Part 46 (2/2)
In July, 1862, the Cedar Rapids and Missouri River Railroad was leased in perpetuity to the Galena and Chicago Union Railroad Company, which company then owned the line from Chicago west to the Mississippi River opposite Clinton, Iowa, and operated the Chicago, Iowa and Nebraska Railroad under lease. The lease covered not only the portion of the Cedar Rapids and Missouri River Railroad then built, but the entire line to the Missouri river when the same should be completed.
On June 2, 1864, the Galena and Chicago Union Railroad Company was consolidated with the Chicago and North-Western Railway, and from that time the operation of the Cedar Rapids and Missouri River Railroad under the lease was by the Chicago and North-Western Railway Company.
L. B. Crocker, of Oswego, N. Y., was the first president of the Cedar Rapids and Missouri River Railroad, and until 1866. Mr. Crocker during this period was active in the financial affairs of the company, and especially in obtaining the land grant from the state and the supplemental grant direct from the United States. While not a man of large means, he was possessed of great energy and foresight.
John I. Blair was president from 1866 to 1871, when he was succeeded by Horace Williams, who remained the president until the company went out of existence in 1884.
In 1884 the Cedar Rapids and Missouri River Railroad was sold to the Chicago and North-Western Railway. It was in fact a consolidation, but for convenience in handling the transaction it was made a sale, the Cedar Rapids Company deeding its railroad and all rights and franchises pertaining thereto to the Chicago and North-Western Railway Company, receiving its pay in the stock of the latter company, which stock was distributed pro rata to the stockholders of the Cedar Rapids and Missouri River Company, after which the Cedar Rapids and Missouri River Railroad Company closed up its affairs and went out of business.
THE SIOUX CITY AND PACIFIC RAILROAD COMPANY
An act of congress pa.s.sed in 1862 authorized and required the Union Pacific Railroad Company to construct a railroad and telegraph line from Sioux City to a connection with the Iowa branch of the Union Pacific Railroad, whenever there should be a line of railroad completed through Minnesota or Iowa to Sioux City, Iowa. On July 2, 1864, the original Union Pacific act was amended, and among other things it was provided that the Union Pacific Railroad was released from the construction of said branch, and such company as should be organized under the laws of Iowa, Minnesota, Dakota or Nebraska, and be by the president of the United States designated and approved for that purpose, was authorized to construct said branch and receive therefor lands and subsidy bonds to the same extent that the Union Pacific Railroad would have done under the act of 1862. It was further provided that if a railroad should not be completed to Sioux City across Iowa or Minnesota within eighteen months after the pa.s.sage of said act, then the company which should have been so designated might commence, continue and complete the construction of said Sioux City branch.
The Sioux City and Pacific Railroad Company was organized in August, 1864, to construct this branch line and was by the president of the United States designated and approved for that purpose. The corporators and first board of directors were Platt Smith, L. B. Crocker, M. K.
Jesup, James F. Wilson, A. W. Hubbard, Charles A. Lambard, Frederick Schuchardt, William B. Allison, and John I. Blair. Soon afterwards the Sioux City and Pacific Company pa.s.sed under the control of Mr. Blair and his a.s.sociates in the Cedar Rapids and Missouri River Railroad. The necessary money to build and equip the Sioux City and Pacific was princ.i.p.ally furnished by them. The general offices of the company were first at Dubuque, but on the pa.s.sing of the control to the Cedar Rapids people headquarters were moved to Cedar Rapids.
Construction was begun in the spring of 1867. The Cedar Rapids and Missouri River Company built six and a half miles of railroad from Missouri Valley Junction to California Junction, where it connected with the line of the Sioux City and Pacific. These six and a half miles were turned over to the latter company. Track laying began at California Junction in September, 1867. Thirty-six miles were completed by the first day of December, 1867, and the line to Sioux City in February, 1868. Early in 1869 the entire line was completed and in operation between Missouri Valley Junction and Sioux City and to Fremont, Nebraska, where connection was made with the Union Pacific Railroad. The cars were ferried across the Missouri river during the summer months, and crossed on a temporary bridge during the winter months up to the fall of 1883, when the bridge across the river was completed and opened up for business. L. Burnett was the engineer in charge of construction of this railroad and superintendent in its operation until January 1, 1878.
This company received from the United States a grant of land comprising the alternate sections within twenty miles on either side of the line of the railroad. But as nearly all of the government land within these limits had already been disposed of, and where the grant of this company lapped over the grant to the Union Pacific Railroad, each company received half, so this congressional grant only amounted to about 42,500 acres. There was acquired through a consolidation with the Nebraska Air Line Railroad a state land grant of 46,000 acres. The company received from the United States a loan of six per cent bonds to the extent of $16,000 per mile of road constructed between Sioux City and Fremont, and issued its own first mortgage bonds to an equal amount.
This company up to August, 1884, operated its own road and also leased and operated the Fremont, Elkhorn & Missouri Valley road, as the same was from time to time extended. The earnings of the railroad were never sufficient to pay the interest on the first mortgage bonds. The avails of the two land grants and the proceeds of the sales of the town lots along the line up to 1875 (when the remaining land a.s.sets were sold to the Missouri Valley Land Company) were used to make up the deficiency.
After these a.s.sets were exhausted the Cedar Rapids and Missouri River, and Chicago, Iowa and Nebraska Railroad companies, through loans and other methods of a.s.sistance, made up the deficit until the sale of all of these roads in 1884.
In 1880 the Chicago, Iowa and Nebraska, and the Cedar Rapids and Missouri River companies by purchase from the individual stockholders acquired over ninety per cent of the capital stock of the Sioux City Company. This stock was in the treasury of these railroads at the time of their purchase by the Chicago and North-Western Railway Company in 1884. Through and under that purchase the Chicago and North-Western Railway Company became the controlling owner of the Sioux City and Pacific and moved its general and operating offices away from Cedar Rapids.
John I. Blair was the first president of the Sioux City and Pacific Railroad Company and was succeeded by Horace Williams in 1871. Mr.
Williams was president until the fall of 1877, when he resigned and was succeeded by Oliver Ames. Mr. Ames remained president until the control of the railroad pa.s.sed into the Chicago and North-Western Railway Company.
THE IOWA FALLS AND SIOUX CITY RAILROAD COMPANY
In the Iowa Land Bill of 1856 a grant was made to aid the construction of a line of railroad from Dubuque to Sioux City on the same terms as fixed for the other three trunk lines across the state, viz: a grant of every odd numbered section within six miles on either side of the railroad, and where such odd numbered sections had already been disposed of by the United States, the railroads were authorized to select an equal number of acres from the odd numbered sections within fifteen miles of the line of the railroad. This grant was given over by the state of Iowa to the Dubuque and Pacific Railroad Company, which company began the work of construction but afterwards failed and was reorganized as the Dubuque and Sioux City Railroad Company. This last named company continued from time to time to extend the line westwardly, so that in 1867 it was completed and in operation to Iowa Falls.
Considerable right-of-way had been acquired between Iowa Falls and Fort Dodge and the grading already commenced when a sale and transfer of the right-of-way, the uncompleted work and the portion of the land grant belonging to the line west of Iowa Falls, was made to John I. Blair and his a.s.sociates. The Iowa Falls and Sioux City Railroad Company was organized on October 1, 1867, and on January 7, 1868, by a contract of that date, took over from the Dubuque and Sioux City Company all the right-of-way west of Iowa Falls and the work already done, also the proportion of the land grant inuring to the line west of Iowa Falls and all of the rights and franchises of the Dubuque & Sioux City Company pertaining to that portion of the line.
Prior to this date, viz: on September 13, 1867, the Dubuque and Sioux City Railroad Company leased to the Illinois Central Railroad Company the portion of its road already constructed to Iowa Falls and also the line to be thereafter built from Iowa Falls to Sioux City. This lease was for twenty years or in perpetuity at the option of the Illinois Central Railroad Company. The legislature of the state of Iowa on April 7, 1868, pa.s.sed an act ratifying the said sale by the Dubuque and Sioux City Company and vesting the land grant in the Iowa Falls Company.
[Ill.u.s.tration: CONGREGATIONAL CHURCH, CENTRAL CITY]
[Ill.u.s.tration: CHRISTIAN CHURCH, CENTRAL CITY]
The work begun by the Dubuque and Sioux City Company was vigorously prosecuted so that the road was completed and in operation to Fort Dodge early in 1869. In the fall of 1870 it was finished through to Sioux City and the entire line turned over to the Illinois Central Railroad Company for operation under the lease. J. E. Ainsworth was superintendent of construction. In the original articles of incorporation the princ.i.p.al place of business of this company was fixed at Dubuque, Iowa, but in October, 1869, the articles were amended and the main office of the company moved to Cedar Rapids. John I. Blair was the first president. He was succeeded in 1871 by Horace Williams, who remained at the head of the affairs of the company until the control of the same pa.s.sed into the hands of the Illinois Central Railroad.
In March, 1887, the Iowa Falls and Sioux City Railroad Company sold to the Iowa Rail Road Land Company the remaining acres of its land grant and all a.s.sets accruing from land transactions. At that time all of the individual stockholders of the railroad company sold their shares to the Illinois Central Railroad Company, who moved the offices of the corporation from Cedar Rapids to Dubuque, and afterwards consolidated the company with the Dubuque and Sioux City Railroad Company.
THE FREMONT, ELKHORN AND MISSOURI VALLEY RAILROAD COMPANY
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