippi & Missouri Railroad. They subsequently commission Grenville M. Dodge to explore possible routes for a transcontinental railroad between the Missouri River and Salt Lake Valley.

 It’s a difficult decade for Omaha—a bank panic in 1857 wipes out investors, and the city’s population declines. Then, the Civil War ignites in 1861. Desperate to unite the country east to west, President Abraham Lincoln signs the Pacific Railroad Act of 1862. It OKs land grants to attract private capital for construction and authorizes UP’s origin at a point on Iowa’s western boundary, to be approved by the president.

Motivated by his large interest in the M&M, Durant is determined to link his Iowa rail extension with the transcontinental initiative, says Patricia LaBounty, collections manager at the Union Pacific Railroad Museum. By Oct. 30, 1863, Durant is elected UP’s director and vice president, taking nearly complete control of the enterprise. He appoints Peter A. Dey as UP’s chief engineer (Dey had surveyed the M&M with Dodge) to further explore four possible connections alongside the Missouri River, including Omaha and Bellevue.

Durant lobbies Lincoln, who’s also inundated with requests to fix the origin at locations stretching from Sioux City, Iowa, to Kansas City. Judge John P. Usher, Secretary of the Interior in Lincoln’s cabinet, recalls Durant’s advice: “Now, the natural place for this terminal point is at the mouth of the Platte River, but Omaha is the principal town in Nebraska; the wealth of the territory is there, and the energies of the people radiate from there, and I think they ought to be considered, and the best thing is to start it from Omaha.”

After consulting with Dodge, on Nov. 17, 1863, President Lincoln writes his first executive order on the subject. To ensure the railroad builds a continuous rail line and bridge surmounting the Missouri River, he sets the starting point on the Iowa side, across from Omaha. But his language is somewhat ambiguous, and Durant seizes the opportunity to plan an elaborate ground-breaking ceremony—in Omaha.

Held in early December 1863, near the ferry landing at Seventh and Davenport streets, and featuring bands, cannons, and fireworks, the event attracts throngs of citizens. Writes David Bristow in A Dirty, Wicked Town: Tales of 19th Century Omaha: “And so it was an act of great faith—right there in the middle of a bloody civil war—to begin the most ambitious and expensive building project the country had ever attempted. It began in Omaha—it was a day, as the Omaha Nebraskian put it, ‘to thank God and take courage.’”

On March 7, 1864, Lincoln pens a second, more formal executive order, again specifying the origin on Iowa’s boundary opposite Omaha. Construction languishes due to lack of financing during the war, so a second Congressional Act on July 2, 1864, creates additional land grant incentives. A map detailing the railroad’s first 100 miles west from Omaha is filed with the Interior Department later that year, which President Lincoln approves.

And then, amazingly, Durant flip-flops. Despite two presidential orders, the UP Board of Directors’ approval of the Omaha route and his initial support, he changes his mind. A new consulting engineer, Silas Seymour, has identified steep grades surrounding Omaha, so he and Durant seek to move the origination point to Bellevue.

“Just like Omaha, Bellevue has already authorized land grants to UP, provided it begin the railroad there,” LaBounty says, “and Durant continues playing both sides of the fence. By May 1865, he requests surveys on the Missouri-Bellevue route and the best location for mechanical shops at Bellevue or Fremont.”

Omahans are outraged. The anger is apparent in telegrams exchanged between Durant and Edward Creighton, president of First National Bank and founder of the university that bears his name. Due to the reroute, Durant says no buildings are needed in Omaha. He’s had “enough of interference” and threatens to “make application to the President to change the terminus.” Responds Creighton: “Omaha must be the only point of connection with the Missouri River. Without this, there will be trouble.”

The issue is resolved Sept. 23, 1865, when President Andrew Johnson approves an amended location in Omaha that addresses the grades through a circuitous route, and construction to the west finally begins. But the drama doesn’t end there.

Given Lincoln’s presidential orders, it was assumed the Missouri River bridge would be constructed between Council Bluffs and Omaha. But UP’s board of directors rumors otherwise. In March 1868, a prominent Omaha delegation, including Nebraska Gov. Alvin Saunders, businessman Ezra Millard, and Omaha Herald publisher Dr. George L. Miller travel to UP’s New York City corporate office to settle the issue. They are appalled, writes Bristol, when Dodge announces the board has selected Bellevue. Using a tried-and-true strategy, Omaha and Council Bluffs unite to offer the railroad land, rights-of-ways and money. The railroad accepts, and the $2.5 million iron bridge is completed in 1872.

Two years later, the U.S. Supreme Court settles the argument over the railroad’s origin point, establishing Milepost 0 in Council Bluffs. Both cities become transportation and business hubs, with a major rail yard and passenger transfer hotel in Council Bluffs, and Omaha home to UP’s operational headquarters and mechanical shops. Today the bond continues, with more than 4,000 Union Pacific employees in Omaha and Council Bluffs proudly serving the state and the nation.

Although Union Pacific is headquartered in downtown Omaha, the Union Pacific Railroad Museum is located in Council Bluffs. Visit uprrmuseum.org for more information about the railroad’s history.

This article was printed in the March/April 2017 edition of Omaha Magazine.

The Silicon Trail

March 28, 2017 by

When United Airlines’ first daily nonstop service flight from Eppley Airfield to San Francisco International Airport eased away from the gate in September 2016, Randy Thelen made certain he had a seat.

The senior vice president for economic development at the Omaha Chamber of Commerce saw the importance of that 7 a.m. flight—believed to be the first regular nonstop service between the two cities in a quarter century. Shortly after 9 a.m., he was on the West Coast, in the fertile Silicon Valley, ready for business.

Despite Omaha’s firm footing in the Silicon Prairie—with tech giants like PayPal, Google, LinkedIn, and Yahoo all maintaining a significant presence in the metro—Omaha long struggled with a serious shortcoming when it came time to recruit more. The same shortcoming didn’t help local technology startups secure financial backing from the apparent over-abundance of thick wallet in the Bay area.

Getting from Silicon Valley to Omaha’s corner of the Silicon Prairie was more than a hassle. It usually required at least one connecting flight, stretching a three-hour nonstop flight into nearly a full day of airplanes and airports … and that’s the delay-free version.

“As much as we don’t want location to be a barrier, there’s a very real situation where Silicon Valley investors won’t fly somewhere if they have to switch planes,” says Dusty Davidson, the CEO and co-founder of Flywheel, an Omaha-based startup that builds and hosts WordPress websites. Davidson is also known for his role in creating Silicon Prairie News and one of the largest entrepreneurial tech conferences in the region, Big Omaha.

“It’s not the connection, it’s the time,” he adds.

The required connecting flights cast a pall over Omaha’s distinct advantage as a low-cost jewel compared to the Silicon Valley. Omaha’s lower cost of living and more affordable housing helps save companies on their largest expense: wages. Add in the various business incentives available from the state, along with a strong talent pool and sound infrastructure, and Omaha makes an attractive option for startup and established tech companies, with that notable exception.

“We came up short on the connectivity or on the flights in and out of Silicon Valley,” Thelen says.

Then United Airlines made San Francisco’s International Airport the nation’s 25th airport with regular nonstop flight services to and from Omaha. This spring, a 26th regular nonstop Omaha route will open between here and Houston via Southwest Airlines.

“Now, we’ve taken away that competitive disadvantage, and we’ve been able to promote it as an advantage,” Thelen says. “It really has changed the conversation as we try to continue to build that pipeline between here and Silicon Valley.”

“The ability to have direct service does have an impact on the businesses that choose to do business here,” says Nancy Miller, vice president of operations at Travel and Transport, a national travel booking company based in Omaha. “I think it helps Omaha businesses.”

That an airline would add a regular nonstop flight to San Francisco lends credence to claims of Omaha’s growth as a potential hub in the Silicon Prairie.

“The Omaha economy really seems to have been doing well over the last couple of years,” says Dave Roth, deputy executive director of the Omaha Airport Authority. “It’s just a really positive combination of Omaha and the airlines for those additional flights.”

Omaha has popped up on several national lists as a new hot spot for tech startups. SmartAsset named Omaha the best city in the nation to work in tech in 2015, and Nebraska has been No. 3 on Forbes’ list of Best States for Business for two years running.

Thelen used his first flight to the Silicon Valley to meet with a dozen tech companies, some who already have outposts in town, and few others he’d like see set up shop.

“For the cost of one hotel stay and a pretty simple flight in and out, you can get two full business days of work without the hassle of changing planes and the risk of getting delayed,” Thelen says. “The convenience of business travel just went up exponentially, and you can expect that connectivity to continue to grow.”

Executives headquartered in San Francisco can more easily visit and engage with their Midwestern operations. Or, employees based in Omaha can more efficiently meet with leadership in Silicon Valley. Officials at PayPal and LinkedIn—which employ about 2,800 and 300 people, respectively, in the Omaha area—say there is frequent travel between the Silicon Valley and their operations in Omaha, but exact figures were unavailable.

“To have firms like that, that now have much, much easier access back and forth, frankly it makes our location all that more integral to the operation because it’s a simpler connect now,” Thelen says.

He added: “That simple flight makes a big, big difference.”

And even homegrown startups can take advantage. They can get twice as much done on recruiting trips from the valley, whether they are looking for talent or financing.

Davidson, the CEO at Flywheel, says the increased connectivity will indeed make a big difference for local companies raising money. There still remains a lot of work to put Omaha “on the map” with more sources of local capital and slowing the export of the state’s top technology talent, to name a few.

“I don’t know that you’re able to look at [direct flights to San Francisco] and say, ‘Hey, look, we solved the problem,’” he says. “I think there’s 50 things that are contributing, and what you really want to do is, just one at a time, start whittling away.”

Visit omahachamber.org for more information.

This article was printed in the Spring 2017 edition of B2B.

Discover the Magic of a Road Trip

May 25, 2013 by
Photography by Nebraska Travel & Tourism

Planning a family road trip? It’s easy to keep the kids entertained across the miles in today’s world—just load up the portable DVD player, the handheld game system, and the iPad. Perhaps you remember roughing it in the old days when you and your siblings jockeyed for space on the bench seat and played I Spy to make the time pass. Compare that to what a road trip was like 100 years ago—travel, itself, was a monumental undertaking. Not only were there no electronic games, there were no roads linking cities and towns.

In 1913, entrepreneur Carl G. Fisher vowed to change that with the construction of a paved, coast-to-coast roadway that would extend from New York City to San Francisco. The Lincoln Highway, named after our 16th president, was big news for Nebraska where the route would run the entire length of the state.

Today, you and your family can make the trek in comfort and style while visiting remnants of the old highway, including the original brick pavers near Omaha and two sections of “seedling miles” in Grand Island and Kearney.

Throughout the state, the cross-country route—now called U.S. Highway 30—is flanked by historical buildings just waiting to be explored, as well as several of Nebraska’s top attractions. For example, in Gothenburg, you can check out the reconstructed Pony Express Station; in nearby North Platte, you can visit the home of Buffalo Bill Cody at the Buffalo Bill Ranch State Historical Park; and in Grand Island, the Stuhr Museum of the Prairie Pioneer is one of the nation’s top living history museums.

A stop in Kearney at the Great Platte River Road Archway is a must. This state-of-the-art museum traces the development of the American West, including the making of the nation’s first transcontinental highway. From there, it’s a short drive across town to see the exhibits at the Classic Car Collection, which is situated along the original route of the old Lincoln Highway.

With 400 Nebraska miles, there’s plenty to see along this historic roadway. And while the journey may be much smoother now, you can be sure it will be just as interesting and adventurous as its pre-paved days. Isn’t it time your family explored Nebraska’s Lincoln Highway?

Join the Official Lincoln Highway Centennial Celebration in Kearney June 30-July 1. With food, music, speakers, and car clubs, there will be plenty of events for the whole family. For more information, visit VisitNebraska.com/lhc.