USA > California > San Diego County > San Diego > History of San Diego, 1542-1908 : an account of the rise and progress of the pioneer settlement on the Pacific coast of the United States, Volume II > Part 4
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HISTORY OF SAN DIEGO
Scott went to Europe in the fall to complete his arrangements for placing his bonds and raising funds for the construction of the road. Everything apparently went well, and he had mat- ters all arranged in Paris for delivering the bonds and receiv- ing the money, as soon as the formalities of making out the papers could be completed. To pass the time of waiting he went to London with a party of friends, and during their absence the "Black Friday," or panic, occurred which deranged the finances of the country and caused the French financiers to change their minds about making the loan. The failure of Jay Cooke & Company in December, 1873, cut considerable figure in this wiping out of the financial arrangements for the new railroad. Colonel Scott notified his friends and supporters in San Diego that he would be unable to fill his agreements.
The blow was a severe one to the young city and many thought it fatal. The population dwindled in the course of two or three years from 3,000 to 1,500. But there were a stout- hearted few who never lost faith nor courage. Scott was not ruined, they argued; he was still a wealthy man, still president of the Pennsylvania Railroad and of the Texas & Pacific, and had not abandoned or changed his plans. Jay Cooke & Com- pany were endeavoring to rehabilitate their standing and would come to his aid. And so they fed their hopes for some years.
But while these things were largely conjectural, there was one source of hope which seemed a strong one. This was the appeal which Scott promptly made to Congress for a national subsidy. Congressman Houghton had been re-elected in the fall of 1872 largely on the ground that he could help in matters of national legislation affecting San Diego's interests. He was still in Congress, but, unfortunately, found himself in a minor- ity in the support of this measure. The day of great grants to railroads was passing, the country had been too hard hit by the panic of 1873, and Congress could not be induced to give the subsidy. Hope was not abandoned for a long time, however. In October, 1875, David Felsenheld was appointed to act as agent of the city at Washington, and in the following February a bill was passed by the House for a road on the 32d parallel, which was supposed to mean the Texas & Pacific; but the name of the company was changed to the Southern Pacific as suc- cessor to the interests of the Texas & Pacific, and San Francisco was made the western terminus. Further action was postponed until the next session of Congress.
When the matter came up in the next Congress, in December, 1876, San Diego was again represented by special agent, Felsen- held, and stormy times began, in a struggle to save the western
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APPEALING TO CONGRESS
terminus to San Diego. On December 18th, the trustees and rail- road committee telegraphed Colonel Seott as follows :
The citizens of San Diego rely implicitly upon your honor and good faith for the consummation of your oft-repeated pledges. You promised that if the route directly east proved feasible it should be constructed. Fulfill your pledge. The direct line is the only route upon which a competing railroad should enter San Diego and they will unanimously oppose any compromise that will not secure that line.
To this Colonel Seott replied :
Have used my utmost efforts to secure San Diego a railroad line on such route as can best effect the object; and if you can effect it in any better shape than I can, I should be very glad to have you take it up and adjust it with any party, or on any terms that you may think best. But in taking these steps, I shall expect you to relieve me of any possible ob- ligation.
At this time, Seott offered to relinquish his subsidy, being in doubt about the possibility of seeuring government aid, but the offer was not accepted, and on the contrary every effort was made to secure the enaetment of suitable legislation.
General Thomas S. Sedgwick was employed to assist Felsen- held, and in January Horton was sent "to assist Sedgwick and yourself in explaining advantages of direet route and disad- vantages and great injustice of proposed San Gorgonio switch." Long telegrams were sent to Hon. L. Q. C. Lamar, chairman of the House Committee on Pacifie Railroads, and to HIon. James A. Garfield, and other members of that committee, explaining San Diego's situation and desires. The chief contention was that "this people entered into a contract with the company authorized by law to build the road, conveying to said company valuable franchises and over nine thousand acres of land on said bay. in- eurring thereby a large city bonded indebtedness, for which all our property is pledged;" "that a large population have been drawn hither from all parts of the Union, and indneed to invest their fortunes here, in reliance upon the good faith of Congress in said legislation;" and that the proposed compromise, mak- ing San Francisco the terminus, missing San Diego by a hun- dred miles and leaving it to be served by a branch line of the Southern Pacific, would be a great injustice to the people of San Diego and the country, "and will bring ruin upon several thousand people who have trusted the promise of the govern- ment in said Aet of Charter, and who rely upon the obligations of contraets entered into with a corporation in good faith for very valuable considerations."
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HISTORY OF SAN DIEGO
Two historic telegrams which passed between San Diego's rep- resentatives at Washington and the city trustees exhibit the sit- uation very clearly. The attitude of the trustees was enthusias- tically sustained at a mass meeting of citizens. The telegrams were as follows:
To Trustees:
WASHINGTON, JANUARY 6, 1877.
We are pressing direct route persistently, and will probably defeat bill. It will not be conceded. Compromise bill allows national or state railroads to connect on equal con- ditions. The San Gorgonio line would be so much towards Union Pacific line from Salt Lake, which would have right to connect at San Gorgonio. We are losing friends in Committee by our persistence and cannot count our present strength here- after for any other move. By yielding we may get guaranteed bonds subsidy for whole line; and if Huntington does not build San Gorgonio line you will have the direct route, under the bill, by the time the through line is completed. The Com- mittee concede that the direct line must follow soon under any conditions. All rights and privileges conceded and secured, except direct route. The Southern section (of the House) which fully understands the situation, believes this the last chance for Government aid. They comprehend the benefits of the di- rect route; but think you should make concessions to get a rail- road on (less) favorite route. At this time shortness of route is not so important as results in developing Arizona and get- ting connections that will increase your commercial importance and population and trade many fold in few years, which growth will enable you to build the direct route long before you will need it to cheapen freights. Why not help yourselves now, to strengthen yourselves hereafter? Unless this subsidy bill passes, there will be no road for you to meet.
SEDGWICK.
SAN DIEGO, JANUARY 6, 1877. To Col. Sedgwick:
It is the deliberate and unchangeable con- viction of San Diego, that the proposed connection north of here, in the hands of the Southern Pacific Company, would be an injury instead of a benefit to us, because:
1. It places in control of one corporation for all time every approach to our harbor.
2. Trade and population would be taken away from, in- stead of brought. here, while the road is building. It is now moving from the northern part of the county to Colton.
3. By occupying the only passes it would prevent exten- sion of Utah Southern road and connection with Union Pacific.
4. It would supersede construction of direct line from Ana- heim, increasing our distance from San Francisco to 650 miles.
5. It would increase the distance from Yuma by 60 miles. 6. Experience has taught us that the strongest promises in a bill do not protect us against subsequent amendments at the desire of the corporations. Legislation that fails to require immediate beginning at this end, and construction of
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AN HISTORIC TELEGRAM
so much road before next session of Congress as to remove' the temptation to amend bill, is worse than worthless.
7. Whatever supposed guarantees may be put in bill mak- ing the road a "highway" it is well known by all engineers that the Company building the road holds in fact control of it; and no other company can have equal use, or will build paral- lel road.
8. Southern Pacific Coompany one year ago agreed to build on direct line, provided San Diego would consent that it should have the western end.
So far from a San Diego standpoint: But we hold no petty local view; we supplicate no favors. The interest of San Diego is here bound up with the National interest. We sub- mit to impartial statesmen the conceded truth that the pro- posed compromise diverts the Nation's bounty from the origi- nal purpose of the Southern transcontinental legislation; de- prives all the millions east of San Diego of direct access to their nearest Pacific harbor; and destroys competition for all time. San Diego's natural advantages are such, that in ask- ing the Nation's aid for the construction of a railroad to her port, she asks it upon a line, and upon terms that will contribute to the Nation's support and wealth for all time to come; while the compromise plan will be an intolerable and interminable national burden. For these reasons San Diego prefers NO bill, rather than the San Gorgonio branch. Read again both our dispatches to Lamar.
Signed by Board of Trustees.
The Board of Trustees at this time consisted of J. M. Boyd, D. O. McCarthy, D. W. Briant, W. A. Begole, and Patrick O'Neill. Boyd was president and S. Statler clerk.
Events have singularly borne out the judgment of the trus- tees concerning the effect upon San Diego, at least, of building the road through the San Gorgonio Pass instead of by the direct eastern route. Nor was Los Angeles indifferent to what she had at stake in the choice of routes. Later, when Scott's efforts to secure legislation had come to naught and the Southern Pacific was beating him in the race to California, Los Angeles gave $400,000 to make sure that the road should use the San Gor- gonio Pass, and no other. It was the turning point for Los Angeles, and it involved long and bitter disappointment to San Diego.
In September, 1877, an agreement was made with Colonel J. U. Crawford to survey the route by way of Warner's Pass as a means of demonstrating once more the utter falsity of the claim that the direct route was impracticable. Crawford and Felsenheld went to Washington early in 1878, together with Captain Mathew Sherman, to make one final effort in behalf of the enterprise, but it came to nothing.
Thus ended the dream of the Texas and Pacific system with its western terminus on the shores of San Diego Bay. The result
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HISTORY OF SAN DIEGO
was in no wise due to the people of San Diego. They were wide awake to their opportunity; they contributed with prodigal gen- erosity to the subsidy ; they fought long and stubbornly to pro- tect and to enforce the contract. Failure was due, in the first instance, to the panic of 1873; then, to the sledgehammer blows which Huntington rained upon his rival, Scott, until he had beaten him alike at Washington and in California. So Scott's star went out of the Pacific sky, and Huntington's rose resplen- dent, to shine with ever increasing luster while he lived.
THOMAS A. SCOTT
The great railroad magnate who undertook to extend the Texas & Pacific to San Diego and whose failure to accomplish it. exerted a profound influence on the history of San Diego and of Southern California for many years
There were times when San Diego hoped that Huntington would build his line to the port of San Diego and thus create the desired eastern connection. There is no evidence that he ever seriously contemplated the project. He visited San Diego with Crocker and others in August, 1875, and met a committee of citizens. The best account of what occurred at the interview appears in the following statement by E. W. Morse :
365
HUNTINGTON AND SAN DIEGO
I was on the railroad committee when Huntington and his associates were here to negotiate with ns. I think Hunting- ton never intended to build to San Diego, but that he only came for political effect. They never made us a proposition. We met on a Sunday. Huntington said he was not then pre- pared to make a proposition. I told them about General Rose- crans's trip to Jacumba Pass and what he said about the route. Mr. Huntington objected that that would take them down in Mexico, which he thought would make undesirable complica- tions. I suggested that he could probably make such an ar- rangement with Mexico as the Grand Trunk had, which crosses the line into the United States twice. Huntington said, "Well, I don't know but that would be well." Gener- al Rosecrans said several times on his trip that he never saw a better route for a railroad; "it looks like it was made pur- posely for a railroad." They talked very pleasantly with us and finally said that one of their directors was traveling in Europe, and "as soon as he returns we will make you a propo- sition giving the terms on which we will build a railroad into San Diego." I have memoranda which I made at the time of that interview. We kept on asking them to make a propo- sition after that, but they never got ready to do it. He said we could depend they would be the first railroad to build into San Diego, and when the time was ripe they would build.
I don't believe Huntington ever showed a spirit of vindic- tiveness toward San Diego, as has been reported. In all the correspondence with him which I have seen, he was very friendly. Mrs. Burton, widow of General H. S. Burton, was once dining with him, and said to him she did wish he would build a railroad into San Diego, that she had some property there which would increase in value and it would make her a rich woman. "Well," he said, "it is not to our interests to build in there, at present." He talked very pleasantly about it and gave as one of their reasons for not building that if they should touch the Coast at San Diego, they would come in competition with water transportation. I think they were in- fluenced largely by the consideration of getting the long haul clear into San Francisco, which they get now, while if they had built in here, they would have had to divide with a steam- ship company at this port. This party was entertained at the Horton House and was treated well.
SAN DIEGO IN 1872
CHAPTER IV
SAN DIEGO'S FIRST BOOM
AN DIEGO'S first considerable impulse toward growth was due to a combination of the ener- S gies of the indefatigable Horton and the opportune rise of the Texas and Pacific Rail- road excitement. When the building of the road appeared to be a certainty, others beside Horton became able to appreciate the advan- tages of bay, climate, and his well-located, smoothly sloping "Addition." Thus the fame of the new city
spread far and wide.
Two years ago, wrote Major Ben C. Truman, in 1869, Sau Diego seemed to be among the things that were. Only two families were living here and but three houses were left stand- ing. About that time a Mr. A. E. Horton came this way and purchased from the city three quarter-sections of land ad- joining the plot known as New Town; and, having it surveyed, called it Horton's Addition. A few months after, a . .
ยท wiry, rusty-looking man might have been seen upon the streets of San Francisco with a long tin horn in his hand, contain- ing New San Diego and Horton's Addition-on paper-pur- chased by the gentleman for the sum of $220. Lots of people laughed at the rusty-looking proprietor of the long tin horn and said he was a fool who had thrown away his money, and many a quarter-section had the trustees to sell to all such real estate spooneys. Two years have passed away, and the contents of that tin horn describe, in point of site, facili- ties for living, climate, etc., the most comfortable and one of the most flourishing towns in Southern California, if not in the State.
I saw Mr. Horton yesterday. He looks just as he did two years ago. I should judge that he had on the same suit of clothes now as then. But he no longer packs about that long tin horn. He rides behind a good horse and resides in an ele- gant mansion, with a garden adjoining containing all kinds of vegetables and flowers, and all kinds of young fruit and or- namental trees and shrubs. There are 226 blocks in Horton's Addition, each containing twelve lots 50x100 feet. Early in the history of this town, Mr. Horton gave away some twenty odd blocks and sold twice that number for a few hundred dol- lars a block. During the past year he has sold over $100,000 worth of blocks and lots at large figures. He has been very generous and has helped many a poor man to get along, pro-
367
RAPID GROWTH IN 1868
vided he seemed inclined to help himself. He has given each of the religious denominations a piece of ground upon which to erect a church and has subscribed toward the putting up of a pretentious edifice.
The means which Horton used to encourage building in his town and to stimulate the sale of real estate have been described. His success was phenomenal, from the beginning. The first number of the Union, October 3, 1868, contains the following notes of the progress of improvements in the new town :
LAUNDRY
JIM LEE
THE FIRST BUILDING IN HORTON'S ADDITION It is still standing on Sixth Street below J, and was first used by Mr. Horton as his office
Culverwell's wharf has reached into the bay about 150 feet since we were on it last. It was covered with freight, landed from the schooner John Hunter, through the assistance of a lighter. We noticed a large amount of feed, household and kitchen furniture, agricultural implements, etc., . also a great number of doors and window frames for the large hotel Mr. Dunnells is about erecting on the corner of Fifth and F streets-also some fine lumber for Judge Hyde, who is about erecting two or more fine buildings, one of which is to be built opposite the site of Dunnell's hotel; also a large lot of lime, lumber, and other merchandise for Messrs.
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HISTORY OF SAN DIEGO
Mannasse & Co., who are now engaged in building two frame sheds near the wharf. Near the wharf Mr. Elliott has about completed a new building. A little further back stands a building belonging to a Mr. Hooper, which has re- cently been opened as a billiard saloon. Mr. Nash had added twenty feet to his store, which gives it a fine appearance and makes one of the largest store rooms in San Diego. Passing around to Mr. Horton's wharf, we observed families of emi- grants, who had just arrived, camping out upon the ground they had cleared for future homes. Horton's wharf now reaches out into the bay 500 feet and the piles have been driven . some eighty or ninety feet beyond. We discovered some twenty new buildings in the course of construction.
On November 21st, the Union found that "the evidences of improvement, progress and prosperity are visible on every side. . Buildings are in process of erection in all direc- tions. Lots are being cleared rapidly in the Horton Exten- sion. Mr. Horton is selling from $600 to $1000 worth of lots every day. Restaurants, bakeries, livery stables, furni- ture stores, blacksmith shops, hotels, doctors' offices, wholesale and retail storerooms, saloons and residences are going up- while the wharves are only lagging for the want of the neces- sary material."
The Sherman Addition was laid out and placed on the mar- ket in this year, and the Frary Addition in June, 1869. In May, 1869, the Episcopalian Society erected the first house of relig- ious worship in new San Diego, at the northeast corner of Sixth and C Streets. The Baptists followed with a building on Sev- enth Street, below F, in October. The Methodists were third, with a church on the corner of Fourth and D, which was ded- icated February 13, 1870. Each of these societies received a gift of two lots each from Horton.
The hotel kept by Captain Dunnells soon proved inadequate to support the traffic, and late in 1868 Mr. Case began the construction of the hotel on the corner of Fifth and F Streets known as the Bay View Hotel-the second hotel erected in new San Diego and the first in Horton's Addi- tion. By December, 1869, the newspapers were complaining of .nadequate hotel accommodations, and on the 18th the Bulletin was able to make this proud announcement: "The great need of this town is about to be supplied by A. E. Horton, Esq., who will immediately erect, on the northwest corner of Fourth and D Streets, a palatial brick edifice, for hotel purposes. It is to contain a hundred rooms and to be fitted up with elegant furni- ture and all modern improvements." The Horton House, the best hotel of San Diego for many years, was opened October 10, 1870.
Late in 1869, the paper says that "people are coming here by the hundreds-by steamer, by stage, and by private convey-
369
MARCH OF IMPROVEMENTS
ance." And, "from a place of no importance, the home of the squirrel a few months back, we now have a city of three thou- sand inhabitants. Houses and buildings are going up in every direction. The most substantial improvements are being made. Every steamer from San Francisco averages two hun- dred newcomers, who are to make their permanent home here. One wharf has not been able to accommodate all the shipping, so another one is in course of construction. The government has decided to make this point headquarters for Lower California and Arizona, and troops are filling the barracks. Fortifications will be built at the entrance to our harbor. The Memphis and El Paso Company will soon have their road open to Arizona, and San Diego will be the natural depot for that country. A branch mint to work out the products of that section, together with our own, will have to be built at San Diego." In this year David Felsenheld built the first brick building, at the north- west corner of Sixth and F Streets.
In November it is recorded that more than a dozen buildings were erected between the two issues of the newspapers (weekly) ; and a workingman writes to complain of the scarcity of houses and the high rents, which "eat dreadfully into the earnings and wages of mechanics." At the close of the year there were 439 buildings, and the volume of business transacted in December was over $300,000.
The year 1870 opened with business brisk and real estate act- ive. In March, four weeks' sales aggregated over $50,000. One of the most encouraging features was the opening of telegraphic communications with the outside world. The need for this con- venience had been debated in the newspapers for some months. In the spring, the agents of the Western Union Telegraph Com- pany came and raised by canvass a subscription of $8,000, the amount of the subsidy required. The largest givers were Hor- ton, Morse, San Diego Union, and J. S. Mannasse & Co. The whole sum was given by twenty-three individuals and firms. Work was begun upon the line immediately. The poles were distributed from a steamer, being floated from the vessel to the shore-a dangerous service, performed by Captain S. S. Dun- nells. The line was completed and the first dispatches sent on August 19, 1870. The event caused much rejoicing.
Many other important enterprises were undertaken and much progress made. The Julian mines were discovered in February, and soon assumed importance. The first gas works were con- structed and began operations early in the summer. A daily mail between San Diego and Los Angeles was established in December. School buildings were- erected and a high school building talked about. In June the first bank, the Bank of San
i
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HISTORY OF SAN DIEGO
Diego, was organized. A long list of substantial buildings, including Horton's Hall and the really remarkable Horton House, were completed. The assessed valuation of the town's real estate rose to $2,282,000, and its personal property to $141,252, all of which had been brought in, or created, in a period of three years. The national census taken in this year showed that the town had a population of 2,301 and 915 occu- pied houses.
THE HORTON HOUSE, 1870-1905
For more than a generation, the famous hotel of San Diego and one of the most notable in Southern California. It was demolished to make room for the U. S. Grant Hotel
Nevertheless, the year as a whole was considered a discourag- ing one, and closed in gloom. The boomlet soon reached its limit and within a few short weeks was cruelly nipped in the bud. The collapse of the Memphis, El Paso & Pacific project, which occurred early in the year, was a blow which it could not with- stand. Besides, there was a drought, which added to the dis- couragement. By May, the Bulletin acknowledged editorially that "times are hard and money scarce," and many men were out of employment. In August, the Union took a philosophical view of the situation: "In spite of the failure of the railroad bill this year, our real estate holds its own, and sales are made at very little reduction (sic) from the rates which have ruled for months past."
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