CHAPTER XL
The Oregon Railway and Navigation Company
1879–80
THE peaceful relations thus established between Mr. Villard and the Union Pacific leaders bore important fruit in another direction. Ever since his first visit to Oregon, he had conferred from time to time with the parties controlling the Central Pacific, in both San Francisco and New York, regarding the possibility of a joint scheme for the connection of the Oregon roads with the Central Pacific system. The Central Pacific people were willing to build to Oregon, provided they could obtain a subsidy from the State, and had submitted a formal proposition to that effect in 1876. It had not met with a satisfactory response, and the plan was dropped. As it was a self-evident proposition that direct railroad communication between Oregon and the rest of the country would be of the greatest advantage to the local transportation lines, it occurred to Mr. Villard to make an effort to induce his new Union Pacific friends to build from Ogden to the Columbia River. The time was most propitious for new railroad enterprises, as the appetite of the public for new securities seemed insatiable. The Union Pacific had years before made a preliminary survey of a line from its western terminus to the Columbia under the direction of General Grenville M. Dodge. Mr. Villard studied the report of this expedition, and, with the material it contained and his own knowledge of the Upper Columbia country, prepared a formal project and submitted it to Jay Gould and Sidney Dillon. They were both favorably impressed with it, and, after several
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