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On February 28, 1827, the Baltimore & Ohio Railroad became the first U.S. railway chartered for commercial transport of passengers and freight. There were skeptics who doubted that a steam engine could work along steep, winding grades, but the Tom Thumb, designed by Peter Cooper, put an end to their doubts. Investors hoped a railroad would allow Baltimore, the second largest U.S. city at the time, to successfully compete with New York for western trade.