Chapters on the History of the Southern PacificDaggett, Stuart
History
Chapters on the History of the Southern Pacific
Daggett, Stuart
Pacific railroads -- History; Railroads -- California -- History; Southern Pacific Company
Huntington, Stanford, Hopkins, and Crocker knew each other as merchants
will. Crocker and Stanford may also have met in a political way. The
four of them seem to have been friends, at least as early as 1860.
Now it appears that Huntington and Crocker, and possibly Stanford and
Hopkins also, attended one of Judah’s meetings in Sacramento, and were
somewhat impressed by his statements. This was the second stage in the
Central Pacific enterprise, when the promoter was in the presence of
capitalists, and was seeking to convince them that a probability of
profit lay in his plans. Huntington says that he spoke to Judah after
the public meeting, and that Judah came to his house the following
evening. He adds that subsequently he, Huntington, talked with Hopkins
and Stanford, and persuaded them to join him in contributing the money
necessary to finance an instrumental survey across the mountains. Other
persons who agreed to share in the expense were Charles Marsh, James
Peel, L. A. Booth, and Judah himself—each assuming one-seventh of the
cost.[14] Charles Crocker was brought in a little later.
The attitude of all these men was of course cautious. Judah had caught
their attention, but as yet they would not commit themselves very far.
The survey might cost them fifteen or twenty thousand dollars apiece,
and they might never go further with the scheme. They thought they
could build a railroad if anyone could, and there might be money in
it, yet they knew that even to finance surveys involved considerable
risk.[15]
Likelihood of Government Aid
Although we have no direct evidence to this effect, it seems very
probable that the chance of profit to be secured in building a
transcontinental railroad under government auspices stood out more
prominently in the eyes of Huntington and his friends than any
consideration of the ultimate earnings of the railroad, once it should
have been built. What should two dry goods merchants and two dealers
in hardware, who knew nothing first hand about railroad operation,
have cared about the administration of a railroad 800 miles long?
If they wanted interest on an investment, why money commanded 2 per
cent a month in Sacramento itself. Only the prospect of still greater
gains was likely to attract a speculative trader like Huntington, and
the source of such profit could be found only in construction of the
road. If this was the real inducement, and if the likelihood of a
government subsidy was kept in mind from the first, it was fortunate
for Mr. Judah that, owing to his familiarity with conditions both
at Washington and in California, he was in a position to inform his
prospective clients of the likelihood of government aid no less fully
and authoritatively than he could advise them concerning routes over
the Sierras.
Public-domain text, read in full here on John Shaqi.
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