When the railroads came to Altoona they brought in more people and businesses. In 1880, the Chicago, St. Paul, Minneapolis and Omaha Railroad chose Altoona for their new terminal. In 1887 Altoona became the smallest city in the United States. Altoona continued to grow and so did the railroad.

In the 1880s, Altoona used to have many businesses. It had a barbershop, restaurant, general stores, blacksmith shops, a newspaper, drugstore, flour mills, livery stables, a hotel for the railroad, and grocery store. Unfortunately, sparks from the railroads also brought fires. Almost all of the original businesses were burned down in fires later.