UP Falls Into Bankruptcy
In 1893, Union Pacific and every other railroad in the country paid the price for overexpanding and overspeculating. A national financial panic and a resulting depression only sealed their fate. As the eastern business world collapsed, western railroads failed. Continued heavy construction expenditures, a sharp fall-off of revenue and growing debt proved too much for Union Pacific Railway. Construction came to a halt and many lines, including UP, went into receivership.