Southern Pacific Railroad Co. - 1866 dated $200 Railway Bond with Revenue Stamp
Inv# RB7550 Bond
$200 Railroad Bond with 10 cents Washington revenue stamp. Rare! Some paper tears. Small size measures 8 1/2" x 5 3/4".
The Southern Pacific Railroad (SP), a prominent American Class I railroad network, operated for over a century, spanning from 1865 to 1996. Primarily spanning the Western and Southern United States, the SP was founded in San Francisco with the initial objective of constructing a rail line between San Francisco and San Diego. However, its journey took an unexpected turn when it was swiftly acquired by the “Big Four” businessmen—Collis P. Huntington, Leland Stanford, Mark Hopkins, Jr., and Charles Crocker—who also controlled the Central Pacific Railroad, the western half of the first transcontinental railroad. Under their leadership, the SP system experienced remarkable growth, absorbing the Central Pacific in 1885. This pivotal acquisition propelled the SP’s network, which eventually stretched from the Pacific Northwest to major gateway cities like New Orleans, Texas, and beyond. The railroad played a pivotal role in the industrialization and economic development of the West, facilitating the transportation of goods such as agricultural products and lumber. Moreover, it established a significant steamship line and even the world’s largest ferry fleet. Beyond its railroad legacy, the SP’s influence extended to the establishment of esteemed institutions like Stanford University and the Huntington Library. Additionally, its telecommunications network formed the foundation of what later became Sprint.
Despite its immense success and influence, the Southern Pacific encountered mounting financial difficulties and competition from trucking and air travel in the latter half of the 20th century. In the mid-1980s, a proposed merger with the Atchison, Topeka, and Santa Fe Railway was rejected by the Interstate Commerce Commission due to antitrust concerns. This setback left the company weakened and heavily indebted, ultimately leading to its acquisition by Rio Grande Industries in 1988. The Southern Pacific’s journey came to an end in 1996 when it was acquired by the Union Pacific Corporation. The Southern Pacific Transportation Company was officially merged into the Union Pacific Railroad in 1998. While its extensive network and infrastructure remain integral to the modern Union Pacific system, the company’s history is preserved in museums like the South Coast Railroad Museum.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.
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