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011 - History of the Line since its completion · Story of the First Trans-Continental Railroad

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  Speaker 1: Section eleven of the Story of the First Transcontinental Railroad
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  Speaker 1: by William Francis Bailey. This LibriVox recording is in the
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  Speaker 1: public domain recording by Paul Harvey. History of the line
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  Speaker 1: since its completion, Government indebtedness, absorption, other lines, receivership, train robbers,
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  Speaker 1: settlement with government. Upon the completion of the Union Pacific,
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  Speaker 1: the rates for both freight and passengers were fixed at
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  Speaker 1: what now seems a very high figure. Thus passenger fairs
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  Speaker 1: locally were ten cents per mile. Complaints arising the matter
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  Speaker 1: was taken up in Congress, and steps taken towards the
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  Speaker 1: appointment of a board of commissioners, who should have authority
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  Speaker 1: to fix rates both freight and passengers. The whole question
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  Speaker 1: of earnings and expenses of the line was an unknown quantity,
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  Speaker 1: and as soon as the experience demonstrated what was reasonable
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  Speaker 1: and just, the company voluntarily adjusted their schedules. Until today,
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  Speaker 1: the rates over the line are about on parity with
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  Speaker 1: those charged by eastern lines through much more thickly settled states.
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  Speaker 1: In eighteen sixty nine, the agitation looking to a bridge
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  Speaker 1: across the Missouri River in place of the slow and
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  Speaker 1: often unreliable ferry culminated, and on March eleventh of that
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  Speaker 1: year the structure was commenced. Three years were required for
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  Speaker 1: the work, and the first train crossed on March eleventh,
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  Speaker 1: eighteen seventy two. By an agreement made with the city
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  Speaker 1: of Omaha, that city was to be made the eastern terminus,
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  Speaker 1: regardless of the bridge. This, however, was upset by the
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  Speaker 1: decision of the Supreme Court of the United States declaring
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  Speaker 1: the bridge an integral part of the line and that
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  Speaker 1: a commitinst in Iowa, not Nebraska. In eighteen seventy The
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  Speaker 1: question of repayment of the government loans made in the
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  Speaker 1: shape of bonds arose, more, particularly that of the interests
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  Speaker 1: accruing thereon the bonds themselves not falling due until eighteen
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  Speaker 1: ninety five to eighteen ninety nine. It was a question
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  Speaker 1: whether the lines were to pay this interest in cash
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  Speaker 1: or through services rendered and transporting men, materials, and mails
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  Speaker 1: for the government. The matter soon got into the courts,
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  Speaker 1: and their decision, as rendered by Justice Davis of the
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  Speaker 1: Supreme Court of the United States, so fully and explicitly
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  Speaker 1: covers the ground as to warrant these somewhat lengthy extracts
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  Speaker 1: given below In his opinion. Judge Davis said this enterprise,
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  Speaker 1: the building of the Pacific railroads was viewed as a
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  Speaker 1: national undertaking for national purposes, and the public mind was
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  Speaker 1: directed to the end rather than the particular means to
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  Speaker 1: be employed for the purpose. Although the road was a
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  Speaker 1: military necessity, there were other reasons active at the time
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  Speaker 1: in producing an opinion as to its necessity. Besides the
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  Speaker 1: protection of our exposed frontiers, there was a vast, unpeopled
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  Speaker 1: territory between the Missouri River and Sacramento, which was practically
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  Speaker 1: worthless without the facilities afforded by a railroad for the
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  Speaker 1: transportation of persons and property. With its construction, the agricultural
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  Speaker 1: and mineral resources could be developed, settlements made, and the
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  Speaker 1: wealth and power of the United States essentially increased. And
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  Speaker 1: then there was also the pressing want, in times of peace,
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  Speaker 1: even of proved and cheaper method for the transportation of
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  Speaker 1: the males and supplies for the army and the Indians.
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  Speaker 1: The policy of the country, to say nothing of the
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  Speaker 1: supposed want of power, stood in the way of the
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  Speaker 1: United States taking the work into its own hands. Even
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  Speaker 1: if this were not so, reasons of economy suggested it
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  Speaker 1: were better to enlist private capital and individual enterprise in
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  Speaker 1: the project. This Congress undertook to do, and the inducements
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  Speaker 1: held out were such as it was believed would procure
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  Speaker 1: the requisite capital and enterprise. But the purpose in presenting
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  Speaker 1: these inducements was to promote the construction and operation of
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  Speaker 1: a work deemed essential to the security of great public interests. Besides,
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  Speaker 1: it is fair to infer that Congress supposed that the
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  Speaker 1: services to be rendered by the row to the government
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  Speaker 1: would equally interest to be paid. Congress well knew that
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  Speaker 1: the government bound itself to pay interest every six months,
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  Speaker 1: and the principle at the time the bond matured resting
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  Speaker 1: satisfied with the entire property of the company as security
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  Speaker 1: for the ultimate payment of the principle and interest. This
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  Speaker 1: settled the interest question, and the next one to arise
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  Speaker 1: was the question as to the payment of five percent
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  Speaker 1: of the net earnings toward the extinguishment of the government indebtedness,
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  Speaker 1: as provided for in the Act of eighteen sixty two.
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  Speaker 1: These and after said road is completed, until said bonds
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  Speaker 1: and interest are paid, at least five percentum of the
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  Speaker 1: net earnings shall be annually applied to the payment thereof
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  Speaker 1: by Act of Congress June twenty second, eighteen seventy four.
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  Speaker 1: The Secretary of the Treasury was directed to require this payment,
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  Speaker 1: failing which to bring suit. The Supreme Court decided this
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  Speaker 1: in eighteen seventy eight, that the company must pay this
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  Speaker 1: five percent and define net earnings as to what was
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  Speaker 1: left out of the gross earnings after deducting all the
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  Speaker 1: expense of organization operation or for betterments, paid out of earnings.
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  Speaker 1: In eighteen seventy eight, the so called Thermanact became law,
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  Speaker 1: by which a sinking fund was established, looking to the
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  Speaker 1: extinguishing of the company's indebtedness to the government. This sinking
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  Speaker 1: fund was to be made up of one half the
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  Speaker 1: amount accruing on government transportation, the five percent of net earnings,
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  Speaker 1: plus enough more of the earnings to make up in
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  Speaker 1: all twenty five percent of the total net earnings, but
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  Speaker 1: not to exceed eighty five thousand dollars per animal. This
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  Speaker 1: sinking fund to be invested by the Secretary of the
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  Speaker 1: Treasury in government bonds. Up to eighteen seventy nine, the
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  Speaker 1: policy of the company was to transfer all through freight
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  Speaker 1: at its eastern termini, none of its equipment being allowed
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  Speaker 1: to leave its own rails. Soon after the absorption of
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  Speaker 1: the Kansas Pacific Railroad and through it, the Denver Pacific Railroad,
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  Speaker 1: the Union Pacific entered upon a policy of extension by
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  Speaker 1: the absorption of other roads and building of branch lines.
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  Speaker 1: Under this arrangement, the Texas Lines fort Worth, Texas to Denver, Colorado,
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  Speaker 1: eight hundred and one miles were completed and added to
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  Speaker 1: the system. This line was built under the name of
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  Speaker 1: the Denver, Texas and Gulf formerly Denver and New Orleans,
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  Speaker 1: the Fort Worth and Denver City, and the Denver City
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  Speaker 1: and Fort Worth Railroads. In eighteen eighty, the railroad from
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  Speaker 1: Atchison West, originally the line that was to have connected
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  Speaker 1: with the Union Pacific Railroad at the hundredth meridian, known
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  Speaker 1: as the Central Branch Union Pacific, became part of the
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  Speaker 1: system by purchase and was leased to the Missouri Pacific
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  Speaker 1: Railway Company, who has since that time operated it. Another
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  Speaker 1: line added to the system was the narrow three foot
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  Speaker 1: gage line from Denver to Ladville and Gunnison. This line
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  Speaker 1: was commenced in eighteen seventy three under a charter from
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  Speaker 1: the Colorado Legislature, reaching Buena Vista February twenty second eighteen
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  Speaker 1: eighty and Gunnison the summer of eighteen eighty one. It
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  Speaker 1: was absorbed by the Union Pacific on January first, eighteen
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  Speaker 1: eighty one. Utah and Northern was commenced in eighteen seventy
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  Speaker 1: one by the citizens of Utah and reached Logan in
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  Speaker 1: eighteen seventy three and Franklin, Idaho in eighteen seventy four.
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  Speaker 1: The means for building this road was raised by the
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  Speaker 1: people of Northern Utah with great difficulty, much of it
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  Speaker 1: being donated in labour and grading, track work, right of way,
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  Speaker 1: et cetera. After an attempt to operate as a local
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  Speaker 1: line more or less successful, it was sold to the
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  Speaker 1: Union Pacific Railroad in February eighteen seventy seven, and by
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  Speaker 1: then extended to Silverbo Montana Huntington, Oregon, with a branch
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  Speaker 1: connecting the main line of the Union Pacific at Granger,
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  Speaker 1: Wyoming with Pocatello, Idaho on the Old Utah and Northern.
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  Speaker 1: On May seventeenth, eighteen sixty nine, one week after the
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  Speaker 1: ceremonies at Promontory, the Utah Central was commenced by the Mormons,
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  Speaker 1: Brigham Young being president of the company. It was completed
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  Speaker 1: Ogden to Salt Lake City January tenth, eighteen seventy. The
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  Speaker 1: work on the line was done very largely by the
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  Speaker 1: Mormons in exchange for stock its equipment being turned over
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  Speaker 1: to them by the Union Pacific as part payment to
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  Speaker 1: the Mormons for work done on the grading of the line.
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  Speaker 1: The Utah Southern Salt Lake City to Frisco, Utah was
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  Speaker 1: commenced in May eighteen seventy one and completed in June
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  Speaker 1: eighteen eighty, and absorbed by the Utah Central in eighteen
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  Speaker 1: eighty one. In eighteen seventy three, the line from Julesburg
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  Speaker 1: to Denver was located and most of the grading done.
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  Speaker 1: In that year and the two following financial stringence, together
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  Speaker 1: with complications arising over their relations with the Kansas Pacific Railway,
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  Speaker 1: forced the abandonment of the project. After the consolidation in
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  Speaker 1: eighteen eighty the line was recommenced, practically, new grades being necessary.
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  Speaker 1: It was completed in eighteen eighty two, the work being
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  Speaker 1: done under the Colorado Central Railroad charter. All of the
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  Speaker 1: above lines were absorbed by the Union Pacific Railway and
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  Speaker 1: were a part of that system up to eighteen ninety three,
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  Speaker 1: when the total mileage reached eight thousand, one hundred and
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  Speaker 1: sixty seven, made up of one thousand, eight hundred and
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  Speaker 1: twenty three miles Union Pacific and six thousand, three hundred
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  Speaker 1: and forty four miles owned, leased, and controlled. On the
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  Speaker 1: thirteenth of October eighteen ninety three, the United States Court
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  Speaker 1: met Omaha appointed S. H. H. Clark, Oliver W. Mink
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  Speaker 1: and E. Ellery Anderson receivers, and in the following month
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  Speaker 1: Frederick R. Codert and J. W. Done were added to
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  Speaker 1: represent the interests of the United States. This receivership being
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  Speaker 1: forced on the company by the very general business depression
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  Speaker 1: of eighteen ninety three and the consequent decrease in traffic
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  Speaker 1: and earnings. At the time of appointing receivers for the
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  Speaker 1: main line, the Texas Line and the Denver, Leadville and
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  Speaker 1: Gunnison South Park were segregated and placed under the control
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  Speaker 1: of separate receivers. The Oregon Short Line and the Oregon
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  Speaker 1: Railway and Navigation Company reverted to the hands of the
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  Speaker 1: original companies and have ever since been operated independently, although
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  Speaker 1: the controlling interest in both lines is owned by the
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  Speaker 1: Union Pacific Railway Company. In all, three thousand one hundred
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  Speaker 1: and thirteen miles of affiliated lines were segregated from the
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  Speaker 1: parent company. In February eighteen ninety nine, the Julesburg Cut
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  Speaker 1: off Jewelesburg to Denver reverted to the company, having been
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  Speaker 1: operated by the receiver of the Union Pacific, Denver and
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  Speaker 1: Gulf Railway in the interim. Among other troubles which the
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  Speaker 1: line has encountered during its thirty eight years existence has
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  Speaker 1: been that of train robbers. These were a class of men,
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  Speaker 1: the outgrowth of Western desperadoism, now happily passed into history.
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  Speaker 1: Without the fear of God, Man or the law. They
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  Speaker 1: would singly or in bands, attack trains, rob the mail
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  Speaker 1: express and sometimes the passengers. Among the most noted cases
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  Speaker 1: of this kind were the Big Spring's robbery, occurring September eighteenth,
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  Speaker 1: eighteen seventy seven, when a gang of twelve masked men
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  Speaker 1: took possession of the station at that point bound and
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  Speaker 1: gagged the employees, cutting the telegraph wires, and upon the
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  Speaker 1: arrival of the Western train, took possession of it, securing
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  Speaker 1: sixty five thousand dollars from the express car and thirteen
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  Speaker 1: thousand dollars and four gold watches from the passengers. Then
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  Speaker 1: mounting their horses, they rode off. A reward of ten
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  Speaker 1: thousand dollars for their arrest immediately followed, and three of
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  Speaker 1: the robbers were caught and hung. About one half of
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  Speaker 1: the money was recovered when they were captured. It is
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  Speaker 1: said the balance of the gang were apprehended and dealt
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  Speaker 1: with by Frontier Court Judge Lynch officiating. This, however, is tradition,
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  Speaker 1: its truth not being know. One another robbery and was
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  Speaker 1: then committed by Sam Bass and associates who held up
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  Speaker 1: the west bound Pacific Express train, securing from the express
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  Speaker 1: car some sixty thousand dollars in gold. The money was
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  Speaker 1: all recovered and most of the band either killed or arrested.
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  Speaker 1: Another great event of this kind occurred in the Hills
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  Speaker 1: of Wyoming, west of Cheyenne during eighteen ninety eight. The
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  Speaker 1: first section of the Overlin west bound carrying the Mail
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  Speaker 1: and Express was flagged and brought to a stop. A
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  Speaker 1: culvert behind it blown up with dynamite to prevent the
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  Speaker 1: second section interfering, and the express cars were then looted
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  Speaker 1: and the robbers rode off. Persistent pursuit lasting for years, however,
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  Speaker 1: brought them one by one to justice. One being killed
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  Speaker 1: near Kansas City while resisting arrest, and another killed at
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  Speaker 1: Cripple Creek under similar circumstances. In eighteen ninety seven January First,
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  Speaker 1: the present company, Union Pacific Railroad Company was organized under
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  Speaker 1: the Laws of Utah as successor to the Union Pacific
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  Speaker 1: Railway Company. During the construction days, Wells Fargo and Company
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  Speaker 1: operated the express service over the line. On completion, the
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  Speaker 1: company organized its own express, the Union Pacific Railroad Express,
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  Speaker 1: which continued to handle the express until reorganized as the
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  Speaker 1: Pacific Express Company. Congress was appealed to in eighteen ninety
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  Speaker 1: three to pass a refunding bill, but failed to act.
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  Speaker 1: Numerous unsuccessful attempts were made to reorganize the property, but
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  Speaker 1: this was impossible with the debt of the government in
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  Speaker 1: an unsettled condition. Finally, in eighteen ninety nine, an agreement
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  Speaker 1: was reached between the U S Reorganization Committee and the
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  Speaker 1: Attorney General by which the line was to be foreclosed
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  Speaker 1: and the debt adjusted. This was accordingly done in eighteen
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  Speaker 1: ninety nine. The accounts standing amount due government principle from
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  Speaker 1: Union Pacific twenty seven million, two hundred thirty six thousand,
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  Speaker 1: five hundred and twelve dollars principle from Kansas Pacific zero
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  Speaker 1: amount due government in interest from Union Pacific thirty one million,
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  Speaker 1: two hundred eleven thousand, six hundred ninety one dollars and
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  Speaker 1: seventy five cents amount due government from Kansas Pacific zero
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  Speaker 1: principle and zero interest, for a total amount to the
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  Speaker 1: government from Union Pacific fifty eight million, four hundred and
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  Speaker 1: forty eight thousand, two hundred three dollars and seventy five
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  Speaker 1: cents and from Kansas Pacific twelve million, eight hundred and
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  Speaker 1: ninety one thousand, nine hundred dollars and nineteen cents less,
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  Speaker 1: a sinking fund from Union Pacific of eighteen million, one
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  Speaker 1: hundred ninety four thousand, six hundred eighteen dollars and twenty
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  Speaker 1: six cents less the sinking fund from Kansas Pacific six million,
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  Speaker 1: three hundred three thousand dollars, so a balanced due from
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  Speaker 1: Union Pacific is forty million, two hundred fifty three thousand,
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  Speaker 1: five hundred eighty five dollars and forty nine cents, and
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  Speaker 1: the ballance due from Kansas Pacific is six million, five
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  Speaker 1: hundred eighty eight thousand, nine hundred dollars and nineteen cents
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  Speaker 1: and these amounts were accordingly turned over to the United
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  Speaker 1: States Government, closing the account and of Section eleven recording
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  Speaker 1: by Paul Harvey