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An Overview of Nevada's Eureka & Palisade Railroad, along with its successor, the Eureka Nevada Railway.

Palisade, Nevada, Northern Terminal of E.&P. R.R.

At a bend of the Humboldt River sits Palisade, Nevada. The northern terminal of the E.&P. Two story station is E.&P. Large, low station is Central Pacific. Narrow gauge enginehouse is east of (behind) the standard gauge depot. At its zenith, 600 people were said to live here.
The Albertype Co., Brooklyn, N.Y.

The Eureka & Palisade Railroad would be built in an area of Nevada that would become known as "Basin and Range." Traveling across this northern region of the state soon proves the vericity of this geologic moniker. Moving either to the east or west the traveler is confronted by range after range of mountains. It is a plateau ribboned with mountains laid out in a north-south orientation, separated by wide valleys running parallel to the ranges. The valleys tend to be nearly at the 5,000 foot elevation, while the mountain ranges may have summits anywhere from 8,000 to 11,000 feet above sea level. To pioneers, and later, prospectors and miners, these repeating patterns must have seemed endless. The entire region we are dealing with is drained by the Humboldt River. Many tributaries flow into this river that was the path of many pioneers. Amazingly, this river comes to virtually nothing, finally draining into the Carson Sink. As the name implies, the river just disappears in a huge marsh sink.

The weather can be harsh. Dry, hot summers, broken by occasional showers are the norm. Even more occasionally cloudbursts can break the summer heat. In the fall, early white snowcaps wait while the huge northern sky fills with banks of clouds, signaling another dose of moisture for this essentially barren region. During the winter, precipitation is dominated by snowfall that accumulates high in the mountains and often lasts into summer at the highest points. Sagebrush grows in the valleys, while varieties of pine and mountain mahogany exist in the higher elevations. John Muir, writing about the forests of Nevada while sojourning in the Eureka area during October, 1878, noted that "The height of the timberline in Eastern Nevada near the middle of the Great Basin, is 11,000 feet; consequently the forests, in a dwarfed, storm-beaten condition, pass over the summits of nearly every range in the state, broken here and there only by mechanical conditions of the surface rocks." Where there is adequate water, farming can be sucessful. Cattle and sheep can be ranched in the area. Sheep, however, tend to overgraze the sparse vegetation.

With Nevada and the West a center of mining excitement, it would not be long before men came to try and make their fortunes out of some of these mountains. As in other areas of the West, they came to find gold or silver, but soon realized that the returns were inadequate or their capital was inadequate. Mining in this part of the country would prove to be industrial in nature as the first prospectors would eventually learn. Large plants spewing smoke would prove to be the requirements for the mining and processing this bounty of ore. All this was, at this point, in the future and the railroad would prove to be an integral part of this future. And so, the story of this little railroad begins.

Five Reese River prospectors, reaching out and exploring for new ore bodies, first discovered silver at Eureka in 1864. The discovery was in limestone rock in New York Canyon on the side of Prospect Mountain. These men from Austin, seventy miles to the West, found the silver to be mingled with lead. This was to prove to be a large problem. Being one the first discoveries of lead-silver in the United States, the ability to separate the silver from the lead in the smelters of the time was still not advanced far enough for the successful completion of this task.

As a result, the mining at Eureka did not result in a sufficient return from labor or investment and failed to expand. Therefore, the mining remained at a relatively low level of activity for a few years. However, in 1869, the Eureka Consolidated Mining Company hired W. S. Keyes to build new smelters to work the ore. Keyes, an engineer and metallurgist, was sucessful in extracting the silver from the stubborn ore. This crucial accomplishment ensured that the mining would continue for as long as the ore held out.

Meanwhile, ninety miles to the North, the Central Pacific was pushing through northern Nevada on its way to a meeting at Promontory, Utah with the Union Pacific Railroad. As the railroad moved East, communities had risen up in the Great Basin to take advantage of the new and cheaper mode of transportation. One of these was Palisade, in a canyon of the same name on the Humboldt River.

In 1871 the mines were starting to boom in Eureka, Nevada. Ore was coming out of the ground and the mills and smelters were working. The fumes and smoke lay over the town like a blanket. The sky was dark and the air was thick with the acrid waste. It was called by some, "Pittsburg of the West." Some of the local operators were still only capable of performing the initial processing, producing base "pigs". To complete the refining the pigs were being sent to Salt Lake City, four hundred miles to the east. The lead ores were valuable for shipment to distant smelting centers, on account of their iron gangue. Some of the Eureka ores contained as much as sixty percent iron. The mighty Central Pacific lay ninety miles to the north. Teamsters charged about twenty dollars per ton to take the ore to the connection with the outside world. Despite the value of the ores, the local mining leaders and newspaper editors saw that this would choke off any promise of real boom times for Eureka.

A local man, Major McCoy, of the water works, first proposed a railroad for the ore shipping. It was promoted by the local newspaper, but languished without financial support. It would be another two years until the plan saw light again. In January, 1873, William Ralston and his Bank of California was riding high with the Virginia & Truckee Railroad in western Nevada. Mining and transportation were filling the coffers of the bank. This heady atmosphere was causing the usual banker's caution to be thrown to the wind. If the Bank of California could make huge profits in one area of Nevada mining operations, why not here in Eureka? Ralston sent agents of the bank to investigate the possibilities and got a glowing report returned to his offices in San Francisco. Of course there was money to be made! The West was churning with activity and here was another bonanza.

Local interests pushed for a franchise in the Nevada legislature and the Palisade, Eureka & Pioche Railroad was born. But the proposal did not go through because the Governor noted that he had just signed a franchise for a parallel line from Elko to Hamilton. This was only fifteen miles east of the location of Ralston's proposed railroad. The people in Eureka smelled a rat and investigated this railroad. Sure enough, it was financed by Salt Lake City interests. They had their own ideas about rail transportation and it did not include the group from Eureka. The Eureka faction thought that this was all a charade and time proved them to be correct. The proposed line east of them proved to be a ruse, but it did succeed in thwarting their plans for the time being.

In November, 1873, local interests formed the Eureka & Palisade Railroad. Erastus Woodruff, William H. Ennor, Monroe Salisbury, John T. Gilmer, C. H. Hempstead, and J. R. Withington were the six local men sitting as directors of the road. The threat from the east had evaporated and the railroad would be built. To be sure, it would be a narrow gauge, to save costs, but it would be a railroad. In Eureka and along Pine Valley, the citizens now knew they were going to get a railroad. And a railroad, any railroad, meant there would be a bright future for this area. A crew of one hundred fifty men, some of them veterans of the Central Pacific, were put to work in the winter of 1873-74. The line started at Palisade and immediately needed a bridge to cross the Humboldt River just south of the town. This was accomplished in January of 1874. It was none too soon, because the first locomotive had arrived from the builder before there was any track to operate it upon.(see Note below)

Later in the year 1874, Darius Ogden Mills and his brother Edgar Mills, became financially involved. Mills had been the president of the Bank of California, which gave him considerable financial influence. The year 1873 marked the pinnacle of William Ralston's Bank of California and its power over West Coast financial markets. As cashier of the bank, Ralston was spreading bank money far and wide in speculative adventures. Mining, timber, railroads were all in the grasp of the mighty Bank of California. Mills was more conservative, and as it will be seen, the bank had been exposed to financial peril by Ralston's exploits. Mills joined forces with a local freighter, W. L. Pritchard. Known as "Nick of the Woods", Pritchard had many wagons and over two thousand draft animals surving the area. Why he entered this venture was somewhat confusing.

April 1874 showed ten miles of track laid and a fairly easy grade along Pine Valley straight ahead. Mines at Mineral Hill, about 5 miles southeast of E.& P. R.R. station at Mineral, were successfully operating. Two mills were in operation and one of the stopes being mined was 50 feet in diameter. Prospects were looking quite good for the railroad. Hay Ranch, Lodi and finally Alpha were reached before the end of 1874. Storage barns were built railside at Hay Ranch and a hotel for travelers was constructed at Alpha. An advertisement running in the Eureka Daily Sentinel during August, 1875, claimed that this hotel was "commodious" with "first class accommodations." Alpha was just over half the distance to Eureka and construction would halt there until spring of 1875. It turned out that Pritchard was planning a community at this "End of Track". He would then use his drovers to go any direction to the South. Mills was not in accord with this situation. Since he, no doubt, had invested the most heavily in this venture, he convinced Pritchard to sell out his portion. It can be noted that during the heyday of the railroad this "town" boasted approximately twenty-five residents.

All was not be a simple endeavor, however. On August 26, after over $2,000,000 had been paid out over the two preceding days, a check for approximately $300,000 was presented to the Bank of California in San Francisco near closing time. The Bank of California could not meet its obligations. This caused a wide spread financial crisis on the Pacific Coast. William Ralston turned over all of his assets to William Sharon, a close associate, instructing him to pay out all the money owed. Ralston was pulled from San Francisco Bay soon after, a victim of apoplexy during his usual swim from a bath house. At the time of the collapse, Mills claimed to have severed his official connections to the Bank of California three years earlier. Banks, other financial institutions, stock brokerages were all in disarray. Nevertheless, work progressed on the Eureka & Palisade. Enough rail had been purchased to complete the line and was soon to arrive at Palisade. Fears of cessation of work were discounted by the railroad managers. The most arduous grading over Garden Pass had been finished, it was claimed. The Eureka Daily Sentinel reported that work would proceed "as though nothing had happened." At this time the Superintendent, George W. Norton stated that the road would be completed to Eureka by the first of November.

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Note: While most histories of the E.& P. claim the first locomotive was a Mogul originally ordered for the rival S.L.,S.V.&P. , this is not so. In an article in the Western Railroader, Garrie Tufford has shown that the first engine was a Mason "bogie". Not only that, but it was the first narrow gauge Mason "bogie" built.

CONTINUE

(Left) W. L. Pritchard Ad for stages connecting with the railroad at Alpha.
(Right) E.& P. R.R. ad, both from Eureka Daily Sentinel, August 17, 1875.

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