Transcontinental Railroad | Dancing with a Whirlwind | 2

Thomas Durant played a central role in the construction of the transcontinental railroad, manipulating corporate structures and financing to amass control and orchestrate lucrative schemes.

Durant manipulated the Union Pacific's incorporation and leadership to seize control of the company.

Durant gained control of the Union Pacific Railroad by pressuring friends and acquaintances into purchasing shares and ensuring those shares were in their names while offering a guarantee against any loss and the option to buy back the stock if necessary. This allowed him to exceed the legal limit of individual ownership, controlling a majority of the company’s stock indirectly. It’s noted that Durant managed to finance most of the sales through straw buyers, and then, through a reshuffling of the board, placed his appointees in key positions. As a result, nearly half of the initial shares were bought by Durant or his affiliates. John Dix became president, but it was Durant, the newly-appointed vice president, who effectively held the reins.

Durant founded a sham construction company called Credit Mobilier of America to siphon profits from the railroad's construction.

In March 1864, Thomas Durant established the Credit Mobilier of America, launching a fraudulent scheme where Credit Mobilier was contracted by the Union Pacific to construct the railroad at highly inflated prices. Durant then subcontracted the actual construction work at a much lower cost and pocketed the marked-up difference. The sizeable profits from this scheme were funneled to Durant and his associates, who took advantage of government funding intended for the construction. This setup was meant to ensure Durant and his insiders would profit irrespective of the railroad's actual completion.

Durant exploited the government's system of paying the railroad companies by the ...

The Central Pacific Railroad faced monumental technical and logistical challenges during the epic construction of the first transcontinental railroad, particularly through the treacherous Sierra Nevada mountains.

The Central Pacific encountered major obstacles in constructing the railroad through the Sierra Nevada mountains.

The effort to conquer the Sierras saw Central Pacific crews, led by Chief Engineer Samuel Montague, tackle a variety of formidable obstacles.

The Bloomer Divide, a 63-foot high, 800-foot long stretch of cemented gravel, required months of intensive labor and explosives to clear.

The Bloomer Divide, roughly 30 miles northeast of Sacramento, presented a significant barrier. Crews worked tirelessly, carrying gravel away one wheelbarrow at a time. They used up to 500 kegs of black powder a day to blast through, creating the Bloomer Cut.

The crews had to carve a ledge along the sheer granite cliffs of Cape Horn, with workers in baskets dangling from ropes to drill and blast the rock.

At Cape Horn, a granite cliff towering 1,400 feet above the American River, workers faced a daunting task. They were lowered down the cliffside in baskets to drill holes into the granite, plant explosives, and be drawn back up to safety before detonation.

The Central Pacific had to bore 15 tunnels through solid granite, an unprecedented engineering feat that progressed at a painfully slow pace.

In the endeavor to push through the mountains, 15 tunnels had to be bored through solid granite—a global engineering first. Progress was sluggish, with a pace of just six to twelve inches every 24 hours, and the work was executed under grueling, dangerous conditions.

The Central Pacific faced a severe shortage of workers, which it solved by hiring thousands of Chinese immigrants.

The Central Pacific's most pressing logistical issue was a severe labor shortage. Initially, only 600 men composed the workforce, an insufficient number for the colossal work ahead, in particular the challenges posed by the Sierras.

The Chinese workers proved to be hardworking, disciplined, and capable of performing the most dangerous tasks, despite skepticism from the railroad's management.

To resolve the worker shortage, despite initial skepticism regarding their strength and skills, 50 Chinese men were employed on a trial basis. They quickly proved to be indispensable, being hardworking, taking minimal breaks, and working well in teams. Their perseverance and efficiency impressed the executives, with Crocker even suggesting recruitment from ...

The construction of the transcontinental railroad was a monumental task in American engineering, heavily influenced by key figures in the U.S. government and dedicated individuals who made strategic decisions that would shape the project.

President Lincoln played a crucial role in determining the Union Pacific's eastern terminus and route.

President Abraham Lincoln's involvement in the early planning stage of the transcontinental railroad was fundamental to determining its eastern terminus, influenced by his meeting with engineer Grenville Dodge in 1859.

Lincoln appointed Grenville Dodge, a talented engineer, to advise on the best route for the Union Pacific, which led to the selection of Council Bluffs, Iowa as the terminus.

Lincoln, initially preoccupied with the Civil War, delayed his decision on the starting point for the railroad. Council Bluffs, Iowa was suggested by Grenville Dodge as the most practical starting point due to its uniform grade across the Platte River Valley and the extension of other railroads toward it. In the spring of 1863, Lincoln summoned Dodge to the White House, where Dodge reiterated his belief in the Platte River route. Lincoln eventually issued an executive order designating Council Bluffs as the terminus, perhaps influenced by his own property interests in the area and political debts in Iowa.

However, Durant was able to exploit the vagueness in Lincoln's executive order to make Omaha, Nebraska the actual terminus across the Missouri River.

While Council Bluffs was officially designated in Lincoln's executive order, the vague language allowed Thomas C. Durant, a key figure in the Union Pacific company, to ultimately decide that Omaha, Nebraska would be the practical starting point, thus avoiding the immediate cost of building a bridge over the Missouri River. As the Civil War raged on, Lincoln and his staff were too occupied to challenge Durant's decision or his motive, which involved his own property interests. A groundbreaking ceremony took place in Omaha, which sparked speculators to invest in the area, anticipating future profits.

Grenville Dodge, a Union Army officer, was eventually convinced to join the Union Pacific as chief engineer.

Recognized for his engineering prowess and military expertise, Grenville Dodge played a vital role in organizing the construction of the railroad.

Dodge reorganized the Union Pacific's workforce along military lines, drawing on his wartime experience to improve efficiency and p ...