Extension of the transcontinental rail line to Los Angeles triggered a boom in the southern part of the state, a boom that picked up even more steam once the Santa Fe Railway gave Los Angeles its own direct line to the East in 1885, a line in direct competition with the Southern Pacific. Los Angeles's population quadrupled in the 1880s, and doubled again by 1900, when it had 100,000 residents (Rice).
Although railroad land grants discouraged a pattern of small family farms in California, they were a strong incentive for the railroads to encourage people in other parts of the country to visit or to settle in towns and cities. Tourists, of course, bought tickets on the rail lines and patronized restaurants and hotels built by railroads, while new homeowners helped the rail lines sell their land grants in small, profitable building lots (Dumke). If Easterners did not come to California to farm, they did come to California to live. The expansion of railways through Southern California in the 1880s prompted the calculated promotion of the region as a healthy, comfortable place to make a home. In the middle of the decade, there was even a price war for passenger travel, and fare for a ticket from the Mississippi Valley to the Pacific dropped to $25.00. Railroads wanted not only passengers but prospective homeowners who would buy lots in areas where the rail companies had received government land grants which they now needed to sell. Companies built flashy resort hotels and promoters offered every kind of gimmick. Many of the new settlements were carefully planned to appeal to buyers with common interests or backgrounds (Dumke).
Even Americans with no thought of resettling in California permanently were fascinated by the idea of visiting the state by way of the new railroads. Of course, not even during the Gold Rush did everyone who came to California plan to stay permanently. The idly curious came to observe the colorful frenzy of the Gold Rush.