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Montana Coal and the Milwaukee Road
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[quote]QUOTE: <i>Originally posted by MichaelSol</i> <br /><br />[quote]QUOTE: <i>Originally posted by futuremodal</i> <br /><br />On another one of those "may have already been answered some time ago" questions, I have read where one of the MIlwaukee's board members (a guy named Rockefeller) had pushed for the original PCE project to be a joint effort between the Milwaukee and CNW. At the time of the onset of Milwaukee's PCE construction, what was the farthest westward extent of the CNW line through South Dakota, and would a joint venture have necessitated a more southerly starting point in southwestern SD? If so, wouldn't that have put a CMStP&P/CNW PCE right through the northern portion of Wyoming's PRB? <br />[/quote] <br />The Milwaukee had undertaken tentative exploration surveys, in 1900, for a line to either San Francisco, Portland, or the Puget Sound. In 1901, Milwaukee Chairman Roswell Miller and the new President of the Milwaukee, Albert Earling, had agreed to dispatch surveyors west to determine the costs of building a transcontinental line to the coast, using the Northern Pacific as a model. <br /> <br />Board member William Rockefeller allegedly believed that the Milwaukee should build to the southwest, toward California. Earling and Miller were cool to that idea, believing that, because of its location, Seattle was destined to become the premier shipping port on the coast, simply because it was closest to the Orient and Alaska. There may be some doubt expressed about Rockefeller’s desire to built southwest. Rogers and Rockefeller were in the process of completing their buyout of the Anaconda copper properties in Butte in 1901, and as early as April of that year, Rockefeller voted to authorize a railroad survey from Evarts to Butte, and an alternative survey route from Chamberlain, through Deadwood, to Butte. No Minutes of the Milwaukee Board of Directors suggested construction to California. <br /> <br />These railroad surveys were authorized a matter of days after the Northern Securities dust-up had failed to secure control of the Northern Pacific. <br /> <br />However, E.H. Harriman and the Milwaukee then entered into a joint-use contract of the Union Pacific system. This would have allowed the Milwaukee Road to run its own passenger and freight trains over Union Pacific lines to the coast. The contract, dated October 7, 1902, was between the Milwaukee and the Union Pacific, Southern Pacific, Oregon Short Line, and the Oregon Railroad & Navigation Company. It opened up the Milwaukee’s passenger and freight traffic through Omaha and Kansas City, “granting to this company the option of through car service for both passengers and freight; agreeing that the service shall be equal in all respects to the highest class if similar service conducted by either of the parties jointly with any other connecting carrier; that the rates of charge for transportation service, and the facilities employed and provided for the purpose of soliciting, carrying and delivering traffic, and the means used to advertise the through line shall be equal in all respects to those made by either of the parties." <br /> <br />However, this agreement, quite novel for its time, proved unsatisfactory to Miller. He had a tremendous distrust of Harriman, and within three weeks of the agreement, observed that "everything depended upon the good faith of the Union Pacific road, in carrying out the contract." Two weeks after that, he had apparently concluded that the Union Pacific could not be trusted to honor its agreement. A quarter of a century later, Percy Rockefeller, William's son, told the Interstate Commerce Commission that he did not believe that "the Union Pacific ever quite played fair with the St. Paul in that connection." <br /> <br />In 1904, the Company purchased land for terminal facilities in Tacoma and Seattle. The dissolution of the Northern Securities Company seemed to provide an opportunity to again acquire control of the Northern Pacific, but the U.S. Supreme Court approved a Morgan plan of stock distribution which effectively stymied any possibility of control or even influence. This opinion was handed down in March, 1905 and published during the first part of April, 1905. As a result, on April 27, 1905, the Board of Directors appointed a committee consisting of Peter Geddes, H.H. Rogers and Roswell Miller to acquire the right of way for the “Pacific Extension.” Rogers was a Standard Oil officer, and President of the Anaconda Copper Mining Co.. Geddes was a Director of the Union Pacific. <br /> <br /> The Pacific Railway Co., a Milwaukee subsidiary, was already building facilities in the Tacoma area, and was directed to complete construction of its Tacoma terminal facilities and Puget Sound rail lines. <br /> <br />In July, 1905, Rockefeller discussed with W. K. Vanderbilt of the Chicago & Northwestern the prospects of a joint line to the coast. After the Milwaukee's experience with the Union Pacific, Miller was not favorable to joint operations. <br />On November 4, 1905, Miller advised Earling that Rockefeller had finally agreed with Miller's view, and that arrangements for construction should commence. This wasn't true; Rockefeller was still in discussions with Vanderbilt. The Milwaukee Board, under Miller's influence and Rockefeller's absence in Europe, approved the construction of the Pacific Extension. <br /> <br />Rockefeller was pretty much paying for the project out of his own pocket, which he did, but he clearly had wanted to share the burden with another railroad, and also gain the benefits of joint transcontinental traffic. He could see that the CBQ/GN/NP tie-up was backwards. The then-relatively thin traffic on the transcontinentals was shared with the midwestern line, and the transcontinental traffic generated by the midwestern line split between the two parents. What made more sense was two midwestern carriers operating a transcontinental line. Each would contribute to the transcontinental traffic making a much healthier transcontinental system. That's what Rockefeller was attempting. <br /> <br />Advised of Miller's actions, Rockefeller blew a gasket and threatened to fire Miller as Chairman. But, the project was underway. <br /> <br />William Rockefeller was the co-founder, with his brother John D., of the Standard Oil Company. <br /> <br />Best regards, Michael Sol <br /> <br />[/quote] <br /> <br />Thanks again, Michael. None of the railfan-type history texts have that level of detail. <br /> <br />I know where Chamberlain is, so that must be where the farthest westward extent of the Milwaukee truncated at the time, but where is Evarts? What was the farthest westward extent of the CNW at the time? <br /> <br />If I understand correctly, that would have made the PCE joint effort starting point somewhere in SW South Dakota (Wall? Rapid City?), then skirting the Black Hills to the north (I doubt they would have followed through on a Deadwood routing through the Black Hills), following roughly the later course of U.S. Highway 14 through Gillette WY (and there's your PRB coal connection), then parallel to CB&Q to Billings, then northwest to the Musselshell valley where it would take on the course of the PCE route eventually chosen. <br /> <br />Rockefeller seems like a pretty smart guy (smarter than JJ) to have envisioned the better consolidation of Midwestern traffic onto one transcon. It's too bad they didn't take his advice, or we'd still be seeing Orange (and green?) through the Idaho Panhandle. <br /> <br />
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