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
Under date of February 2, 1875, the Western Development Company agreed
to construct a railroad and a telegraph line on the routes selected by
the Southern Pacific, between certain specified termini. The mileage
actually built was that from Sumner to San Fernando, from Spadra to
Fort Yuma, and from Goshen to Huron. Bills were rendered for this work
on the basis of $72,000 per mile, or $29,153,520 for 404.91 miles, half
in Southern Pacific first mortgage bonds and half in stock.[181]
In addition to its contract with the Southern Pacific, the Western
Development Company undertook certain miscellaneous construction,
including work on the Northern Railway, and the San Pablo and Tulare
Railroad, the building of steamers for the Central Pacific, bridges
and buildings for the Central Pacific and Southern Pacific, general
repairs for the various companies controlled by the associates, and
even finally private residences for Hopkins, Stanford, and Crocker. In
short, during its existence the Western Development Company, besides
completing the major part of the Southern Pacific, did incidental
building of any sort which the associates desired to have done.
Pacific Improvement Company
The death of Mr. Hopkins in 1878, and the temporary unwillingness of
Mrs. Hopkins to participate in the financing of new construction,
together with the death of Mr. Colton in the same year, led Stanford,
Huntington, and Crocker to close up the affairs of the Western
Development Company, and to continue their more or less speculative
building enterprises under a new organization. This new company,
incorporated November 4, 1878, was known as the “Pacific Improvement
Company.” Its relations to the Southern Pacific and to the associates
were the same as those of the Western Development Company, except that
Mr. Colton, who had taken one-ninth of the Western Development Company
stock in 1875, was not a stockholder, and that Mrs. Hopkins at the
beginning took no part. Even the capital stock was placed at the same
amount, $5,000,000.
The main accomplishment of the Pacific Improvement Company was the
construction of the Southern Pacific between Mojave and The Needles.
Besides this, however, it extended the Southern Pacific from Soledad
to San Miguel, built the Southern Pacific in Arizona and the Southern
Pacific in New Mexico, completed the California and Oregon, and Oregon
and California railroads, and continued the Northern Railroad from
Willows to Tehama. The contracts made were similar to those executed by
the Western Development Company, although the consideration varied.[182]
Public-domain text, read in full here on John Shaqi.
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