USA > Colorado > History of the State of Colorado, Volume II > Part 35
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The report of the inspectors was received, ratified and confirmed by vote. The stockholders then adjourned, to meet again at 2 o'clock. At the adjourned meeting Mr. E. W. Rollins offered. a resolution to the effect that the action of the inspectors in throwing out the proxies of the Union Pacific company, and in receiving votes for directors whose names did not appear on the stock list as certified by the secre- tary of the company, was wrong and illegal, and that the directors so chosen do not lawfully hold their seats as directors of the Colorado Central Company. This was put to vote and rejected.
Then Mr. John H. Wells of Boulder offered one that was immedi- ately adopted : "That all and every vote, resolution, contract or agree- ment heretofore made or entered into by the board of directors, exec- utive committee or stockholders of the Colorado Central Railroad com- pany with the Kansas Pacific Railroad company, looking to a consoli- dation of the two companies, is and are hereby rescinded, revoked and declared null and void." Mr. Rollins entered a formal protest in
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writing against the casting out of the Union Pacific stock, which, with- out further action, was read and recorded.
To fortify themselves for the work in hand, and to cut loose from entangling alliances, Mr. Wells offered certain amendments to the by- laws, transferring the principal offices of the company to Golden, and making that place its permanent general headquarters and home office ; directing also that all books, papers, the seal, etc., etc., should be kept in said office, and providing that all meetings of the stockholders and directors be held there. Mr. Berthoud was made the custodian of all certificates of proxy or powers of attorney of the stockholders which had been presented at that meeting, with orders to hold them subject to the direction of the directors that day elected.
This, it will be observed, constituted a very fair day's work for the newly fledged stockholders and directors, and also that their plans had been conceived with exceeding shrewdness, very adroitly and daringly executed. But this was not all they did. The programme found its com- pletion for that session at least, in the election of the following officers :
President and General Manager .- W. A. H. Loveland of Golden. Vice-President .- John H. Wells of Longmont.
Secretary .- Edward L. Berthoud of Golden.
Treasurer .- John C. Hummel of Longmont.
Superintendent .- Oren H. Henry of Boulder.
Auditor (chosen subsequently)-Foster Nichols of Central City.
A review of the foregoing shows that E. W. Rollins was, unde- niably, the authorized agent or representative of the Union Pacific stock, and of several individual shareholders who had delivered their proxies to him. For the former he held 7,200 shares. His proxy was sufficient and reasonably legal, though lacking some technical form- alities, or would have been so considered under any other circumstances than those which in this case governed the inspectors of the election. It was signed by E. H. Rollins, Treasurer, and had been prepared by authority of the executive committee of that company, but there was no certified form attached. The Union Pacific people evidently believed
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that the proxy was in legal form, but they neglected to adopt a resolu- tion authorizing E. H. Rollins to convey to his son power to cast the vote, and it was of this negligence that the new regime took advantage. These shares constituted a majority of all the stock of the road, the whole issue being 13,300 shares. Mr. Rollins also represented by proxy 2,100 shares belonging to his father, and certain others belonging to Oliver Ames, F. Gordon Dexter and H. M. Teller. Only the Union Pacific shares were rejected ; the others were voted and counted. But they cut no figure in the result. To qualify Messrs. Thatcher, Rich- man, Wells and Hummel to act as directors, a few shares of stock were transferred to them.
Immediately after the election and installation of the new manage- ment, an injunction was obtained, restraining the representatives of the Colorado Central from turning over any property to the Kansas Pacific, and the latter from receiving any such property, and prohibiting either company from taking any steps whatever looking to consolidation. Next, Mr. Loveland, by virtue of his office of general manager, issued orders requiring all officers, agents and employes to recognize and report to the new administration. This circular awakened Mr. Teller's ire, and he immediately gave instructions that neither officers nor agents should pay any attention to the usurpers. Mr. Henry made formal demand upon Col. Cyrus W. Fisher, superintendent under the old regime, for possession of the road. Mr. Fisher refused. Hummel made a like application to Mr. Moffat, treasurer, for a transfer of the funds in his hands, which was likewise denied. As a matter of fact, Mr. Moffat had no funds belonging to the company in his possession, as its account had been overdrawn. These matters coming to the public ear, caused some commotion, but no excitement ; this was to come later, and with startling emphasis. It soon became an open secret that the new management fully intended taking possession and operating the road, even if it had to be secured by forcible measures. Without multi- plying words, it took possession on Sunday, May 21st, 1876. Loveland had laid his plans to seize the books of the secretary and treasurer,
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the repair shops and round houses, at a certain hour on that day, and had instructed his subordinates accordingly. Mr. J. W. Nesmith (now president of the Colorado Iron Works, Denver) had charge of the shops as master mechanic. He had been informed by Loveland that when the road was to be taken, he (Nesmith) would be notified. Berthoud had been directed to take the secretary and treasurer's books, offices and other property at 4 o'clock on Sunday afternoon. James Scott had orders to seize the shops and roundhouse ; C. S. Abbott, master of transportation, was to look after the rolling stock. As related to me by Mr. Loveland : " I remained at my private office in town until fifteen minutes to 4 o'clock. Mr. E. W. Rollins was with me. I said to him, 'Let us go over to the depot and see the trains come in.' On my way I stopped at Mr. Nesmith's residence and said to him, ' I am now on my way to take the road.' Rollins ran to the shops, Nesmith fol- lowing. As the latter unlocked and opened the doors, Jim Scott, who had been concealed near by, slipped in behind and took the property. Berthoud executed his instructions to the letter at the same moment. As the trains arrived, Henry and Abbott stepped to the engineers and trainmen, apprised them of the situation, and gave them the option to obey Loveland's orders or leave. Those who refused were discharged and paid. In less than thirty minutes from the time the signal was given, the Colorado Central was in my hands."
The most remarkable rainstorm since 1864, occurred on the 22d. It began with snow in the mountains, falling to the depths of two to three feet in Gilpin and Clear Creek Counties, and extending with great severity far out upon the plains in torrents of rain. Cherry Creek, Clear Creek and the Platte, all streams in its track, were filled with rushing waters, which created unparalleled havoc among railways and bridges. Telegraph lines went down, road beds were swept away and all trains stopped. The Rio Grande and the Colorado Central suffered great destruction. Superintendent Henry was compelled to meet heavy disasters to the line of which he had only the day previous taken charge. The company had no money, and but little credit. The Kansas Pacific
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managers during the time they had been in control, had stripped it of bridge timbers, ties, poles, etc. Nevertheless, in an incredibly short time the damage had been repaired, and all trains put in motion.
Shortly after, the Union Pacific began suit against the company on a claim of $1,500,000, representing its floating debts mainly for material, supplies and interest on the bonds. Its attorney obtained an injunction from Judge Amherst W. Stone of the Second Judicial District, first against any increase of the capital stock, and second, against the sale or other disposal of the property, and against making any traffic contracts with, or the leasing to any other road, and filed a motion for the appointment of a receiver. Still these proceedings failed to deter, or in any way interrupt the Loveland management. The cause came on for hearing at Boulder, July 15th, was argued and taken under advisement. On the 12th of August, the application for a receiver was granted, and D. H. Moffat, Jr., appointed. He was required to qualify in open court on the 15th, with sureties in the sum of $500,000. This action was intended to give Mr. Moffat possession of the property, yet he failed to secure it. Loveland, though momentarily checked, had ample resources in reserve. And now came the climax to this highly interesting record with a force that shook the State, exceeding for its brief duration, any of the surprises growing out of the contest between the Rio Grande and the Santa Fé.
Pending the final execution of Judge Stone's decree appointing a re- ceiver, Mr. Moffat prepared his bond and was to have appeared in court with his sureties on a certain day, when all proceedings were brought to a sensational conclusion under circumstances now to be related. Squads of armed men, masked and otherwise disguised, operating in the interest of the Colorado management, but whether by its orders or acquiescence has never been made public, and is known only to the principal actors in this surprising drama, secreted themselves at a point on the Colorado Central road near the crossing of Ralston Creek, and awaited the train from Denver which was expected to bear Receiver Moffat, his sureties, Judge Stone, all the attorneys in the case, and a
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number of other passengers. Mr. Moffat's party, however, went by the Boulder Valley road, and thus escaped participation in the pro- ceedings which followed. About noon that day there came a wild report by telegraph that the Colorado Central train had been stopped, Judge Stone seized and carried off into the mountains, to what fate none could tell. Of course a thousand extravagant rumors caused widespread excitement and alarm. Visions of horrible murder floated through the minds of many, for it was a very common belief that the Judge would be assassinated in cold blood by his abductors. The ominous tidings spread to all points reached by wire. It was known that the feeling against Stone and his recent decisions was extremely bitter in Boulder and Jefferson Counties, and that threats of violence had been uttered when he appointed Mr. Moffat receiver. The term of court would expire at midnight of that day, and it was clearly the intention of the kidnappers to detain the Judge, if they refrained from killing him, until the lapse of the term, and thus prevent the execution of his decrees. While citizens of Jefferson, Boulder and Gilpin rejoiced over this extraordinary turn of events, in Denver it was denounced as an unwarranted outrage. The sheriff of Boulder, instead of proceeding to intercept and apprehend the outlaws as he should have done, tele- graphed Governor Routt for authority to raise fifty men for the rescue. The Executive answered that the law gave him ample authority to call a posse to his aid in executing a writ, and commanded him to pursue the party and liberate the captive jurist. One of the remarkable inci- dents of the day, as viewed by the people of Denver, was the laconic correspondence by wire between Loveland and the Governor. The former sent a dispatch stating that C. S. Abbott, master of transpor- tation, had advised him of the forcible seizure of Judge Stone, and asked to be empowered to send thirty men to arrest the parties engaged in this unlawful transaction. Routt responded, "Have your sheriff procure a writ for the arrest of the kidnappers. He is authorized by law to summon a posse large enough to execute a writ if it takes every man in your county. Hope you will give him all the assistance in
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your power." Loveland replied that he would aid the sheriff to the utmost of his ability, and would put a force of men on the trail by 4 o'clock.
These delays, as will be seen, since no one left in pursuit from any direction until late in the afternoon, gave the captors abundant time to make their escape. D. J. Cook, sheriff of Arapahoe County, ordered out one or two companies of troops ; numberless volunteers offered their services for a field in which there was no great probability of carnage. The motley crowd flocked to the depot, armed with all sorts of weapons ; shotguns, pistols, muskets, sabres, carbines, anything that could be gathered in the excitement and confusion which prevailed.
The Governor's Guard, admirably armed and disciplined, appeared under command of Captain (afterward Brigadier General) A. H. Jones, a brave man and a superb officer. Capt. E. J. Burke of the Mitchell Guard was only able to gather a small squad of his command. The uproar increased as the day wore on. While some of the more imag- inative were confident that the court had been slain, drawn, quartered or burnt at the stake, the more rational quickly penetrated the actual purpose, which, when accomplished, would result in the return of the captive to his family and friends.
In the meantime Mr. Moffat's special train returned to Denver. As the witnesses of the capture reappeared in town, the following accounts of the affair were related : At a point about six miles north of Ralston Creek, the train was stopped by an obstruction on the track. When it came to a halt, a body of masked men arose from their place of concealment. Three of them entered the car, and approaching Judge Stone, the leader said : "Come with me, I want you." The Judge expostulated, which soon brought a second masquerader to the spot who, more imperative than the first, thrust a revolver in his face and sternly commanded him to leave his seat and follow. At this junc- ture General Sam E. Browne, one of the attorneys present, rushed for- ward, exclaiming, "Gentlemen, what are you doing? You surely don't intend to disgrace yourselves in this manner. At this," said Browne,
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"one of them stuck a pistol in my face with the sharp command, 'Sam Browne, you sit down !' and I sat." They then forcibly seized the Judge and lifted him off the train. In retreating, the abductors covered the passengers with their pistols and as rapidly as possible disappeared in the direction of the mountains. They gave assurances, however, that there need be no apprehension for the Judge's safety, as no bodily harm would be done. The maskers inquired for Mr. Moffat, but were told that he had gone by another route, at which they seemed disappointed, as they had planned to take him also.
Here is another, and perhaps more accurate version, given by Hon. Hugh Butler : "One man entered the car and ordered the Judge to come with him. The Judge replied that he had business in Boulder and could not comply with the request. This was repeated several times, when a second man stepped up, and putting the muzzle of his revolver to the Judge's face, said, 'I guess you'll come with me !' Still Mr. Stone refused to yield, when they seized and dragged him from the car. I attempted to follow, but was stopped by a pistol, with the savage remark that the first man who interfered would be shot."
In commenting upon the event public opinion differed widely. Loveland was universally known as the originator and father of the Col- orado Central system of railways; as an energetic, enterprising and public-spirited man. Though engaged in a patriotic endeavor to build up the town of Golden, which he had been instrumental in founding, and in the pursuit of this ambition was frequently brought into sharp collision with the builders of Denver, the people of this city entertained high regard for him personally, even while resisting and thwarting his aggressive schemes. In promoting public enterprises he spared neither capital nor effort, but in the unequal warfare he was finally stranded, wrecked and impoverished. The capitalists of the Union Pacific, when they took possession of the valuable franchises which he had labored so long and assiduously to procure, and of the lines which he had surveyed at his own expense, snubbed, ignored and set him aside, when they should have employed and compensated him as their most
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A.M.Brazil
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effective agent. He did more to found and complete the road than any other agency, but had less influence with the directing powers.
When the attempt to consolidate the road with the Kansas Pacific was made, which meant the absorption of the former, with all the con- sequences, financial and otherwise, involved in the compact, Loveland and his supporters discovered that they were to be frozen out. There- fore, they devised the scheme which gave them possession of the property, with the result stated. Finding themselves likely to be driven to the wall by Judge Stone's decision, they took heroic measures, overrode the law, carried off the court, and only missed the receiver by a scratch.
Governor Routt immediately resolved that the violent proceedings taken must not be permitted to defeat the ends of justice. He there- fore directed Judge A. W. Brazee to reopen the court at Boulder and hold it open until the causes before it should be legally terminated. A special train was placed at his disposal, the Executive summoned the Governor's Guard, and thus prepared for any emergency the, court the Governor and the military reached Boulder shortly before ten o'clock that night, marching directly to the courthouse, where Judge Brazee was quickly installed on the bench. The building was closely guarded by the troops, though there was no evidence of any hostile demon- stration, or of any intention to interfere with the regular course of law. The sheriff opened court in the usual form, when Brazee read the order of the Governor assigning him to that district, with instructions to con- tinue the term which had been interrupted. This document having been filed with the clerk, and the necessary orders issued, court ad- journed to the next day at two o'clock. The Governor then addressed the sheriff, saying,-"In answer to your request of this date for authority to raise a posse, I have to inform you that General D. J. Cook is here with forty men subject to your request for assistance, and I now command you to do your duty ; and if you need a thousand men they will be placed at your service."
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Many citizens in paying their respects to the head of the govern- ment, deprecated what had been done during the day. They realized the disgrace to their county and its law abiding people, and tendered him their aid if required. While many were opposed to Judge Stone's decisions, and especially pronounced in condemnation of Mr. Moffat's appointment, under the impression that it was intended as an act of hostility to their interests, they nevertheless denounced the resort to force. The night passed without incident. The special train returned to Denver about midnight, bearing Judge Brazee, the Governor and the troops, Gen. Cook remaining on guard.
On the morning of the 16th Judge Stone was brought back to his hotel in Denver, and gave the following account of his experiences :
On being taken from the train he was placed in a carriage, the leader of the armed party being seated beside him. There were twenty-four men, all mounted on fine horses, all masked and some otherwise disguised. He was treated with all respect, courtesy and kindness, and every assurance given that he would suffer neither harm nor indignity at their hands. He was merely to be detained in custody for a few hours pending the lapse of the court. They informed him also, that mounted men had been stationed on both roads; that they waited in conceal- ment throughout the previous night, and had he escaped capture on the train, they would have taken him from the bench or wherever else he might be found. They were resolved to prevent the operation of the Colorado Central Railroad by Eastern people, but further than this they had no interest. On leaving the train they crossed the prairie toward the mountains, finally taking a trail that led into the foothills, which they followed about six miles to a ranch, where a bucket of milk and some other supplies were obtained. Here they abandoned the carriage, giving him a fine saddle horse for the remainder of the journey, to a beautiful grass covered park, when all dismounted and lunched. No disagreeable incident occurred ; his guardians were inclined to be good humored and sociable. At no time were the masks removed. He was treated with great civility, and every want supplied. After luncheon
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the ride was prolonged to a lofty eminence, from which Denver and the entire Platte Valley could be seen. Here the cavalcade rested until dark, when they descended slowly toward the Golden Road to Black Hawk, which was followed to the neighborhood of the town first named. Here, all except the leader and his prisoner disappeared, saying they would send a carriage for the Judge. When it arrived some time later, it contained two men heavily masked, who rode with him to the door of his hotel (the Alvord), bade him good-night, and drove away.
Next day the Judge took an escort provided by the Governor, con- sisting of the Governor's Guard, Mitchell Guard, and a detachment of scouts under deputy W. A. Smith, and returned to Boulder. But as events proved, these ostentatious military precautions were both wholly unnecessary and exasperating to the sensitive feelings of the people, who declared that the court would have been safe without any guard at all. Seated once more upon the woolsack amid perfect peace and quiet, the case of Frederick L. Ames and John R. Duff vs. the Colorado Central Railroad, was called. Mr. Moffat's bond, signed by Jerome B. Chaffee, Walter S. Cheesman, William M. Clayton, Richard E. Whitsitt, William H. Lessig, Fred Z. Salomon and Leonard H. Eicholtz, who were present and jointly justified in sum of $750,000, was submitted and approved, and the principal duly sworn into office. Mr. George D. Reynolds of Boulder was appointed special master to enforce the orders of the court.
The first paroxysms of wrath against the court and the receiver having passed, the humiliating consequences of the rash act became painfully apparent to the better class of citizens. Yet they were enraged at the presence of the military, as an imputation upon their loyalty, as if they were a community of rebels against the constituted authorities and the laws. But worse than all, the troops were from Denver, the center of opposition to the cause with which all were in sympathy. The Governor exerted himself to pacify and remove harsh feelings, by explaining why the troops had been called, but with only indifferent success. Boulder County did not readily forgive him, as was shown in the first State election when he was a candidate for Governor.
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But time heals all wounds, and in time the stirring events enacted there were forgotten.
Mr. Moffat's demand for possession of the road was not complied with. On the 18th further sensational reports obtained circulation, renewing the excitement, and threatening further violence. It was rumored that the Kansas Pacific had raised an armed force to take the property out of Loveland's hands. Such a force was actually sent out on the road to Golden, but finding the people there prepared to meet and try conclusions with them, they abandoned the attempt and retreated.
On the 21st Judge Stone issued a writ of assistance to Master Reynolds, but it could not be enforced. Affairs proceeded without incident of importance until the 24th of August (1876), when Mr. A. J. Poppleton, attorney for the Union Pacific, published a lengthy review of the case, stating that no road had been built under Loveland's charter until certain capitalists of Boston had been induced to embark their money in the enterprise. Loveland made it a condition that they should pay himself and associates $100,000 for the right of way held by their wagon road, in Clear Creek Cañon ; that they paid it, and in due time the railway was completed at a cost of $2,500,000. To this amount the counties of Gilpin, Jefferson and Boulder had contributed $400,000, in county bonds which, at the time of their issue, were worth about fifty cents on the dollar. The counties had received stock in exchange as per agreement. Loveland and his associates had subscribed for and received about three hundred shares of stock. The entire value of the bonds and subscriptions did not exceed $250,000. The balance of the funds was furnished by the Boston men. He reviewed the proceedings of the meeting, when E. W. Rollins, who represented the majority interest, was denied the right to vote the shares assigned to him for that purpose. The ostensible reason was that the Union Pacific had entered into a contract whereby the Colorado Central was to be consol- idated with the Kansas Pacific, which would defeat the original purpose of the Colorado Central organization, and fail to give the county sub- scribers adequate returns for the investments they had made. " And yet,"
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