One of the first problems
was how to raise money in a region that Indians had given up title to only
about 10 years before. The directors took in whatever they could for
stock, and only sometimes was this in money. Much of the stock was sold by
bartering it for something that could be used to build the line. For
example, stock might be given in exchange for food, for some grading work,
for putting up buildings, for harness or a wagon, and so on.
Construction was held up for
a while when cash—not
something to trade—was needed for getting iron rails. This problem seemed
solved when the mayor of Milton stood up at a meeting, offered to mortgage
his farm to help raise cash, and then reportedly asked “are there not one
hundred men between Milwaukee and Rock River that can do the same? If so,
here is your money.”
There were a hundred men,
and more, but the problem wasn’t solved. Eastern money centers weren’t
much interested in loan security that was in the form of mortgages on
farms in a nearly undeveloped region. Eventually the city of Milwaukee had
to issue bonds that were used in helping finance the railroad’s cash
needs.
About ten years later, the
mortgage idea was to kick back on the M&M and other railroads, because
when the roads failed and mortgages on farms were foreclosed a great
anti-railroad bitterness developed that was to last for decades, and that
led to formation of farm organizations such as the Grange.
Once the M&M had money in
hand, construction went ahead and the first rails were laid on September
12, 1850. By November of that year, enough of the road was finished so
that railroad officials and guests could take a trial ride over five miles
of track reaching out from Milwaukee.
Pulling the two open freight
cars was a locomotive that had been shipped in by lake boat. Built in 1848
by the Norris Locomotive Works in Philadelphia, the first engine was known
successively as Number One, Bob Ellis, Iowa and by the number 71 in the
years before it was finally scrapped. |
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Early struggles...
...raising capital
An entry from Four Generations on the Line:
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November 20, 1850
Old No. 1
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Photograph
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Specifications
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