Atchison Topeka & Santa Fe Railroad in Kansas
January 31st, 1880, the Atchison, Topeka & Santa Fe and the St. Louis & San Francisco Companies entered into
two agreements. By the terms of the first, which was preliminary to the second, the Atchison Company acquired
without cost to it, one-half of the capital stock and a joint and equal control of the Atlantic & Pacific Company.
Both the Santa Fe and the St. Louis Companies were then to convey their shares to three trustees who would
hold them and manage in the common interest.
The second part of the arrangement was a tripartite agreement whose terms, in brief, were as follows:
(1) As thus constituted, the Atlantic & Pacific company was to begin and complete the Western Division as soon
as practicable; and this line when finished was to be operated jointly by the Santa Fe and Frisco companies as a
continuous through line to and from the Mississippi and Missouri rivers and the Pacific coast. (2) In order to
construct its Western Division the Atlantic & Pacific Company was to issue first mortgage bonds upon all its
Western Division property and franchises at a rate not exceeding $25,000 per mile; and non-cumulative,
income bonds at not more than $18,750 per mile. The Atchison and the St. Louis Companies each had a right to
dispose of one-half of the foregoing securities and the funds thus raised were to be used in constructing,
equipping, maintaining, and operating the Western Division, and in meeting interest obligations on bonds
maturing before the road was completed. (3) When the Central Division of the Atlantic & Pacific road was built
from Vinita through the Indian Territory both the Santa Fe and the St. Louis & San Francisco Companies were
to furnish one-half the cost and enjoy one-half the profits accruing from the enterprise.
(4) No new lines were to be built in Kansas except by mutual consent, with joint ownership and joint cost.
(5) The lines of the two railroads were to connect at Wichita afterwards changed to Halstead Kansas.
(6) For thirty years, all business to and from the Western Division of the Atlantic & Pacific was to pass over
the Atchison road between the Rio Grande river and Wichita; from Wichita all St. Louis business was to go over
the Frisco and all Chicago business should be routed over the Santa Fe lines to the Missouri River.
(7) The interest on the Atlantic & Pacific first mortgage bonds would be paid as a part of the cost of
construction until one year after the road was opened to the Coast. Then, if net earnings were not enough to
meet such interest charges, each company was to contribute in equal proportion to make up the deficiency, but
this amount need not exceed 25 per cent, of the gross earnings each road received upon the business
interchanged with the Western Division. (8) It was agreed that the proceeds of the Atlantic & Pacific land
grant should be used to pay the interest and bonded indebtedness of that company.
In the spring of 1881 work on the Florence, El Dorado and Walnut Valley extension south from El Dorado,
Kansas, was begun. As the road approached Augusta, Kansas an election was held in which several townships
voted railroad bonds with enthusiasm. Considerably wrought up over the prospect of getting a railroad, the
Southern Kansas Gazette of Augusta came out with an inspiring editorial headed:
"Another Boom Bonds Carry All Along the Line"
God made the country, and man made the cities and one of the greatest helps in developing the country and
assisting man in building large and magnificent cities is the railroad. Communities cry for them as children cry
for sweetmeats; people buy them with bonds, as anxiously and readily as children spend their pennies for candy.
Without railroads farm lands are valueless, cities and towns sink into ruin and oblivion, while their neighbors,
who are blessed with these roads, enjoy the pleasures of life and realize that their property has a fixed value,
readily convertible into cash. Desiring all reasonable and attainable facilities for the transaction of business;
and all possible auxiliaries for the development, growth and prosperity of our county and cities, the people of
August, Walnut, and Douglass townships have voted the aid asked by the A T & S F company ($40,000) for the
extension of the Walnut Valley branch through their respective townships. The road will be completed by August
1st and the building thereof will furnish employment for a large number of men at good wages for ninety days.
Augusta will be the contractors' headquarters. Here the supplies will be purchased and all the general business
relating to the construction of the road transacted. . . . This in connection with the present boom in building and
general business will make our city the liveliest town in the State. It is useless at this time to refer to the
benefits to be derived from the completion of the road. Suffice it to say that no town in the state will have the
advantage of us, and that with our magnificent farming country to back us up, Augusta will soon take rank among
the most important cities of the State. While it is to be feared that Augusta has never realized these high
ambitions, this sentiment fairly typified the extravagant hopes with which the prairie towns welcomed an
approaching railroad. Late in the summer as the line reached Douglass, a tiny hamlet eleven miles south of
Augusta, a welcoming celebration was planned. The local paper has left an interesting description of the affair,
a part of which account follows:
"As soon as it became evident that the efforts of the A T & S F Company to complete the branch road to
Douglass by the first of August would be a success the people of our town determined to celebrate in honor of
the event, and at once directed their efforts to pleasantly entertain all that might be with us on the day chosen
for the occasion. Tuesday, August 2nd, was the day of merriment, and no atmosphere more pure ever existed
and no brighter sun ever rose in its grandeur to light the course of a happy people than Tuesday's sun, which
being unclouded during the whole day imparted intense heat that at midday was a little uncomfortable to
endure, but the splendor of the day is not often surpassed. . . . The Railroad Company not forgetful in
attributing to the people's pleasure, kindly gave a free excursion from El Dorado and return. The cars were
prepared and kept in readiness at El Dorado, and early Tuesday morning the people began to gather at the depot
from every direction. At eight o'clock the train started with about fifteen hundred persons aboard, and those
desiring were permitted to join the crowd on the road until the number was swelled to probably two thousand
people when the train arrived at Douglass. Waiting the arrival of the train were perhaps as many more making in
all some four thousand people assembled at Douglass to view the growing town, observe the surrounding country,
listen to the orators of the day, meet friends and have a good time in general. For some reason the orators of
the day were not present, but their places were ably filled by Messrs. E. N. Smith and A. L. Redden, of El
Dorado, and others. The El Dorado band furnished the music and the program was carried out apparently to the
satisfaction of all. At two o'clock the new store building of J. M. Wilson was occupied by the young people who
engaged in dancing until a later hour. At night Lowe's Hall was opened for a ball and was completely filled by
those that like to assemble where the merriment of the young goes on. At four o'clock the excursion train
returned to El Dorado, when those that desired were permitted to go as far as Augusta and return on the
evening train. All day the different places of business were a scene of life, and it was the beginning of a new
era for our men of trade, the incentive to action long needed, the dispeller of discouragement long felt. No act
of turbulence, no flagitatious scene marred the pleasure of the things of people from whose faces there
radiated the expression of joy. And Douglass realized a day long looked for not soon to be forgotten".
Such was a typical celebration of the day when the railroad came to town.
Construction for the year 1881 aggregated nearly 257 miles, comprising an extension of the Marion &
McPherson branch from Lyons to Ellinwood, about 20 miles ; the Florence, El Dorado and Walnut Valley
extended from El Dorado to Douglass, 24 miles, and the Harvey County railroad, Sedgwick to
Halstead, Kansas, 9 miles in length. These branches were completed to the points named on September 1st,
August 1st, and December 31st, respectively. In addition there were the lines in the Southwest already
described : the Rio Grande, Mexico & Pacific from San Marcial to Deming, and Rincon to the Texas boundary ;
the Rio Grande & El Paso railroad in Texas from the New Mexico line, 20 miles to El Paso; the New Mexico and
Arizona of which about 18 miles were finished in 1881 ; and a short spur of about 7 miles from Raton to the coal
mines at Dillon in northern New Mexico. The following year (1882) about 124 miles were added. This
increase included a 14-mile track from Olathe to connect the Southern Kansas system with the main line at
Holliday, with the remainder in New Mexico and Arizona. Also, in the summer of 1882 the Santa Fe purchased a
controlling interest in the Leavenworth, Topeka & Southwestern, commonly known as the "Leavenworth &
Topeka," a line about 46 miles in length running from Meriden to Leavenworth, Kansas. At the end of 1882 the
Atchison, Topeka & Santa Fe system comprised 2,620 miles of railroad, located in Missouri, Kansas, Colorado,
New Mexico, Texas, Arizona and Sonora, Mexico. The total earnings were over $14,770,000 an increase of
nearly $2,200,000 over the preceding year. The net earnings were more than $6,000,000 of which the
Southern Kansas produced over $600,000. The Company now represented a permanent investment of more
than $82,000,000 in stocks and bonds and was in an excellent financial condition with no floating debts. To
handle the growing traffic of the road 97 locomotives and 611 cars were added to the Santa Fe's equipment
that year. In his annual report for 1882 President Strong said: "Thirteen years ago the Atchison, Topeka &
Santa Fe railroad, a line then 28 miles in length under the same general direction which now governs its affairs,
asked the confidence and support of the Massachusetts public in the execution of the projects it contemplated.
Through good and evil times that support has always been readily given and that confidence has never been
broken ; and as a result those who have followed the fortunes of the company have shared in its prosperity."
What the future plans of the company might be, Strong said must largely depend upon the policy pursued by the
road's competitors. He assured the stockholders that every prudent measure would be taken to preserve the
property in its integrity. It is doubtless quite apparent by this time that Strong's method of preserving the
integrity of his company's property was that of vigorous expansion and while wonderful progress had been made
in thirteen years, the railroad was as yet only started upon its future great development.
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