USA > Colorado > History of Colorado; Volume I > Part 39
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On October 19, 1878, General Palmer, much against his own wishes and those of his able aide, Col. D. C. Dodge, but acting largely upon the wishes of stockhold- ers, leased the road right for a period of thirty years to the Santa Fé, and gave up possession December 13, 1878. There had been, it should be added, a decided change in the ownership of the stock, the Philadelphians gradually disposing of their holdings to the Santa Fé.
In this lease nothing was said concerning a cessation of the litigation over the canyon. But an express stipulation prevented any rate discrimination against Denver.
The Santa Fé was a Kansas road, and its metropolis was Kansas City. Its big west-bound business originated at that point, and its east-bound business was distributed there. Thus the road was in a way pledged to the building up of Kansas City trade. This became apparent at once when rates from Denver to the south were raised and its jobbing trade was at once diverted to Kansas City. Moreover, in their first wrath it was charged by Denver and Colorado men that the Denver & Rio Grande was to be wrecked and scrapped.
The old officials were appealed to by their Colorado friends to cancel the lease and take possession of their road. It must always be a Colorado road. General Palmer had no trouble in securing funds for building the road to Lead- ville, where it was certain of enormous revenues. Armed men took possession of the old forts built in and near the canyon by the Denver & Rio Grande. Councils were held by the old officials. Friends all over Colorado tendered their aid. Practically all the employes of the system were quietly helping the old com- pany. Nor was the Santa Fe idle. It was actually finishing the road to Lead- ville, every mile of which had been graded and twenty miles completed before the trouble was settled.
In June, 1879, the Denver & Rio Grande secured an order from Judge Bowen restoring the road to the old company. With this mandate the officials decided to take forcible possession, a feat in which the employes aided. The sheriff of every county traversed by the Denver & Rio Grande system was instructed to take possession at 6 a. m., Wednesday, June 9th. The armed volunteers made a formidable showing as the time for action approached.
Leaders were on hand to direct and to fight if necessary. Former Governor A. C. Hunt started a train from El Moro and with his posse of 200 captured station after station. Col. D. C. Dodge was coming south with a posse from Den- ver.
The Santa Fe had hired Bat Masterson, the noted former sheriff of Dodge
EL PASO COUNTY COURTHOUSE, COLORADO SPRINGS
CITY HALL, COLORADO SPRINGS
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HISTORY OF COLORADO
City, Kansas, to hold the roundhouse at Pueblo. With a force of Kansas roughs he kept the Denver & Rio Grande men at bay, succumbing finally to the peace- making efforts of R. F. Weitbrec, a former engineer of the Denver & Rio Grande.
This battle which extended all along the lines was led by General Palmer and Col. D. C. Dodge, for whom every employe had the greatest respect and admira- tion. As the captured train crews reached Colorado Springs they joyfully joined the old ranks and took arms to prevent recapture of trains by the Santa Fe.
There was an outburst of indignation all over the state when Judge Hallett on June 24th appointed Col. L. C. Ellsworth receiver. The latter managed the road until it was legally restored to the old company.
Jay Gould was at this time looking for western railroad investments and the Santa Fé stockholders lost no time in disposing of their Denver & Rio Grande holdings to him.
On December 20, 1879, with Gould acting as mediator, an agreement was reached which ended the war. The lease was canceled, the receivership termi- nated, the line to Leadville purchased for $1,400,000, and all plans for eastern development of the Denver & Rio Grande were given up.
In the annual report for 1880 the agreement is thus outlined: "The struggle *
* * was finally terminated and the Leadville line was restored to the Den- ver & Rio Grande Company on March 27, 1880, and an agreement was then made under which the Atchison, Topeka & Santa Fé Company agreed for ten years not to build through any portion of Colorado west of the north and south line of the Denver & Rio Grande Railway (except a coal road to their coal mines near Canon City), or in that portion of New Mexico north of the 36th parallel (approximately) and west of the summit of the Spanish Range; while the Den- ver & Rio Grande Company agreed for the same period not to build in Colorado east of the same north and south line or to Trinidad, or in that portion of New Mexico east of the Spanish Range or south of the 36th parallel, except in the western part of New Mexico. There were also reciprocal obligations in regard to traffic, which included as well the Union Pacific."
The fight for Raton Pass, in 1878, was, it is asserted by historians of the period, lost to the Denver & Rio Grande by half an hour. It is possible that the loss of this gateway to the south would have completely altered the plans of the Santa Fé.
Mr. Strong, in February, 1878, had just returned victorious to Pueblo from the long legislative fight in Santa Fé. Like General Palmer, who seemed to see. far into the future, Strong was arguing for immediate construction. President Nickerson of the Santa Fé, like the Denver & Rio Grande's Philadelphia capital- ists who fought Palmer, was always for delay. "Why, Barlow and Sanderson," he remarked, "have just taken off the stage from El Moro to Santa Fé because the Denver & Rio Grande would not guarantee one passenger daily."
Strong finally got permission to spend a small amount of money on surveys. When, on February 26, 1878, A. A. Robinson was sent south to take possession of Raton Pass he found Denver & Rio Grande officials on the train to El Moro. He believed it was merely an inspection tour, although the presence of the chief engineer led him to surmise that their mission might be to Raton. With the in- spiration that Strong gave to all his men, he scoured the town for a construction
359
HISTORY OF COLORADO
crew, and when the day dawned in Raton Pass he was in possession. The Den- ver & Rio Grande crew arrived half an hour later and was met by armed oppo- sition. The Santa Fé held the pass. On December 7, 1878, the first passenger train entered New Mexico. By February, 1880, Santa Fé was reached, Albu- querque April, 1880, Deming March Ist, El Paso July 1, 1881. In 1883 the Atlantic & Pacific was completed from Albuquerque to the Pacific, giving the Santa Fé the long-sought-for connection from the Missouri to California.
The Denver & Rio Grande earnings and expenses and mileage of the first decade, ending December 31, 1881, were as follows:
Earnings
Expense
Net
1872
$
301,160.26
$ 197,092.86
$ 104,067.40
1873
392,653.89
197,124.31
195,529.58
1874
378,063.07
195,626.09
182,437.58
1875
363,095,86
208,067.14
155,028.72
1876
450,118.00
271,729.08
178,388.22
1877
773,322.07
416,161.55
357,160.56
1878
1,096,517.15
623,455.22
473,061.93
1879
1,800,000.00
1,000,000.00
800,000.00
1880
3,478,066.90
1,767,605.10
1,710,461.80
1881
6,244,780.83
3,620,029.89
2,624,750.94
Av. Miles operated
Total miles
at end of each year.
1872
100
155.5
1873
I55
I55-5
1874
163
163.5
1875
163
163.5
1876
240
276.5
1877
293
307.8
1878
308
338.4
1879
337
360.7
1880
474
685.9
1881
786
1,066.6
Before going into the later history of the Denver & Rio Grande Company it will be interesting to follow the realization of General Palmer's vision in the construction of its many lines in Colorado. In 1876 the branch from Pueblo to El Moro was built, with a branch from Cuchara to La Veta. In 1877 the La Veta branch was extended through La Veta Pass, and in 1878 it was completed to Alamosa. The work on this line required masterful engineering, for La Veta Pass presented many unlooked for difficulties of construction. In May, 1880, Salida was reached and Leadville in July of that year. Much of this construc- tion was done by the Santa Fé. In August, 1881, Gunnison was reached by way of Marshall Pass, another feat of mountain railroad engineering. By October the road was at Crested Butte. In 1880 the road to the San Juan was begun, ex- tending from Alamosa over the Conejos Range to Durango, with branches from Antonito to Española, New Mexico, and from Alamosa to Del Norte and South
360
HISTORY OF COLORADO
Fork, reaching the latter point in November, 1881. Durango was reached in July, 1881.
In September, 1881, the Villa Grove branch to the upper end of the San Luis Valley was finished, as well as the branch to Orient. The road from Leadville through Tennessee Pass to Rock Creek was opened in February, 1882; and by November the branch to Dillon was in operation. This is by way of Fremont's Pass. In November, 1882, the road from Gunnison through Montrose and Delta reached Grand Junction, and on December 19, 1882, it was at the Colorado-Utah line prepared to carry out the great transcontinental plan of its founder.
The Rio Grande Western, at this time practically a subsidiary of the Denver & Rio Grande, had by purchase of the Utah railroad running from Provo to Clear Creek, and by construction at both ends established a connecting link between the Denver & Rio Grande and Central Pacific. From 1881 to 1884 the Utah road was leased and through trains were run from Denver to Ogden on the narrow gauge system. In that year the Rio Grande Western, maintaining the connection, was operated under its own management. In 1889 it secured by lease the portion of the road running from Grand Junction to the state line.
In July, 1883, the Denver & Rio Grande extended its Del Norte branch to Wagon Wheel Gap, and later, in 1891, when Creede burst upon the world with its discoveries, to that point.
Not until 1887 did the road reach Trinidad from El Moro.
When the Mollie Gibson began to pour out its great silver ores, and other mines in Aspen followed in its wake, the Denver & Rio Grande lost no time build- ing along the canyons of the Eagle and Grand rivers to Glenwood Springs, then up the Roaring Fork to Aspen, which it reached in October, 1887. In 1889 what is now the main line was extended to Rifle. The camp at Lake City was added to the Denver & Rio Grande producers in that year. Ouray and its mines were reached by a branch from Montrose in 1887.
By 1881 it was apparent that the road had outgrown its narrow gauge swad- dling clothes, although General Palmer in an elaborate printed argument had predicted the adoption of the narrow gauge idea all over the country. This was in 1870. In 1881 it controlled the entrance to Denver from the south, and with the Santa Fe, and later the Missouri Pacific and Chicago, Rock Island & Pacific seeking this terminal, it was imperative that the road be broad-gauged at least from Pueblo to Denver. The third rail for this stretch was completed in Decem- ber, 1881. It then began broad-gauging its main line from Pueblo to Cañon City, Salida, Glenwood and Rifle. At that point it joined forces with the Colo- rado Midland, completing the standard gauge connection to the state line and to the tracks of the Rio Grande Western.
In 1890, after the line from Pueblo to Trinidad had been made standard gauge, the Villa Grove extension was built on to Alamosa.
The Denver & Rio Grande Company has steadily kept up with development along its lines. When the coal fields at Ruby, or "Anthracite," were opened, in 1893, the branch from Crested Butte to that point was built. In 1896 it pur- chased the Texas, Santa Fé & Northern running into Santa Fé from its main line. In November, 1898, it built its Ibex branch out of Leadville to meet the new discoveries in that camp. Later this was in part swapped to the Colorado & Southern.
361
HISTORY OF COLORADO
The Manitou branch, five miles, was built in 1880.
The Fort Logan branch, two miles, was built in 1889.
The West Cliff branch, twenty-five miles, was built in 1901.
The Monarch branch, twenty-eight miles, was built from 1881 to 1883.
The Silverton branch, forty-five miles, was built in 1882.
The Farmington branch, forty-seven miles, was built in 1905.
In 1894, during the height of the Cripple Creek excitement, a subsidiary com- pany built the Florence & Cripple Creek Railroad.
In 1890 the Rio Grande Southern, backed by the Denver & Rio Grande, built a line from Ridgway on the Ouray branch to Vance Junction and Telluride and this was extended to Rico and Durango in 1891.
In 1899 the La Veta Pass road was relocated, and standard gauged, the work being completed on November 7, that year.
The road from Pagosa Junction to Pagosa Springs, 30.8 miles, was completed in 1900.
In 1902 the North Fork branch was started, covering rich and extensive coal fields and fruit growing farms at Hotchkiss and Paonia. Its length is forty-six miles.
The standard gauging was extended during 1902 from Monte Vista to Del Norte and to Creede, making the whole line from Alamosa to Creede standard gauge. The Castle Rock branch near Denver, 2.65 miles, was made standard gauge the same year.
The standard gauge line from Minnequa or Southern Junction to Walsenburg Junction was completed in 1911. It affords a low grade line of first class con- struction to Walsenburg and the various coal mines in that vicinity, where it connects with the main line across the Sangre de Cristo Range to Alamosa.
The double track "Detour line" from Soldier Summit, fifteen miles to a point near Tucker, on the existing line, was completed in 1913.
In 1882 William J. Palmer retired from the presidency, and the annual re- port of that year was issued by L. H. Meyer, first vice president. At the annual election Frederick Lovejoy, of New York, was made president. In 1884 the heavy construction work and the lack of necessary increments in business created a condition which made a receiver necessary. On July 12, 1884, Judge Hallett appointed William S. Jackson to this position. While the road was under the jurisdiction of the court the Denver & Rio Grande Railway Company trustees elected David H. Moffat president. The trustees were: David H. Moffat, William S. Jackson, W. S. Cheesman, all of Denver; T. H. A. Tromp, representing in- vestors at The Hague, Holland; William L. Scott, of Erie, Pennsylvania; C. F. Woerishoffer, Adolph Engler, Wm. Wagner, and J. C. Reiff, of New York.
The reorganization was approved July 11, 1886, and George Coppell, of New York, became chairman of the board, with Wm. S. Jackson as president. Other directors were Robert B. Minturn, Adolph Engler, Richard T. Wilson, of New York; John L. Welsh, John J. Stadiger, of Philadelphia ; T. H. A. Tromp, of The Hague, and David H. Moffat.
In 1887 David H. Moffat succeeded to the presidency, George Coppell re- maining chairman of the board of directors. On the board Charles M. Da Costa, of New York, took the place of T. H. A. Tromp.
Minor changes occurred during the following four years, but in 1891 Edward
362
HISTORY OF COLORADO
T. Jeffery succeeded to the position of president and general manager. He had been for years in an executive position with the Illinois Central. George Coppell remained chairman of the board, the other directors being Edward O. Wolcott and Edward T. Jeffery, of Denver ; Adolph Engler, Richard T. Wilson, Wm. Mer- tens, C. C. Beaman, all of New York; John Lawber Welsh and Edmund Smith, of Philadelphia. The Gould interests remained in control.
The income of the road for the year ended June 30, 1893, was $9,372,221.53 ; its net earnings from traffic, $4,035,561.61, a remarkable showing for the now fairly developed system.
In the report for 1894 the panic which had hit the west was fairly well mir- rored in reduced traffic and income, but for the year ending June 30, 1895 it came back into its stride with net earnings of $2,925,628.65, being $422,136.24 more than the previous year.
The Rio Grande Southern receivership, a consequence of the panic, was quickly terminated and the road came into control of the Denver & Rio Grande. The Santa Fé Southern, which ran from Española on the Denver & Rio Grande to Santa Fé, was also purchased during this period.
In 1901 George J. Gould became chairman of the board of directors,. the re- maining members being: Jacob H. Schiff, Edward H. Harriman, both new mem- bers, Winslow S. Pierce, J. Edward Simmons, Richard T. Wilson and Arthur Coppell of New York ; Edward T. Jeffery and Edward O. Wolcott of Denver.
In 1903 Russell Harding, general manager of the Missouri Pacific, became general manager of the Denver & Rio Grande, Edward T. Jeffery removing the office of president to New York City. Joel F. Vaile succeeded Edward O. Wol- cott as a director. George J. Gould remained as chairman and the Gould inter- ests continued in control of the property.
In 1905 Amos C. Ridgway succeeded to the position of general manager. He had been in charge of the Colorado Springs & Cripple Creek Railway for some years.
In 1905 President Jeffery gave the first intimation of a determination on the part of the Goulds to build their own Pacific Coast line. In this report he says : "For many years while the line of railway between Ogden and San Francisco was uncontrolled by interests competitive with your system, your company en- joyed a satisfactory share of the traffic to and from California, and one of the reasons moving the management between four and five years ago to acquire the Rio Grande Western, was the closer relationship that would be established with the San Francisco line of the Southern Pacific Company and the freer inter- change that it seemed probable would result therefrom. Subsequent events were in a measure disappointing. The control of Southern Pacific by Union Pacific interests has led to unexpected restrictions of interchange, and more especially unlooked for impediments in the way of securing traffic in territory reached by the Southern Pacific line."
He announces the formation of the Western Pacific, capital, $75,000,000, and states that $50,000,000 of first mortgage 5 per cent thirty-year gold bonds had been disposed of. Mr. Jeffery also announces that he has taken the presidency of the new road. The bond issue was finally guaranteed by the Denver & Rio Grande and the Rio Grande Western. On July 23, 1908, these two roads were consolidated, the stock of the Rio Grande Western being extinguished.
363
HISTORY OF COLORADO
The construction of this road proved more expensive than even the most con- servative engineering figures given after the survey.
For two years, 1909 and 1910, unprecedented floods in the Humboldt valley and a series of storms on Great Salt Lake retarded construction and did heavy damage to graded sections. Up to June 30, 1910, the Western Pacific Company expended (exclusive of accrued interest on second mortgage bonds) $70,438,- 302.41. Funds were provided as follows : Proceeds of $50,000,000 first mortgage 5 per cent thirty-year gold bonds; $18,784,033.40 were proceeds with interest of $25,000,000 second mortgage 5 per cent gold bonds sold to the Denver & Rio Grande Company ; and $4,606,412.01 by the Denver & Rio Grande Company in accordance with contract entered into June 23, 1905.
On August 22, 1910, one through passenger train each way daily was inau- gurated between San Francisco and Salt Lake City. The railway was placed on a full operating basis July 1, 19II.
On August 20, 1910, the Salt Lake City union depot, which had cost $1,217,- 059.13 and is owned jointly by the Denver & Rio Grande Company and the West- ern Pacific, was formally opened.
In 1912 Benjamin F. Bush, of the Missouri Pacific, succeeded Edward T. Jeffery as president, the latter taking the place of George J. Gould as chairman of the board. For the time being the Gould interests were still in control, the directors being George J., Edwin and Kingdon Gould, Edward T. Jeffery, Edgar L. Marston, Edward D. Adams, Arthur Coppell, all of New York; Benjamin F. Bush, of St. Louis; Charles H. Schlacks, of San Francisco; Edward L. Brown and Joel F. Vaile of Denver.
On June 30, 1911, the mileage of the Denver & Rio Grande Railroad Com- pany, operated and leased, was 2,604.86; on June 30, 1913, this had been in- creased by the building of spurs to 2,639.81. On January 1, 1918, with small mileage of main track not operated, the total mileage was 2,576.75.
On November 30, 1912, the company purchased the Rio Grande Junction Railway, which up to that time it had owned jointly with the Colorado Midland. The line extends from Rifle to Grand Junction, and the price paid for the Mid- land's interest was approximately $400,000. A leasing arrangement was made for the Colorado Midland.
The interest due March 1, 1915, on the Western Pacific bonds having been defaulted, the United States Court on March 5, 1915, placed that road in the hands of receivers. In October, 1915, the Denver & Rio Grande was called upon to pay the defaulted interest on Western Pacific bonds under its guarantee. This has now, January, 1918, ended in an application for a receivership for the road. In June, 1916, the Western Pacific Railroad Corporation was organized and bought in the road. This corporation owns the entire capital stock of the West- ern Pacific Railroad Company and has power to enforce the claims against the Denver & Rio Grande.
On January 1, 1918, the directors and officers of the Denver & Rio Grande Railroad Company are: Directors, George J. Gould, E. T. Jeffery, George G. Haven, Kingdon Gould, Arthur Coppell, Edward D. Adams, Finley J. Shepard, Benjamin B. McAlpin, H. U. Mudge, Harrison Williams, Benjamin F. Bush. E. T. Jeffery is chairman of the board of directors. H. U. Mudge is president of the road.
364
HISTORY OF COLORADO
In January, 1918, the Denver & Rio Grande system went into the hands of receivers by order of the Federal Court. This was done largely to protect it from forcible collection under foreclosure for claims arising out of Western Pacific guarantee. Later in the year the receivership was annulled owing to prior Federal action taking possession of all the railroads of the country. An adjust- ment has, however, been reached which will prevent any drastic seizure of the property under foreclosure proceedings.
CHAPTER XVIII
TRANSPORTATION-OTHER STATE AND TRUNK LINES
THE DENVER & SOUTH PARK-THE DENVER & NEW ORLEANS THE COLORADO & SOUTHERN-THE BURLINGTON-THE SANTA FE-THE MISSOURI PACIFIC-COLO- RADO MIDLAND THE MOFFAT ROAD-ITS STRUGGLES TO FINANCE ITSELF -- WRECKED GREAT FORTUNE-ERB ENTERS AND LEAVES THE FIELD-COLORADO MEN AGAIN IN POSSESSION-THE DENVER, LARAMIE & NORTHWESTERN-HOW IT WAS BUILT-ITS JUNKING THE ROCK ISLAND-THE DENVER, LAKEWOOD & GOLDEN -UNION DEPOT-THE COG ROAD-GOLD CAMP ROADS-RAILROAD MILEAGE IN 1917-WHAT IT COST TO BUILD THE EARLY ROADS
THE DENVER & SOUTH PARK RAILROAD
The Denver & South Park Railroad, as it was first known, was designed as a feeder to the Denver Pacific and Kansas Pacific. It was at first planned to build the road to South Park by Bear Creek, with prospect of mining business at that end in competition with the Colorado Central. The great discoveries of California Gulch were still some years in the future, and the new route was a later develop- ment.
But in Park County, Fairplay was a thriving mining center. There were good placer mines and every indication of a fine camp. So that at least in this section there would be passenger and freight traffic for the new line.
Aside from this there was timber skirting the South Platte on both sides, there were stone quarries at Morrison, there were rich gypsum beds farther up the line. The railroad, it was believed, would bring an army of men into the whole region, and development was bound to follow. In July, 1873, when the project was in full swing Arapahoe County voted $300,000 in bonds. It was found difficult to float them. Prior to this, however, the surveys had been made, and the name of the road had been changed to the Denver, South Park & Pacific Railroad. Its corporators were those of the Denver & South Park road of the previous year: John Evans, Walter S. Cheesman, Joseph E. Bates, F. A. Clark, Henry Crow, Bela M. Hughes, C. B. Kountze, F. Z. Salomon and David H. Moffat. Its capital, which at first was $2,000,000, was increased to $5,000,000, and its purpose was now to build eventually to the Pacific.
The road was completed by a subsidiary construction company to Morrison, sixteen miles, on July 1, 1874. By this time the effects of the panic of 1873 were beginning to pinch the far west and further construction was out of the question. This was perhaps a rather fortunate outcome, for the delay brought about a complete change in the company's plans.
365
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HISTORY OF COLORADO
It was found that the route up Platte Canon was really feasible, and new surveys confirmed them in this belief.
The people of Denver resented the delay, and finally in 1876 a subsidiary con- struction company raised $150,000 and completed the road to Bailey's ranch, taking a first mortgage bond issue in payment for the work. This company had as directors, John Evans, W. L. Cheesman, C. B. Kountze, David H. Moffat, John W. Smith, the leading spirit in this new construction movement, William Barth, F. J. Ebert, J. S. Brown and George Tritch.
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