American descriptor and was life andrd things left unanswered. San Francisco Chronicle colonists. We are very pleased to have them both here for b the first time. Before we begin, i would like to find out how many of you have been to the mechanical institute. Who actually were there. Wonderful. How many new. Wonderful. Please come back wednesday noon, we have a free tour and librarians will surely around her Incredible Library on the second and third floors with the International Chess program down the hallway and we will give you a little bit of our history. In 1854 we were founded so we have a long history of San Francisco. In here the mechanics, ongoing authors. They have the International Chess club, that presents their ongoing lectures and tournaments. And also we have book clubs and writers groups. On friday nights, theres three talk. So we hope youll come join us for all of our cultural events. I would like to now it is our guest. Roland is an investor. Her online journalism any also a historian and an university abducted author and during his almost four decades in journalism, is specialized in investigative projects as well as News Features earning him with most citations in his field include an honored by the society the professional journalists with his covenant career achievement award. He is also the author of two books the chronicle books. There is also senior lecturer at San FranciscoState UniversityJournalism Department is taught there for 25 years and he also published the first online journalism textbook. Also with us tonight phil is coming to the san Francisco Chronicle whether we work right about politics or personality, is informed and entertained leaders for more than two decades about always fascinating areas and beyond and scoops insights and investigative reporting can be seen every sunday monday and wednesday in the san Francisco Chronicle and is also regular on tv. In k cbs radio. Also like toou id thank our cosponsors tonight publisher, lucy and a special thanks to peter was the director of Public Relations and communities in communications. It would also the magazine, we would like to thank their sponsor who is a digital editor. In our way out, please pick up ple magazine copy. So please welcome marcus to our program. [applause]. Andrew welcome. I did not know much about stanford. [inaudible]. What i found was a story about a fascinating guy who never did much at school work and actually didnt do much work atuc all. And was considered like about. And about with just every different enterprise that you got, having to be at the right place at the right time so the right things to the people that needed them and rose up to become governor who got into office in part by immigration. He went on to use that office to pull off some of the biggest swindles in American History. And rose up to be quite wealthy. And also parallels with today. I found it fascinating. But i got that from reading american descriptor. Why and what attracted you to this brought you here. Andrew i was a stanford doing a story. Phil this is probably less than ten years ago. I was waiting for its well Publishing Department to give me a fewt minutes of their time. And i had some questions for myself. I sit mightily know anything about the sky. I am very interested in history. Particularly western california history. I know he was one of the big people but short of that, really dont know much anything about him. I wondered why. I poked around for a little bit and it became to me pretty early that i didnt know about him was it was secret or sequestered. And that is images if you will, have been writing and successfully so, a Stanford University. [inaudible]. They call them the collapses of california. When there are huge gaps in the answers to the questions the begin to tell a story. If a began to approach him a little bit more aggressively, that story began to emerge in a very seriously. And finally, the last part of this, my wife and i were abroad and we were getting ready to go home. It was a beautiful evening and we were discussing the wonderful vacation and another lady came up to us with american accident and said, gosh what time or what part of the country are you from. I said the bay area and she said my grandson got accepted into the best Business School in america. And he just got into night school at stanford and i said which one and she said berkeley. [laughter]. Im a berkeley grad. But into gently correct her. Its the good place to be, trance fluent in all us and i realized that i had my new smoke. We would all be watching these things and all of the change changes in our politics our business and our culture. Thats when it all began. [inaudible]. The nations first real internet commerce. It was here in california in more ways than one. A transformed lifestyle of america. Much more immediate madeay products available. Its really if it is to a huge industrial agricultural revolution and wound up with california as it is today. But it was not that california back then. When he started in his early life, wonder if you can speak a little bit about where he and the rest of the people transformed california came out of. A lot of them came out of the new york area. Upper state new york. Phil when you think about that revolution them agriculture rurl or world, not just the United States, into an industrial world, morning 1824, the war was a factor it didnt exist. Near canal, and the saloon where and raised when he was about four years old, and open up. Andrew shortly afterwards, the first charter mohawk in the second railroad actually operated admin right by this place as well. In his wealth came to the stanford family because of that. Stanford as you t mentioned eary on, has avoided a young man, and he was more or less amateurs i think to leave albany because it either been expelled or dropped out of every schooloo he went t. He did not have the equivalency of todays high school education. So he left that area and he went to the wilderness and albany at the time and went to a very small little for. Near wisconsin is called port, washington and there he did as opposed to when he said he had done before, he said he had passed the bar. And he had apprenticed in albany and pass the bar. And theres no reason to believe that. That was just one of his many, big first of many lies. They call them lies. Different in the News Business today. And wisconsin did hook up with a lawyer there an intern for a few years lynn did finally pass the bar. He thought he was going but then a fire came from maine to downtown is off this, it was once again estate or age 28, he had nothing. But he did have brothers. He had brothers who came out in 1849 and had ended up in sacramento and started a shop called stanford brothers. It is a Hardware Store. And they had cigars and all the other things it gold minor stanford a single one out, will take care of you and so he came out and they put them to work. Essentially it was a ranch store of stanford brothers up into sierra nevada. This is where he really begins to change. He starts to alter from thoughtless human into this stanford that becomes this strongman. He was powerful. The story continues from that icint. American then was a huge bust. This was the generation. Roland was born and bred in theme. American. Every man can make it, this was the time of the birth of the latterday saints in the shakers and other things. Since great migration in the west. The nation literally on the move. It was a huge transference of wealth and power towards the west. Writers, were beat getting. 1851 or so, and thats the stage of the gold rush. He becomes leader and he to do that. I think more interesting stories that we can talk about is his opening that store up in sierra, nevada where he not only had the brothers franchise if you will, we decided to go back to his roots and open up a saloon. And later it was an owner of his family. People could drink there. It is called the empire saloon. There we have no idea. He realized that somebody told him that thehe people in foster county, justice of the peace they need one. And in the laundry from rather passing the bar from wisconsin i said hey, im qualified. They said fine. In the empire saloon he had his courtroom where he had frontier justice one hand with the other. This is not just kind of funny and interesting, is important. Because at this point, William Stamper begins to understand that inflating power of the state in his personal brand, is a wonderful strong alloy. H this does not have anything to do with todays. [laughter]. Want to make that clear. But this was an important lesson that plays out more so in the family in the years to come. Phil but this is a great part of history the no one likes to acknowledge. He couldve wound up at the of the ocean. Across the your book or any number of things. And his wife is part of this equation as well. A number of things that happened. But he landed in place called sacramento. Running storess and together they hatched, what is both considered the greatest achievements in American History out of literally sailing cigars in sacramento. Thats rather an incredible part of the story. I would like to know how these four shopkeepers decided they have this idea. To build the railroad into the federal government to pay it us for it. In finance the whole darn thing. Phil but between the four of them, they had no money. Were not talking about people and a lot of money do this but they were just shopkeepers. And what is that say about the age and these people that could do that. Roland said that says a lot about americans and the possibilities and that is a celebration in the heritage. Let me move on and talk a little bit more about the quick facts. Rather than my interpretation oi them. His brothers decided they had other entrepreneurialhe people things when does australia, and they start the First Petroleum company in new york city and then came around the store and run it for us while we were away and he said sure. And he bought brought his wife with him who he met and albany married hernd he while he was having difficulties in wisconsin. In her legal name was jean but he always referred to her as judy so i did the same in the book. So they are there. In the brothers and store in sacramento happened to be around the corner from a very bullish, his word, the man who sells carpets. Charles and many of you will recognize that name. And nextdoor another person. His knee Hardware Store owned by a fellow named mark hopkins and his partner. And these two guys are the first pretty they are sharp regional start with these guys and they areo applicable to that date. Sharp trader. He came to california not to dig for gold. Even want to get his hands dirty. That wasnt his deal. He wanted to get a little rowboat and then he could going on the bay and recently, he was choppy out there but he didnt care. He wanted to sell boats like potatoes pretty by some supercheap authority goes back as fast as he can he sells them two to three times the price hes a smart guy. Hes a gun selling stuff. His partner who is very bookish, and since then he was in accountants. He was more cognizant then a partner in the quarter, proper they look over theyd say, look at this young fellow from stanford. He looks like a politician. He has been named by some of the people here as a politician. Its got a Good Building is 511 and his brother is doing kennys does not say holland. He doesnt get himself into a whole lot off trouble. This guy has potential. And at this time, theres this talk about, will is very serious to the Transcontinental Railroad, this is not the time of the civil war. In the nation cannot compare at all from today what was happening at the h time. Lots of history here for you all of you. And also very concerned about this enormous amount of gold that was flooding the World Markets around the world and they wanted to try that to the east coast fridge the federal government t beginning talk abot Transcontinental Railroad. Way beyond the capabilities. Huntington, hopkins, and stanford eventually begin to realize that in the main plan so they come up with one. And the plan is. Phil and the plan is. Roland that plan is this. Robert will be the robot, and hopkins will take care of the books. Arlington is going to be that sharp trader. And somebody scattered by the steel rails locomotives and spikes and hammers and what all. Hes going to be in charge of that. But they need somebody in the government. They need somebody in the government he will have some power. They need somebody there with power too get them to try to wrestle that money in the federal government is taxing. Its incredibly good device. And is certainly the most expensive and ambitious public works project until the time in American History and then look over and they said hey, couldnt you run for d. A. In wisconsin to do that. Would you be interested in politics so they ran him for more more times for treasure and pretend to governor and and we had a situation in 1961 where you had the first republican president in the United States from lincoln. In of the parties were 18 democrats, he splits the ballots. He gets more 50 percent of the vote but because its a split ballot, he comes up front Choice Voting in a day. He comes out barely a top. Signage 37, he is elected the governor of california. Phil so you have the president of or the governor of california that he was named what. Any let me talk about this for little bit. But just aside, when he was sworn in, as i recall california, you talk about Climate Change was in the midst of a flood that basically put everything underwater from what, ridding down to the entire Central Valley. Roland 50 inches of rain in that winter. In normal years like 200 or 2250 inches of rain okay. But laterlo was flooded to the point where the tops of the polls were underwater. The entire Central Valley was underwater. It was a totalte disaster. In the meantime were headed toward civil war. And also happens than lincoln in addition to honesty in all this things, is a top railroad lawyer. It made his career representing special interests of railroads. And so they had a sympathy phytic here in washington. But they had to get money out of washington. So this is the guy by the name of theater jude pretty theodore judah. A conflict at the party would. For a naive engineer who thinks hes god and does have a great idea and completely gets crushed by steamed apples to list. Is brought here he knows he has brought engineering skills in the problem with the major problem of engineering in the Transcontinental Railroad is no one can find a way to find sierra, nevada. Those mountains are, why did they go to the southern mountains to begin with. Andrew cotton was the number one export in this country. And the people wanted that stuff go out to asia. So they wanted a railroad that would go from the desert which is much more efficient but theres a problem with that. The neighboring seas were not to give that up. And that kind of money as well. So they put the flash on any plans with the railroad boarded in the southern route. It had to be the northern matter nothing. And jeanette came out and found that northern route. So he had this great idea. So he went to the city and he said, is like right plan. I found a route. And they lt. Mason, gosh, thats going to be the equivalent of billions of dollars. Where im going get this kind of money. Im getting 35 percent on my money right now. But thanks for sprinted and he said. Ou is going to sacramento theres a bunch of rich guys up there. They were the leading town in california. San francisco not so much. So they went to sacramento and he gets into a group of local businessmen and he presents the same plan. And all of them were doing the same thing. They were very skeptical. But heres the big butt. One guy, in the back of the room stood up and like you guys back frequently he doesnt say anything he wasted the crowd to disperse and he walks up to judah. He said hey, its a very interesting plan you but there. I would like to meet me in my three partners. And so they met with them. He said sure, hes desperate so he goes the meeting which was maybe the smartest and stupid thing evident because he wasnt going to outfox those people. Will make youa a director. Do you know anybody washington aces you know everybody washington. The eason he went back to washington he becomes lead staff may be the only real staff the House Committee and the railroad and the Senate Committee on the railroad. While working for a director on the board of directors and the chief engineer for the railroad. But there in such a hurry in congress, they sign them up andi send the bill through to the president lincoln in 1862, it is a done deal. Going to give them the equivalency of billions of dollars of bonds which is essentially, its a tax raise. The american taxpayers will have to pay for the financing of this railroad. They promise they will pay back in four years with interest. We will get back to that later on. There was a seed money for the railroad. Theyre ready to go. That was the Central Pacific railroad company. That will later become the southern pacific. It. Phil they also give them that ownership rights, and at the first contract, was 10 miles on either side of the rightofway. Tas you guys ever went to publc schools are in california, their ego. I always remember, sixth grade, checkerboard. They have this wife swapping plan. And the land company got 20 miles and he decided that the rights to use the call, the timber, anything they can find for the construction of the railroad. They got to keep it. And all of the in the mineral rights