Steel Rails - Part 6

Originally published in the Hysham Echo on Dec. 30, 1926

(By Dan R. Conway)

Cont. from last week

It is educational and profitable, as well, that a state popularize its history; for, that commonwealth which exploits in a proper manner, its own annals, enjoys the advantages of creating a pride within its population; it retains its citizenry and attracts new citizens. Montana is exceedingly fortunate in the light of natural resources. To exploit this material greatness is no longer considered improper, but to exploit the greatness of Montana’s human interest is by far more appropriate. The natural resources of Montana constitute a great asset, but greater is the historical heritage of Montana’s people, which embodies, instilling a well, poised pride, creating as infertile soil for the demagogue’s appeal.

The Empire Builders

It is well that we emphasize, even in the columns of our newspapers, the accomplishments of the pioneer of Montana, whether he be trapper, trader, miner, cowboy, merchant, politician or railroad magnate. Posterity can well be guided by the precedents which have been set, if posterity is reminded of these precedents, teaching them the value and beauty of industry; inciting them to excel in the labors which have brought such rewards to the people of Montana within a half a century after the era of progress was introduced. Material things pass; the best of steel will wear away the inscriptions on iron are effected by rust; decay destroys wood; even stone will crumble and decompose, but the page of history once placed in print is handed down from one eddy to another on the stream of time, for the benefit and guidance of a progressive citizenry.
The story of Montana reveals nothing more significant or more vital to the state’s general development, or establishing a greater precedent than the coming of the “Steel Rails.”

The Northern Pacific

Because it was the first railroad to traverse Montana from its eastern to its western borders, the completion of the Northern Pacific’s transcontinental line in 1883, constitutes the most significant accomplishment in the railroad annals of this commonwealth.

Like all other pioneer institutions, the principal difficulty to be overcome in the construction of the Northern Pacific railroad was the almost insuperable financial obstacle. In the new western country, such a thing as capital in any great quantity did not exist. Thus the promoters were forced to resort to numerous expedients and suggestions. Real capital came from the east through bond sales. Cities and communities along the projected line aided in land subsidies. The government gave large land grants. The greatest obstacle, however, was the securing of ready cash capital from a timid and apathetic cast.

The Company Chartered

The Northern Pacific was organized and received its charter from the federal government in 1864, at the time the Union Pacific and Central Pacific were being built across the central west. It has already been explained how this northern route was the first contemplated transcontinental route, and why it was not chosen as the course to be followed by the first Pacific line.
The oldest of all projects for the opening of a rail line to the Pacific coast, the Northern Pacific idea dates back to 1835. Ten years following this, Asa Whitney, a New York merchant urged a plan for building a rail line from the head of lake Michigan to the mouth of the Columbia. He asked congress for a land grant 60 miles in width along the entire proposed route. Congress finally favored the building of the first transcontinental line along a central route ending at San Francisco.

Josiah Perham

The man who succeeded in getting the charter for the Northern Pacific was Josiah Perham who had organized a company under the sanction of the Legislature of Maine, called the People’s Pacific Railroad company. He had endeavored to secure the charter of the central and first line for this company but failed. Then he turned his attention to the Northern route, and by promising to ask for no subsidy in bonds or money from the government, he obtained in 1864, a charter coupled with a land grant just double in area that given to the Union Pacific and Central Pacific. The Northern Pacific land grant embraces the alternate sections of land for 20 miles on each side of the road in the states and 40 miles in what were then territories, with an additional ten miles on each side as an indemnity limit within which lands might be selected to compensate for those taken by settlers inside the original grant. The total area of this was 31,058,231 acres.

Perham tried vainly to obtain capital for his project and after two years of effort, turned the charter over to a company compose of New England capitalists and eastern railroad men, with J. Gregory Smith as president. This new organization endeavored to obtain further aid from congress but met with no response to their memorial in 1869, however, amendment to the charter were procured permitting the company to mortgage its road and lands, and a contract was made with Jay Cooke & Co., of Philadelphia, to well the bonds. In a period of two years, this firm disposed of over $30,000,000 of Northern Pacific bonds bearing 7 percent interest.

Construction Started

With this money construction was started in the spring of 1870, and by the fall of 1873 the road had been completed from Duluth at the head of lake Superior to Bismarck, on the Missouri river in Dakotah Territory, and from Kalama on the Columbia river to Tacoma on PUget Sound, a total of about 600 miles.

The Panic of Seventy-Three

Construction was forced to a temporary conclusion at these points because of the great financial panic of 1873 which prostrated the house of Jay Cooke & Co., and stopped the sale of bonds. This rendered the Northern Pacific insolvent and it was thrown into bankruptcy. Then, with the assent of the bondholders, they reorganized the company free from debt by converting the outstanding bonds into preferred stock.
In 1875 a reorganization was perfected with Charles B. Wright as president. In 1879 Mr. Wright for reasons of health, resigned and was succeeded by Frederick Billings (after whom the city of Billings, Montana was named). By this time the company ha regained its credit and work was started on the extensions eastward and westward. This made possible successful negotiations with a syndicate of New York bankers.

Montana is One of Few States where Railroads Are to Tap New Areas -

251 Miles, in All, of New Rails

(Cont. from last week)

Into the Forest

In the Missoula district too, the Milwaukee has just finished an extension at its Blackfoot branch to Sunset, where the railroad joins with the Anaconda company’s logging road into the hills. The cost of this extension is estimated at $1,000,000. This construction by the Milwaukee also is part of a much more pretentious plan which eventually will find reality. It is part of a “short line” cutoff between Missoula and Great Falls. It too, will bisect a rich, but undeveloped territory in western Montana. Surveys for a large part of this major railroad plan were completed several years ago, and part of the ballasting has been laid.
Thus there is in prospect for Montana a railroad construction in the future which will take the form of major expansion through virgin territory, equivalent to main line building, while in the last two years this state has witnessed the development of feeder lines and branches to a greater extent than any other state in the union.
Three Counties Without Railways
McCone county next year will be withdrawn from the list of Montana counties which have no railroad. There are left only Carter, Powder River and Garfield, which next year will have no railroad facilities. Of these, Carter alone is without plans for railroad transportation in the near future. The great Northern’s survey runs through the very center of Garfield county, touching Jordan, the county seat, and continuing on through Petroleum county into Fergus, connecting up with the Great Northern line running into Lewistown. This line when it is built will be a continuation of the branch now reaching to Richey in Dawson county and which, next summer will be extended on to Circle.
The Milwaukee’s tentative plans too, affect Garfield county. The Milwaukee has a line running from Lewistown almost directly eastward into Petroleum county at Winnett, which serves the Cat Creek oil field. This line connects with the Milwaukee’s network of feeders about Lewistown, including lines running to Roy, Winnifred and Hilger. All these feeders connect with the Milwaukee’s major branch lien that runs between Harlowton and Great Falls, via Lewistown. If the Milwaukee should eventually build through from Miles City or Terry via McCone, Garfield and Petroleum counties into Lewistown and also complete its Great Falls-Missoula projection, that company will have practically two main lines traversing Montana from east to west and it will have opened a large area of virgin territory.
Some Possibilities
From time to time there has been talk in railroad and industrial circles that eventually the Northern Pacific would either build or back a line leaving its main track at Columbus and threading its way up the grade of the Stillwater river to tap the rich mining district about Cook City. another project attributed to the Northern Pacific, as future developments justify, is an extension of its branch up the Jefferson valley from Whitehall. This line now has its terminal at Alder. new construction, reports say, would carry an extension of this line southwestward from Twin Bridges or Sheridan, up the Beaverhead river through the historic Point of Rocks to connect with its now isolated property at Armstead into Idaho, the Pittsburgh & Gilmore railroad. Print this post