American History Tellers: Transcontinental Railroad | Dancing with a Whirlwind | Episode 2

Release Date: November 20, 2024
Host/Author: Lindsay Graham
Network: Wondery

Introduction: The Vision and the Schemer

In the summer of 1863, the United States was gripped by the colossal ambition of constructing the first Transcontinental Railroad. Central to this endeavor was Thomas Durant, a Wall Street speculator and railroad promoter whose relentless pursuit of profit would leave an indelible mark on American history.

Thomas Durant emerged as a pivotal figure in the Union Pacific Railroad, the company tasked with building westward from the Missouri River. Durant's manipulative strategies were crucial in securing the necessary funding and control over the project. As Durant himself puts it, "The potential is limitless." [01:24]

Securing Investment: Durant's Maneuvers

Durant faced significant challenges in raising capital for the Union Pacific. Despite Congress chartering the company and setting ambitious goals, stock sales were sluggish. General Grenville Dodge, a Union Army General and engineer, voiced skepticism: "This just isn't a good time, not with a war going on." [01:45]

Undeterred, Durant employed deceitful tactics, including the formation of the infamous Credit Mobilier of America. This sham construction company allowed Durant and his associates to siphon funds by inflating construction costs, thereby enriching themselves at the expense of investors and the government.

Durant's passion was infectious, Dodgieworks, convincing many to partake in his vision. "The Union Pacific is not just another railroad. It promises to connect the nation from coast to coast." [02:26]

Formation of the Union Pacific Board

By October 1863, Durant had maneuvered his way into the Union Pacific's board of directors, appointing himself as Vice President while positioning John Dix as a mere figurehead. This strategic reshuffling allowed Durant to exert full control over the railroad's operations, sidelining genuine leadership and oversight.

Challenges in Construction: The Central Pacific Struggle

Simultaneously, the Central Pacific Railroad, tasked with building eastward from Sacramento, California, faced its own set of formidable obstacles:

• Labor Shortages: Initially relying on Irish immigrants, the Central Pacific struggled to maintain a steady workforce. Charles Crocker, the construction chief, resorted to hiring Chinese laborers despite rampant discrimination and hostility. As Durant stated, "We need men we can count on." [25:23]

• Harsh Terrain: The Sierra Nevada presented a daunting barrier, with treacherous snowstorms and towering granite cliffs like Cape Horn. The innovative yet perilous methods employed by Chinese workers, such as weaving reeds into baskets for tunnel blasting, underscored their invaluable contribution despite the extreme risks.

Peter Day, the Central Pacific’s Chief Engineer, initially resisted Durant's interference. "Durant is utterly unfit to head this enterprise," Dodge lamented [15:00], highlighting the internal conflicts that plagued the railroad's leadership.

Chinese Laborers: Unsung Heroes of the Railroad

The introduction of Chinese workers was a turning point for the Central Pacific:

• Efficiency and Discipline: Contrary to prevailing prejudices, Chinese laborers proved to be exceptionally hardworking and disciplined. They adhered to strict schedules, maintained healthier lifestyles by drinking boiled tea, and demonstrated remarkable resilience in the face of physical and environmental challenges.

• Economic Exploitation: Despite their critical role, Chinese workers were compensated less than their white counterparts and endured harsher living conditions. Their contributions, however, were instrumental in overcoming the most challenging sections of the railroad, including the Bloomer Cut and the tunneling through the Sierra Nevada.

Charles Crocker acknowledged their prowess: "Workers diligence and clean living." [28:26], although the broader societal disdain towards Chinese immigrants persisted.

Conflict and Competition: Durant vs. Dodge

The rivalry between Durant and Dodge epitomized the tumultuous race to complete the Transcontinental Railroad:

• Durant’s Persuasion: Durant persistently sought to incorporate Dodge into the Union Pacific's operations. After extensive negotiations, Durant successfully convinced Dodge to join as Chief Engineer in April 1866, recognizing Dodge’s engineering brilliance and military leadership. "The Union Pacific is waging the biggest battle of them all," Durant asserted [41:53].

• Organizational Overhaul: Under Dodge's leadership, the Union Pacific restructured its workforce along military lines, enhancing efficiency and discipline. The Casement brothers, Jack and Dan, were appointed to oversee track laying, bringing their military precision to the construction efforts.

• Financial Struggles: Both railroads grappled with significant financial constraints. Durant's schemes through Credit Mobilier initially provided cash flow but ultimately undermined the project's integrity. Meanwhile, the Central Pacific relied on seed capital from the Big Four and loans, barely managing to sustain operations through 1865.

Government Involvement and Legislative Influence

The government's role was pivotal in the railroad's progress:

• Pacific Railroad Act Amendments: The 1864 amendments to the Pacific Railroad Act were a double-edged sword. While they increased land grants and bonds to accelerate construction, they also provided Durant with more avenues to exploit the system financially.

• Oakes Ames’ Intervention: Congressman Oakes Ames, under Lincoln’s directive, injected vital funds into the Union Pacific, purchasing Credit Mobilier stock and providing necessary loans. His involvement was crucial in keeping the Union Pacific afloat, though it also deepened the corruption and financial misconduct associated with the project.

As General Dodge reflected, "With the war to contradict him, so." [11:09], underscoring Lincoln's preoccupation with the Civil War and its impact on the railroad's oversight.

Conclusion: The Relentless March Towards Completion

By late 1866, significant progress had been made:

• Union Pacific’s Expansion: Under Dodge’s disciplined management, the Union Pacific extended over 300 miles, astonishing observers with the rapid pace of construction. "Workers marching on foot from Omaha to Sacramento," a reporter noted, juxtaposing military precision with the sheer human effort involved [43:25].

• Imminent Challenges: Despite the advancement, both railroads faced impending adversities, including harsher winters and escalating competition. The Central Pacific was still battling the Sierra Nevada’s formidable terrain, while the Union Pacific contended with Native American resistance and financial instability.

“You know Durant is right,” Dodge conceded, recognizing the monumental struggle ahead [41:52].

Looking Ahead

The Transcontinental Railroad's completion was not merely an engineering feat but a testament to human tenacity and the complex interplay of ambition, corruption, and innovation. The next episode, "Congress Sets Up a Race Between the Two Railroad Companies," promises to delve deeper into the fierce competition, the relentless challenges faced by the construction crews, and the escalating conflicts that threatened to derail this monumental project.

Notable Quotes:

• General Grenville Dodge [01:25]: “This just isn’t a good time, not with a war going on.”

• Thomas Durant [02:26]: “The Union Pacific is not just another railroad. It promises to connect the nation from coast to coast.”

• General Grenville Dodge [15:00]: “Durant is utterly unfit to head this enterprise.”

• General Grenville Dodge [25:23]: “We need men we can count on.”

• Thomas Durant [41:53]: “The Union Pacific is waging the biggest battle of them all.”

Production Credits:

• Hosted, Edited, and Produced by: Lindsey Graham
• Sound Design: Molly Bach
• Music: Lindsey Graham
• Writers: Ellie Stanton
• Producers: Alita Ryazanski, Desi Blaylock, Matt Gant
• Executive Producers: Jenny Lauer, Beckman Marshall, Louie and Aaron O'Flaherty

For more insights into the monumental efforts and intricate politics behind America's great infrastructure projects, listen to American History Tellers on the Wondery App or your preferred podcast platform.