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See the context of this sign.

Utah & Northern Railway

One mile south and directly west of this highway, an
old 1878 railway grade, still is visible, although
trains have not used it since 1890.

Jay Gould -- a nationally prominent financier and Union Pacific
owner -- extended Utah and Northern service north from Franklin
to Montana by 1880. A narrow gauge line until 1887, it
helped build up Cache Valley and accounted for many new
Idaho cities and towns farther north. But small, wood-
burning locomotives had a hard time ascending this hill.
After a more direct route 4 miles west of here was
completed, service north of Preston was abandoned
on this grade.

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