1. Elusive Eden: A New History of California, fourth edition
CHAPTER FOURTEEN: THE COMING OF THE RAILROAD

2. Transportation Problems in Gold Rush California
Transportation hampered development
--Distances within, beyond the state
--Mountains cut off southern San Joaquin Valley, interior valleys
Water travel easiest
--Great distances from ports to mining towns
--Delayed delivery, raised costs
--Added to business risk

3. Ocean, overland travel expensive, dangerous
--Discouraged immigration after Gold Rush
--Few women, children
Californians demanded better transportation

4. Early Transcontinental Railroad Schemes
US railroad networks expanded through 19th c
Transcontinental rr would link eastern manuf with Asian markets
Fremont surveyed central route for transcontinental rr 1845
Mexican War, Gold Rush intensified interest

5. Eastern industrialists, western communities pressured Congress to subsidize road
1853 Senator William Gwin proposed road w federally subsidies
--Too expensive for private companies
miles with no freight, passengers
Supporters disagreed on placement
--Southern or northern route
--Terminus, communities served

6. 1850s, 1860s Californians built trunk lines
Pioneer Rail Lines
1850s, 1860s Californians built trunk lines
Difficult to raise funds, find laborers
Projects speculative, sometimes fraudulent
One success: 1856 Sacramento Valley Railroad completed 23 mile line
--Connected Sacramento steamboat port with American River
--Carried miners, supplies
--Created boom town at end: Folsom

7. Short routes in SF Bay Area
railroad between Oakland port, business district
mile San Francisco & San Jose Railroad completed
mile San Francisco & Alameda Railroad opened
--Secured city's dominance over interior
--Helped build bedroom communities

8. Theodore Judah, Visionary
Chief engineer Sacramento Valley Railroad
Civil engineer on Erie Canal
Built eastern bridges, railroads
Finished road in 2 years
Company went bankrupt
Judah left 1856

9. Promoted central transcontinental railway route through Sierra Nevada
--Searched mountain passes
--Looked for backers in SF, New York, Congress
--Nicknamed "Crazy Judah"
--Investors doubted Sierra route

10. 1859 state legislature convened second Pacific Railroad Convention
--rival cities again prevented agreement on precise route
--convention agreed should connect SF Bay Area to central Sierras
--included federal construction subsidies

11. Judah took plan to Washington
--Promoted
--Presidential campaign north-south contest
--Northern Congressmen favored route, southerners opposed
--Lincoln elected November 6, 1860
--South Carolina seceded December 20, 1860

12. The Founding of Central Pacific Railroad
Judah returned to California summer 1860
Gold rush to western Nevada in spring 1859
--Trade boom for SF
--SF steamships, stagecoach businesses dominated
--Saved Sacramento rr
--Goods, passengers carried by steamer to Sacramento, rr to Folsom, wagon over Sierras
--Monopoly renewed interest in railroad

13. SF group hired Judah to extend road from Folsom
--Judah discovered central Sierra route
--Secretly formed rival company, searched for financiers
Route began at Sacramento
--traveled north, east 70 miles
feet, 115 miles over Donner Pass
--Followed Truckee River down to Nevada

14. October 1860 formed Central Pacific Railroad
--Construction estimate $115,000
--Issued stock to raise
--State required bond of 10%, $10K per mile
Judah promoted in San Francisco
--Threatened steamship, freight lines
--Sacramento Valley Railroad fired Judah, criticized route
--Discouraged investors for years

15. Looked for backers along route
--Tracks from Folsom to Dutch Flat, toll road to Virginia City
--Merchants, businesses supported
Collis P. Huntington, partner Mark Hopkins owned Sacramento hardware store
--Brought in Huntington attorney Charles Crocker, brother Edwin, banker Leland Stanford
--Subscribed to state's 10% minimum
--About $2800 each

16. April 1861 partners reorganized Judah's company
--Stanford elected president
--Huntington VP
--Hopkins treasurer
--Edwin Crocker attorney
--Judah chief engineer

17. June 27, 1861 Central Pacific Railroad Corporation incorporated
--Hopkins, Huntington, Stanford, Crocker brothers brought credibility
--Huntington brought eastern suppliers
Stanford brought Republican connections
--California Republican party founded 1856
--Stanford campaigned for John C. Fremont, then Lincoln
elections Republican sweep

18. Civil War And Transcontinental Railway
Small minority Californians southerners
--Majority sided with Union
--Confederate support in southern California, San Joaquin Valley
--Republicans controlled state, local politics through 1850s
--Raised $1 million for U.S. Sanitary Commission
--California volunteers joined Second Massachusetts Cavalry

19. Wartime shortages stimulated local manufacturing
Comstock silver discovery late 1859 drained SF population
--SF bankers, merchants made fortunes
--Congress anxious to tie West to Union
--Control gold, silver, move troops
--Southern opposition to central route ended January 1860

20. The Central Pacific Besieged
1861 Central Pacific in trouble
--Critics skeptical of Donner Pass
--Hampered private financing
--Shortages of money, workers, equipment, supplies, ships

21. Judah underestimated costs, distance
--First stock release raised $10K
--Summer 1861 discovered 140 miles through Donner Pass
--Meant 3 miles of tunnels through granite
--$13 million to finish ($310M today), $88,000 ($2M) per mile
--50% higher than Judah's original estimates
--3x federal subsidies

22. Local competition for federal subsidies
--San Francisco & San Jose Railroad
--Sacramento Valley Railroad
--San Francisco, Stockton, Placerville, Marysville supported competitors
--Pacific Mail Steamship, California Steam Navigation, Wells Fargo opposed Central Pacific control

23. The Pacific Railway Act of 1862
September 1861 Republican Stanford elected governor
Republicans carried state legislature, Congressional delegation
--Judah, Huntington went to Washington
--Joined Senate, House committees writing railroad bill
--Lobbied Congress through winter, spring 1862
--Paid supporters with Central Pacific stock

24. Settled with San Francisco & San Jose Railroad
--Would build road from SF to Sacramento, collect subsidy
--Dropped opposition
July 1861 Congress passed Pacific Railway Act
--Central Pacific would build east from Sacramento River to Nevada
--Union Pacific Railroad would build west from Missouri River

25. --Given rights-of-way, rights to timber, stone
--Granted 10 sq. miles per mile of track in alternate sections
--Subsidies backed by 30-year government bonds at 6% interest
--$16,000/mi flat lands; $32,000/mi deserts; $48,000/mi mountains
--Companies could sell bonds, land

26. Completion still uncertain
--Subsidies too low
line must be complete or assets forfeited
--Subsidies paid as segments completed
--Govn held first mortgage on assets
--Govn lien discouraged private investors

27. Local Subsidies and Mounting Opposition to the Central Pacific
Gov. Stanford secured state financing
--Sold state bonds
--Authorized community bonds
--Raised $1M

28. Rival companies, communities filed lawsuits
--Accused Central Pacific officials of corruption, bribery
--Labeled plan "Great Dutch Flat Swindle"
--Gov. Stanford protected company interests
--Most of lawsuits settled by 1865
--Added expense, delays

29. Breaking Ground
Construction began January 8, 1863 in Sacramento
Crocker formed Charles Crocker & Co. to built first segment
March 1863 Huntington secured funds, material on credit

30. Judah Versus The Big Four
November 1864 deadline to finish first 50 mile segment
--Funds gone
--Big Four demanded payment from delinquent shareholders
--Assessed new contributions

31. Judah angry with Big Four
--Gov. Stanford bribed state geologist
--Told Congress Sierra Nevada began 7 miles from Sacramento
Big Four angry with Judah's costly mistakes
July 1863 Huntington faction took control of Central Pacific board
--Demanded board pay assessments or give up seats
--Judah unable to pay

32. --Judah exchanged stock for $100,000 in Central Pacific bonds
October 1863 Judah left for New York
--Planned meetings with Jay Gould, Cornelius Vanderbilt
--Contracted yellow fever in Panama
--November 1863 died in New York City

33. The Pacific Railway Act Of 1864
Tracks laid through Sacramento September 1863
--Connected port, construction site
--First engine traveled November 9
--Named Gov. Stanford
Lawsuits settled, state, local bond monies available
Huntington, Union Pacific convinced Congress to amend railroad act

34. 1864 Pacific Railway Act of 1864 more generous
--Extended first 50 mile deadline to 1865
--Doubled land grant to 20 miles per mile of track
--Assigned govn second position on bonds
--More attractive for private investors
1866 Congress removed construction limits
--Companies began competing to lay track
--Private subscriptions rose

35. Completing the Transcontinental Railway
April 1864 first passengers, freight
--18 miles Sacramento to Roseville
June 1864 finished road to Newcastle (near Auburn), Dutch Flat wagon road
Took over Comstock trade
--Revenues finally greater than expenses

36. Winter 1865 building slowed
--Snows in Sierra
--Labor shortages
--Mining easier
Crocker experimented with Chinese labor
--Foreman objected
--Learned fast, worked hard, paid 60-90% less than white workers
--Provided own food, shelter

37. By May 1865 Chinese 2/3 of Central Pacific labor force
--Crocker imported additional Chinese workers
--Completed extension lines
--Repair gangs
Problems multiplied at Auburn
--Grade to crest 5,000 ft over 40 mi
--Below-zero temperatures, 40-ft snow in mtns
--Workers killed in cave-ins, explosions, strikes

38. Congress amended legislation
Track progressed
--14,000 workers worked round the clock shifts
built snow-sheds through Donner Pass
--November 1867 first train crossed summit
--May 1868 reached Nevada line
--Next 12 months, another 550 miles
--Union Pacific slowed by Rocky Mountains
--Companies laid parallel tracks to collect subsidies, land
Congress amended legislation
May 10, 1869 Union Pacific, Central Pacific met at Promontory Point, Utah

39. The Big Four and the Emerging Rail System
Trunk lines built around state
--SF Bay connected to coastal valleys
Los Angeles & San Pedro Railroad connected pueblo to harbor
--Interior populations grew
--North coast, San Diego left out

40. Big Four bought out competitors
--Rate wars drove under
forced Sacramento Valley RR out of business
--Initial revenues disappointing

41. Options monopoly or bankruptcy
national depression meant couldn’t sell out
--Borrowed, reinvested to maintain monopoly
bought roads around SF Bay area
--Controlled ports at Alameda, Oakland
--Moved terminus from Sacramento to Oakland

42. Invested in steamships, ferries, riverboats, freight service
partnered Pacific Mail Steamship Company
founded Occidental and Oriental Steamship Company
Communities granted valuable real estate, cash payments or lost connections

43. 1868 purchased Southern Pacific Railroad
--Formed 1865 by San Francisco & San Jose
--Southern route avoided Sierras
--Planned to connect San Francisco, San Jose, San Diego, then east to Arizona
--Congress authorized to complete second transcontinental road across Colorado River
--Atlantic & Pacific to build west from St. Louis

44. 1869-1876 Central/Southern Pacific completed southern routes
--Built from San Jose to Hollister
--Second line south through San Joaquin Valley, through Tehachapis
1872 forced Los Angeles to subsidize trunk line
--Connected Los Angeles to northern, Sierra routes
--Completed September 5, 1876
--Big Four bought out competitors in Los Angeles

45. 1877 bridged Colorado River, built to Yuma
--Didn't wait for Congress, federal subsidies
--Began laying tracks across Arizona, New Mexico
reached El Paso, Texas
--Connected to Huntington-owned roads in Texas, Louisiana
completed lines to Houston, New Orleans
--Now controlled coast-to-coast system

46. February 1883 offered service from San Francisco to New Orleans
bought out Oregon & California Railroad
--Connected Sacramento and Portland
--Bought out other Oregon lines

47. The Southern Pacific Company
By end of 1870s Big Four controlled California transportation
--Operated 2,340 miles of track
--Controlled 85 % of roads in state
--Controlled traffic in, around San Francisco, Los Angeles, Sacramento, San Joaquin valley

48. 1884 reorganized under Southern Pacific Company
--Holding company protected assets
--Helped prevent federal control
--Big Four operated system from headquarters in San Francisco, New York

49. Santa Fe Railroad encroached in 1880s
--Built new lines into state
--Forced Southern Pacific into rate war
--Cheap fares sparked pop. Boom So. Cal.
--1890s built tracks into San Joaquin Valley, built trunk line to Richmond
1900 Union Pacific, Western Pacific Railroad finished competing transcontinental lines
Southern Pacific still dominated California into 1950s

50. Theodore D. Judah
California State Railroad Museum.

51. The Big Four
Leland Stanford. California State Railroad Museum.

52. The Big Four
Collis P. Huntington. California State Railroad Museum.

53. The Big Four
Charles Crocker. California State Railroad Museum.

54. The Big Four
Mark Hopkins. California State Railroad Museum.

55. Chinese Laborers Filling the Secret Town Trestle
Once they had proven their skills, Chinese immigrants came to comprise a high percentage of the Central Pacific’s work force, even after the completion of the first transcontinental line. In the 1870s Collis P. Huntington’s friend Carleton E. Watkins, who often worked on assignment for the Big Four, took this famous photograph of Chinese laborers filling in the 1,000-foot-long Secret Town trestle, sixty-two miles east of Sacramento. This item is reproduced by permission of The Huntington Library, San Marino, California.

56. Snowsheds on the Central Pacific
Alfred Hart photographed the Central Pacific’s famous snowsheds while they were under construction in the late 1860s. This item is reproduced by permission of The Huntington Library, San Marino, California.

57. Thomas Hill’s The Last Spike
Commissioned years later by Leland Stanford, Thomas Hill’s romantic depiction of the driving of the golden spike at Promontory Point portrays a cross-section of those associated with the building of the transcontinental line: leaders such as Stanford (at center, holding the hammer); Chinese laborers (to Stanford’s left); Irish immigrant workers, smoking their characteristic pipes (to the right and below Stanford); Indians (foreground); and a wagon train, the transportation mode being supplanted (background). Also in the painting were persons not present at the spike driving, including Collis P. Huntington, who was in New York at the time. Theodore Judah, dead for nearly six years, is resurrected at the lower right. Scorned by Stanford, the painting now hangs in the California State Railroad Museum at Sacramento. California State Railroad Museum.

58. Southern Pacific Rail Lines in California and Nevada, 1923
In this map of main California and Nevada railroads near their peak of expansion, South-ern Pacific Company tracks appear as wide, those of rival companies as narrow, lines.
Courtesy of the California His-tory Room, California State Library,Sacramento, California.