Union Pacific Coal Company
Encyclopedia
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.
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.
coal in Omaha, Nebraska
for US$
9 per ton while they charged other coal companies $10 per ton to ship their freight.
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
.
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 coalCoal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
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
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
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.
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 WyomingWyoming
Wyoming is a state in the mountain region of the Western United States. The western two thirds of the state is covered mostly with the mountain ranges and rangelands in the foothills of the Eastern Rocky Mountains, while the eastern third of the state is high elevation prairie known as the High...
coal in Omaha, Nebraska
Omaha, Nebraska
Omaha is the largest city in the state of Nebraska, United States, and is the county seat of Douglas County. It is located in the Midwestern United States on the Missouri River, about 20 miles north of the mouth of the Platte River...
for US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
9 per ton while they charged other coal companies $10 per ton to ship their freight.
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
Rock Springs, Wyoming
Rock Springs is a city in Sweetwater County, Wyoming, United States. The population was 18,708 at the 2000 census. Rock Springs is the principal city of the Rock Springs micropolitan statistical area, which has a population of 37,975....
.