Santa Cruz Railroad

California / Common Carrier / Santa Cruz Railroad

History

By John F. Hall

Reference Data.
Incorporated.
June 18, 1873

Corporate Ownership.
Narrow Gauge:
Santa Cruz Railroad 1873-1881
Southern Pacific 1881-1883
Standard Gauge:
Southern Pacific 1883-1988
Southern Pacific - Rio Grande Industries 1988-1996
Union Pacific 1996-2012
Santa Cruz County Regional Transportation Commission 2012- Present

Distances.
Santa Cruz - 0 mi
Liebrandts - 1.5
Woods - 2.2
Soquel - 5.2
Aptos - 8.7
Leonards - 11.5
San Andreas - 14.2
Martins - 17.4
Watsonville - 19.5
Pajaro - 21 mi

Rail Weight.
iron, 35 lbs. 1873-1881

Average Train Speed.
Freight: 14 mph
Passenger: 20 mph

Max. Grade.
2%

Equipment Roster
April 23, 1881
4-4-0 Locomotive "Pacific"
4-4-0 Locomotive "Jupiter"
0-4-0 Locomotive "Betsy Jane"
2 Passenger Coaches
1 2nd Class Coach
3 Gondola cars
1 Baggage or Express car
4 Box cars
2 Rack cars
21 Flats
4 Hand cars
3 Push cars

In 1869 Frederick A. Hihn began advocating for a railroad in Santa Cruz County. He suggested that the property owners put up half the needed funds and the County issue bonds for the balance. He explained that a railroad would increase property taxes and pay for the bond costs. Two years later the people voted to issue $100,000 in bonds to help finance a standard gauge railroad from Watsonville to Santa Cruz. The bonds were approved, with the voters of Watsonville voting against the project. A contract is signed by President Hihn of the newly incorporated Santa Cruz and Watsonville Railroad to build the line. Mr. Hihn only had a paper company and was hoping to convince the Southern Pacific to build the line. However the SP was not interested. Possibly because there was a proposal currently active in San Francisco to build a railroad down the coast of the peninsula and through Santa Cruz County. The Southern Pacific instead decided to extend its line south from Watsonville through the Salinas Valley.

Mr Hihn continued to push for a railroad and convinced the County to have another election in November 1872 increasing the County's contribution to $250,000. This time the election was for a 3 foot gauge or greater railroad along the coast of Santa Cruz from New's Years Point (Año Nuevo) to the SP depot at Pajaro. Again the County voters passed the bond issue with the voters of Watsonville opposing the measure. Once again Mr. Hihn approached the Southern Pacific to build the railroad. This time the SP performed an exploratory survey to determine if they wanted to take on the project. The SP again declined. Mr. Hihn and others decided to take on the project and requested a franchise for the three foot gauge Santa Cruz Railroad, not yet incorporated, to build a railroad from Santa Cruz to Pajaro supplemented with the County bond funds. The County approved the request.

August 1879

Frederick Hihn, Claus Spreckels, and others incorporated the Santa Cruz Railroad on June 18, 1873. absorbing the Santa Cruz and Watsonville railroad. The SCRR was formed for the purpose of constructing, conducting and maintaining a railroad in Monterey and Santa Cruz counties. The route of the road commenced at Pajaro Station on the line of the Southern Pacific Railroad in Monterey county, running through Santa Cruz county, crossing San Lorenzo river, and along the coast to the northern boundary of Santa Cruz county near Point Año Nuevo.

Fredrick Hihn and Claus Spreckels were majority stockholders with Hihn holding 46 percent of the stock and Spreckels holding 31 percent of the stock. George Treat, a sawmill owner, held four percent of the stock. The remainder of the stock was sold to 96 land owners and business people in the County. The majority of the stockholders held five shares or less.

Construction of the railroad began in December 1873. The County Bond issue required the railroad to construct five miles from the city of Santa Cruz before the first subsidy of $6,000 could be issued. In addition the bridge over the San Lorenzo River needed to be constructed. However, the construction could be started anywhere along the line. The easiest and cheapest portion of the line was east of the San Lorenzo River so the construction was started there. When five miles had been constructed the company sought the first subsidy only to be turned down because the San Lorenzo bridge had not been constructed as required.

The first locomotive arrived in October 1874. It was a five ton 0-4-0 later to be called Betsy Jane. Soon after its arrival an excursion of stockholders to the end of the rails was organized. When they got back to the Santa Cruz depot they found that citizens of Watsonville had requested an injunction preventing Santa Cruz County from releasing any of the railroad bonds. This issue was to haunt the railroad until December 1880 when the final version of the complaint was adjudicated in the California Supreme Court.

Construction continued without the County Bond funds. The San Lorenzo River Bridge was completed in May 1875. The rails were completed to Aptos a week later. With the end of track at Aptos the Porter Locomotive Santa Cruz for the Santa Cruz & Felton Railroad was hauled by wagon from Pajaro to Aptos, placed on the tracks and steamed its way into Santa Cruz in July 1975.

With the County bond funds still tied up in the Courts the managers of the SCRR negotiated a loan with J. A. Donohue and Peter Spreckels for $125,000 to complete the road and rolling stock. The first Baldwin locomotive, the Pacific, arrived in November 1875.

In March 1876 a County court decision released $114,000 in County bonds to the railroad for building 19 miles of railroad. The original surveyed railroad alignment had the route cutting straight across the Pajaro farmlands leaving Watsonville separated from the railroad. Soon after the bonds were released a decision was made to reroute the railroad through Watsonville and then across the Pajaro River to the SP station at Pajaro. Rails were laid as far as the Watsonville depot by May 1876 with omnibus connection to Pajaro. The Baldwin built locomotive Jupiter and two Barney & Smith passenger cars arrived and went into service a few weeks later. The railroad was opened to Pajaro with the completion of the Pajaro River Bridge in November 1876.

Hihn attempted to collect more bonds from the County for completion of the railroad. The County refused and Hihn sued. Again the decision went all the way to the California Supreme Court. In December 1880 the California Supreme Court ruled that the County Bonds were issued illegally because the railroad never made it to Point Año Nuevo. The County did not pay the requested bonds.

The railroad initially carried a modest amount of freight and passengers. But, financially it was never a success. The railroad lost money for four straight years. The greatest amount was reported in June 1877 as a loss of $27,033 for the year. This annual loss alone may have been overcome as traffic increased along the line if other factors had not occurred.

First, in January 1878 a major winter storm tore up the track along the beach between the Santa Cruz & Felton Railroad pier and Liebrandt's Baths. In order to collect funds to repair the break Mr. Hihn placed an assessment of $10 on each share of stock. Charles Spreckels did not pay and Hihn sued him. Again the case went all the way to the California Supreme Court where the court ruled that fully paid-up stock could not be assessed for additional funds. This action set a precedent that changed the way California corporations raised funds. For example, the Santa Cruz & Felton Railroad used the assessment procedure numerous times to raise maintenance funds after damaging storms.

Second, after December 1879 the Soquel Sugar Beet Mill closed as a financial failure.

Third, in May 1880 the South Pacific Coast Railroad was completed and provided a quicker, more direct route to San Francisco markets.

Fourth, in January 1881 another storm washed out the San Lorenzo River Bridge and left the Howe Truss on the beach below. Without funds to repair the bridge the Santa Cruz Railroad ceased to operate.

Frederick Hihn had had enough. He negotiated a deal on April 23, 1881 with the Pacific Improvement Company, a Southern Pacific Railroad subsidiary, to purchase his stock and County Bonds of the Santa Cruz Railroad. The Southern Pacific immediately started work replacing the San Lorenzo River Bridge and putting the narrow gauge railroad back in service.

However there still was the outstanding loan originally issued by J. A. Donohue and Peter Spreckels. The loan was foreclosed and the railroad advertised for sale in September 1881. As expected the Southern Pacific Railroad was there for the auction of the railroad but another interested party was also there. Charles Spreckels in association with Alfred E. Davis were there to make a bid. They brought $200,000 in cash with them but did not outbid the Southern Pacific's bid of $198,705.88.

The Southern Pacific Railroad operated the Santa Cruz Railroad as a narrow gauge until the SP broad gauged the railroad in November 1883.

Reference Material Available Online

Rosters

Santa Cruz Railroad Locomotives

Maps.

Santa Cruz Railroad for Google Earth By John Hall

Photographs.

Collected Santa Cruz Railroad Photographs. Images collected from private collections, libraries and historical societies.

References

California / Common Carrier / Santa Cruz Railroad