Baltimore and Ohio Railroad incorporated

Background. Beginning in 1825, the Erie Canal connected New York City with Ohio via Lake Erie. In 1826, Baltimore merchants investigated railway enterprises in England, which were then being tested comprehensively as commercial ventures. On February 12, 1827, about twenty-five citizens, most of them Baltimore merchants or bankers, held an organizational meeting. On February 27, 1827, twenty-five merchants and bankers studied the best means of restoring "that portion of the Western trade which has recently been diverted from it by the introduction of steam navigation".

Charter and Capitalization. Chapter 123 of the 1826 Session Laws of Maryland, passed on February 28, 1827, chartered the Baltimore and Ohio Rail Road Company. The charter authorized building a railroad from the port of Baltimore west to a suitable point on the Ohio River. The company's capital was fixed at $5 million, but it was initially capitalized in 1827 with a $3 million stock issue.

Historical Significance. The B&O is recognized as one of the oldest railroads in the United States and the first steam-operated common carrier. Although the Albany and Schenectady Railroad was chartered in 1826, the B&O was the first to open in the US. It was not the first chartered railroad overall, as John Stevens obtained a charter for the New Jersey Railroad in 1815.