The directors—one of whom had just been elected governor on a Republican ticket—would have none of secession. Instead, on October 9, well pleased with Judah’s report, they adopted a resolution: “That Mr. T. D. Judah … proceed to Washington, on the steamer of the 11th Oct. inst., as the accredited agent of the Central Pacific Railroad Company of California, for the purpose of procuring appropriations of land and U.S. Bonds from Government, to aid in the construction of this Road.”34
Judah was off. He had with him everything to convince the congressmen, including charming sketches of Donner Pass done by Anna to hang in his railroad museum in the Capitol, not to mention his own intimate and unique knowledge of railroads and the mountains. Best of all, the Deep South congressmen represented states that had left the Union, meaning they had left Congress, which meant that the votes to block any route north for slavery were no longer there. Let them go, Judah must have thought, and good riddance to such bad seeds. A prominent historian of the railroad, Robert Russell of Western Michigan University, puts it as his opinion that because the Southerners were gone “Congress was enabled to enact Pacific railway legislation several years earlier than it otherwise could have done.”35
To add to Judah’s already overflowing pleasure and confidence, a fellow passenger was newly elected Representative Aaron A. Sargent of California. Thus, as Judah explained it, “a good opportunity was afforded for explaining many features of our project not easily understood … which explanations were of great service to us in future operations.” As indeed they were. Judah spent the days during the long voyage showing Sargent his maps, the evenings extolling the benefits of a transcontinental railroad.36 Sargent was convinced and promised his help.
On arrival at New York, Judah worked up a report on the Sierra surveys of which he published a thousand copies. He distributed it, as he said, “among railroad men, where likely to do us most good, sending copies to President Lincoln, the heads of Departments and to our Senators and Representatives in Congress.” And he saw to it that the report was published in the American Railroad Journal.37
Even before Judah arrived in Panama, there was an event of grand importance to the scientific and industrial revolution and for the building of railroads: the first transcontinental telegraph line was opened. By the time Judah reached New York, the glamorous year-and-a-half life of the Pony Express was over.38
BACK on the Pacific Coast, the principals of the Central Pacific—Stanford, Crocker, Huntington, and Hopkins—moved on their own, apparently without Judah’s knowledge, by drawing up on November 27, 1861, articles of association for the Dutch Flat and Donner Lake Wagon Road Company. Four hundred shares of stock at $1,000 each were issued, with Crocker as president and Hopkins as secretary and treasurer. The owners’ explanation was that the wagon road ran along Judah’s line into Nevada and was to help the Central Pacific cross the mountains. It would be used to transport supplies such as rails in ox- and mule-drawn wagons to construction forces working in advance of the railroad as far away as the eastern slope of the Sierra. But the real object may have been to collect tolls on the road from Nevada miners and California merchants. Three toll gates were established—at Dutch Flat, Polley’s Station, and Donner Lake. Whatever Judah (who had thought of the road first) was able to get out of Washington, these guys were going to get their investment back—and make some money—off the wagon road.39
In Washington, Judah had much to work with, including the fact that he had been in the capital three times already, was well known to the congressmen, had been lobbying for land grants and money, and had convinced most of the non-Southerners. And this time, December 1861, he had with him a detailed engineering plan and supporting data and a bona fide corporation ready to start. And he had the active support of Congress. And the president of the corporation was the incoming Republican governor of California. A few days before the session began, Senator James A. McDougall of California helped Judah draft a bill that followed, in general, the Curtis Bill. Sargent took active charge of it in the House, where it was introduced.
Huntington came to the capital right after Christmas to find Judah discouraged. Although he had his survey maps and Anna’s Sierra paintings on display in his railroad museum, and had shown them and talked to many members of Congress, nothing concrete had happened. The House Select Committee on the Pacific Railroad had not even met.40
INDEED, it was almost impossible, in those first months of the war, to get Congress to concern itself with anything other than raising and equipping the Northern army. The North had lost Fort Sumter on April 12-13, 1861. Lincoln had called for militia to suppress the Rebellion and proclaimed the blockade of Southern ports. On July 21, the North had lost the First Battle of Bull Run. On July 24, Lincoln had replaced General Irvin McDowell with General George B. McClellan. In December, Dakota Territory was formed from parts of Minnesota and Nebraska Territories, along with Nevada Territory from part of Utah Territory.
Despite these events, on January 21, 1862, Sargent—encouraged by Judah and Huntington—took a bold step when, in the midst of debate on another subject, he got the floor and spoke at length on Judah’s work, accomplishments, and estimates, and pointed to the Pacific railroad as a military necessity to the nation. He made all the familiar arguments: the government would save millions of dollars in transporting troops, munitions, and mail; the Western Indians would be quelled; emigration to the coast would speed up; the Great Plains would be developed; trade with Japan and China would jump; California’s loyalty to the Union would be assured; no foreign army would dare attack California.
Judah complained that Sargent spoke before an empty hall, but the speech had its effect. Within a week, the House appointed a special subcommittee of the Pacific Railroad Committee to work on Judah’s bill.41
Judah was an excellent lobbyist. He got an appointment as secretary of the Senate Pacific Railroad Committee (with Senator McDougall as chairman) and as clerk of the subcommittee on the Pacific railroad in the House, where Sargent was a member. The appointments gave Judah what amount to a semiofficial standing before Congress. He had charge of all the committee papers and documents, and, even more surprising and momentous, the privilege of the floor of both Senate and House. Any lobbyist at any time would give his right arm for the privileges Judah had. He held the key position and he used it well.
The debate over the bill in the House was ferocious. At one point in the spring of 1862, Judah had to step in to deal with the grave danger that consideration would be extended until the next session, which probably meant the end of the bill. Much of the debate centered on the amounts of money or land to go to the corporations building the road, or on how to ensure the construction of the middle part of the line by companies that were to start at either end. Judah would give a little here, take a little there, while keeping focused on getting the bill as a whole passed.42 He accepted—knowing vaguely what it would cost—an amendment by Representative Thaddeus Stevens. Stevens, who owned a foundry in Pennsylvania, insisted on a requirement that all rails and other ironwork be of American manufacture. Stevens declared he was for passing the law not because of the iron rails he could sell but because someday the Southerners would return to Congress “with the same arrogant, insolent dictation which we have cringed to for twenty years, forbidding the construction of any road that does not run along our southern border.”43 There were other quibbles—the gauge of the track (to be decided by the President), the grade (no higher than 116 feet to the mile), the curves (none over ten degrees, which eliminated the use of switchbacks and forced the companies to resort to far more expensive tunnels), and more.
• • •
FORTUNATELY for Judah, for the Central Pacific, and for the line running west from the Missouri River, whatever it was to be named, the President took as active an interest as his time allowed. Lincoln made it clear to the congressmen that despite the war he advocated the bill’s passage and the construction of the road, and he wanted it started right away. Gre
nville Dodge, then serving as a general in the Union Army, said that Lincoln told him and others that the road had to be built “not only as a military necessity, but as a means of holding the Pacific Coast to the Union.”44
On May 6, 1862, one month after General Ulysses Grant won the first victory for the Union at Shiloh—but at a tremendous cost in lives—and after the Union Monitor fought for five hours against the Confederate Merrimac in the first battle ever between ironclad gunboats, and while General George B. McClellan and his army were stuck in the Peninsula of Virginia, the House passed the Pacific Railroad Bill by a vote of 79 to 49.
Two days later, on May 8, Judah called for a meeting of the Senate Pacific Railroad Committee. Once again there were troubles and delays. Representative Justin Morrill of Vermont, who could be farseeing on some matters,* commented sourly that those who were putting up the capital were not interested in building a railroad west from the Missouri River, or in the Central Pacific, if it went farther east than the Nevada silver mines, through uninhabited territories. The railroad, he charged, was interested in grabbing off subsidies at either end. Besides, Morrill grumbled, the nation could hardly afford both guns and railroads. Why not wait until after the war?45
Judah stayed with it. When the war was over—surely not too long now—there would be lots of ex-soldiers looking for work, lots of money from investors seeking profitable ventures, lots of need for the railroad. Robert Russell argues that, because the war had accustomed Congress to appropriations of vast proportions, the bill went through; he adds that it was a matter of pride with many congressmen “to demonstrate that the Union was strong enough to crush rebellion and take measures to insure its future prosperity at the same time.”46
On May 23, 1862, Judah wrote to the editors of the Sacramento Union, “The Pacific Railroad is a fixed fact and you can govern yourselves accordingly.” He added that the bill would come up for a vote “in about 10 days when, should our armies have met with no serious reverses, we may reasonably expect the passage of the Pacific Railroad Bill through the Senate.”47 That same day, Confederate General Stonewall Jackson led eighteen thousand men on an attack at Front Royal in the Valley of Virginia to force the Union forces to retreat to Winchester, where he again struck and routed them on May 25. Jackson then marched north, and suddenly the capital was under threat.
But Jackson was stopped—he had to march toward Richmond because of McClellan’s threat to that city—and the Senate passed the bill on June 20, by a vote of 35 to 5. The House concurred in the Senate amendments a few days later and sent the completed bill forward to the President. Lincoln signed it on July 1, even as Malvern Hill, the last battle of the Seven Days’ Battles in the Peninsula, was being fought, costing McClellan’s army a thousand dead and three thousand wounded and greatly depressing the nation.
THE Pacific Railroad Bill was complicated to an almost incomprehensible degree. It had to be substantially changed two years later, and still was the basis for innumerable lawsuits over the next two decades and eventually the creation of the Populist and the Progressive parties. But its basic outline was what Judah wanted. It called for the creation of a corporation, the Union Pacific (the name being a nice touch in 1862), that would build west from the Missouri River, while the Central Pacific would build east from Sacramento. Capital stock of the UP was to be a hundred thousand shares at $1,000 each, or $100 million. Both roads would have a right of way of two hundred feet on both sides of the road over public lands and would be given five alternate sections (square miles) on each side per mile, or sixty-four hundred acres per mile.*
The railroad corporations would receive financial aid in the form of government bonds at $16,000 per mile for flat land, $32,000 for foothills, and $48,000 per mile for mountainous terrain after they had built forty miles approved by government commissioners. They would also get land for stations, machine shops, sidings, and other necessary structures, as well as whatever they needed in the way of earth, stone, timber, and other available materials for construction.
The corporations could get advance money in the form of 6 percent government bonds. This was a loan, not a gift; the bonds were to constitute a first mortgage on the railroads. The government was loaning its credit, in other words, not its money—the railroads would have to sell the bonds. And pay for them. The contract was that the government should pay the 6 percent interest on the bonds in semiannual payments, but that the whole amount of the loan, principal and interest, should be repaid in thirty years, minus the sum of the value of the services performed for the government during that time in carrying mails, transporting troops, government stores, and so forth.
The Central Pacific was required to complete fifty miles within two years and fifty miles each year thereafter, and the entire road was to be completed by July 1, 1876, under pain of forfeiture.48
That was by no means all of it, but it was enough for Judah to flash the first word to his Sacramento colleagues by the newly established telegraph: “We have drawn the elephant. Now let us see if we can harness him.”
HOW well he had done his work can hardly be imagined today. At the time, forty-four members of the House, seventeen senators, and the secretary of the Senate tried to sum it up. They gave Judah a signed written testimonial of appreciation:
Learning of your anticipated speedy departure for California on Pacific Railroad business, we cannot let this opportunity pass without tendering to you our warmest thanks for your valuable assistance in aiding the passage of the Pacific Railroad bill through Congress.
Your explorations and surveys in the Sierra Nevada Mountains have settled the question of practicability of the line, and enable many members to vote confidently on the great measure, while your indefatigable exertions and intelligent explanations of the practical features of the enterprise have gone very far to aid in its inauguration.49
If any one man made the transcontinental railroad happen, what Horace Greeley called “the grandest and noblest enterprise of our age,” it was Theodore D. Judah.
Henry V. Poor, at the time the editor of the American Railway Journal, said that the North, upon the outbreak of the Civil War, “inferring its powers from its necessities, instinctively and instantly made a bold and masterly stroke for empire as well as for freedom.”50
* This was the first public use of the name Central Pacific.
* He was the sponsor of the Morrill Act, which granted to each loyal state thirty thousand acres for each senator and representative for the purpose of endowing at least one state agriculture college. The “Morrill Land Grant” act made possible the great state universities. It passed on July 2, 1862.
* Far from costing the government anything, the granting of land meant that the alternate sections retained by the government would increase enormously in value as the railroads progressed and finally joined.
Chapter Four
THE BIRTH OF THE UNION PACIFIC 1862-1864
THE men who founded the Union Pacific were like Lincoln’s generals, some of them good, many of them bad, most of them indifferent. No American president had ever before had to fight a civil war involving hundreds of thousands of troops. No one had founded anything like the Union Pacific, which, like the Central Pacific, had in front of it the most formidable task imaginable.* The wonder isn’t how many things they screwed up, but how much they did right.
THE 1862 Pacific Railroad Act authorized the creation of the Union Pacific Railroad.† The bill mandated the 163 men appointed in the act to serve as a board of commissioners who were to work out a provisional organization of the company. They held their first meeting in Chicago. They were prominent railroad men, bankers, and politicians, with five commissioners appointed by the President. When the three-day meeting opened on September 2, 1862, only sixty-seven of the directors bothered to attend and, like those who were absent, they had deep doubts about how this railroad was going to be built. They selected Samuel R. Curtis as temporary chairman; Curtis at this time was a major general in the Union Ar
my. Mayor William B. Ogden of Chicago was made president, and Henry V. Poor of New York, editor of the American Railway Journal, secretary. Everyone present agreed with Samuel Curtis’s belief that, “notwithstanding the grant is liberal, it may still be insufficient.”1
The directors also agreed that their biggest problem was the first-mortgage nature of the government bonds, which would make it near impossible for the company to sell its own bonds. But there were many other difficulties needing attention. Most of all the project needed promoters who were tough and practical. Men who could lobby Congress for a new, more generous bill as well as convince their fellow citizens to buy stocks and bonds in the company. Men who would organize the vastest enterprise ever seen in North America, except for the Union and Confederate armies, and push the railroad across the continent in the face of every obstacle.
GENERAL Dodge, meanwhile, was cutting a swath for himself in the Union Army. He was wounded at the Battle of Pea Ridge, Arkansas (March 6-8, 1862), and it was while he was recovering in the hospital in St. Louis that men interested in the Pacific railroad had visited him and urged him to leave the army. “I have enlisted for the period of the war,” was Dodge’s reply.2
Nothing Like It in the World The Men Who Built the Transcontinental Railroad 1863-1869 Page 9