Savannah morning news. [volume] (Savannah) 1868-1887, 1883-12-31
FIVE MILLroNAIREs
How Huntington, Hopkins, Stamford ana
Crocker Amassed Their Fortunes

twenty years ago c. p. Huntington and
MARX hopkins were partners in the hard
ware business in Sacramento. Cal. In tba
same CITY Leland Stanford was an oil
merchant, Charles Croker was a noted
uFy goods dealer, and Judge Croker was
g laMyer OF small means. In 1861 these
nVe men, with fifteen or sixteen Others
formed corporation for the purpose of
Dulldlng the Central Pacific Railroad.
Inc united fortunes of the incOrporatOrs at
mat time did not amount to more than
Si2O,OOO. By the statutes of the State of
california they were obliged to paw una
certain percentage on their stock, that
percentage amounting to $11,500, The
next step after Incorporating the company
was to get certain bills passed through
congress, by which they obtained sub
sidles for building the road. This they
dld, but the subsidies were given on such
conditions that they could get no money
from the Federal Government until twenty
miles Of the road were built. They in
duced the State Government to guarantee
thelr bonds, upon which they raised
money enough to build the first twenty
miles of the road, after which the enter
prise was easy. There was money enough
In the scheme, but there were too many
people to share in it. Accordingly the
nNe men above named either trOZe out or
bought out all the other stockholders.
some of the latter, who staid in until the
magnihcence of the scheme began to be
toreshadowed, realized ten for one on
their investment. Having disposed of these
outsiders the five projectors of the
scheme formed the s'Credit and Finance
Company" which was the Credit MObilier
OF the Central Pacific. These five men.
as directors of the Central Pacific, made
contract with themselves, as the Credit
and Finance Company, to build the Gen.
trail Pacific Road, giving therefor 1927, O00,-
600 of government bonds (which they re-
ceived as a subsidy, $27, 000, 900 of the
company's first mortgage bonds, and
about IS, 100000 Of land bonds, which they
issued on their grants. This, of course,
came piecemeal as the work was done,
but the above sum, together with about
$21, 600, 900 more of bonds on unsubsidized
road which the company afterward
bought, were paid to the Credit and FL
nance Company for building the road.
Lest some trouble should arise because of
this scheme the stockholders held meet
ing and fully Endorsed the action of the
directors-that is, the five men named
met and Endorsed their own action in max
ing contract with themselves.
Out of the surplus which they made,
after declaring s per cent. dividend on
$54, 100000 of stock, these men bought all
other railroads in California, all the river
in San Francisco, established a mail line
to China, built the Southern Pacific Rail-
road, which they stocked and bonded for
$4,000 a mile, although it did not cost at
the outside more than $780, 900 a mile, built
palaces in city and country which did not
cost for all OF them less than $l0,000,000.
The earnings oftheir roads last year were
about $25, 100000. The assets of these
men, as stated in their annual report, eX
coed $500, 100000. The original invest
ment % years ago was 81 800. The story
is a wonderful one even in this bold out
line.
OF the five men who originated the Cen
trail Pacific, Mark Hopkins and Judge
Crocker are dead. The other three own
most of the proceeds of that plan formed
twenty-five years ago. 1t is said that no
agreement in writing was ever made be-
tween them; that in all of this immense
business each trusted the simple word Of
the other, although at present Huntington
and Stanford, at least, are not on friendly
terms. Huntington, Croker and STAN
ford are each about go years old, and the
first two are still vigorous men. STAN
ford, however, is broken in health.
The leading spirit in all the transac-
lions named was &. p. Huntington. He
is a hard, thrifty. close New England
business man. He started his business
career as a peddler. During the building
of the Central Pacific he was the pur-
chaser of materials. His shrewdness is
best illustrated by two of his operations
in buying materials and getting them to
the Pacific coast. Nearly all the railroad
iron had to be shipped from the Atlantic
coast and carried around Cape Horn to
San Francisco. There was race of dill
gence between the Union Pacific and the
Central in getting to Salt Lake City. 1t
was important that iron should be brought
xvif know "a if
the vessel owners knew that he was about
to ship such an enormous quantity of iron
they would put up the rates on him. So
he simply gave out that he wanted
one ship, and asked for bids. The
vessel owners made bids, putting
the figures as low as possible. He
accepted all the bids and took every YES
sci. He did the same thing with iron
mills. He gave the iron men to under
stand that there would not be much iron
wanted Immediately, but that he could
use a few rails. They made offers at low
figures. He accepted all the offers and
exhausted the capacity of the mills.
Huntington now lives in New York in a
magnificent palace on Park avenue. He
has proven himself to be a match for
Gould and the rest of the hard men in that
city. He has always held his own. At
ter a struggle with all the railroad mag
mates. including Gould, he is master of
the situation i'll the southeast. Among
his achievements is the connection of the
Gulf with Newport News, in Virginia,
through which place he intends that the
commerce of Europe and America shall
flow.
Leland Stanford, the President of the
Central Pacific, studied law in the office
of William I'll. Seward. He is a man of
better education, more refined manners
and fairer polish than either Huntington
or Crocker. He lives in California, and
was elected Governor of the State in 1861.
He has fancy for fast horses, and is best
known to Eastern people as the owner of
0ccident who trotted match with Gold
smith Maid, and as the owner of a stock
farm where there are at present a few of
the fastest young trOtters in the world.
Charles Crocker, who also lives in Cali
fOrnia, was the man who superintendent
the building of the road. He is a man of
great energy, but of very rough and I'M
cOuth manners. His share of the money
made is believed to be less than that of
the other members of the combination.