“You seem to be under the impression that the California Development Company is a Southern Pacific enterprise. This is erroneous. It had nothing to do with its work, or the opening of the canal. We are not interested in its stock and in no way control it. We have loaned it some money to assist in dealing with the situation. What the Southern Pacific has done was for the protection of the settlers as well as of its own tracks, but we have determined to remove the tracks onto high ground anyway. However, in view of your message, I am giving authority to the Southern Pacific officers in the West to proceed at once with efforts to repair the break, trusting that the Government, as soon as you can procure the necessary Congressional action, will assist us with the burden.”
The contention of the Government was that inasmuch as the Southern Pacific Company loaned $200,000 to the California Development Company in June, 1905, and assumed temporary control of the latter’s affairs for the purpose of safeguarding its loan, the lending company thereby made itself responsible for all the unforeseen consequences of a ditch dug by the borrowing company almost a year earlier. This contention will not bear a moment’s scrutiny. The Southern Pacific Company did not, at any time, own any of the Development Company’s stock. The shares pledged as collateral for the loan were in the hands of a trustee. The Southern Pacific Company did not even elect the president and three directors of the Development Company. They were elected by the latter’s stockholders under the terms of the loan agreement.[15] The Southern Pacific was a creditor of the Development Company, but in no sense a “successor in interest” by virtue of ownership.
The lower Mexican intake, which admitted the river to the Valley and caused the disaster, was dug long before the Southern Pacific Company had any control whatever over the Development Company, and it would be a violation of the most elementary principles of equity if a lender were held responsible for all previous transactions of a borrower, merely because the latter had voluntarily agreed to share control of his business in order to obtain the loan. If a farmer goes to a bank, gives a mortgage on his farm as security for a loan, and agrees that a representative of the bank shall supervise his agricultural operations until the loan is repaid, the bank does not become responsible for a dam across a stream on the farmer’s property built by the farmer himself a year before he had any relations with the bank. The bank might be responsible for a dam built under the direction of its representative, but not for a dam built by the farmer a year before such representative was appointed.
When President Roosevelt received Mr. Harriman’s telegram of December 20th, saying that orders had been given to proceed with the work, he replied in the following words:
“Am delighted to receive your telegram. Have at once directed the Reclamation Service to get into touch with you, so that as soon as Congress reassembles I can recommend legislation which will provide against a repetition of the disaster and make provision for the equitable distribution of the burden.”
Last Break in Defences, December 1906
While the negotiations between President Roosevelt and Mr. Harriman were in progress, the river-fighting organization on the lower Colorado was kept intact. The rock quarry at Andrade was further developed; sidings just across the Mexican boundary were lengthened to seven thousand feet, and material and equipment of all possible kinds which might be needed were gathered and held in readiness. When, therefore, on the 20th of December, an order was received from Mr. Harriman to go ahead and close the break, President Randolph, backed by all the resources of the Southern Pacific, began a last supreme effort to control the river and save the Imperial Valley. The crevasse, at that time, was 1100 feet wide, with a maximum depth of forty feet, and the whole current of the Colorado was rushing through it and discharging into the basin of the Sink about 160,000,000 cubic feet of water every hour. There was not time enough for the construction of another brush-mattress, so the Southern Pacific engineers determined to build two railway trestles of ninety-foot piles across the break, and then, with a thousand flat cars and “battleships,” bring rocks and dump them into the river faster than they could possibly be swallowed up by the silt or carried down stream. Three times, within a month, the ninety-foot piles were ripped out and swept away and the trestles partly or wholly destroyed; but the pile-drivers kept at work, and on the 27th of January the first trestle was finished for the fourth time and the dumping of rock from it began.
Mr. F. H. Newell, Director of the U. S. Reclamation Service, in a description of the final closure of the crevasse, says:
“The stones used were as large as could be handled or pushed from the flat cars by a gang of men, or by as many men as could get around a stone. In some cases the pieces were so large that it was necessary to break them by what are called ‘pop-shots’ of dynamite laid upon the stone while it rested on the cars. In this way the stones were broken and then could be readily thrown overboard by hand. The scene at the closure of the break was exciting. Train after train with heavy locomotives came to the place and the stones, large and small, were pushed off by hundreds of workmen as rapidly as the cars could be placed. While waiting to get out upon the trestle the larger stones were broken by ‘pop-shots,’ and the noise sounded like artillery in action. Added to the roar of the waters were the whistle signals, the orders to the men, and the bustle of an army working day and night to keep ahead of the rapid cutting of the stream.