The race is on!
The starter's gun has fired.
Spurs dig in the racers' sides,
They run for all or nothing.
One prize, the far Great Basin.
One Spur, the greed for trade.
Another prize: The Nation's eyes
Would fix upon the winner!
The longer line to junction point
Would gain the greater honor.
The Great Railroad Race
Although the loose language of national lawmakers
made possible the great railroad race, it was motivated by practical
considerations far removed from the halls of Congress. Every mile of
track, of course, brought its reward in subsidy bonds and land grants.
But there were other compelling reasons for speed. Above all, both
companies aimed for Ogden and Salt Lake City, for the railroad that
captured these Mormon cities would control the traffic of the Great
Basin. If the Central Pacific won, it would carry the trade of the Great
Basin over its tracks to San Francisco; if the Union Pacific won, this
commerce would flow east to the Mississippi. Each contender, therefore,
strained to reach Ogden and shut the other out of the Great Basin.
Each company, moreover, bore a constantly mounting
interest on the Government loan and on its own securities. Although the
1864 Act gave them until 1875 to finish the road, every day that tied up
capital in construction without the offsetting returns of operation made
the burden of interest heavier. The Central Pacific faced the hard
reality that the line over the Sierra Nevada had been expensive to build
and would be expensive to maintain and operate. Without a compensating
mileage on the level country of Nevada and Utah, the railroad would be
unprofitable. Finally, the surge of public interest that focused on the
Pacific Railroad provided a less tangible but no less powerful
incentive. Both companies were convinced that the one that built the
greatest length of railroad would enjoy the greatest prestige in the
eyes of the Nation.
The Railroad Act of 1866, produced largely by the
lobbying of Collis P. Huntington, cleared the way for the race. It
restored the provisions of the 1862 Act by authorizing the Central
Pacific to "locate, construct, and continue their road eastward, in a
continuous completed line, until they shall meet and connect with the
Union Pacific Railroad." This act did not specify where the point of
junction would be, and from president down to spikers and gaugers, the
men of the U.P. and the C.P. set out to advance that point as far into
the territory of their competitor as possible.
Two provisions in the acts of 1864 and 1866 helped.
One permitted the companies to grade 300 miles ahead of end-of-track.
The other permitted them, upon completion of acceptable grade, to draw
two-thirds of the Government subsidy bonds before the track had been
laid.
As soon as Congress passed the 1866 Act, Chief
Engineer Montague sent C.P. surveyors to run lines north of Great Salt
Lake and east of Ogden in the Wasatch Mountains. By the spring of 1868
they were working next to the flags of the U.P. survey near Fort
Bridger, Wyo. Union Pacific surveyors, meanwhile, had staked out a line
across Utah and Nevada to the California border.
During 1868 and 1869, the decisive years of rivalry,
both companies put grading crews far ahead of track; the Union Pacific
even leap-frogged some graders as far west as Humboldt Wells, Nev. in
June 1868 Leland Stanford took the stage to Salt Lake City. During the
next 6 months he contracted with Brigham Young and other prominent
Mormons to grade the line of the C.P. from the vicinity of Humboldt
Wells to Ogden, Utah, a distance of about 200 miles. The U.P. had
already let a $2 million grading contract to Young for work between Echo
Summit and Promontory Summit.
Thus Mormon crews worked on parallel grades, deriving
considerable profit from the rivalry and perhaps a measure of
satisfaction at the discomfiture of the companies that had bypassed Salt
Lake City. In the final reckoning, the Union Pacific and Central Pacific
spent about $1 million on grade that was never used. Also, since the
U.P. in the end could meet only half of its financial obligation to the
Mormons, Brigham Young obtained $600,000 in U.P. rolling stock to equip
his own Utah Central Railroad.
By the end of 1868 the Union Pacific had finished
grading to the mouth of Weber Canyon and was laying rails down Echo
Canyon. The Central Pacific, its track still in eastern Nevada, had made
good progress on grading between Monument Point and Ogden. Both
companies forged ahead. Expense was a secondary consideration. The
important thing was to reach Ogden first.
In October the Central Pacific had worked a clever
stratagem which came very near succeeding. It had filed with the
Interior Department maps and profiles of its proposed line from Monument
Point to Echo Summit. Secretary of the Interior Orville H. Browning, who
had been hostile to the Union Pacific throughout, accepted the
documents. Stanford then proceeded on the theory that the Central
Pacific line was the true line of the Pacific Railroad, and the only one
on which subsidy bonds could be issued. In Washington, Huntington filed
application for an advance of $2.4 million in subsidy bonds, two-thirds
of the amount due for this portion of the line.
The Union Pacific, of course, protested mightily.
Dodge and the Ames brothers hurried to Washington and used all their
influence to block the move of the Central Pacific. Browning retreated
and in January 1869 appointed a special commission, headed by Maj. Gen.
Gouverneur K. Warren, to go west and determine the best route through
the disputed territory. Congressmen friendly to the Union Pacific
exacted a pledge from Secretary of the Treasury Hugh McCulloch that he
would not issue the bonds until the commission had reported the results
of its investigation.
They failed, however, to take account of Huntington's
powers of persuasion. As the administration of President Andrew Johnson
drew to a close, the Treasury Department prepared the bonds for issue.
By March 4, 1869, when Ulysses S. Grant took office as President, it had
turned over $1.4 million to Huntington. When the Warren Commission
reached Utah, it found that the Union Pacific was almost to Ogden and
had obviously won the race. The commissioners therefore confined their
investigation to the line between the two railheads. But the issue was
to be resolved in Washington, where the new President and the officials
of both railroads had been brought by events to appreciate the necessity
of working out a compromise.
Dodge and several others interested in the Union
Pacific met with Huntington in Washington on April 9, 1869. They drew up
an agreement "for the purpose of settling all existing controversies
between the Central Pacific and Union Pacific Railroad Companies." The
agreement gave both railroads access to the Great Basin, with the
terminus to be located west of Ogden at a point to be agreed upon by
both companies. The U.P., however, was to build west from Ogden to
Promontory Summit and there unite with the C.P. Then it was to sell this
segment of the line to Central Pacific. Subsidy bonds were to be issued
to the Union Pacific as far as the terminus near Ogden, and to the
Central Pacific from the terminus west. The following day, April 10,
Congress by joint resolution put its stamp of approval on the
agreement.
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