Virginia and Truckee Rail Road Company (Signed by William Sharon)

Product Details

$300 to $400

Historical Context

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Gold was discovered in Nevada (then western Utah Territory) in spring 1850, by a company of Mormon emigrants on their way to the California Gold Rush. These early travelers only lingered in Nevada until they could cross the Sierras. By 1858 prospectors were soon permanently camping in the area around what is now Virginia City.  In 1859, gold was found in outcroppings in the hills and canyons just outside what is now Virginia City. Among the gold ore in these outcroppings were bluish chunks of silver ore which clogged the rockers. Silver was not recognized in this form, so initially, it was overlooked in favor of the gold, and later found to be quite valuable. This was the first of the silver from what came to be called the Comstock Lode.

Numerous mills appeared along the Carson River from Dayton to Brunswick (toward Eagle Valley (Carson City)) to process the ore from the Comstock Lode. Low interest rates enticed mine and mill owners alike to finance through the bank. Many of these mills and some mines were built with loans from the Bank of California, whose Nevada agent, William Sharon, would foreclose upon the mines or mills when their owners defaulted on payments. The bank gradually came into possession of many important mining and ore-processing facilities. Sharon, along with business partners Darius Ogden Mills and William Ralston, formed the bank-owned Union Mill & Mining Company to process the ore from the mills that had been foreclosed upon.

Initially, the Comstock Lode was a boon for the Virginia City area, as the city grew to over 25,000 inhabitants at its height, and was among the largest and wealthiest towns in the West. However, from the beginning, the costs to transport Comstock ore to the mills from points on the Lode (as well, to return with wood and lumber to supply the mines)  became so great that many mines were closed and only the higher quality ores were worth processing in the mines that stayed open. Being in control of mines and mills with his partners, Sharon realized that a cheap form of transportation between the mines, the mills, and the cities would allow the banks holdings to be more profitable.

Early years

There were many propositions starting as early as 1861 for railroads to service the area and decrease costs. Sharon eventually (with the addition of $500,000 in county bonds to move the railroad), envisioned a railroad to run from Virginia City, through Gold Hill where the first of the Comstock Lode was mined, passing the mills along the river, ending at the state capital, Carson City. When finished, this route would cover 21 miles, descend 1,575 feet of elevation and have so many curves as to make 17 full circles in the thirteen and a half miles from the river to Virginia City. Ground was broken on February 18, 1869, two miles below Gold Hill on American Flats when grading crews went to work. There were seven tunnels on the line requiring 2 - 5 months each to hole through and an 85 ft tall, 500 ft long trestle to be built over the Crown Point ravine. The first track and ceremonial first spike was driven on September 28, 1869 by superintendent H. M. Yerington, with the first passenger train pulling into Virginia City on Jan. 29, 1870. The railroad served as a reliable connection for residents of Carson City and Virginia City. By December, 1869 special rail cars were outfitted to bring theater patrons from Carson City to Virginia City for Piper's Opera House presentations.

Named the Lyon,engine No. 1 was one of three 2-6-0's purchased from H.J. Booth by the fledgling railroad, along with engine No. 2, the Ormsby and No. 3, the Storey. The railroad placed orders for five locomotives, three from H.J. Booth and two from Baldwin Locomotive Works in Philadelphia, Pennsylvania. The first three of the five original locomotives purchased were named after Nevada counties. The last two of the five were built by Baldwin, engine No. 4, the Virginia and engine No. 5, the Carson, named after the respective towns. The Booth and Baldwin locomotives were disassembled at Reno on a Central Pacific siding. The "Lyon", "Ormsby" and "Storey" were hauled to Carson via Washoe Valley and reassembled in the shops. The "Virginia" and "Carson" were hauled up the Geiger Grade from Reno to Virginia City, thus reassembled. They had the distinction of being the first locomotives in Virginia City. The Lyon, with the distinction of being the first locomotive for the Virginia & Truckee RR, was also the engine that pulled the work train, arriving in Virginia City on January 28, 1870, and completing the initially planned route.  The line was opened in its entirety on Jan 29 with regular passenger service starting on Feb 1, 1870.

On Nov. 12, 1869 V&T Engine no. 2, an H.J. Booth 2-6-0, pulled the first car of revenue for the company from Carson City to Gold Hill, a flat car loaded with lumber for the Crown Point Company. This milestone was also marked by the opening of the Crown Point Ravine trestle and the first crossing of the work train, engine No. 1 plus four cars, followed closely behind by engine No. 2, plus four cars (1 revenue). It is assumed that from the 12th to the 18th the railroad laid track (spurs) to service the local mines of Gold Hill, for without the track, the railroad could not get cars in to load, although no sources have been found to reference this. On Nov. 18 1869, engine No. 1 hauled the railroads first revenue train of ore from the Yellow Jacket mine. By December 21, regular scheduled trains were running between Gold Hill and Carson City, hauling wood and lumber up the hill and ore back down to the mills.

The first lot of ore from the Yellow Jacket mine and in fact from the Comstock ledge - yet shipped over the railroad was sent down yesterday to the Yellow Jacket mill on Carson River. There were seven car loads of it, about eight and a half tons to the load, not far from 60 tons. This was from the 700 foot level of the old north mine, and dumped directly into the cars, the railroad passing within a few feet of the shaft. It is low grade ore, assaying $26 or $28 to the ton, and will yield under the stamps not far from $17 per ton. It is ore which heretofore was considered too poor to work and was accordingly used to fill up drifts with. The railroad now affords for the first time a chance to work this low grade ore profitably. -  "The First Ore Shipment", Gold Hill Daily News (November 19, 1869)

In the chapter above from the Gold Hill Daily News, it states that low grade ore was valued at $26 – $28.00 to the ton. It also states that (after transportation and milling costs, 'yield under the stamps') the result would be around $17.00 to the ton coming back to the mine. Milling rates were about $7/ton. Based on an average of $27/ton of low grade ore, that left a freight cost of $3/ton. That one ton of ore could pay the wages for 3 experienced underground miners and a carpenter for a day, so the mines could cover their costs selling the low-grade ore to pay expenses, and reap the profits from the high grade. With the coming of the railroad, a reduction in freight rates for lumber by almost half occurred, and the railroad could haul more material by the trainload, so mining activity increased, creating more business for the railroad. Sharon's idea of low cost transportation paid off.

The railroad cost $1,750,000 to build, not including the cost of rolling stock or buildings. The V&T ran 30 - 45 trains per day at the height of the Big Bonanza from Carson to Virginia City and Gold Hill. Still primarily a freight railroad, there were 22 locomotives and 361 freight cars in use at the peak of the Virginia and Truckee operations (1876 & 1877), which carried over 400,000 tons of freight per month. This was in contrast to a mere 10 passenger cars.

Expansion and prosperity

In late 1871, a line extension to Reno was begun, to connect the V&T line with the Central Pacific Railroad. This would allow through train service between Virginia City and San Francisco. Construction began with track being installed starting at the Reno end of the line.  The first train to run end-to-end from Virginia City to Reno took place on August 24, 1872,  pulled appropriately by the road's newest locomotive at the time, No. 11, the Reno. This milestone marked the completion of the Virginia and Truckee Railroad. In 1875, the railroad was earning a profit of over $100,000 per month and started paying annual dividends of $360,000 (or $30,000/month) to investors.

In 1880, the V&T built a three-foot narrow gauge railroad called the Carson & Colorado. The railroad ran from Mound House, just east of Carson City, to the southern part of California, and supposedly to the Colorado River where new mining claims were being struck. This never did pan out, and by 1891 those claim sites were all but forgotten.  A liability to the V&T, the "slim princess" was sold to the Southern Pacific Railroad in 1900. In the words of Ogden Mills, "Either we built this line 300 miles too short or 300 years too early" reflected V&T's attitude towards the railroad.

Shortly after the sale of the C&C, silver was discovered at Tonopah, Nevada. The C&C became prosperous for the Southern Pacific (as well as the V&T, which had intermediate rail access), as wagon trains would run for miles through the desert to reach the narrow-gauge line, or later on the Tonopah and Goldfield Railroad which would then carry it back to the V&T at the Mound House junction. Because the break of gauge between the Carson & Colorado and Virginia & Truckee, the Tonopah ore had to be unloaded by hand from the narrow-gauge cars and into the standard gauge cars at the C&C northern terminus, causing a backlog of traffic, as cars waited to be transferred. The problem caused by this was also apparent in delivering mining equipment and materials to the mines and the town of Tonopah which was in a building boom. Southern Pacific officials did not like this arrangement, so in 1904 they converted the narrow gauge C&C to standard gauge from Moundhouse to Mina, now renamed the Nevada & California Railroad. This allowed Southern Pacific trains to run along the V&T through to Mound House to the Nevada & California, and on down to Tonopah. In addition, the Southern Pacific (controlled at the time by the Union Pacific Railroad) offered to buy the Virginia & Truckee, but the V&T officials set their price too high (according to UP president Harriman). Instead, the Southern Pacific built their own line from the closest available intersect with the former C&C. The line ran 28 miles from Hazen to Fort Churchill and connected their own main lines, thus bypassing the V&T entirely.

In 1904, the corporation changed its name to the Virginia and Truckee Railway. In response to agricultural and cattle ranch concerns, the V&T built a short branch line to Minden, about 26 miles south of Carson City, in 1906. This branch line brought in increased freight traffic; as a result the V&T purchased three new ten-wheelers from Baldwin: (the first) No. 25, 26, and 27, in 1905, 1907, and 1913 respectively.

Decline of the railroad

The Virginia and Truckee's decline began as early as 1924, the first year in which the railroad had failed to make a profit.  Mining revenue had dropped off to very low levels, though revenue from the Minden line continued to flow. Passenger revenue was on a steady decline, due to the increased use of the automobile on the ever-expanding highway system in the US. US 395 ran alongside the V&T from Minden all the way up to Reno and US 50 ran from South of Carson City over to Mound House and the turnoff to Nevada State Route 17 (later NV 341), the route to Virginia City.

The sole owner of the railroad in 1933 was Ogden Livingston Mills, grandson of original co-founder Darius Ogden Mills.  He personally paid the deficits in the railroad's operating costs as a nod to the past and his family's involvement in the early days of Virginia City.  In 1938, a year after Mills' death, the railroad went into receivership, and its management began making plans to cease operations,  with the Virginia City branch already having been dismantled during that year. At the time of the railroad's closure, it had only three locomotives operating, the second no. 25 as well as numbers 26 and 27 (all 4-6-0's built by Baldwin in 1905, 1907, and 1913, respectively). The no. 26 was originally scheduled to haul the last train, but after making its run on May 1, 1950, the single-stall locomotive shed it was stored in on the banks of the Truckee River in Reno caught fire. The 26, deemed as a total loss, was scrapped, and the road instead restored no. 27 for the occasion. On May 31, 1950, the no. 27 pulled the Virginia and Truckee's final train, rather fitting as experts considered, since the 27 was the last engine purchased new by the road.

William Sharon

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William Sharon was born in Smithfield, Ohio, January 9, 1821, the son of William Sharon and Susan Kirk. He attended Ohio University. After studying law in St. Louis, Missouri, he was admitted to the bar. In addition to practicing law, he engaged in mercantile pursuits in Carrollton, Illinois.

Career in the West

Sharon moved to California in 1849, accompanied by his friend John Douglas Fry. Sharon and Fry engaged in business together for a short time in Sacramento. Sharon then moved to San Francisco in 1850, where he dealt in real estate. In 1852, he married Maria Malloy. He moved to Virginia City, Nevada in 1864 as manager of the branch of the Bank of California and became interested in silver mining.

Sharon was a business partner of Darius Mills and William Ralston, as well as the Nevada agent for the Bank of California. The bank profited greatly from loaning money to mining and milling operations and then foreclosing on those operations when the owners defaulted. The Bank of California owned mines as well as reduction mills, which Sharon controlled. In his efforts to monopolize the Comstock mining region, Sharon directed mined ore be sent to this mill or that, and affectively “starved out” competition, i.e. those who had come to the bank for loans. The bank also built and owned the famous Virginia and Truckee Railroad.

William Sharon acquired many of Ralston's assets in 1875 when Ralston's financial empire collapsed and he died. He was thought by some of his contemporaries to have actually aided the collapse. He certainly was the main beneficiary of Ralston's assets. Those assets included the Palace Hotel in San Francisco and Ralston Hall in Belmont, California.

His daughter Clara married Francis G. Newlands, who became a Congressman and Senator from Nevada. He was also the father of Florence Emily Sharon, who married Sir Thomas George Fermor-Hesketh, 7th Baronet. Their son Thomas married Louise (née Tevis) Breckinridge, the daughter of banker Lloyd Tevis and divorced wife of John Witherspoon Breckinridge (a son of former Vice President John C. Breckinridge).

Senator

He was elected as a Republican to the United States Senate from Nevada and served from March 4, 1875 to March 3, 1881. He served as the chairman of the Committee on Mines and Mining in the 45th United States Congress.

Sharon spent the majority of his term in office living in California, missing more than 90% of votes.

Sharon vs. Sharon

Sarah Althea Hill was a 30-year-old mentally unstable woman with a history of violent behavior. She carried a small-caliber Colt revolver in her purse and did not hesitate to threaten all who crossed her. She attracted the attention of 60-year-old Sharon. He was at the time reportedly earning over $100,000 per month. He gave her $500 a month and a room in the San Francisco Grand Hotel, adjoining the Palace Hotel where he lived, and enjoyed her companionship from time to time. After just over a year, he tried to end the relationship, but she would not allow it, and kept inviting herself to his office and sent repeated pleas for him to reconsider his decision. He finally evicted her from her room by having the carpets ripped up and the door hinges removed, along with a $7,500 payment.

Sued for adultery

When he began a relationship with another woman, she claimed to be his wife and sued him for adultery. One of her attorneys was former Chief Justice of the California Supreme Court David S. Terry. Sharon countersued, claiming that the marriage contract she produced was fraudulent.

As was the custom at the time, U.S. Supreme Court Associate Justice Stephen J. Field was assigned to assist the California Circuit Court. He was assigned to the Sharon vs. Sharon case. Coincidentally, Fields had in 1859 replaced David Terry on the California Supreme Court after Terry killed California United States Senator David Colbreth Broderick in a duel. Although he was not charged with a crime, he resigned and left the state.

After William Sharon died on November 13, 1885, his son Frederick and son-in-law carried on the case. Hill produced a handwritten will that she said she had found in his desk. Many were suspicious of its authenticity. It gave her all of Sharon's estate. She soon married her attorney Terry.

Forged marriage contract

In January 1886, a U.S. Circuit Court Judge and a U.S. District Court Judge sitting as a Circuit Judge rendered a decision that the marriage contract was a forgery. The Terrys were jailed when they refused to comply with the Court's order to give the court the marriage contract. They returned to the court in March 1888, seeking further relief. Oral arguments was heard before Justice Stephen J. Field, sitting as Circuit Court Justice, Circuit Court Judge Lorenzo Sawyer, and District Court Judge George Myron Sabin. The Court took the matter under advisement. After the court hearing, Judge Sawyer encountered the Terrys on a train between Fresno and San Francisco on August 14, 1888. When Terry and his wife saw Sawyer on the train, she personally threatened to kill Sawyer.

Will a forgery

On September 3, 1888, Field delivered the final Circuit Court opinion. He ruled that the will was a forgery. Sarah Althea Hill Sharon Terry suddenly stood up, screamed obscenities at the judge, and fumbled in her handbag for her revolver. When Marshal John Franks and others attempted to escort her from the courtroom, attorney Terry rose to defend his wife and went for his Bowie knife. He hit Franks, knocking out a tooth, and the marshals drew their handguns. Spectators subdued Terry and led him out of the courtroom, where he pulled his Bowie knife again and threatened all around him. David Neagle was among the Marshals present and put his pistol in Terry's face. Both Terrys were subdued and placed under arrest. Justice Field had them returned to the courtroom and sentenced both to jail for contempt of court. David Terry got six months in jail, and Sarah Terry got one month.

While being transported to jail and while serving their sentences, Terry and his wife repeatedly threatened to kill Judge Field. The Terrys suffered several more setbacks. Both David and Althea were indicted by a federal grand jury on criminal charges arising out of their behavior in the courtroom before Justice Field. In May 1889, the U.S. Supreme Court refused to review the order that invalidated Althea Terry's marriage contract with Senator Sharon. Then, in July, with only one of the four judges who had earlier ruled in their favor, the California Supreme Court reversed itself. It ruled that because Althea Terry and Sharon had kept their alleged marriage a secret, they were never legally married. While in jail or shortly afterward, pregnant Althea suffered a miscarriage.

The newspapers followed the case closely and repeatedly speculated about the likelihood of an attack on Field. When Field returned to California as a circuit riding judge for the 9th Circuit Court again the next year, U.S. Attorney General William Miller instructed Marshal Franks to appoint Neagle as a Marshal with the responsibility to protect Field.

Terry killed

When Terry and Hill were released, they returned to Fresno. On August 14, 1889, they boarded a train in Fresno on which Field and Neagle were returning from Los Angeles. At 7:10 am, all of the passengers disembarked the train to eat breakfast in the railroad station dining room at Lathrop, California. The conductor immediately sent word to Constable Walker that both men were on board and requested that he come at once to the railroad station, but he couldn't be found right away. When Terry saw Field, he slowly came across the dining room and approached Field from the rear. The account in the San Francisco Chronicle the next day reported that Terry slapped Field on his cheek. Other reports said Terry attempted to slap Field, or to grab him by the whiskers.

Neagle, who was 5'7" tall and weighed 145 pounds, testified that the 6'3", 250-pound Terry recognized Neagle from the earlier confrontation in the courtroom. Neagle rose from his chair and said, "Stop that! I am an officer." When Terry drew back his fist to deliver another blow, Neagle shot Terry in the heart at point-blank range with a 45 caliber revolver. As Terry fell backward, Neagle fired again, nicking his ear. Neagle announced to the 80 to 100 people in the dining room, "I am a United States Marshal and I defy anyone to touch me!" Field told them that Terry had assaulted him "and my officer shot him."

Neagle and Field reboarded the train and locked themselves in their cabin. Sarah Terry attempted tried to enter their car, saying she wished to slap Field. Neagle insisted that she be kept out or he would kill her too. The satchel she had fetched from the train was searched and a pistol was found within it. A few minutes later Constable Walker of Lathrop and Stanislaus County Sheriff Purvis arrived. Neagle provided a document issued by the U.S. Attorney General appointing him as a special Marshal to protect Field. Walker arrested Neagle and took him to the county jail in Stockton. Neagle refused to say anything about the shooting. San Joaquin County Sheriff Thomas Cunningham telegrammed San Francisco officers and sought Field's arrest on his arrival in Oakland. This was not done. Judge Fields telegraphed the Marshal's office in Stockton, who relayed the information to the US Attorney General. The United States Attorney in San Francisco filed a writ of habeas corpus for Neagle's release. The circuit court issued the writ after a hearing and ordered Neagle's release.

Federal law supreme

Sheriff Cunningham, with the aid of the State of California, appealed to the United States Supreme Court. Cunningham's appeal was based on whether Neagle acted in pursuance of the law when he shot Terry. Neagle's defense was based on the letter from Miller to Marshal Franks, which gave him federal authority to act as a law enforcement officer. In 1890, the Supreme Court ruled In re Neagle that federal officers are immune from state prosecution for actions taken within the scope of their federal authority.

Sarah committed

Sarah Terry, widowed by her husband's death, gradually went insane. She wandered the streets of San Francisco aimlessly, ignoring her appearance. She constantly talked to "spirits," especially that of her husband. She was diagnosed with “dementia praecox,” an early term for schizophrenia. On March 2, 1892, she was found insane and committed at age 42 to the California Asylum at Stockton, where she lived for 45 years until her death.

Sharon was buried in Laurel Hill Cemetery in San Francisco; and his remains were moved to Cypress Lawn Memorial Park in Colma, California.

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