Bavarian Eastern Railway Company

As well as private individuals, businessmen, factory owners and brewers from eastern Bavaria, others from outside the region became involved in order to improve their own businesses.

These included Maximilian Karl, 6th Prince of Thurn and Taxis and four commercial institutions from Regensburg, as well as the manufacturers Theodor von Cramer-Klett of Nuremberg and J.A.

They generated a start-up capital of 60 million gulden for railway construction in eastern Bavaria and for the associated running and rolling stock.

King Maximilian II of Bavaria authorised the founding of the company on 12 April 1856 and awarded it the concession they had applied for: ...for the construction and operation of railways from Nuremberg via Amberg to Regensburg, from Munich via Landshut to the Danube, from Regensburg via Straubing and Passau to the state border, from the Amberg-Regensburg line at Schwandorf to the state border at Furth near Pilsen.....

From Geiselhöring a branch also ran in the direction of Regensburg and on through the Upper Palatinate via Schwandorf, Amberg and Neukirchen to Hersbruck (left of the Pegnitz River)—a total of 133 km of line.

For the businessmen participating in the Ostbahn the continuation of historical trade links across the borders to Austria and Bohemia, albeit using the faster railways, was extremely important.

This line ran from Schwandorf via Cham (reached on 7 January) and Furth im Wald (20 September) to the border (15 October).

From there the junction at Eger in Bohemia was reached on 15 October 1865, establishing a third link, 21 km long, with the Austrian/Bohemian railway network.

Operation of the direct route from Nuremberg to Regensburg via the Franconian/Upper Palatine Jura mountains, that shortened the distance by about 40 kilometres, was only possible with the use of powerful new locomotives.

In the years of recession after the Franco-Prussian War of 1870/71 the Ostbahn's economic situation worsened, so that in 1874 a claim was made on the state interest guarantee.

With a law passed on 15 April 1875 the Ostbahn was bought out on 10 May 1875 and merged with the Royal Bavarian State Railways on 1 January 1876.

This is understandable because Maffei's managing director had played a key role in the provision of start-up capital for the Ostbahn.