Theodore Judah came to distrust the "Big Four"—Collis P. Huntington, Mark Hopkins, Leland Stanford, and Charles Crocker—due to their increasingly manipulative business practices and differing priorities regarding the construction and financing of the Central Pacific Railroad. Here are the key reasons for his distrust:
1. Financial Mismanagement and Manipulation
Judah was primarily focused on the engineering and successful completion of the railroad, while the "Big Four" were more interested in maximizing their profits from the project. Judah became aware that the "Big Four" were engaging in financial maneuvers that he believed were unethical and detrimental to the railroad's construction. They established various construction companies, such as the Contract and Finance Company, which were essentially controlled by themselves, to handle the construction of the railroad. This allowed them to pay themselves inflated sums for the work, effectively siphoning off the federal subsidies and loans meant for the railroad.
2. Control and Secrecy
Judah became increasingly concerned with the way the "Big Four" were consolidating control over the Central Pacific Railroad and conducting business in secrecy. They often held meetings without Judah and made key decisions regarding the railroad’s construction, financing, and management without his input or approval. This exclusion from decision-making led Judah to feel that they were not acting in the railroad's best interests but rather focusing on their own financial gain.
3. Shift in Priorities
Judah's primary goal was to build a well-engineered, efficiently constructed transcontinental railroad. In contrast, the "Big Four" shifted their focus toward maximizing the short-term financial gains that could be extracted from the project, rather than ensuring the long-term viability and quality of the railroad. Their growing emphasis on profit over proper construction standards and long-term planning was a major point of contention for Judah, who was concerned that this approach would compromise the railroad’s future.
4. Ethical Differences
Judah was fundamentally more idealistic and less driven by personal wealth than the "Big Four." He envisioned the railroad as a national achievement that would benefit the country as a whole, whereas the "Big Four" increasingly saw it as an opportunity to enrich themselves and expand their business empire. These divergent motivations created a significant ethical rift between Judah and his business partners.
5. Attempts to Bypass Judah
When Judah expressed concerns about the financial arrangements and management practices of the "Big Four," they largely dismissed his objections and continued to operate in a manner he found troubling. Feeling sidelined and increasingly isolated, Judah eventually sought to find new investors who would be more aligned with his vision and ethical standards. He planned to travel to New York in 1863 to seek support from other financiers who might buy out the "Big Four" and allow him to regain control over the project’s direction.
Unfortunately, Judah contracted yellow fever during his journey and died before he could secure new partners or alter the course set by the "Big Four." After his death, the "Big Four" continued to dominate the Central Pacific Railroad and were instrumental in its completion, albeit with practices that often prioritized profit over engineering excellence and ethical considerations.