Union Pacific Coal Company

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The Union Pacific Coal Company was formed in 1874 as the Union Pacific Coal Department by the Union Pacific Railway. The company was formed because Union Pacific's former coal supplier, Wyoming Coal and Mining Company was selling coal at highly inflated costs to the railroad.

Contents

Founding

Before 1874 the Union Pacific Railway owned all of the mineral rights along its right-of-way but not a mining company, thus the Wyoming Mining and Coal Company provided coal to the railroad. This was a problem for UP because the coal company's stock was owned by Oliver Ames, the Wyoming Coal Company president and five members of the board of directors for UP. Wyoming Coal was able to sell its product back to UP at highly inflated costs. The railroad's reaction was to form the Union Pacific Coal Department in 1874. [1]

Coal A combustible sedimentary rock composed primarily of carbon

Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements; chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is formed if dead plant matter decays into peat and over millions of years the heat and pressure of deep burial converts the peat into coal. Vast deposits of coal originates in former wetlands—called coal forests—that covered much of the Earth's tropical land areas during the late Carboniferous (Pennsylvanian) and Permian times.

Board of directors board composed of directors

A board of directors is a group of people who jointly supervise the activities of an organization, which can be either a for-profit business, nonprofit organization, or a government agency. Such a board's powers, duties, and responsibilities are determined by government regulations and the organization's own constitution and bylaws. These authorities may specify the number of members of the board, how they are to be chosen, and how often they are to meet.

History

After the coal company's formation it began to find ways to make money from coal mining. The company was able to stop competition by influencing the railroad to charge high shipping costs to other coal companies. The United States Secretary of Interior stated, on December 2, 1874, that UP was selling Wyoming coal in Omaha, Nebraska for US$9 per ton while they charged other coal companies $10 per ton to ship their freight. [1]

Wyoming State of the United States of America

Wyoming is a state in the mountain region of the western United States. The state is the 10th largest by area, the least populous, and the second most sparsely populated state in the country. Wyoming is bordered on the north by Montana, on the east by South Dakota and Nebraska, on the south by Colorado, on the southwest by Utah, and on the west by Idaho and Montana. The state population was estimated at 577,737 in 2018, which is less than 31 of the most populous U.S. cities including Denver in neighboring Colorado. Cheyenne is the state capital and the most populous city, with an estimated population of 63,624 in 2017.

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By 1890, the Union Pacific Coal Department was replaced by the Union Pacific Coal Company. The UP Coal Company was producing most of Wyoming's coal in mines located near Rock Springs. [1]

Rock Springs, Wyoming City in Wyoming, United States

Rock Springs is a city in Sweetwater County, Wyoming, United States. The population was 23,036 at the 2010 census, making it the 5th most populated city in the state of Wyoming, and the most populous city in Sweetwater County. Rock Springs is the principal city of the Rock Springs micropolitan statistical area, which has a population of 37,975. Rock Springs is known as the Home of 56 Nationalities because of the influx of immigrants from all over the world who came to work in the coal mines that supplied the fuel to power the steam engines of the Union Pacific Railroad. The city's rich cultural heritage is celebrated each summer on International Day, a festival where the foods, costumes, and traditions of residents' ancestors are recreated and enjoyed at Bunning Park in downtown Rock Springs.

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History of the Union Pacific Railroad

The history of the Union Pacific Railroad stretches from 1862 to the present. For operations of the current railroad, see Union Pacific Railroad; for the holding company that owns the current railroad, see Union Pacific Corporation.

References

  1. 1 2 3 "Mining, Then and Now," Historical Mine Information, Wyoming State Geological Survey, University of Wyoming. Retrieved 7 May 2007.