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It usually had to do with the convenience to the Southern Pacific. For example bridge tenders were there to put out fires on the bridge. By living next to the bridge the bridge tender could go out on the bridge to put out fires caused by sparks from the steam engine right after the train crossed over the bridge.

Station agents were often provided quarters over the depot. That way they were available when ever they were needed at the depot, even after hours.

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Q: Why did some Southern Pacific railroad employees live in homes by the rail tracks in Ca?
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