It was not long, however, before it began to appear that Mr. Strong's plan was to sacrifice Denver in the interest of his main line, and, in the advancement of that purpose, to divert the wholesale and jobbing trade of the State to Pueblo, making that the commercial center, and using the leased lines as feeders and distributors of traffic from the base at Kansas City. He was at war with the Kansas Pacific and Union Pacific, though he subsequently pooled with them when it became apparent that his principal scheme would fail. The apprehension grew among the wholesale and jobbing merchants of Denver as to evidence accumulated, that they were to be restricted to such trade as might be open to them in the northern division of the State. The Santa Fe signalized its possession of the narrow gauge lines by immediately raising the rates on consignments to the south, which was a conclusive indication of Mr. Strong's ultimate design.
Matters proceeded in this manner until March 1879, when the great struggle which began in the Grand Canon was resumed with renewed vigor. The Santa Fe Company demanded that they be allowed to examine the books kept by Palmer"s Officers, which the latter refused. On or about the 20th of that month, rumblings of another tempest became distinctly audible. THe rancer between the belligerents, though smothered for a time had never been wholly quieted. Now it threatened to become more wicked, turbulent and irreconcilable than before. A prolonged and bloody trail of conclusions was foreshadowed, and it soon manifested itself in violent action. Armed parties began to re-enter the canon, preparatory to the soon expected decision of the United State Supreme Court on the question of prior right-of-way. Each party was sanguine that it would be in its favor, and each resolved to be on hand at the moment when it should be announced, so as to lose no advantage through neglect of opportunities. Early in April the Rio Grande people, exasperated to the fighting point by the movements of their hated adversary, began preparations to retake and hold at the muzzles of rifles and shotguns, if necessary, the entire system of roads which they had built, and which it was claimed was being operated in violation of some of the principal conditions of the lease. General Manager Dodge, who keenly watched every movement, declared that the lease had been virtually broken by the Santa Fe, within the first twenty-four hours of its possession and so notified Manager Strong. Palmer, with his exhaustless energy, had meanwhile succeeded in making arrangements for ample funds to extend his line to leadville and to the San Juan.
The apprehension of an attack upon, and the seizure of Rio Grande trains, stations and other property, became so alarming as to induce W.W. Borst, Superintendent of the Atchison interest, to issue a printed circular addressed to all employes of the road, reciting the events which led to its transfer, and stating that he had been informed from trustworthy sources that Palmer and Co., regardless of existing contracts, would attempt, by arresting the employes "on trumped up charges" and by forcible means to obtain possession of their property. He cautioned them not to obey any orders save those of the regularly constituted authorities of the road.
A show of violence occured at Colorado Springs, in which a few men undertook to break oopen the baggage room of the station at that point, but were fired upon by the guard and frightened away.
About the 10th of April, Mr. Strong arrived in Denver to begin preparations for a war which he knew to be inevitable, not in the Grand Canon alone, but in the courts also. Palmer and his officers openly asserted that the Santa Fe had mismanaged the road, diverted trade from it and was endeavoring to wreck it. On the other hand, Strong asserted that the books had been spririted away out of the State by Sec. Wagner.
When negotiations for the lease began in 1878, Denver and Rio Grande bonds were quoted at forty to forty-five cents. In 1879 they were ninety cents on the dollar. The stock was then practically worthless, but had since risen to sixteen and seventeen cents. One of the evidences of bad faith shown by Palmer was demonstrated by an arrangement that had been entered into between the Santa Fe and the Denver and South Park Roads, whereby the latter was to be assisted with funds to complete its road to leadville, but that, owing to the refusal of the trustees of the Rio Grande Bondholders, it thad to be abandoned.
On the 21st of April, 1879, the Supreme court rendered its decision upon the prior right-of-way in the canon through Justice Harlan (Chief Justice Waite dissenting) that both roads were entitled to joint occupancy of the narrow gorge, but giving the Rio Gradne the prior right. The Santa Fe was allowed to share the privilege under rules to be fixed by the court (cicuit) upon grounds of equity and public policy. It was then definitely determined that no single company of railway builders could pre-empt, occupy and hold against all comers, the narrow gorges of the mountains. The opinion, reduced to brief terms, declared; First, that the Rio Grande was intitled to the prior right; Second, that the injunction against it must be dissolved; Third, joint occupancy under rules to be fixed by the court; Fourth, that the court below erred in not recognizing the prior right-and in enjoining it from proceeding with the construction of its road.
Victory came to the Rio Grande at last, but its fruits were not to be enjoyed until the termination of another mighty battle with its powerful antagonist.
A portion of page 110 and 111
This portion of the Meade's Manual transcribed in altered form by Russell L. Crump