By 1877, the Southern Pacific controlled 85 percent of California’s railroad mileage. Huntington, who now dominated the company, saw an excellent opportunity to create a transcontinental line through the southern United States. Huntington had to act fast if he was to beat the competition. The Texas and Pacific Railroad was already pushing westward toward the Pacific at a fast pace. Marshaling his awesome energy and financial resources, Huntington began driving his Southern Pacific line eastward. He won the race in 1881, when he linked the Southern Pacific to the Santa Fe Railroad at Deming, New Mexico, creating the second American transcontinental railway. Two years later, on February 5, 1883, Huntington gained full control of a number of smaller railroads, creating the Southern Pacific’s “Sunset Route” from New Orleans to California.
With the “Sunset Route,” Huntington confirmed his domination over California rails. He had taken considerable financial risks to build the Southern Pacific system, and he collected very considerable financial rewards. The Southern Pacific had a near monopoly over rail service to California, and Huntington and his associates took advantage of the situation by charging high shipping rates.
Termed “the Octopus” for its tentacled stranglehold on much of the California economy, the Southern Pacific inspired Californians to create some of the first strong public regulations over railroads in American history. But despite the anger and outrage Huntington’s exploitation inspired, few would deny that the mighty Southern Pacific Railroad played an essential role in fostering the growth of a vibrant California economy for decades to come.
