“Well…part of it. I do have a major investor who is interested in my plans. I think the Rio Grande Railway could successfully compete in the market. There’s room enough for all. Which is one reason that I’m so pleased you agreed to meet with me, Morgan.”
“I’m no longer involved with the operations of the Central Pacific or the Union Pacific, Mr. Lott.”
“But you are a major stockholder.” When Steve said nothing, Uriah Lott sat back in his chair, brows raised. “I was told that you are the man I should talk to about this, for you have influence with men like Jay Gould. Look, I’m a businessman. Railroads cannot continue operating at a loss and taking government subsidies. We both know why this has happened—track was laid too fast, shoddy rails that have had to be pulled up and relaid before the first train could even run it. Builders ignored quality and economy just to get more track laid ahead of the others so they could rake in the most government subsidy money. It’s a fact. I don’t intend to operate the same way. My tracks are going to be made of the new Bessemer steel, not iron. The rails are more durable, will support greater loads, and save money by cutting down on the number of accidents due to broken rails.”
Cigar smoke wreathed the air; the commanding officer at Fort McIntosh, Colonel Nathan Prime, summoned an enlisted man to bring more wine for Ginny, who had stubbornly refused to be relegated to a parlor with the officers’ wives and boring discussions of children and recipes.
“I’m afraid I’m not accustomed to the heat yet,” she had said politely but firmly, “and I simply must sit outside where it’s cool.”
Besides, she thought wryly, it was the only way to stay close to Steve. She was beginning to wish, however, that she had pleaded a headache and returned to their hotel, for she found Colonel Prime annoying. Must he stare at her like that, pretending that he wasn’t when she happened to glance his way?
The colonel turned back to Steve, cheeks puffed out as he sucked on his cigar, deliberately blowing smoke in her direction, Ginny was certain, to show his disapproval of a woman who did not know her proper place.
“Ah, so you know Jay Gould, Morgan? He’s quite a robber baron, I’m told. Is that why you’re in Laredo? Planning on laying railroad tracks of your own?”
“Not exactly.” Steve glanced at Ginny. “Just passing through.”
Like a dog with a bone, Lott was not to be diverted from his topic. He emphasized his points with the tip of his cigar making a glowing arc in the soft night air. “I met James J. Hill last year, and he has some most intriguing ideas. He has big plans to build a transcontinental railroad across the northern region of America. Oh, I know, they call it Hill’s Folly. But Hill has built several local railroads and he knows what he’s doing. He’s a good businessman. It’s all in the talking stage right now, but I think one day he’ll succeed in doing it.”
“He’s got stiff competition for very little business, taking it through unsettled territory,” Colonel Prime said with a laugh. “Hell, there’s nothing up there but Indians and goddamn bears! ’Scuse me, Mrs. Morgan.”
More interested in the intriguing prospect of railroads crisscrossing America and into Mexico than the colonel’s deliberately rough language, Ginny nodded politely.
“But I think the idea has merit, Colonel. It wasn’t so very long ago that Texas was largely unsettled. Look at it now. In ten or twenty years, there will be towns full of people all over America. And a privately owned railroad would not have to rely on government subsidies to fund the company, but on private investors who are more interested in business dynamics than politics.”
The colonel looked slightly surprised at a woman having any interest in a business conversation. Steve smiled.
“My wife owns a considerable amount of railroad stock herself, so you’ll pardon her for having such a keen interest in how her money’s being spent.”
Lott smiled slightly. “Then, with a woman’s inherent wisdom, I imagine she sees the advantages to a privately owned railroad.”
Ginny shrugged. “Perhaps. But I have a few questions. How will you compete with the Northern Pacific, the Union Pacific and the Santa Fe? All three of those railroads were financed by the federal government, and as such, have their expenses paid for by the government. Have you considered how long it will take to recoup building and operating costs before you begin to make a profit? Is there a comfortable margin of error in your estimations of construction costs in building a line far enough to pay for itself?”
Chuckling, Lott shook his head. “I see you have made a study of it, Mrs. Morgan. I read Hill’s proposals in which he concludes that building one extension at a time would keep costs down and pay for expenses. If farmers are moved in from back East to settle the land along the railroad, they would use my trains to ship produce to markets back East. It would take time. Without giving in to government subsidy, each extension would have to build up red-to-black business before another extension could be built. Plus, by utilizing short, direct routes, it minimizes operating costs.”
“Do you intend to go into a partnership with Hill?” Steve’s eyes were narrowed against the curling smoke of his cigar. “I understood him to prefer the north country to the south.”
“No, we have different areas of interest. I plan on providing reliable, low-cost farm-to-market rail service in Texas and Mexico, and eventually join with Hill’s planned routes to go up into Canada. Goods will be able to move all over the North American continent by rail. Americans will be more prosperous than ever.”
Steve asked, “And your investors? Are they aware of the risks? Or do they
