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
It is perhaps natural to ask whether there is any evidence of improper
methods used by the Central Pacific to obtain the passage of the
Pacific Railroad bill beyond that just referred to. The weight of the
record is in the negative. According to Stanford, Judah had $100,000
in Central Pacific stock at his disposal to cover his expenses in the
East. This stock was not worth much, and Judah did not use all of it.
Besides this, Judah made an agreement with Hon. S. A. McDougal and
Hon. T. G. Phelps, according to which he assigned to certain parties
representing the interests of the San Francisco and San José Railroad,
the rights, grants, and franchises of the Central Pacific for the
portion of road between Sacramento and San Francisco. This looks like
an attempt to quiet opposition in California, from which some of the
California delegation may have profited. There is no further evidence,
however, of any improper bargaining in connection with the passage
of the bill, and it is probable that no money was corruptly used. If
there had been, Campbell and Sargent would hardly have been naïve
enough to send a letter to Judah in behalf of sixty-three senators and
representatives, thanking him for his valuable assistance in aiding the
passage of the Pacific Railroad bill.
The Pacific Railroad Act
Let us now consider the terms of the federal legislation of 1862 and
1864. The Pacific Railroad Act in its first form was signed on July 1,
1862,[74] and accepted by the company by letter dated November 1.[75]
Bancroft says that the company was aware that the assistance offered
in this act was not sufficient. The subsidy alone would not build the
road, and capitalists would not subscribe on the security offered.
However this may be, Judah arranged for the purchase of locomotives,
cars, and railroad iron before he left the East, and took measures
also to secure early action by the President on the question of gauge,
and on the establishment of the western base of the Sierra Nevada
Mountains.[76]
In December, after Judah’s departure, a bill was introduced to amend
the Act of July, 1862. This measure passed the Senate but was not acted
upon by the House. A year and a half later, however, a new act was
passed by both houses, and became law on the 2d of July, 1864, amending
the Act of 1862, and materially increasing the aid which the Central
Pacific was to enjoy.[77] To all intents and purposes the Acts of 1862
and 1864 were one piece of legislation, and will be treated as such in
the analysis which follows.[78]
Grant of Right-of-Way
What now were the advantages secured to the Central Pacific by the
Acts of 1862 and 1864, and what were the obligations placed upon that
company? We will take up first the advantages, not necessarily in order
of importance.
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