USA > California > California gold book : first nugget, its discovery and discoverers, and some of the results proceeding therefrom > Part 20
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"It is of the opinion that these roads have been embarrassed by the frequency with which bills intended to effect them have been introduced into the legislatures of States and Territories through which they pass. Many of these bills contained provisions which, if adopted, would have been ruinous to the railroads. Very frequently the persons introducing such bills failed to realize the effect which their pass- age would produce. The constant threat of the adoption of such measures has been a source of embar-
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rassment to all the bond-aided companies, and has forced them to protect themselves by frequent and constant attendance before committees of the legis- latures."
And further, as to the Central Pacific Railroad Company :
" Whatever amount there may be due to the Central Pacific Railroad Company, arising out of transporta- tion, or services rendered by the branch lines, or by the unaided portion of the road, ought to be promptly paid to that company. It appears from the evidence and the report of the commissioner of railroads, that the Central Pacific Railroad Company has discharged all the obligations arising out of the Acts of 1862, 1864 and 1878, respecting the transportation applicable to the interest and bond account and applicable to the sinking-fund account, and also for the require- ment calling for additional payments to the sinking fund until the amount of such payments should equal twenty-five per cent of the net earnings. The United States has therefore no demand or claim on account of which it can justly retain any amount which is due from it to the Central Pacific Railroad Company ; and the amount so due ought to be paid and discharged without delay."
The United States Commissioner of railroads sums up his conclusions in regard to the whole matter:
"The purposes of Congress in granting the liberal aid extended to these companies were held to be im- portant elements in arriving at the true construction of their present relations to the Government. All these purposes have been much more than realized; and it has been frequently and officially stated that the actual
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saving, year by year, to the Government greatly exceeds the whole annual interest paid."
The whole grand prosperity of California, but faintly portrayed in the pages of this history, and the remarkable growth of the entire Pacific coast are evi- dences of the good which must be credited directly, and without limit, to the completion of the four great transcontinental lines-the Pacific system, Santa Fe, Northern Pacific and Canada Pacific lines. No one dares assert that the three latter lines would have been attempted had not the Pacific system projectors blazed the way, and proved its practicability and profit. Therefore, honorable men will not be slow to render unto "Caesar the things which are Caesar's," and place' the honor where it justly belongs. Not an acre of the vast area beyond the Missouri, but can be reached and occupied without fear of the scalping knife, and with the assurance that the products of industrious hands can be marketed, and their full value realized.
The great American people are most remarkable for devotion to principles of exact justice. To no other jury ever empaneled can a fact or principle be submitted with such absolute certainty that a correct verdict will be rendered. To them the cause of the Pacific railroads should be given in all its details. Garbled statements by anarchist demagogues are deserving of no consideration. A contract was execu- ted between the projectors of the system and the people of the United States. The road was in successful operation seven years and two months sooner than the contract demanded, and at an expense to the contractors many millions of dollars greater than if the completion of the work had been extended
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to July, 1876, the hundredth anniversary of the greatest nation on the globe. No pen can detail what has been gained by the whole people. Imagination becomes as confused in attempting it as when trying to figure the extent of the illimitable space outside the atmos- phere of the earth. But in 1885 figures were given showing what return the Pacific roads had made to the Government in cash values. With that balance sheet, for there is none later, this history submits the case to the impartial judgment of the great American people-a righteous jury.
Bonds endorsed by the U. S. Government, $ 27,855,680 Amounts credited to the company for
freight on supplies, munitions of war, carrying troops, mails, etc., 20,963,313
Amounts that the same service would have
cost the Government at the rates paid
before the completion of the road, 160,311,054
Deduct amount credited to company, 20,963,313
Saved to the United States treasury, $139,347,741 Or state it thus :
Saved to the Government, 139,347,741
Entire amount due from company for unpaid bonds, accrued interest, etc.,- 86,661,834
Actually due the company, $52,661,834
And that would have been the state of the account had not this powerful and wealthy Government arbi trarily reduced the rates for the service it required to the terms which suited it, and without consulting the necessities or convenience of the Pacific companies.
It is scarely possible that any one can read the fore- going record without arriving at a correct conclusion
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as to the vast importance to the whole country of the Pacific railroad system, and the honorable and con- scientious manner in which it was perfected. There is yet another fact which people who have settled along the main line and branches of the Pacific railroads do not fully appreciate. Without taking into considera- tion the almost insurmountable difficulties attending the building of the first road, and the vast and unusual expense, the charges on the road and branches are much less for fare and freight, comparatively, than anywhere else in the world. To arrive at correct data, the sparsely settled country must be considered. A few figures will more clearly show to what extent California people are favored, and how great should be their congratulation. Take the Chicago, Milwaukee & St. Paul; Chicago & North-Western; Chicago, Burlington & Quincy, and the Chicago, Rock Island & Pacific railways. For the first 140 miles out of Chicago these roads run through almost a continuous farm or town, with a population averaging more than 210 to the square mile. They are lined with productive manufactories. The fare is three cents a mile, or $4.20. The fare from San Francisco to Sacramento, 140 miles, is $3, or a little over two cents a mile, and the population averages 36 per square mile, less than one- sixth of that along either of the Illinois roads named. Go farther east. It is 90 miles between New York and Philadelphia, and the fare is $2.50, and the trains scarcely get out of sight of each other, and are always crowded. From New York to Washington City is 236 miles, and the road passes through Balti- more, Philadelphia and numerous other cities of large size and business. The fare is $6.50. First-class fare
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between Chicago and Council Bluffs is 22 cents per mile; between Chicago and Pittsburg, 22 cents per mile; between Chicago and Buffalo, 2.59 cents per mile, and between Chicago and New York, 2 cents per mile. The cost of fuel and other operating expenses are as much greater, proportionately, on the Pacific road and branches as was the cost of building the first con- tinental road greater per mile than the construction of one of the Eastern lines. Until settlements are as thick through California as they are in Illinois or the New England States, it will be unfair to expect the railroad service to compete with the prices charged on Eastern roads. Taking everything into consideration the people on the Pacific coast, and in California especially, are obtaining railroad facilities, with all the term implies, cheaper than any other people in the world, and that without the help of competing lines.
No railroads have been built in California which gave returns to their promoters from the start. The patriotic purpose of developing the country through which they passed was accomplished, and residents along the new lines reaped the advantage immediately. Two lines, which have built up wealthy settlements, ruined their projectors. The late Senator Milton G. Latham sunk an immense fortune in building the road from picturesque Sausalito, through beautiful San Rafael, over and through mountains to Cazadero in Sonoma county, a distance of eighty-seven miles from San Francisco. His enterprise entitled him to the gratitude of every citizen in the State, excepting only the members of his own family. They were never able to get a return of any considerable part of the millions the road cost him. The tourist thanks his
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memory ; for more beautiful scenery is not found in Europe, and the picnickers at Camp Taylor enjoy con- veniences of city and country, and gather health and enjoyment, because of his prodigality. And the im- provements which the road created, and the prosperous homes it established, have made it the paying property which Senator Latham predicted it would become, but which were not realized at the time of his death.
The San Francisco and North Pacific railroad was projected by the late Peter Donahue, who seemed capable of making any investment which promised to build up the country and give employment to the idle. This road was built from Tiburon, across the bay from San Francisco, with the intention of reaching the grand red wood forests in Mendocino county. Before reaching that point Peter Donahue died, and long before the road became self-sustaining. Branches had been pro- jected, and expenses assumed which well-nigh im- poverished the estate of this several times millionaire. But the country was benefited, and every section it reached in Marin, Sonoma and Mendocino counties made prosperous. The road is now on a paying basis, but the fortune of Peter Donahue is buried under its roadbed. This has been the experience in regard to every branch built by the great transcontinental lines. At first the construction and operating expenses were so much dead capital, and so continued until the creative power of the railroad builded productive homes, and inaugurated enterprises which gave the company business: In time the projectors might hope for remuneration, unless death overtook them, as was the case with Senator Latham and Peter Donahue, before the turning point was reached.
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CHAPTER XV.
SKETCHES OF REMARKABLE MEN-WHAT THEY HAVE DONE.
The readers of the California Gold Book will be interested in knowing something more of the men who have had such a remarkable influence upon the pro- gress of California, and whose every act has been so closely identified therewith. Their connection with the inception of the great enterprises which have changed the wild valleys and foothills into happy homes has been given as fully as the limits of this work would permit, and very little need be added thereto.
OLLIS P. HUNTINGTON, now president of the Southern Pacific Railroad Company, was born in Harwinton, Connecticut, October 22, 1821. His father was a wool manufacturer, and a prominent and successful citizen of that place. Of his characteristics it is unnecessary to speak. The law of heredity is fixed: Marked individual peculiarities are reproduced with un- mistakable distinctness. The lessons inculcated in his early home have governed the life actions of the son, and are impressed upon the growth and enterprise of the whole country. They are in a shape to be recognized in the coming time, by those who will have a share in their advantages, both in the Southern States from the city he has builded at Newport News on the Atlantic, through the vast territory to the large and prosperous communities on the Pacific ocean.
When twenty-two years of age Mr. Huntington began mercantile business with an older brother at
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Oneonta, New York. That continued until 1849, when he removed to California, and commenced busi- ness on the same lines at Sacramento. An early habit was transferred to the Pacific coast, which, consider- ing the time and invariable customs prevailing, shows the invincible will of the man in a remarkable manner. It is probable that his was the only place of business on the whole coast which did not open its doors to customers on the Sabbath. It was also the only one where every convenience was provided for the use of employes inside the walls of the place of business. There they were provided with better board than could be obtained at the eating houses of the bustling frontier town. Reading matter was supplied them in abundance and variety, and their evenings could be pleasantly spent, and none of them need be subjected to the temptations of the gambling places and saloons which were never closed, day or night, on all the prom- inent streets. The cost to him of these conveniences were not reckoned by Mr. Huntington. Their effect upon the comfort and morals of all to whom he paid the extravagant prices then ruling, was his sufficient recom pense.
In 1855 the firm of Huntington, Hopkins & Com- pany was organized by the connection of Mark Hop- kins. It continued business on K street, Sacramento, and no change was made in the kind of goods handled or the rules governing its internal or external manage- ment. The credit of the firm was gilt-edged. It was here that the initial combinations were formed of which Collis P. Huntington, Mark Hopkins, Charles Crocker, Leland Stanford and Theodore D. Judah, became ONE in the greatest and most difficult railroad
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enterprise of any age or country. The remarkable fact that these men maintained their individuality, and yet worked in absolute harmony, without clash, but on terms of the closest friendship and intimacy, until one by one the members of the close co-partnership are being released from their share of the work by death, is as unusual and wonderful as the unexampled success which has attended the efforts of the combina- tion. Neither in statecraft, in generalship, nor in fiancial matters, has this record a parallel. The more intimate and perfect the knowledge of these men became of each other, the more positive and fixed became their mutual confidence and respect.
In 1863 it became necessary that the Central Pacific Company should have an actual abiding place at the great money center in New York. It was not practical for all the members of the company to remove there. Anyone of them would answer the purpose, for the plans and inspirations of all were identical. Collis P. Huntington was supplied with the power of attorney of the others, which was never changed or revoked, and became the living embodiment of the Central Pacific Company in the East, at the Federal Capital, and in Europe, clothed with full power to stake the financial and personal worth of every member upon the progress of the great undertaking. The efforts required of him were herculean, and cannot now be measured, because the splendid results have led men to the con- clusion that if the difficulties had been very great, the out-side limit permitted by the Government contract would have been expended in completing the work, instead of being anticipated by more than seven years.
Now, if the principles of exact equity be applied in
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forming judgment of Collis P. Huntington, his success in life must necessarily distinguish him as great, for no man can do more than right. While his successes may be ever so unprecedented, and his accumulations fabulous, he has never invaded a right, or weakened the oppor- tunity of a human being. He has simply showed the possibilities open to all men, and the energy required to make a struggling world better by, means of the untiring efforts of one man.
It is not within the scope of this work to detail what Collis P. Huntington has done for eastern Virginia. This entire work is replete with facts as to what he and his associates have accomplished for California and the Pacific coast. Knowing that great tracts of land under the ownership of one man deprive numbers of men of moderate fortunes from obtaining homes, he has lately obtained possession of a large tract of fertile land in the Sacramento valley, and under his instructions this is to be divided into small farms, and sold to immigrants. An exact account is to be kept of all expenses attending the work, and when all is sold, any profit which has attended the transaction will be returned to the happy purchasers, pro rata to the amounts they paid for their farms. This is an experi- ment, and if it succeeds, there is no doubt but other public-spirited land-owners will follow his example, and the great State of California will be the principal gainer, though every one of the numbers so fortunately located will have reason to bless Collis P. Huntington.
ARK HOPKINS .- The late Mark Hopkins was chosen treasurer of the Central Pacific Railroad Company at its organization, and retained
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the place until his death. He was the oldest member of the powerful organization, having been born at Henderson, New York, September 1st, 1813. When he was twelve years old his father removed to St. Clair, Michigan, and died there soon after.
Young Hopkins determined on a mercantile career, and at the age of 16 found employment with a firm doing business in Niagara county, New York. As it was only a small country store, his advantages were not first class; but as it kept a general assortment of goods, he became acquainted with the average wants of a community, and early learned to wisely select such a stock of goods as would likely be in demand. From this situation he graduated as senior member of the firm of Hopkins & Hughes, doing business at Lockport, New York.
Mark Hopkins was ambitious for intellectual improve- ment. He had a brother practicing law at Lockport, and he commenced the study of that profession with him while he was engaged in merchandising. It was not his intention to change his business, but the study of the law was undertaken solely for the benefit of the training it would afford.
In 1849 Mr. Hopkins determined to remove to California, and arrived there August 5th of that year. Soon after he opened a store at Placerville, and freighted his own goods from Sacramento to that point by ox team. The following year he formed a partner- ship with E. V. Miller, and a wholesale grocery was established. The business was prosperous, and was con- tinued uutil his partnership with C. P. Huntington in 1855. The firm of Huntington, Hopkins & Company dealt mainly in hardware and miner's supplies, and early
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established an extensive branch at San Francisco. His connection with this firm was continued until his death in March, 1876. He left a great estate, and all of it was given to his widow absolutely, to do with as seemed to her best. The grand home he built for him- self on California street has finally passed into the . possession of the University of California to be used as an art studio, and for the display of the work of artists.
HARLES CROCKER .- The late Charles Crocker was a manly man, who was the architect of his own fortunes. His native place was Troy, New York, where he was born on the 16th of September, 1822. At ten years of age he began to earn money, and it was put to the best imaginable use-aided his father in paying for a farm in the State of Indiana, to which the family moved in 1836. For two years this manly boy assisted his father in clearing the land and prepar- ing it for a crop. Then he found employment for a time in a saw-mill. Later he got work at a forge, and here he was paid $11 per month with board, and the privilege of attending the district school in winter, and upon this last he placed the highest possible estimate, and of it made the very best use. Young Crocker became thoroughly proficient at the business, and before long had a shop of his own, and made money.
In 1850 Mr. Crocker crossed the plains, and began merchandising in Sacramento. At first the customers were almost exclusively miners, and the stock was such as these would require. When Sacramento began to have numbers of society people, and there were calls
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for ladies' dress goods, he added a supply of dry goods. In 1860 Mr. Crocker was elected to the legislature on the republican ticket, and helped materially to create and encourage the loyal sentiment which was all needed in the affairs of California a year later. His privilege of taking a decided stand for the Union in that body at that time was one to which he ever referred with pride.
In 1862 Mr. Crocker disposed of his business, so as to give his whole time to the interests of the Central Pacific Railroad Company, in the organization of which he had taken such a prominent part only a year before. He had then given up everything in this same interest, and now he devoted every energy to the enterprise. He was the mechanic of the quartette, and his old pro- ficiency in handling iron became specially valuable now. His efforts were so closely interwoven with that of his associates that to tell what they accomplished is to tell what Charles Crocker did to further the interests of the road. No one of this company has ever been known to claim any credit distinct and apart from that due the others. The members of the company were one.
In 1852 Charles Crocker married Miss Mary A. Deming, of Sacramento. The union was a happy one. Mrs. Crocker became interested in many of the benevolent operations in San Francisco, as she had previously been in Sacramento. Indeed, it may be said that she is a leader in many of the plans arranged for improving the condition of the people. She had the co-operation of her husband up to the time of his death, which occurred August 14, 1888, and a place became vacant which it will be hard to fill. The grand qualities which made Charles Crocker an efficient aid to
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his father when only ten years old, made him a generous friend, and a reliable aid under any and all circumstances. He left a name for great liberality, and numbers of men, to whom the world had proved unkind, are in places which his thoughtfulness secured for them, and enjoying the comforts of life, which they owe to him.
LBAN NELSON TOWNE is now vice-president and general manager of the Southern Pacific Railroad Company. His first position in connection with the Pacific Railroad system was that of superin- tendent of the Central Pacific Company, and that was tendered him without solicitation, and at a salary named by himself. From various causes Mr. Towne has been more en rapport with the clientele of the Pacific roads than any other official of the companies, and he holds the esteem and good will of all of them. He is worthy of the good feeling had toward him, and is considerably more than a remarkable man with remarkable antecedents. On March 25, 1620, William Towne married Joana Blessing. In 1640 they were residents of Salem, Mass. From that on down to May 26, 1829, on which date A. N. Towne was born, the people of that family name were among the most actively prominent in that part of Massachusetts. His birth place was in Worcester county, in that State. His grandparents, on both sides of his family, were distinguished participants in the Revolutionary war, and in all the trying times contiguous thereto. The noble characteristics of his mother are reproduced in himself. He married Miss Caroline Amelia Mansfield
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before starting west on a merchandising tour. He had tried carpentering, house painting and merchandising while in the East, succeeding best with the latter business; but he had not yet found the occupation for which he was exactly adapted. In 1855 he was at Galesburg, Ills., and could not consider the results of his merchandising trip as any where approaching a success. He asked for a place as freight conductor on the Chicago, Burlington & Quincy road, and got it. The tide which floats a man to fortune had found him, and he was astride of it. Railroading then was different to the business now. The person ambitious to obtain a position of prominence had to know all there was to be learned. It was as necessary that he should be able to successfully doctor a hot-box as collect a fare. He realized this and became thoroughly familiar with every detail of every department that came within his ken. He went through the official gradations on express schedule time with no stops. Within a year from the time he became freight conductor he was train master, and in a brief time he was assistant superintendent. After eleven years' service with this road he became superintendent of the Chicago & Great Eastern Company. His ability to select and handle men was Napoleonic. He made no mistakes. HI: subordinates had confidence in his master mind, and obeyed orders without asking what the orders meant. He was a wonderful success-a grand master in his profession.
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