In 1886, a Colorado railroad known as Denver & Rio Grande was experiencing great financial difficulty. Rolling stock had not been maintained and was wearing out quickly. Just about every piece of D&RG equipment was in need of some repair. D&RG President William J. Palmer was receiving reports of men all along the line "stealing right and left."
Washouts along the rail lines around Wellington, Utah, disputes with labor unions, and a war with competing railroads were causing the Rio Grande to lose money faster than it could make it.
During the few years prior to 1886, control of the Rio Grande was held and controlled by easterners who had no railroad experience and were not familiar, or concerned, with the particular problems of mountain railroading. Palmer was ousted and the eastern directors appointed Frederick Lovejoy as president of the railroad.
Lovejoy had replaced a lot of Palmer's experienced managers with men of his own in an attempt to gain control of the faltering railroad. By March of 1886, it appeared that Lovejoy's attempt to gain control had succeeded.
Lovejoy Loses Control of the Rio Grande
General Palmer had other plans for the financially floundering D&RG. In an attempt to satisfy tremendous debts, the United States Circuit Court arranged for the foreclosure and "friendly sale" of the Denver & Rio Grande on July 12, 1886. In just two days, a new company was organized and named the Denver & Rio Grande Railroad. New stock was issued, the old debt was retired, and a new president was appointed. William S. Jackson, a banker from Colorado Springs, would ensure Palmer's plans to build a mountain railroad empire would be realized.
Jackson had initially come to work for General William J. Palmer back in 1872 as traffic manager for the new Denver & Rio Grande. Just eight years later, Jackson was made General Manager and soon became one of Palmer's closest friends. It was this friendship which would allow Palmer to control the newly formed Denver & Rio Grande Railroad through Jackson.
The D&RGRR Begins Rebuilding
The Lovejoy years had taken their toll and the railroad was in a terrible state of disrepair. But Palmer was a builder of railroads and the dream to build this particular railroad in the mountains of Colorado, New Mexico, and Utah was still very much alive in him. It was time to make a decision to pack it all in or start rebuilding from the ground up. Jackson convinced the shareholders that the D&RGRR could not afford not to build.
Palmer and Jackson set their eye on the mining town of Aspen, Colorado. At that time, Aspen was second only to Leadville as a mining camp. Aspen's remote location made it virtually impossible to haul large quantities of minerals out of the area. The bustling town and mining camp were nestled deep within the formidably towering peaks of the Rocky Mountains.
The only access was by wagon and that was extremely dangerous, slow, and could not remove enough ore to be profitable. Building a railroad line to bring the high grade ore down to the smelters was the solution and Jackson knew it. Building a railroad line into Aspen would be a daunting task to say the least but the profits from such an endeavor would be almost unimaginable.
A New Beginning for Aspen, Colorado
Beginning at Red Cliff, the Denver & Rio Grande Railroad began to lay tracks toward Glenwood Springs. The rail line would follow the Colorado River through the beautiful and treacherous Glenwood Canyon.. The next part of the line would take rail crews up the 42-mile stretch along the Roaring Fork to Aspen. By the end of October 1886, the line was completed.
Over 600 track-layers were treated to a barbeque by grateful Aspen residents. The arrival of the railroad touched off a celebration that lasted for a week. The D&RGRR had come to Aspen. The town, the people, and the Denver & Rio Grande Railroad would never be the same.
Sources:
- Athearn, Robert; The Denver and Rio Grande Western Railroad. Lincoln, NE: University of Nebraska Press, 1977
- Griffin, James R.; Rio Grande Railroad. St. Paul, MN; MBI Publishing , 2003
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