Selections From The Splinters - Volume 14

With the surveys and reports of Whipple, Palmer and Blickensderfer along the 35th parallel; and those of Morley, Burr, Kingman, Holbrook and others for the ATCHISON, south and southwesterly from Albuquerque, Boston capitalist who were at the helm of things, had adequate information before them upon which to base sound decisions for further action. It was no longer a question of whether to build from Albuquerque towards the Needles along the 35th parallel; towards El Paso along the Rio Grande; or towards Guaymas through Sonora. They had already decided that all of these things should be done. Further; they had also decided to build to Mexico City.

The FRISCO track had reached Wichita in 1880-the same year that the ATCHISON track reached Albuquerque. The ATCHISON, since 1868, when it first broke ground, had reached the following points with its operataions:

          Topeka, Kansas,    Work began                                                      1868
          Carbondale, "      Operation began                                        Sept. 23,1869
          Emporia ,     "           "                                               July  25,1870
          Newton,       "           "                                               July  17,1871
          Great Bend,   "           "                                               Aug.   5,1872
          Colorado State Line       "                                               Feb.  20,1873
          Kansas City, Mo.          "                                               Sept. 29,1874
          La Junta, Colo.           "                                                March 1,1876  
          New Mexico State Line     "                                               Dec.   7,1878
          Las Vegas, New Mexico     "                                               July   4,1879
          Albuquerque,     "        "                                               April 14,1880

The ATCHISON's Annual Report to Stockholders for the year 1883 contains the following concise summary of the reasons that led to the series of agreements dated near the beginning of 1880 between the FRISCO, ATLANTIC and ATCHISON Companies:

The Atchison Road was about reaching the Rio Grande at Albuquerque. The St. Louis & San Francisco Road was operating a road to Vinita, in the Indian Territory. And a line form Pierce City westward, intended to reach Wichita, in the State of Kansas. Both the Atchison and the St. Louis & San Francisco Roads were aiming at the control of a line to the Pacific Coast. The latter Company, with that view, had already acquired seven-eighths of the entire capital stock of the Atlantic and Pacific Railroad, a United States corporation. With most valuable franchises, especially in the matter of Land Grants. On the

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other hand, by that portion of its road from Albuquerque to Wichita, the Atchison was in a position to supply a long link in a line from the Pacific Coast to an eastern terminus at either Chicago or St. Louis. The advantages possessed by each Company toward forming a transcontinental line naturally suggested the idea of a combination to secure the common end. Two agreements were accordingly entered into Jan. 31, 1880, one between the Atchison and St. Louis & San Francisco, the other between the Atchison, the St. Louis & San Francisco, and the Atlantic & Pacific. Of the first agreement, it is only necessary to say that under it the Atchison acquired, without cost to it, one-half of the capital stock of the Atlantic & Pacific and a joint and equal control of that company with the St. Louis & San Francisco, both the latter Company and the Atchisson conveying their shares to three trustees to hold and manage in the common interest. Warren Sawyer being selected by the Atchison, John A. Stewart by St. Louis & San Francisco, and Henry P. Kidder by the two trustees so chosen. The second agreement, commonly spoken of as the Tripartite Agreement of 1880, requires more particular notice. After referring to the Atlantic & Pacific as a United States corporation created to build a line to the Pacific Coast under an Act entitled "An Act granting lands to aid in the construction of a railroad and telegraph line from the States of Missouri and Arkansas to the Pacific Coast", it proceeds to recite that all the parties thereto are desirous of completing a through line of railway to the Pacific Coast; that the Atlantic & Pacific has already caused surveys to be made; and that, for the purpose of completing such line, the parties have agreed to construct and operate, under the Atlantic & Pacific charter, a railroad and telegraph line from Albuquerque by the most practicable route to the Pacific Coast, said line to be called the Western Division of the Atlantic & Pacific Railroad. The substantial features of the agreement which follows this recital are as follows:--

First.-The Atlantic & Pacific is to begin and complete as soon as practicable the Western Division, which, with the roads of the Atchison and St. Louis & San Francisco and their branches and leased lines, is to be operated by the respective parties as an uninterrupted, continuous, through line to and from the Mississippi and Missouri Rivers and the Pacific Coast for the term of thirty years.

Second.-To construct its Western Division, the Atlantic and Pacific is to issue First Mortgage Bonds upon all its Western Division property and franchises at not exceeding the rate of $25,000 a mile and Income

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Bonds (Non-cumulative) at not exceeding the rate of $18,750 a mile, the Atchison and St. Louis & San Francisco to have the right of disposing each of one-half of the securities, and the proceeds to be used in constructing, equipping, maintaining, and operating the Western Division, and in meeting the interest on the bonds maturing before the opening of the road to the Pacific Coast.

Third.-When the Central Division of the Atlantic & Pacific is built, -- from Vinita through the Indian Territory,-- the Atchison and St. Louis & San Francisco are each to furnish one-half the cost and be entitled to one-half the benefits thereof.

Fourth.-No new lines are to be built in Kansas by either the Atchison or St. Louis & San Francisco in competition with the other, except by mutual consent, with joint ownership and at joint cost.

Fifth.-The railroads of the Atchison and St. Louis & San Francisco are to connect at Wichita (afterwards changed to Halstead).

Sixth.-During thirty years, all business to and from the Western Division is to pass over the Atchison between the Rio Grande and Wichita; form that junction all St. Louis business to go over the road of the St. Louis & San Francisco, and all Chicago business over the road of the Atchison; a general manager's contract regulating the details being annexed thereto.

Seventh.-The proceeds of the land-grant are to be applied: 1st, to pay the interest on the First Mortgage Bonds; 2nd, to pay the interest on any second mortgage bonds; 3rd, to pay the principal and interest of contributions to said first mortgage interest made by the Atchison and St. Louis &

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San Francisco in the manner above stated; 4th , to purchase First Mortgage Bonds for cancellation at not exceeding 110.

These are the essential provisions, as finally agreed upon, of the Tripartite Agreement of 1880. They are thus fully stated, because, unless borne in mind, the subsequent history and progress of the Atlantic & Pacific enterprise cannot be understood.

The Annual Report to the Stockholders for the ATCHISON for year 1881 contains the following:

At the request of the St. Louis & San Francisco Railway, a short line has been built by your Company from Sedgwick, on the Wichita Road, to Halstead, on the main line, so as to shorten the distance for through traffic. Under certain conditions, the St. Louis Company will be allowed to run their trains over this road to Halstead; but your Company can terminate the agreement by giving proper notice to the St. Louis Company.

Now this little piece of track plyed an inlportant part in the arrangement between the ATLANTIC, the FRISCO and the ATCHISON. By connecting the trackof the FRESO with that of the ATCHISON at Wichita it became at once possible to inaugurate through service from St. Louis to Albuquerque. From the latter point the ATLANTIC was to construct the track to San Francisco.

The several agreements referred to above read as follows:--

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