The morning call., 1892-03-27
TIE RAILROAD GIANT.
From Its Cradle to It's Full Develop.
mGlt.
How the Eeguates of the Central Pacific
Acquired Their Millions Enormous
Land Grants
Written for THE MORNING CALL

The story of how railroad communication
was opened I'D between the Missouri and
the Pacific Coast is in need of being retold
at the present day, in order that people
may be reminded of the manner i'm which
great power has come into the hands of a
lew persons. who owe their gigantic for
tunes 10 public generosity and support. and
yet exercise their influence ana privileges
IN tyranncal fashion that suggests prac-
tleai sovereignty OF all they survey. with
hDerty 10 peTpetrate wrongs that are un-
ending in rapacious seifishness Had il
oeeh loreSeen what use would be made of
the franchises so literally granted TO a
handful OF men. ostensbly for public ends,
some checks would have been devised to
regulate the growth of the giant monopoly
winch has sprung up. but as matters have
turned out Ii Ia curious TO see how all the ordi
nary devices Of the constitution and of State
ana Federal law have been manipulated 10
secure further aggTandiZement, greater
power, and a more abjpct enslayement of
vletlmlzed people. Whether this condi-
uch oil things will continue depends upon
the poputar Will. But it will not do to be
apathetTc. Action can alone put a quietus
10 Inc domination OF a monopoly which has
thriyed by strangling the liberty and life of
the community.
FIRST NOTIONS OF A RAILROAD.
Many years before any transcontinental
railway projects took shape. Thomas II
Benton, Senator for Missouri, advocated the
construction of road. and was an enthusiast
as 10 the prospects OF the Far West FIRE.
mont. the explorer, was his son-in-aw, and
his travels aroused great public interest
lie Ii was who spoke of the difficulties of
crossing the Rocky Mountains as very
slight indeed, coach and four being al BILE
TO drive over by one pass. Soon after the
discovery Of gold in California the St Louis
Union agitated the subject and pointed out
the feasibility Of laying down line of
telegraph across the plains To the Pacific
Coast. Tie general notion Of people was that
tbs was so much of task that il would be
ridiculous to attempt II. The development
OF the gold mines presented the matter in
another aspect. People had crossed the
plains 10 California In large numbers and
there was q growing interest East in what
was occurring, and in the course Of time the
opinion was corrected that the land here was
not worth anything except fur mining pur-
poses, although the coaS: for half a Gen.
tury had been noted for is cattle and for
shipments of hides and talioW AT an earIV
date after the mines we're opened we had
an overland post al first running about once
a month, and then the Government put on
the Pony Exl ress, by which. although the
postage was high, great Convenience was
afforded 10 merchants and the newspapers
IN the receipt of dispatches. Next tine Of
stages was put on the overland route,
sted speed The Civil War broke
out, and the defenseless condition of
tile coast excited attention IN Con-
Eress and in the East generally. Many
Southern people had come to the coast,
come of them bringing slaves with them. aud
in the event OF any trouble owing TO the
war it might have been an embarrassing
matter to send out troops or ships TO afford
Protection.
CONGRESS AUTHORIZES A ROAD.
Ultimately bill was passed authorizing
the con struetiOn OF a railroad, and Congress
gave assistance In heavy grants OIL land and
in subsidies aud bonds. The grant of land
along the whole length of the road. The
subsidy Ia money varied according to
the character of the region traversed.
East of the Sierra Nevada the Government
Ia d S32. coo Il mile; over the mountains for
a distance perhaps of $50 miles the pay
ment was S4S, coo mile; but in California,
from the foothills, 1t was SIG 900 per mile.
This was the grant. but the Government also
allowed the company to put mortgage on
tire line equal to the bend subsidy OF the
Government The bonds were given TO the
company and they could sell them where
they pleased. With this more than liberia!
encouragement the Union Pacific and Cen
trail Pacific com panies went TO work, one
commencing operations at the eastern end
aud the other nj the western, and each
building as rapidly as possible in order 70
take advantage OF the subsidies. At the
eastern emo there were two railroad COM
panjes in existence. One was constructing
road firm Kansas City. extending out
westerly. and this was ultimately built TO
Denver in Colorado Al the same time the
Union Haelhc was running out westerly
from Omaha On this side, the Central Pa
cife commenced operations with their en-
terDrise at Sacramento, although they did
tack on - il a small line called the Western
Pacific. The work was taken in hand by
Stanford (who became president Of the
Central Pacific 10 1861 on It's formatioD),
Huntington, Hopkins. aud Judge Croker
Of Sacramento. Upon the death Of the lat
ter bis interest, or considerable portion OF
IL, passed into the hands Of the late Charles
Croker. The connecting rail between the
two systems was laid at Ogden in 1869. All
the road 10 the west of this point belonged
to the Central Pacific; all TO the east of it
was in the hands Of the Union Pacific
PROSPECTS OF THE ENTERPRISE.
When the line was commenced there was
OF course hardly anything but wilderness
between Omaha and California. Salt Lake
City was practically the only settlement, but
rs the line progressed population poured in
and b gan To build 10 towns here and there.
SEbsiiies were very generously voted the
Central Pacific in California. and the eXpec-
alton was at the commencement that all the
money that could be made by the road
would probably arise not from traffic, but
from the Government grants and from sub
sides donated by cities and counties. San
Francisco contributed largely, but more or
less there were donations from almost
every quarter. But another method was
found Of making money besides from subsi-
dies. Both the Union Pacific and the Central
Pacific devised a plan Of raking III large
receipts out OF contracts for construction
and equipment. The Union Pacific let its
contracts to the Credit Mobilier Company,
which was the Union Pacific in another
form. The Central Pacific gaveits contracts
TO the Contract and Finance Company, and
that consisted practically OF the Tour men
who constituted the Central Pacific Com
pany 1t is true there were some minor
shareholders in the Central Pacific. but their
interest and influence were utterly ln5ignifi-
cant and the real manipulation of affairs
was in the hands of the men VINO have been
named-Stanford, Huntington. Hopkins and
Croker. Ont of these contracts let by
themselves to themselves the quartet made
famous profits, and they grew rich by leaps
aud bounds without traffic. They were
rich men, in short. when the road was
ready for traffic. Ben Holiday acknowl-
edged that he cleared a million dollars IN
this way out of the Union Pacific affairs,
aid undoubtedly others made far more.
There came time when Congress inyesti-
gated these matters. and pretty exposure,
which seriously tainted Congress Itself. was
made of the Inner workings of the Credit
Mobilier jObbeIy. When the transcontinen-
tai road was finished ever man who had
been concerned in the enterprise as prin-
pal found himself rolling in wealth. Besides
fortunes in money they owned immense
tracts of land, and much of this is still held
In individual or corporate proprletorsbip,
while great amounts have been obtained
from sales. TIE timber region Of the Sierra
was laid under tribute to make the railroad.
Care was taken to select what mber was
required from the Government sections.
leaving the timber on the laBds granted by
the Government to the company available
for use In the future.
IN POLITICS.
Another slice Of good fortune came 10 the