suffered greatly in the economic Panic of 1857; however, the presence of the capital is credited for keeping the town alive. For several years Omaha enjoyed its status as the capital of the Nebraska Territory, although not without contention. On January 1858 a group of representatives illegally moved the Nebraska Territorial Legislature to Florence following a violent outburst at the State Capitol in Omaha. After repeatedly being dogged out of voting on the removal of the Capitol from Omaha, a skirmish pitted representatives from Nebraska City, Florence, and other communities to convene outside of Omaha. Despite having a majority of members present for the vote to remove the Capitol and all agreeing, the "Florence Legislature" did not succeed in swaying the Nebraska Territory governor, and the Capitol remained in Omaha until 1867 when Nebraska gained statehood. When Omaha eventually lost the capital to Lincoln in 1867, the city was by then strong enough to maintain economic growth for a period of time. Business While Council Bluffs was chosen as the eastern terminus of the United States' first transcontinental railroad in 1862 with the passage of the Pacific Railway Act, construction on the railroad began west from Omaha to avoid the difficulties of constructing a bridge across the Missouri River. This ensured that Omaha would become a major transportation center for the entire country in the years to come. The Omaha Cable Tramway Company was the only cable car company that operated in Omaha. Founded in 1884, it operated cars until 1894. The warehousing sector became predominant early on, with the Jobber's Canyon playing an important role. Other efforts including the market house and various hotels weren't as successful. Development Era: 1868 to 1899 Towns founded during this period include Benson, founded 1887; Chalco, founded ?; Dundee, founded 1880; Elkhorn, founded 1865; Papillion, founded 1870; Ralston, founded 1888; South Omaha, founded 1886, and; Millard, which was founded in 1871. In 1856 the Omaha Claim Club donated two lots for the congregation to build a church, and soon after Baptists, Presbyterians, Congregationalists, Episcopalians and Roman Catholics followed. Catholics dedicated St. Philomena's Cathedral in 1856, and the entire Creighton family, including Edward, his wife Mary, and his brother John greatly supported the Catholic Church. Pioneer banker Augustus Kountze called for and financially supported the founding of the first Lutheran church west of the Missouri River, which was then called Immanuel Lutheran Church and