Chapter 9 No.9

The Kansas Division (Kansas Pacific Railway.)

Conflicting Interest on Location - Leavenworth, Pawnee and Western Chartered By Kansas - Plans to Connect With the Union Pacific at the Hundredth Meridian - Supplementary Charter 1864 - San Diego Or Denver - Construction Work - Indian Troubles - Receiverships - Consolidation With the Union Pacific.

At the time Congress passed the Pacific Railroad Bill in 1862 there were three conflicting interests contending as to the location. First that in favor of the Northern (now the Northern Pacific) Route, second the Central, and third that in favor of the Missouri-Kansas location. The Northern interest had not developed to a sufficient extent to cut much figure, only having the support of Minnesota, Wisconsin and Michigan. The Central Route was backed by Chicago and the railroad interests centering there. The Missouri-Kansas Route had the support of St. Louis and the territory tributary thereto. The last two were sufficiently persistent to have both of them recognized. Accordingly the Charter called for the one line commencing at the hundredth Meridian and running west with branches of feeders reaching that point, one from Omaha (Iowa Branch, Union Pacific Railroad), one from Sioux City (to be known as the Sioux City Branch, Union Pacific Railroad), one from St. Joseph or Atchison (to be built by the Hannibal and St. Joseph Railroad, later known as the Central Branch, Union Pacific Railway, Eastern Division and then the Kansas Pacific Railway); this latter in connection with the Pacific Railroad of Missouri from St. Louis to Kansas City to be the St. Louis line.

The Pacific Railroad Bill of 1862 read, "The Leavenworth, Pawnee, and Western Railroad Company of Kansas are hereby authorized to construct a railroad from the Missouri River at the mouth at the Kansas River where it should connect with the Pacific Railroad of Missouri (now the Missouri Pacific Railroad) to the hundredth Meridian of longitude upon the same terms and conditions as applied to the construction of the Pacific Railroad which it was to meet and connect with at the meridian point named." Through Kansas it was to be located so as to make connections with the several railroads through Iowa and Missouri, provided it could be done without deviating from the general direction of the whole line to the Pacific Coast. It further specified that two hundred miles should be built within the first two years and one hundred miles a year thereafter, and after finishing their own line they could unite on equal terms with the Union Pacific Railroad Company in the construction of the latter's line west of the hundredth-Meridian. This gave them the alternate sections of land within five miles on either side and United States Bonds to the amount of sixteen thousand dollars per mile,-similar to the aid extended the Union Pacific Railroad Company by the Government.

The Leavenworth, Pawnee and Western Railroad Company had been incorporated by the legislature of the state of Kansas in 1855, and was organized in January, 1857, but nothing was done of any consequence under its state Charter. The Company was re-organized June, 1863, and changed its name to harmonize with the Act of Congress to "Union Pacific Railway, Eastern Division." Under its state Charter it was to have extended from Leavenworth, Kan., on the East to Pawnee, Kan. (Fort Riley) on the West, with the privilege of building on west to the Kansas State line,-the state charter not permitting work outside of the Kansas boundaries.

Ground was broken on the line at Wyandotte, Kan., the state line between Kansas and Missouri, in August, 1863. Active grading commenced at Wyandotte, September 1st, 1863. The contract for the construction was first let by the Leavenworth, Pawnee, and Western Railroad Company to Ross, Steele and Company, but before they got down to actual work the Company had been re-organized as the Union Pacific Railway, Eastern Division, and had changed hands. The work was begun by Samuel Hallett who had been very prominent in promoting the latter Company, the contract being in the name of Hallett and Fremont. The Fremont being the erstwhile candidate for the Presidency of the United States. He is best known today as "The Pathfinder," from his several exploring expeditions between the Mississippi Valley and the Pacific Ocean. Fremont had been identified with the idea of a railroad to the Pacific in the interest of St. Louis, Mo. He, however, did not continue as one of the contractors but withdrew. It was a time of bitter feeling over the Slavery Question. Missouri was "Pro Slavery," Kansas "Free Soil." Hallett inaugurated his work by planting a post inscribed on the Missouri side "Slavery," and on the Kansas side "Freedom." Mr. Hallett was assassinated on the streets of Wyandotte, July 27th, 1864. An employee named Talbot had surreptitiously written the Secretary of the Interior in regard to the work not being up to requirements, more especially that the buildings were simply makeshifts put up to evade the law, etc. Through this and other complaints the Government refused to accept the first section of forty miles and withheld the bonds and land grants that Congress had granted. Hallett on his trips to Washington became aware of Talbot's action, and on his return called him to task with the result that Talbot shot him from a doorway as he was returning to his work from his midday lunch. After Hallett's death the work passed into the hands of St. Louis parties with John D. Perry as Director.

Under the Supplementary Pacific Railroad Bill of 1864, the conditions as far as the Union Pacific Railroad-Eastern Division as it was then called, were materially improved. It was authorized to connect with the Union Pacific Railroad at any point deemed desirable, but no more bonds or land grants were to be given than if connection were made as originally contemplated at the hundredth Meridian. It was also given the option of building from the mouth of the Kansas River to Leavenworth thence west, or of building directly west with a branch from Leavenworth connecting with the main line at Lawrence, but in the latter case no bonds or land grant would be given account the branch line mileage. Another feature of the Bill was permission to build on west to a connection with the Central Pacific Railroad, provided when it, the Union Pacific Railroad-Eastern Division reached the hundredth Meridian, the Union Pacific Railroad proper was not proceeding with the construction of its line in good faith. The Company under the discretion granted them elected to abandon the junction with the Union Pacific Railroad at the hundredth Meridian and to build directly West. The Company proceeded to explore the country South and West in search of a practicable route to the Pacific, which being found they then went further and had the several routes thoroughly surveyed. In their investigations they had four thousand four hundred and sixty-four miles chained and leveled. The most extensive survey on record.

Careful surveys demonstrated that the distance to the point of connection with the Union Pacific Railroad would have been three hundred and ninety-four miles from Kansas City, and this much of the line-Kansas City to Pond Creek, Kan.-was bonded-aided and land grant, the Government aid amounting to six million three hundred and two thousand dollars.

The Hannibal and St. Joseph Railroad reached St. Joseph, February, 1859, Kansas City, soon afterwards. The Missouri Pacific Railway reached Kansas City, October 1865. Owing to the fact that there were these railroad connections between the East and the eastern terminal of the line the work of construction was greatly facilitated and the expense of building the line greatly reduced.

The headway made was slow at first. The work was new to the officers in charge as well as to the men. The following table shows the progress made:

Sept. 1, 1863 commenced work at State Line (Wyandotte, Kan.)

Nov. 28, 1864 reached Lawrence-40 miles.

Oct. 30, 1865 first 40 miles accepted by the Government.

Dec. 15, 1865 50 miles done.

Aug. 18, 1866 reached Manhattan-118 miles.

Oct. 7, 1866 reached Pawnee (Fort Riley) 135 miles.

Jan. 7, 1867 to Mile Post 155.

April 8, 1867 to Mile Post 181.

Oct. 15, 1867 to Mile Post 335.

Fall 1867 to Mile Post 405 (Phil Sheridan.)

Mar. 24, 1870 reached Kit Carson-487 miles.

Aug. 15, 1870 completed into Denver.

The difference in altitude between Kansas City and the western boundary of Kansas is some twenty-seven hundred feet and is thus distributed-six hundred feet the first two hundred miles, seven hundred and sixty-nine feet in the next hundred miles, and thirteen hundred and twenty thence to the Kansas line.

The original intention had been to follow the Republican River, but this was changed and the "Smoky Hill Route" from Junction City, Kan., west adopted. When the road reached Monument, three hundred and eighty-six miles from Kansas City, dissensions arose among the stockholders. One faction was for building to San Diego on the Pacific Coast via New Mexico and Arizona, another was for building to Pueblo and up the Arkansas River, while the third and successful one was for pushing straight ahead to Denver and from there to a connection with the main line of the Union Pacific Railroad,-the idea being to secure for St. Louis a portion of the trans-continental business and the line the carrying thereof.

The line was built under contract by the following firms: Hallett and Fremont-Wyandotte to Lawrence, Kan., thirty-nine miles. Ira M. Schoemaker and Company-Lawrence to Mile Post one hundred and forty-a distance of one hundred miles. Schoemaker and Miller-Mile Post one hundred and forty to Mile Post four hundred and five-two hundred and sixty miles. West of Mile Post four hundred and five or "Phil Sheridan" as it was then called, the Denver extension was built by the Company itself, General W. J. Palmer being in charge.

During the construction of the line, the contract to feed the forces at the front was let to Goddard Brothers who utilized to a very great extent buffalo meat for this purpose. To procure these they employed W. F. Cody at five hundred dollars per month. During this engagement Cody claims to have killed four thousand two hundred and eighty buffaloes, earning for himself the appellation "Buffalo Bill" by which name he has ever since been known. The best heads were by special arrangement shipped to the headquarters of the Company at Kansas City, where they were nicely mounted and used as an advertisement of the road.

The line reached Ellsworth, Kan., the spring of 1867 and made for some time its terminus there. In all the history of "Boom Towns" or "railroad towns" there were none that surpassed this place. For ninety-three consecutive days there was one or more homicide in the town or its immediate vicinity-one hundred in all.

Another place that sprang into prominence during the time it was the end of the track was "Phil Sheridan" located near the point where the road crossed the hundredth Meridian, Mile Post four hundred and five. During its brief existence it was a rattling noisy place, full of life and vigor, rowdyism predominating. Not a stake, brick, or shingle is left to mark its site. It was here the construction rested for nearly a year and a half, financial troubles,-uncertainty as to whether to build to San Diego, Cal., or Denver, and some very fine work on the part of the Union Pacific proper being the occasion of the suspension of work.

On June 26th, 1865, work was begun on the branch line from Leavenworth to Lawrence (Leavenworth and Lawrence Railroad), Major B. S. Hennings being in charge as Superintendent. Upon the completion of the branch in the spring following, the headquarters of the Union Pacific Railway-Eastern Division was moved to Lawrence, the operation of the line being under the direction of R. H. Shoemaker, Superintendent, who was succeeded in December, 1867, by George Noble. The work of construction was in charge of General W. W. Wright.

At the meeting of the Company held April 1st, 1867, Mr. John D. Perry of St. Louis was elected President, Mr. Adolph Meier of the same place Vice-President, and among the directors was Thomas A. Scott, of Philadelphia, (afterwards President of the Pennsylvania Railroad.)

In 1864 the population of the State of Kansas was one hundred and thirty-five thousand eight hundred and seven and in 1870 when the line was completed three hundred and sixty-four thousand three hundred and ninety-nine. This marvelous increase was due in no small degree to the construction of this line and the facilities it provided for the settlers to reach the cheap land in the interior of the state as well as the security it gave them against Indian depredations. Stage Lines between the Missouri River points and Denver had been running between St. Joseph, Atchison, and Omaha for several years, but after the line was built some distance the route was changed and connection was made between the end of the track and Denver by the Holliday Overland Mail.

Much trouble was caused by the Indians during the construction, even more than was encountered: on the Union Pacific Railroad. To this cause in no small degree were the delays of 1868 and 1869 attributable. It was necessary not only to arm the engineer corps, but also the graders, the Government issuing arms and ammunition for that purpose. Military escorts and guards were furnished by the Army to the Railroad men, both on the grade or ahead surveying. For the better protection of the road and construction forces Army Posts or Forts proper were maintained as follows:

Fort Riley Mile Post 140

Fort Harker Mile Post 230

Fort Hays Mile Post 300

Fort Wallace Mile Post 412

It was the Cheyennes, Arapahoes, Sioux, and the Utes who made the trouble.

In March 1869, the Company was authorized by special act of Congress to assume the name of the Kansas Pacific Railway Company instead of the Union Pacific Railroad (Eastern Division.) A witty epigram on this change that went the rounds of the papers at the time read as follows:

The Union Pacific's about to apply

For a change In Its name and no wonder;

Tis as warlike as Jove that great God of the skies,

And Pacific about as his thunder.

And talking of this, it is strange as it goes

Through perpetual snows in some quarters,

This railroad should be in the midst of its foes

Perpetually in hot water.

While those in authority had decided to push through to Denver, the idea of building through to San Diego was not abandoned, and in 1872 a branch line was commenced at Kit Carson destined to Pueblo and thence South along the Rampart Range to New Mexico and thence to the coast. This line was completed nearly due south to Fort Lyon and some twenty miles of grading done between Fort Lyon and Pueblo. Financial stringency together with the building of the Atchison, Topeka and Santa Fe into the same territory resulted in the abandonment of these plans and eventually the track from Kit Carson to Lyons was taken up under the following circumstances.

The owners of the Central Branch (Union Pacific), R. M. Pomeroy of Boston and associates, were pushing the construction of this line westwardly and announced their intention of building to Denver, thus making a competitor for the Kansas Pacific Railway. Mr. Jay Gould who at that time (1879) was the principal owner of the latter line, while out on an inspection trip over the line instructed his General Manager, "Sill Smith" Mr. Sylvester T. Smith to build into their territory and parallel them. Out of this grew the Junction City and Fort Kearney Railway (now a part of the Union Pacific Railroad). Smith was unable to buy sufficient rails to build and accordingly took up those on the branch of the Kansas Pacific Railway, Kit Carson to Lyons, i. e. the Arkansas Valley Railroad and re-laid them on the Junction City Line. Some of the Arkansas Valley Railway bonds were owned in Holland and a representative of the Dutch happened along on an investigating tour, but was unable to find any road. The matter soon got into Court and an effort was made to locate who was responsible for the tearing up of the Arkansas Valley Railway. Finally General Manager Smith was put on the stand and frankly acknowledged what he had done-and that he had no orders from President, Directors, or any one. The question was then asked who ordered you to build the Junction City and Fort Kearney Railway and the answer was Jay Gould; and who is he, for at that time he was not the well-known man he afterwards became. At this point Judge Dillon obtained permission to interrupt the proceedings with a query as in whose behalf all this investigating was being done. The holders of the bonds was the reply-then that must be myself, for said he, I have here in my hands all of the bonds in question. Mr. Gould had quietly bought in the bonds while the matter was in the Courts, bringing the inquiry to an end.

The line cost for its six hundred and seventy-three miles, Kansas City to Denver, and branch, Leavenworth to Lawrence, thirty-six million seven hundred and forty-seven thousand three hundred dollars, or about fifty-two thousand dollars per mile.

In 1873 the road was unable to meet its obligations and was placed in the hands of C. S. Greeley and Henry Villard, Receivers,-a majority of its stock passing into the hands of interests friendly to Mr. Jay Gould about 1877. Complaint was made that Villard and Greeley were not the proper men to act as receivers, that they were antagonistic to the owners of the bonds-lacking practical knowledge, etc. The matter finally reached the Supreme Court of the United States who in remanding it back to the District Court ordered their removal and the appointment of one man and he a practical railroad man as receiver in their stead. Under this order, in 1879, Sylvester T. Smith who had been connected with the road in various capacities, including that of General Manager, was appointed receiver.

In 1879 the Company was re-organized and in January 1880 consolidated with the Union Pacific Railroad under the name of the Union Pacific Railway Company, the holders of Kansas Pacific Railway stock being given share for share in the new consolidated Company.

The basis of the consolidation being

Miles Capital Stock Funded Debt.

Union Pacific Railroad 1,042 $36,762,300.00 $78,508,350.65

Kansas Pacific Railway 675 10,000,000.00 30,567,282.78

Denver Pacific Railroad 106 50,762,300.00 109,656,633.43

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1,823 50,762,300.00 109,656,633.43

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