Rio Grande Southern Railroad Co. - 1890 dated $1000 Railway Bond

$1000 5% First Mortgage Gold Bond printed by Homer Lee Bank Note Company, N.Y. Signed by Otto Mears. Most coupons remain. Superb!

Otto Mears (1840–1931), frequently referred to as the “Pathfinder of the San Juans,” was a dynamic entrepreneur and railroad builder who significantly contributed to the development of southwestern Colorado. Born an orphan in Russia, Mears arrived in the United States as a young boy and, after serving in the California Volunteers during the Civil War, established himself as a merchant and civic leader in the San Luis Valley. He promptly recognized the necessity for improved transportation to serve the region’s burgeoning mining settlements, leading him to construct over 450 miles of toll roads through the challenging Rocky Mountain terrain. His most renowned project is a segment of what is now known as the scenic Million Dollar Highway between Ouray and Silverton. Additionally, Mears constructed several narrow-gauge railroads, including the Rio Grande Southern, which facilitated the rapid transportation of ore and individuals. Beyond infrastructure, he played a significant role in Colorado’s political landscape, serving in the state legislature, maintaining cordial relations with Ute Chief Ouray as a friend and negotiator, and being instrumental in the decision to adorn the Colorado State Capitol dome with gold leaf. Despite financial challenges during the Panic of 1893, Mears persisted in his business endeavors on the East Coast and in Colorado until his retirement, leaving an enduring legacy as one of the West’s most influential pioneers.

The Rio Grande Southern Railroad (RGS), an iconic 3-foot (914 mm) narrow-gauge railway in southwestern Colorado, was renowned for its challenging route through the majestic San Juan Mountains. Founded by Otto Mears, the “Pathfinder of the San Juans,” and officially incorporated in 1889, the RGS was constructed to connect the isolated mining communities of Telluride and Rico with the broader Denver & Rio Grande (D&RG) system at Durango and Ridgway, completing the “Narrow Gauge Circle.” The RGS officially commenced full operations in late 1891 and experienced immediate success, operating around the clock to transport valuable silver and gold ore. However, this prosperity was short-lived due to the repeal of the Sherman Silver Purchase Act in 1893, which caused a significant drop in silver prices. This led to the sudden closure of most mines and forced the RGS into receivership.

Despite this initial financial setback and the constant struggle against severe Rocky Mountain weather, including heavy snowfall and washouts, the RGS managed to survive for an impressive sixty years. The railroad’s legacy is largely defined by its remarkable resilience and ingenuity during challenging times, particularly during the Great Depression. Notably, the RGS created the unique, self-propelled “Galloping Goose” railcars. These cost-effective motor cars were constructed from salvaged automobile bodies, such as Buicks and Pierce-Arrows, and engines. The Galloping Geese were used to transport mail, passengers, and small freight loads, effectively replacing the expensive steam locomotive operations. By the 1950s, however, declining traffic and the loss of its crucial U.S. mail contract sealed the railroad’s fate. In 1952-1953, the RGS was abandoned and completely dismantled. Nevertheless, many of its famous Galloping Geese and other pieces of equipment have been preserved in various museums, including the Colorado Railroad Museum and Knott’s Berry Farm.

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