Banks and Railroads

   

     The Nevada Territory wanted to become a state. William Morris Stewart participated  in the first Nevada Constitutional Convention. He argued against taxation on mines. Despite the fact this component stayed in the document, Stewart urged passage for the document. The proposed constitution seemed to be a sure thing but failed miserably when people voted against it four to one. Word got around that Stewart would be in total control of state politics if it passed. This meant the Bank of California, which he represented in mining cases would have power and influence over the government. Some thought Stewart advocated the Constitution because he wanted to change the judiciary - especially Judge John North. This particular judge agreed with the multiple ledge theory on numerous cases going against the single ledge theory advocated by Stewart. This was a threat to the big mining interests.

      Nevadans lost interest in gaining statehood after the vote. When the state suffered economic problems, there was a second try to attain statehood. Stewart stayed in the background and did not participate in the Second Constitutional Convention. It happened quickly because political powers in Washington wanted Nevada to become a state. A state with silver resources could help finance the war.  Abraham Lincoln needed more states on the Union side.

      Despite the apathy, the second run at statehood succeeded. Stewart achieved his goals. North practically left the state on a rail, the tax component disappeared and Stewart became one of the first U.S. Senators from Nevada along with James Nye. Stewart owed the Bank of California for much of his political success.

       The railroad industry helped Stewart get elected, also. The railroads needed a friend in the Senate to further the Transcontinental Railroad. Along the way the railroads gave Stewart thousands of dollars to campaign, thousands of acres of land near railroad property and many free passes to ride on the trains. The big four of railroads were Collis P. Huntington, the mastermind; Mark Hopkins, the keeper of the books; Charles Crocker, the one who supervised the building of the railroads and Leland Stanford, the President of the Central Pacific.
     If any of the Big Four were true friends of Stewart, Stanford stood out. They both
loved politics and education. When Stanford’s son died at the age of fifteen, the family established the Leland Stanford, Jr. University. Stewart advised Stanford on the project and served as a trustee of the university for many years. Stanford in turn helped Stewart with his race horses during the Ashburn Farm period. 

       Stewart became a member of the Senate Committee on Pacific Railroads from 1867-1872. He served as chairman from 1872-1875. Ties with the railroads existed throughout Stewart’s political career. Black Wallace, the agent for the Central Pacific in Nevada served as Stewart’s campaign manager in the election of 1886.

       When the Bank of California or the railroads did not support Stewart financially, he did not have enough money to run a campaign. This happened in 1874 and 1904. Despite the evidence that Stewart appeared a tool for the big business of banks and railroads, he did not see it that way. He represented everyone, especially the individual miner. His home in Washington D.C. had two nicknames – “The Honest Miner’s Camp” because several men who made fortunes by mining lived in the area and “Castle Stewart” because the house was so elegant. Stewart took pride in these nicknames, although they might have been used as a mockery.