History of Dakota Territory, volume I, Part 106

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920
Publication date: 1915
Publisher: Chicago, Ill. : S.J. Clarke Publishing Company
Number of Pages: 1198

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The Omaha & Northwestern Railroad was an enterprise that greatly inter- ested Dakota people and was the subject of a number of public meetings. It was originally planned to build to a point on the Missouri River opposite Yank- ton, and to have the road completed in 1872. This line was to be aided by a donation of Nebraska State lands. The citizens of Dakota sent a representative, James S. Foster, to Lincoln, Nebraska, in January, 1871, while the Legislature was in session there to promote the interests of Dakota in the enterprise, who met with much encouragement, and who also filed articles of incorporation for a new enterprise called the Yankton, Columbus and Manhattan Railroad Company. having its southern terminus at Manhattan on the Kansas River, and on the line of the Kansas City Branch of the Union Pacific. This line was also to be aided by a grant of Nebraska State lands. The parties composing the company were II. J. Hudson. L. Gerard, and J. O. Shannon, of Columbus ; William Ryan, of Omaha ; and James S. Foster, Yankton. Both projects yet remain in the waiting column.

THE DAKOTA CENTRAAL INCORPORATES

" In 1870 the railway projecting circles of the territory were encouraged by the filing of articles of incorporation by the Dakota Central Railway Company. an organization composed of non-residents largely that designed to build a road from Yankton to connect with the Northern Pacific which had not then entered the territory but was hastening toward it across Minnesota. This company was incorporated by officers and directors of the Chicago and Northwestern. Mr. Keep at the time being the president of that company. Mr. Bordino was the only citizen of the territory in the list of incorporators. The following was submitted to the Legislature of 1870-71, as the company's annual report :

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Office of Dakota Central Railway Company, Yankton, D. T., January 10, 1871.

To the llonorable Legislative Assembly of the Territory of Dakota :

Gentlemen : In reply to the joint resolution passed by your honorable bodies, requesting all railway companies now organized under the laws of this territory to report to the present ninth session of the Legislature, we herewith submit a full and complete statement of the condition and affairs of the Dakota Central Railway Company :

The following is a copy of the company's certificate of incorporation :

This certificate of incorporation certifies that the following articles of agreement, made and concluded this 25th day of January, A. D. 1870, in the City of Yankton, capital of Dakota Territory, by and between James Keep, Oscar Bidwell, Ezra A. Cook, William Bordino and G. D. Miller ;

Witnesseth, That whereas, it is the intention of the above named parties to hereby and herein organize themselves into a legally incorporated railway company, under and by virtue of the provisions of the general incorporation act of Dakota Territory, approved January 6, 1868, entitled "An act to regulate incorporations," under the name and style of the "Dakota Central Railway Company," for the purpose of constructing and operating a line of railroad from the City of Yankton, on the Missouri River, northward up the Valley of the Dakota River, through the counties of Yankton, Jayne, Hutchinson, Buffalo, etc., to an intersection with the Northern Pacific Railroad above the 45th parallel of latitude. Therefore, this corporation, which is hereby and herein formed and established for the purpose of con- structing the above line of road named and known as the "Dakota Central Railroad Com- pany," and the said line proposed to be built shall be designated as the "Dakota Central Railroad," and the amount of capital stock necessary to construct and equip said road is hereby declared to be $5,000,000, which shall be divided into shares of $100 each, which shares shall be subscribed for as is provided in section 80 of the aforementioned incorpora- tion law of the territory, work to be completed in ten years.

In accordance with the requirements of section 87 of the incorporation act aforesaid, the incorporators herein named do hereby "establish a place of business on the line of said road," which shall be located in the City of Yankton, at M. K. Armstrong's land office on Second Street; and the same is hereby declared to be the temporary office of the company "Dakota Central Railroad Company" until changed by the board of directors; and at said office of the company the first books for subscription of stock to the Dakota Central Railroad shall be opened to the public on the 28th day of February, 1870.

(Stamp.)

JAMES KEEP, OSCAR BIDWELL, EZRA A. Cook, WILLIAM BORDINO, G. D. MILLER.

Here follows the certificate of M. K. Armstrong, notary public, declaring that the above named parties had made an acknowledgment before him of the fore- going articles of incorporation.

The books of subscription were duly opened as above stated on the 28th of February, and $3,000,000 of the capital stock subscribed. On April Ist, the stockholders met and elected the following board of directors, to-wit: D. T. Bramble, A. W. Burrow, M. T. Woolley, William Bordeno, J. M. Stone, Geo. N. Propper, M. K. Armstrong. The directors then elected D. T. Bramble, presi- dent; J. M. Stone, vice president ; M. T. Wooley, treasurer ; M. K. Armstrong, secretary and engineer. The engineer was directed to make a preliminary sur- vey of the line as early as practicable; and in accordance with this order, in the month of June following, a reconnaissance of the proposed line was commenced and prosecuted as far up the valley of the Dakota River as the 44th parallel of north latitude, and a map and report made to the company.

The country traversed was found to be one of the richest agricultural districts in the territory, and almost entirely destitute of timber, except a narrow belt along the banks of the Dakota River. Settlements were found to have advanced about sixty miles above up the Dakota River Valley, and in many places had spread out on the surrounding prairies. Excellent building stone was found along the valley in many places; at old Fort James and at Firesteel Creek the supply was apparently inexhaustible. The building of the road will develop a wonderfully rich region, and the Legislative Assembly was requested to give its encouragement and aid by memorial to Congress for a land grant.

It will be observed that all these railroad enterprises, taking their cue from what had been the carlier practice of the Government, depended for the con- struction of their lines upon a donation of the public land from the Government.

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THE GRAND TRUNK

In 1872 there was general expectation that Congress would extend the favor of a grant of land to the Territory of Dakota to assist in the more rapid settle- ment of the public lands and the development of the interior of the territory. The Dakota Southern had been quite successful in securing county bonds and was in a fair way of being completed from Sioux City to Yankton, but it was felt the further settlement of the territory would be materially retarded unless transportation lines were speedily extended into the interior. With this object in view and with the expectation of securing a liberal donation of the public land, the organization known as the Grand Trunk Railway Company was formed at Yankton in the winter of 1871-2, and through the efforts of Hon. M. K. Arm- strong, then delegate in Congress, a charter was secured from Congress which gave the company right-of-way through the public lands and necessary depot grounds. Its main line was projected from Yankton up the James River Valley to a connection with the Northern Pacific ; one of its lateral branches was a line from Yankton to Sioux Falls with a branch from the Vermillion crossing to Canton, to connect with the McGregor and Western ; another line extended from Yankton to Springfield, thence up the Missouri; and a survey was made of the main stem and the branches named.

The incorporators of this company were Gov. A. J. Smith, president of the Northern Pacific; Thos. A. Scott, of Pennsylvania, then a great railroad king ; Gov. John A. Burbank; Secretary E. S. McCook, W. W. Brookings, M. K. Armstrong, G. W. French, William Pound, and J. R. Hanson.

The Dakota and Northwestern Company had already been merged with the Dakota Southern: but there were two or three companies, less ambitious than the Grand Trunk that had been organized with a view of building lines out from the Missouri River into the interior, and it was apparent that the Grand Trunk would seriously interfere with their plans, which had in view a Government land grant, hence there was considerable antagonism aroused in the territory growing out of this situation. The Yankton, Sioux Falls and Minnesota Railway Com- pany had received subscriptions to its capital stock, and made a preliminary survey of its line. Its incorporators were Wm. I. H. Beadle, George H. Hand, Arthur Linn, John W. Turner, Joel A. Potter, M. K. Armstrong. W. W. Brook- ings, G. H. Wetmore, James S. Foster. Peter II. Turner, Geo. W. Kingsbury, C. H. Mcintyre.

The Yankton & Niobrara Valley Railway was another vigorous organization, planned to extend from Yankton by way of Bon Homme to the Niobrara and thence west on the old projected line of the northern branch of the Union Pacific to a connection with the main trunk at some point cast of the Rocky Mountains. Its incorporators were A. J. Faulk, J. Shaw Gregory, J. A. Lewis, J. M. Stone, Joel A. Potter, Wm. H. H. Beadle, Moses K. Armstrong, and Henry E. Gregory.

Realizing the wisdom of quieting all opposition at home among these lesser luminaries in the railway realm of the territory, because of the hurtful effect it would have in Washington where the campaign for a land grant was being energetically waged, the "Great Octoptis" as the Grand Trunk was popularly known, at its annual meeting, passed the following resolutions :

Resolved, That the board of directors of the Grand Trunk Railway Company hereby declare that it is now, as it has been heretofore, the intention of this company, to deal fairly with other railway companies over whose proposed lines the Grand Trunk extends, and that at the proper time this company is ready and willing to meet the companies for the purpose of arriving at an amicable settlement of all differences.

Resolved, That for the purpose of meeting other organizations for the object indicated above, this board when it adjourns will adjourn to meet at the office of the company in Yankton, on the 21st of September, at 10 o'clock A. M., and that a meeting of the stock- holders be held at the same time and place.

An assessment upon the capital stock sufficient to realize the sum of $to.500. to meet the immediate expenses incident to survey, etc., was ordered to be

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paid by the 31st of October. John A. Burbank, Geo. W. French, J. R. Hanson, M. K. Armstrong, W. W. Brookings, Wm. Pound, and W. L. Woods were elected directors. Burbank was elected president; Armstrong, vice president; McCook, secretary ; and Hanson, treasurer.

The company, though well supported in Congress in its efforts to secure a land grant was unable to break through the opposition in the House where the sentiment was decidedly hostile, and the Grand Trunk Company, which appears to have based its success entirely on the securing of this bonus was obliged to relinquish its project.

The assuring phraseology of these resolutions was presumed to have been justified from the personal connection of Governor Burbank who was president of the company, and had assisted by his influence in securing the charter from Congress. It was believed that he had been able to break down the opposition of Congress to land grants for Dakota railroads, and had assurances of support for such a grant from those who possessed the authority to give it. The governor's success in securing the early ratification and legalizing of the Dakota Southern Railroad and Yankton County bonds, formed the principal ground for the con- fidence felt in his ability to successfully prosecute a campaign for a land grant for his favorite railway.

The generous proposition for cooperation made in the first resolution will serve to show the magnanimous and anti-monopolistic disposition of Dakota's early railway kings. About the time this action was taken, the railway fever was at its height for a short season ; leading railroad men East were known to be interested in some of the Dakota projects ; and the general expectation appar- ently was that the territory was to be gridironed with railways in advance of settlement, even the welcome toot of the locomotive could be heard by people whose ears were close to the ground, and that Governor Burbank, Chief Justice French, and others, who could get close to the confidence of prominent congress- men were in charge of affairs.

A number of railroad lines were surveyed in Dakota Territory during the years from 1865 to 1869 but none of them went any farther than this preliminary work except the Dakota and Northwestern projected from Sioux City to Yank- ton. The cause of this activity in railroad projects may be found in the fact that Congress had up to 1868 been disposed to be liberal in granting land sub- sidies to the railroad organizations in the West, and our enterprising people proposed to get a donation to assist in the construction of several lines, one already much needed, and others that the settlement of the prairies and the production of grain and live stock would create a demand for at an early day. But unfortunately for our railway enterprises, Congress had, about this time, changed its policy and was averse to any more railway land grants. There were no more given. The Dakota and Northwestern had been carefully surveyed from Sioux City to Yankton by a competent engineer, and efforts were being made with good prospects of success in securing its construction, when in the winter of 1870-71 a new company was formed called the Dakota Southern, to build a line from Yankton to the Big Sioux River, leaving the point of crossing the Big Sioux unnamed. but LeMars was the objective point. This aroused a favorable sentiment in Sioux City for the Dakota and Northwestern, for a line to I.eMars connecting with the Illinois Central would have been a serious blow to the commercial interests of Sioux City. The title of the new LeMars line was the Dakota Southern Railway Company, and it was almost unanimously backed by the Yankton people. After considerable negotiation the two lines were merged. Sioux City was agreed upon as the eastern terminal, the Dakota Southern took over the Dakota & Northwestern, and its surveyed line and fran- chise. and the Dakota Southern line was built, reaching Yankton in the winter of 1872-3. Wicker. Meckling & Company of Chicago, were the builders, and Yankton County voted $200,000 in bonds to aid its construction.

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The only land grants given to aid the building of railroads in Dakota Ter- ritory was the munificent donation to the Northern Pacific, and the grant made, either by the State of Minnesota or by act of Congress to the Winona & St. Peter Railway Company of Minnesota, practically the same as the Chicago and North- western. Its line entered Dakota at Gary, in Deuel County, in 1871, and con- tinued west to Lake Kampeska, near where the City of Watertown was built many years later. There was no demand for the railroad at the time, 1872, as the country was practically unsettled along its entire line, and the company did not equip and operate it till 1878; but the land grant was valuable and the road was built to secure it.

CHAPTER L DAKOTA'S FIRST RAILROAD BUILT AT HOME

1871-72

THE DAKOTA SOUTHERN RAILROAD ILLINOIS CENTRAL IN FAVOR-EXTRA SESSION OF LEGISLATURE IN 1871 WITH NAMES OF MEMBERS, AND NEW RAILROAD INCOR- PORATION LAW-LEMARS OBJECTIVE POINT-LEGISLATIVE PROCEEDINGS-GOV- ERNOR'S MESSAGE-EXTRA SESSION AUTHORIZED-LEGISLATURE ADJOURNS- AMAZING CONTRADICTION-THE SPECIAL SESSION "NOT AUTHORIZED"-RE- SOLVED TO HAVE CONGRESS VALIDATE THE LAW-YANKTON COUNTY VOTES $200,000 RAILROAD BONDS-EFFORTS TO SELL THE BONDS FINALLY SUCCESSFUL -COMPANY FINALLY CONTRACTS FOR BUILDING THE LINE-WICKER, MECKLING & CO., CHICAGO, CONTRACTORS-CLAY COUNTY VOTES AGAINST BONDS-ELK POINT GIVES $15,000.

THE DAKOTA SOUTIIERN RAILROAD

The special charter given to the Dakota & Northwestern Railway Company in 1867 was the last of the special charters granted by the Territorial Legislature, Congress having passed an act in 1868, taking from the territories that authority. The Dakota & Northwestern charter was passed and approved January 11, 1867. It was a very liberal charter, and upon reflection, the succeeding Legislature, deeming it too liberal, passed a bill to amend the charter, which was vetoed by the governor. The action of the Legislature had, however, tended to create an injurious impression of the company in portions of the territory ; but it continued its organization, and as will be seen by its report made to the Legislature in 1871, had transferred its franchise to an Iowa company which had fixed upon Sioux City as its eastern terminus, and the new company had made a profile survey of the line, located it from Sioux City to Yankton; and as required by its charter had graded one mile of its roadbed in Union County in the year 1869, at a cost of $1,800. At this time, 1867. and for a few years later, Dakotans felt sanguine that Congress would be prevailed upon to make a donation of public lands to the territory to aid in building its first railways, and the Dakota & Northwestern and its successor, in Iowa, depended altogether upon such a grant for the success of their enterprise. There was a growing hostility in Congress to any further land grants to railroads, and as the years passed the prospect of Dakota railways receiving aid from that quarter grew more hopeless under repeated discourage- ment and defeat; while the transfer of the franchise of the Dakota & North- western to the Iowa company had created considerable prejudice against that corporation within the territory, and it was found difficult to combine the leading interests of a local nature in its favor. The Dakota & Northwestern Company, however, maintained its home organization and title, and held its annual meeting (which was its last) at Yankton, January 2, 1871, and elected its board of directors, to-wit: J. P. Kidder, Clay County : George Stickney, Union County ; W. A. Burleigh, William Tripp, J. B. S. Todd, W. P. Lyman, and M. K. Arm- strong, Yankton County. This board elected J. P. Kidder, president; William

616

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Tripp, vice president ; J. B. S. Todd, vice president ; M. K. Armstrong, secretary; Nelson Miner, attorney ; and George Stickney, chief engineer.

On the 17th of March following this annual meeting a number of citizens of Yankton met and organized a railway company under the title of the Dakota Southern Railway Company, and filed articles of incorporation at the same time. The incorporators were: J. M. Stone, J. Shaw Gregory, W. W. Brookings, J. R. Hanson, W. A. Burleigh, M. K. Armstrong, Charles F. Picotte, A. W. Burrows, E. D. Barker, S. V. Clevenger, A. P. Hammon, C. F. Harkins, E. P. Wilcox. G. W. Kingsbury, James S. Foster, C. E. Bramble, A. J. Faulk, J. B. S. Todd, Newton Edmunds, D. T. Bramble, C. H. McIntyre, J. R. Sanborn, Charles Eiseman, F. J. Dewitt, G. C. Moody, W. N. Collamer, B. R. McIntyre, Joel A. Potter, G. H. Wetmore, S. S. Buckwalter and M. U. Hoyt.

On the 25th of March following public notice was given of the opening of stock subscription books, as follows :

Notice is hereby given that pursuant to the time fixed in the articles of incorporation of the Dakota Southern Railway Company, and in accordance with a resolution of the incor- porators thereof, books for subscription to the capital stock of said railroad company, will be opened at the office of said company, being J. R. Hanson's Land Office on Capital Street, in Yankton on the 25th, 26th, 27th, 28th and 29th days of April, A. D. 1871; at Vermillion on the 3d, 4th, 5th and 6th days of May, A. D. 1871 ; at Elk Point on the 9th, 10th and IIth days of May, 1871.

N. EDMUNDS, C. M. MCINTYRE, GEO. W. KINGSBURY, For the Corporators.

YANKTON TO LEMARS

The articles of incorporation did not definitely fix the eastern terminus of the road, but left it to be located at any point between the mouth of the Big Sioux River and Rock River, Iowa, a tributary of the Big Sioux, which empties into the latter near the north line of Union County. This was done in order that the company might be free to locate the line to a connection with LeMars, or go to Sioux City, as might be determined later. LeMars was a prominent factor in the enterprise, and the following copy of a letter from the vice president of the Illinois Central Railroad Company shows the favorable sentiment of that organi- zation toward the LeMars project in the earliest days of the enterprise :

W. JV. Brookings, Esq., Yankton, D. T .:

Chicago, Il1., March 29, 1871.

Dear Sir: I have received your favor of the 25th inst., addressed to Mr. Douglas, and am pleased to sce that you are determined to help yourselves to a railway connection. By locating your line to LeMars you reduce your distance between Chicago and St. Paul and Yankton, some twenty-five miles under the distance via Sioux City, and by that location you would probably secure from this company, by a drawback on business from your line, material aid to meet your interest.

In the event you do not find a practicable route in a direct line between LeMars and the Big Sioux River, you may have to locate to Sioux City. At that point you would get the advantage of a direct line to Omaha and Kansas City, as well as the southwestern route to Chicago. I will lay this subject before our board, and be prepared at some future time to confer further with you as to the extent and manner in which our company can assist you.

With your road built to LeMars we could afford to do more in your aid than if built to Sioux City where the business would be somewhat divided.

Very truly yours,

JOIIN NEWELL, V. P.

The above letter was read at a railroad meeting held in Yankton carly in April, 1871.

At the time prescribed in the foregoing notice, the books of subscription to the capital stock of the company were opened at Yankton, and $181,000 of the one million capital stock subscribed. These stockholders met at the company's office in Yankton, June 3d, following, and elected a board of directors composed as follows: J. R. Hanson, N. Edmunds, G. H. Wetmore, W. A. Burleigh. W. W.

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Brookings, J. M. Stone, and M. K. Armstrong; and on the 5th following the organization was completed by the election, by the directors, of Janies MI. Stone, president ; Newton Edmunds, vice president; G. H. Wetmore, treasurer and superintendent ; J. R. Hanson, secretary ; M. K. Armstrong, chief engineer.

During the latter part of June, Superintendent Wetmore and Chief Engineer Armstrong made a trip along the proposed line from Yankton to Richland, on the Big Sioux River, Armstrong taking a number of observations with his sur- veying instruments. These gentlemen found a route that was unobjectionable, crossing four streams that would need bridges. The distance from Yankton to the Big Sioux at the crossing point was found to be forty-one miles. For a natural railroad bed of easy grades, it seemed to have been formed by nature. It will be observed from this reconnaissance survey that the Yankton parties at that time were working with the view of building the Dakota Southern to LeMars to a connection with the powerful Illinois Central and leave Sioux City out of consideration.

The business men of LeMars, Iowa, organized the LeMars & Sioux River Railroad Company, in April, 1871, and took steps for the active promotion of their enterprise, which their company declared to be "the construction of a rail- road from LeMars west to some point on the Big Sioux River to connect with the Dakota Southern projected from Yankton to the Big Sioux." The officers of the LeMars company were B. O. Foster, president ; John C. Wellover, secretary ; and P. Kent, treasurer. The capital stock was fixed at $1,000,000. On the 6th of May following a meeting was held at that place, when the president of the company was authorized to appoint a chief engineer and cause suitable surveys to be made of the contemplated route. John C. Flint was appointed right-of-way agent of the company and was authorized to secure the right-of-way as rapidly as the surveys indicated the route, and the agent was also authorized to solicit township aid on the line of the road. An installment of t per cent on the capital stock of the company was called payable on or before July Ist.

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History of Dakota Territory, volume I, Part 106

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920 Publication date: 1915 Publisher: Chicago, Ill. : S.J. Clarke Publishing Company Number of Pages: 1198

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920
Publication date: 1915
Publisher: Chicago, Ill. : S.J. Clarke Publishing Company
Number of Pages: 1198