How the Railroads Changed Orange County

Santa Fe Railroad steam train in Santa Ana, circa 1890.

Today, we admire old trains and their steam locomotives as theme park rides, historic engineering marvels, or quaint relics of the “Old West.” But on a very pragmatic level, the arrival of the railroads in the late 1800s was key to the origins and development of what became Orange County.

Until the 1870s, it was difficult getting people or goods in or out of what’s now Orange County and was then the southern part of Los Angeles County. Small barges at Anaheim Landing (southern Seal Beach) could carry goods out to waiting ships at sea, or one could take a horse-drawn vehicle up or down the dusty, muddy, badly-rutted El Camino Real. Other routes of travel were little more than deer trails. Insufficient transportation wasn’t just annoying. It meant a population that could only engage with their county government in Los Angeles with difficulty. More importantly, it meant very limited economic opportunity. 

Circa 1884, Orange City Marshal R. J. Fyffe demonstrates the fastest way to get around.

At a time when the area’s economy was almost entirely agriculture-related, farmers had no reason to grow more produce than they could sell locally. As these farmers later proved, the local soil and climate are perfect for growing a wide range of agricultural products with tremendous success. But at that time there was no reason to grow more than you could sell to your neighbors.

The Southern Pacific Railroad opened the first rail line in and out of Orange County in 1874. This new line stretched from Los Angeles to Anaheim. It was extended to Santa Ana in 1877, after the “Espee” was given land and subsidies. But the Southern Pacific was a monopoly, and they acted and charged accordingly. It was a luxury, not a game-changer.

Southern Pacific Railroad depot, Anaheim, after 1895.

But when the competing Santa Fe Railway reached Santa Ana in 1887, everything changed. A rate war between the two railroads dropped passenger and shipping prices enormously. A passenger could now cross the entire continent for $25!

Shipping rates plummeted as well. Suddenly, local farmers could sell to anyone in America. Over time, the continued addition of new track made shipping even easier. And refrigerated box cars would revolutionize shipping yet again. 

San Juan Capistrano's second Santa Fe depot, circa 1894.

Suddenly, farmers were taking full advantage of the region’s wonderful growing conditions and were producing as much as their square acreage would allow. Local real estate values soared in what became known as “The Boom of the Eighties” (1886-1888).

Those low passenger rates and the promise of agricultural success also brought droves of newcomers. National publicity campaigns throughout the 1870s and 1880s had promoted California as a paradise on earth, and many folks from “Back East” jumped at the opportunity. Some visited and many stayed. Real estate values continued to skyrocket, large tourist hotels were built, and investment money flowed like water. 

Santa Ana Santa Fe Depot, circa 1905

Most real estate wheeler-dealers simply added new tracts or subdivisions to existing municipalities, which grew by leaps and bounds. Still, more than a dozen new towns were also formed as a result of the boom. Most, like St. James (now part of Orange) and San Juan-by-the-Sea (Capistrano Beach) – both created by the Santa Fe’s real estate division –never got off the ground. Only Fullerton, El Toro (Lake Forest), and Buena Park thrived for long enough to become cities. 

The boom eventually went bust, but not before contributing heavily to the birth of Orange County itself.  The rapidly developing southern portion of Los Angeles County finally had money, political clout, and local interests to protect. In 1889, after nearly two decades of struggling for independence, the area finally broke away to become Orange County. But that’s a story for another time…

Southern Pacific depot, Santa Ana, late 1880s

Also see: Orange County's Last Train Robbery