Of all the events in Los Gatos’ history, none had a more lasting impact than the arrival of the railroad. In this two part series, we’ll explore how the “iron horse” became the driving force behind the transformation of our town from an obscure little village into a prominent transportation hub and economic powerhouse.
Our story begins in 1876 when two ambitious men met in San Francisco and formed an unlikely business partnership. James Graham Fair (1831-1894) was an Irish immigrant who became one of the richest men on the West Coast when his Consolidated Virginia Mining Company struck the largest gold and silver veins ever discovered. Known as “Slippery Jim” for his questionable ethics, Fair sought every opportunity to increase his wealth.
Alfred Edwin Davis (1828-1907) came to California from New Jersey during the Gold Rush. But unlike Fair, he didn’t strike it rich. Crudely nicknamed “Hog” for his girth, his vision far exceeded his grasp. One of Davis’ dreams was to develop the East Bay with a railroad line connecting Oakland to San Jose. When he presented his plan to Slippery Jim, Fair recognized the potential for substantial gain and readily embraced the investment opportunity.
(Los Gatos Library and Museum History Project)
Together with two additional investors, the men purchased the assets of the defunct Santa Clara Valley Railroad, including a partially completed rail line from Dumbarton Point to Santa Clara, and founded the South Pacific Coast Railroad. Davis, who was recognized for his sales and negotiation skills, was named president of the company while the others remained silent partners.
Drawing inspiration from railroad tycoons like Cornelius Vanderbilt, the partners’ ambitious plan was to build an extensive rail network, not just in the East Bay but throughout the Bay Area and all the way into the San Joaquin Valley. It would connect the bustling seaport of Santa Cruz with the rapidly growing cities of San Jose, Oakland and San Francisco, and ultimately link with the Denver and Rio Grande Western Railroad, making it the largest narrow-gauge rail network in the country.
Narrow gauge offered a simpler and more economical alternative to standard railroad tracks and was used extensively throughout the rugged terrain of the West. With rails only three feet wide, it was possible to lay tracks with a compact turning radius, enabling trains to navigate tight corners with ease. Locomotives were smaller, less costly and easier to maintain.
(Los Gatos Library and Museum History Project)
The company’s initial plan was to extend the rail line from Santa Clara to the east side of Los Gatos near Forbes Mill. When surveyors determined that route to be unfeasible, they selected the undeveloped west side of the creek. Tracks were laid into town where the long narrow parking lots are today and across W. Main Street to the current location of the Town Plaza where a small train depot was built.
When the first train arrived in 1878, many of the town’s 1,000 or so residents gathered to watch the massive wood-fired, cinder-belching iron horse roll to a stop. Despite the spectacle, it’s doubtful that anyone on that fateful day could have predicted what a profound effect the railroad would have on all aspects of Los Gatos life.
Los Gatos was the southern terminus of the railroad for the next two years. When our story concludes next month, I’ll review the monumental task of completing the rail line over the Santa Cruz Mountains.
Alan Feinberg is a local historian and founder of the LOST Gatos Project www.lostgatos.com. His mission is to generate enthusiasm among Los Gatos residents for remembering and preserving our town’s unique character and historic treasures before they’re lost forever. For more Los Gatos history, download the free mobile app Discover LOST Gatos and take a self-guided walking tour through our historic downtown.
