USA > Colorado > History of Colorado; Volume I > Part 36
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330
HISTORY OF COLORADO
Wells, Fargo & Company Express is still a Colorado corporation. Its cap- ital was increased in 1879 to $6,250,000, in 1893 to $8,000,000, and in 1909 to $24,000,000.
Denver had from the very outset sought to have the Overland stage routed up the South Platte. The deciding argument finally was the fact that the In- dians were making the North Platte route more and more dangerous. So in June, 1862, the Overland followed the old Cherokee Trail from Denver to La- porte, thence via Virginia Dale and Laramie Plains and on west. Later the route was changed to pass through Fort Collins. Troops were stationed at the Big Thompson, Virginia Dale and La Porte to protect the stage.
THE PONY EXPRESS
Of the pony express and of its marvelous feats of speed much was written, for its inauguration nearly cut in two the time between the Pacific and the At- lantic coasts. It took twenty-two days to carry the mail by water and across the Isthmus of Panama from New York to San Francisco. In 1861 the Pony Ex- press, carrying Lincoln's inaugural message, and starting at St. Joseph, made the 1,950 miles between that point and San Francisco in seven days and seven- teen hours. Its time from St. Joseph to Denver, 665 miles, was made in two days and twenty-one hours, the last ten miles being accomplished in thirty-one minutes.
Denver profited only as a branch, its pony service coming from the nearest point on the transcontinental route. When the first through line was constructed Denver's pony service came from Julesburg, the nearest point on the Pacific tele- graph line. The pony coming under drive up Fifteenth Street to the postoffice, where David H. Moffat was acting postmaster, was a daily event which half the town gathered to witness.
The freighting firm of Russell, Majors & Waddell inaugurated the pony ex- press, but it was at the suggestion of Senator W. M. Gwin, of California, who on his journey to the capital in 1854 had covered part of the distance on horse- back and in the company of B. F. Ficklin, superintendent for the freighters. There were at this period four routes to the Pacific Coast. One of these was by way of Panama, the southern route was controlled by Butterfield, the central route was operated by Russell, Majors & Waddell, and the Charpenning monthly route ran via Fort Kearney, Laramie and Bridger, and confined itself to local business.
Mr. Russell, head of the freighting firm, with the prospect of a big Govern- ment contract, was won over and in turn persuaded his partners to permit the organization of a "pony" express. The limit of mail to be carried was twenty pounds. The first rate was $5 per one-half ounce letter, later however reduced to $2.50. Many newspapers printed issues on very thin paper, but the price in- cluding transmission was prohibitive, so that this use of the Pony Express was not extensive.
The first Pony Express left St. Joseph, April 5, 1860, and passed through Fort Kearney, Laramie, Bridger, Salt Lake City, Camp Floyd, Carson City, Washoe, Placerville, Sacramento. From this point to San Francisco a fast steamer car- ried the leather pouch with its four locked pockets. It reached Sacramento at
Office of the Leavenworth & Pike's Peak Express Com- pany, built in the autumn of 1859. This company operated the first line of stage coaches into Denver, which was also the first into the Pike's Peak gold country.
"The Denver House," the first "regular hotel" in Denver, built in the spring of 1859 by Charles H. Blake and A. J. Williams.
ICTUTRAL OVERLAND CALIFORNIASPALLE DIPRESS CO
Denver's first "Sky Scraper." R. L. Wooton's build- ing, the first in Denver of more than one story, built in the spring of 1859.
The depot and office of the Central Overland, California & Pike's Peak Express Company. The men in line were waiting their turn to reach the company's postoffice.
VIEW OF SOME OF THE PIONEER BUILDINGS IN DENVER
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HISTORY OF COLORADO
5.30 p. m., April 13th, and San Francisco, with the entire town awaiting its com- ing, at I a. m., April 14th.
Stations were established from ten to fifteen miles apart, a rider covering approximately seventy-five miles in a day. Two minutes was the time allowed to change horses, and at relays no time was lost in the transfer.
Riders covered larger distances at times. On the famous journey with the Lin- coln message "Pony Bob" covered the 120 miles from Smith's Creek to Fort Churchill in eight hours and ten minutes. At its height the Pony Express required nearly 500 horses, eight riders, 200 station keepers, and as many assistants. It cost $30,000 a month to operate it on a semi-weekly basis.
Later it became part of the Government's million dollar contract, but its backers were finally forced out by financial difficulties, which even the high rate paid under the Federal agreement could not prevent. Senator Gwin, the father of the pony express idea, died many years later in Mexico.
COLORADO CENTRAL & PACIFIC RAILROAD
But the agitation for the construction of railroads grew as population and trade increased.
In 1865 W. A. H. Loveland, one of the greatest of Colorado's builders, was granted a charter by the Legislature for a railroad "up Clear Creek Cañon to Empire and Central City, and from Golden City to Boulder and via Denver to Bijou." Later its title was changed to "The Colorado Central & Pacific Rail- road," and its route was extended to the western borders of the territory. By the end of 1865 the survey had been completed, and some capital had been raised for actual construction.
In the meantime the Pacific Railroad bill was again under consideration in Congress, and there were indications of a change of the route originally out- lined in the measure. But the engineers who came to Colorado in August, 1866, and inspected the surveyed line up Clear Creek to Berthoud Pass, decided against it, and in favor of the route to Cheyenne Pass, through the Black Hills (the name first given to the ridge of mountains at Virginia Dale, between Cheyenne and the Laramie plains) and Bridger's Pass. It was Jim Bridger, noted pioneer, hunter and trapper, who convinced the Union Pacific officials of the feasibility of the northern route.
There was some consolation in the passage of the measure providing for the construction of the Kansas Pacific, the so-called eastern division, which was to be built to Denver and "connect within fifty miles of Denver, with the main line."
The contest had been a long and bitter one. In Washington John Evans and Jerome B. Chaffee, looking for recognition as United States senators, were making a splendid fight for the diversion of the Union Pacific from its proposed route, but their work did not avail.
During the contest the Colorado Central & Pacific was practically offered to the Union Pacific, and there was actual dickering in progress as to the disposi- tion of the grant lands should the route be accepted.
In Colorado there had been meetings of its leading citizens who sent to
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HISTORY OF COLORADO
Washington trade reports showing the vast growth of the territory in the short period since its organization.
NEED OF TRANSPORTATION
It is interesting to note the great need of transportation at this period from the revised census returns of 1870. There were in the territory in that year 95,594 acres of improved farms, valued at $3,385,748. The value of its farm productions was $2,335,106. Its mineral production at this period is fully cov- ered in the mining history chapter.
But the business of Denver was the best illustration of the great need of trans- portation. From the Denver Board of Trade report for the year ending Octo- ber 31, 1867, this record is taken:
Gross sales of merchandise. $ 5,946,000
Cash paid for freight
2,171,000
Pounds of freight received.
17,122,000
Pounds of corn and wheat sold 12,638,000
Sacks of flour sold.
70,386
Cash value of lumber sold.
850,000
250 buildings erected, valued at
722,650
Cash value of goods manufactured in Denver
887,000
Cash receipts from passengers by stage line
591,801
Cash receipts from express matter
168,976
Gold shipped by Wells Fargo
1,560,000
Gold bought by banks.
604,000
Gold and silver received by U. S. branch mint.
289,158.10
Average cash deposits in bank ..
741,000
Average loans and discounts by banks.
398,000
Eastern exchange sold by banks.
8,301,000
Amount of cash paid over bank counters. 77,870,000
"The exhibit," says the report, "represents the least active year in the history of Denver, covering a period of Indian war, when the main lines of travel east and west were about closed by Indians and immigration was virtually pro- hibited."
But when on November 23, 1866, Gen. Grenville M. Dodge and his associate engineers filed their report recommending the Lone Tree and Crow Creek route the dream of Thomas H. Benton was nearing realization. His famous speech delivered in St. Louis in 1849 had indeed been prophetic: "When this mighty work is completed," he said in this address, "and the commerce of the East is being brought over it, and the iron bands connect the oceans, a grateful country will carve out of the granite pillars of the Rocky Mountains a statue of Colum- bus pointing to the West, and exclaiming, 'There is the East! There! There is India !' "
The Union Pacific committee on location, which included Sidney Dillon, Oliver Ames and Thomas C. Durant, reported in favor of a branch to Denver with spurs into the mining centers. It made particular mention of the vast de- posits of coal which would become available by the construction of the branch.
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HISTORY OF COLORADO
However, it was not the Union Pacific directorate but pioneering giants who built the road and put Denver on the map.
The act of Congress moreover provided a land grant only for main-line con- struction, hence the Union Pacific Company soon came to Colorado with out- stretched hands. Again it took the energy and pluck of its pioneers to steer Denver out of the grip of wily financiers.
It is apparent therefore that there were powerful reasons for the adoption of the Bridger Pass route for the main line aside from the greater cost of con- struction along the Berthoud Pass line. The land grant was figured on a mileage basis, as were the subsidy bonds. The larger the mileage the greater the borrowing power of the road. So this three years' work of preliminary surveys ended as might have been anticipated, with the all-powerful money-making argo- nauts clearly in the ascendant and finally victorious.
THE CHEYENNE MENACE
For Denver the sudden creation of a railroad metropolis at Cheyenne seemed little short of ruinous. The Union Pacific directors had given it a body blow from which, without the genius and pluck of its citizens, it might never recover. In 1867 Denver had about four thousand inhabitants, and even this remnant was threatening to go to Cheyenne and to other more prosperous fields. Leading firms moved their stock to Cheyenne, believing that only ruins would soon mark the site of the City of Denver. On the heels of this news came the information that the Kansas Pacific was surveying for a southern route to the far west, elim- inating Denver as a terminal.
After all it was masterful leadership that won the day for Denver and Colo- rado,-the leadership of a group of pioneers built much on the order of those who first carved towns out of the American wilderness along the eastern coast.
Within its own territory too the Denver men had wounds to heal. W. A. H. Loveland, the president of the Colorado Central & Pacific, was one of the found- ers of Golden, and at this period bent all his energies to make this the coming railroad center of the gold region. In the long struggle which ensued Love- land never gave up the dream of building northward along the west side of the Platte, which meant a terminal at Golden.
THE KANSAS PACIFIC RAILROAD
In June, 1866, came the first ray of hope in the passage by Congress of the act compelling the Kansas Pacific to become the eastern division of the Union Pacific, although under distinct management and control, and to connect with the main line at a point not more than fifty miles west of the longitude of Denver.
The Government land grant of the Kansas Pacific, however, ended at Pond Creek, and by the middle of 1867 it was unable to go on with construction unless aid came from one of two sources, Congress in the shape of an additional land grant, or from Denver with its dream of greatness apparently shattered by the creation of booming Cheyenne.
Thus in midsummer of 1867 Denver was facing a "stalled" railroad far off
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HISTORY OF COLORADO
in Kansas, what seemed a hopeless fight for a branch road to the north, and Loveland still struggling for a "western" Platte route connection. The situation was anything but encouraging.
In this quandary Denver for a time became the prey of groups of wily finan- ciers who wanted bonds-negotiable securities to tide their companies over dif- ficulties.
Some of the propositions of this period were made in good faith, and were supported by the leading men of the community, yet in the end it was not the intruder and not the foreign financier who brought prosperity and the basis of greatness to Denver, but the determination and the pluck and the sacrifice of its own citizenship.
AID REQUESTED
On July 11, 1867, Denver was visited by Thomas J. Carter, one of the Gov- ernment directors of the Union Pacific Railroad, who came to find out what Denver would do toward the construction of a branch to connect with the Union Pacific. He suggested using the Colorado Central & Pacific, General Loveland's proposed road, from Denver to Cheyenne, with a branch to Golden and one to Boulder. But for this the road bed must be built by the people of the counties to be benefited. The Union Pacific would lay the iron and provide the rolling stock and operate the road, giving to each county stock equivalent to the amount voted in bonds. The total to be raised was $600,000, and of this Denver was to contribute $200,000, the remainder to be voted by Jefferson, Gilpin, Clear Creek and Boulder counties.
To the keenness and to the genius of John Evans, Denver owes its escape from the tangle which outsiders were creating. Even at this early period Mr. Evans insisted that the bonds be voted for a direct route between Denver and Cheyenne, stipulating the southern bank of the Platte as part of the proposed line.
The Kansas Pacific, as stated before, was in financial straits. There was the possibility of eventually getting a big stake in Denver, and Col. James Archer was sent as the emissary to induce its people to vote down the Union Pacific proposition.
It is true that Congress had passed the act creating the Kansas Pacific as the eastern division of the Union Pacific, and that Denver was to be the terminus, but there was a belief current that with the "land grant" construction about completed the road could be built independent of Government aid toward the southwest with Las Animas on the Arkansas River as the first objective of a proposed southern route to the Pacific Coast.
Yet without Government aid help must come from eastern capital or from the country traversed, and it was generally supposed that while no subsidy was asked for the opposition of the Kansas Pacific to the counter proposition was due solely to the fear that Denver could not be "bled" twice in rapid succession. There was logic in this argument.
However, Denver, on August 17th, unanimously voted the aid asked for by Mr. Carter, and speedy action was suggested as the Union Pacific was already
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HISTORY OF COLORADO
completed to the junction of the North and South Platte, and it would not be many months before it would reach Cheyenne.
The wisdom of John Evans became apparent. General Loveland had no intention of giving up his dream to make Golden the terminal and the bonds voted were never issued.
The Kansas Pacific now began its campaign for help from Denver. In Sep- tember the engineers appeared on the scene and began the survey of a line con- necting the Colorado metropolis with the "land grant" terminal.
A DAY OF CRISIS
November 14, 1867, is the day on which the fate of Denver was in the bal- ance. Col. James Archer, of St. Louis, and one of the directors of the Kansas Pacific, later an honored and respected citizen of Denver, had come to tell the people of Denver of the financial difficulties of his road, so to speak, stranded on a Kansas prairie. It would require a subsidy of $2,000,000 to build it to Denver. Col. D. C. Dodge, who then represented the Chicago & Northwestern road in Denver, had telegraphed the proposed plan of subsidy to the Union Pacific officials some days prior to the meeting, and these far-seeing men lost no time in sending to Denver George Francis Train, then a famous though eccen- tric character, and an orator of great ability.
Colonel Archer had made his proposition, which was new to many present, and fairly staggered the entire gathering. Train followed, and in elaborate and convincing argument suggested a local company to build the branch to Cheyenne along the most feasible route.
On November 18th John Evans addressed a monster meeting of citizens in the Denver Theatre, at Sixteenth and Arapahoe streets, and informed them that a company had been formed to incorporate a railroad to run from Denver to Cheyenne. In a few days this was done, and its first directors were: Joseph E. Bates, William M. Clayton, John Evans, Bela M. Hughes, W. F. Johnson, Luther Kountze, David H. Moffat, John Pierce and John W. Smith. Its officers were: President, Bela M. Hughes; vice president, Luther Kountze; treasurer, David H. Moffat; secretary, W. F. Johnson; chief engineer, F. M. Case.
SITUATION IN 1868
In a pamphlet published by the Denver Board of Trade in 1868, the railroad situation is thus instructively detailed :
"The Denver Pacific Railway and Telegraph Company was organized under the laws of Colorado in November, 1867. Books of subscription were opened, and in a single week $280,000 were subscribed by the business men of Denver. On January 20, 1868, by an almost unanimous vote the citizens of Arapahoe County voted a subscription of $500,000 to the stock of the company. Con- tracts for the whole road have been made with prominent members of the Union Pacific Railroad Company. Work has commenced. The grading is progressing at the rate of one and one-half to two miles per day, and it is confidently expected that connection with Chicago will be secured by November and certainly within the present year.
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HISTORY OF COLORADO
"The Union Pacific (eastern division) has reached Pond Creek, 180 miles east of Denver, at which point its government subsidy of $16,000 per mile ceases. The policy of the company constructing that road is unknown, but there is no doubt that St. Louis, Cincinnati and Philadelphia, which are to be benefited by its extension, will at an early day push it through to Denver, and beyond to a connection with the main line.
"The completion of the branch railroad from the Union Pacific Railroad during the summer, as contemplated, will give an immense stimulus to the growth and business of Denver
"The United States & Mexico Telegraph Company, with a capital of $1,000,000, lately organized under the general incorporation law of the territory, for the purpose of constructing a telegraph line from Denver to Colorado City, Pueblo, Trinidad and Fort Union to Santa Fé, a distance of 430 miles, have already con- structed 200 miles, and the line is being pushed forward at the rate of five miles a day.
"The Arapahoe, Jefferson & South Park Railroad Company, also organized under the general incorporation law of the territory, has projected a narrow gauge road from Denver to the mining region for the purpose of bringing ores to the coal fields of the plains for cheaper reduction, and for the cheaper trans- portation of the coal, building stone and lumber used in Denver. About one- third of the capital required for the construction of the first and most important section of this road is already subscribed."
The enthusiasm of the citizens of Denver which, in December, 1867, had by legislative enactment become the momentary capital of the territory, thus taking much of the prestige which had aided the "Golden" project from that pushing little town, is best exemplified in the vote for the half-million bond issue. Out of 1,306 votes cast only 47 were against the proposition.
And yet Loveland, the indefatigable, was not easily defeated. In fact the first ground for a railroad in Colorado was broken at Golden on January I, 1868, and about 200 feet was graded. There, however, the Colorado Central & Pacific project rested awaiting financial developments.
The Denver Pacific Company was not idle. Its promoters were men of great energy, who did not know what defeat nieant. In January, 1868, the Kansas Pacific again sent emmissaries to Denver, who were informed that the com- munity was not to be deluded again by promises, but that if the road was to be extended to Denver the men back of the eastern division must find the construc- tion capital elsewhere than in Denver.
Governor Evans and John Pierce in the meantime had gone to New York and closed with the Union Pacific along the lines of the earlier contract, which provided that the local company was to furnish the funds to grade the road and that the Union Pacific would supply the iron and the rolling stock.
The route was to be along the Platte as far as practicable, and was to be a direct line between Cheyenne and Denver. As fast as twenty-mile sections were graded the Union Pacific agreed to lay the rails and put the road into service.
Before actual work was begun the contract with the Union Pacific underwent some changes. Durant and Dillon took the contract for building the entire branch. The Denver Pacific Company was to supply half a million dollars toward this Vol. I-22
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HISTORY OF COLORADO
work, and the Union Pacific was in turn to receive a subsidy, based on mileage, of Denver Pacific stock, agreeing in turn to operate the road when completed and to pay 8 per cent on its two million capitalization.
Actual construction was to begin at the Cheyenne end, but ground was first broken at Denver on Monday, May 18, 1868, not far from the corner of Blake Street and Fortieth Avenue.
This agreement was never fulfilled, the Union Pacific failing even to com- plete the survey, and finally, when the matter was peremptorily put up to its directors in Boston, acknowledged that it was financially unable to carry out the contract ..
In the meantime Governor Evans, accurately construing the delay, had gone to Congress for the subsidy which was really contemplated in the act creating the eastern division of the Union Pacific and providing for its connection with the main line not more than fifty miles west of the longitude of Denver. All efforts to dispose of the Arapahoe County bonds had failed, but with a Govern- ment subsidy the path of the project would be cleared of all obstacles.
The Kansas Pacific fought the act at the first session, but finally an agreement was reached, and in March, 1869, Congress provided a land grant of alternate sections for the Kansas Pacific to Denver, and for the Denver Pacific to Cheyenne, the Kansas Pacific to operate the entire line on its completion. This, in fact, confirmed the purpose of the Pacific Railroad act of 1866, creating a through line from Kansas City to a point on the Union Pacific in Wyoming. Each com- pany was, moreover, authorized to bond the road for not more than $32,000 per mile.
The news of the success of Governor Evans' effort reached Denver by wire over the only part of the Denver Pacific project so far completed. This was the telegraph line between Cheyenne and Denver, which had been built in sixty days and had been opened for business January 1, 1869.
In the midst of its rejoicing Denver was saddened by news of the death of Major Johnson, president of the Denver Pacific. Governor Evans on his return succeeded to the office.
ADVENT OF GEN. WILLIAM J. PALMER
This stage in the railroad history of Colorado is marked by the advent of its greatest railroad builder, Gen. William J. Palmer, who was closely identified with the Kansas Pacific interests.
He came into the territory as a constructive power, and soon won the admi- ration and respect of all those who had fought so long for this rail connection with the outer world. The Kansas Pacific was no longer a beggar. It had not alone its new government subsidy, but a negotiable foreign loan amounting to $6,500,000. It did not take long to start things moving, the two roads merging their interests.
The capitalization of the Denver Pacific had been increased to $4,000,000 shortly after the second agreement with the Union Pacific, and this was now available for its larger purposes. The company issued $2,500,000 of 7 per cent bonds, a lien on 800,000 acres of land secured from the Government. By Sep- tember, 1869, the contractors, Governor Evans, Walter S. Cheesman, David H.
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