Bad Decisions Downfall

In 1857, the Mormon War broke out in the West and the Army dispatched some 2500 men to crush the resistance.  They also ordered Russell, Majors and Waddell to haul an additional three million pounds of supplies.  Three of their extra wagon trains were attacked and burned, others were victims of severe winter weather that year.  The firm's losses totaled nearly $500,000, and on top of that the Army defaulted on their promised reimbursement.  Russell, Majors and Waddell never fully recovered from these blows, although in 1858, they put 3500 wagon trains and 40,000 oxen on the trails west.

To try to recoup their loses, William Russell had a risky scheme by proposing a stage line from the Mississippi River to Denver to cash in on the "sure to happen" boom.  His partners, Waddell and Majors, flatly rejected his idea because without government subsidy, it was doomed to fail.  Undeterred, Russell found another associate and began Leavenworth and Pike's Peak Express Company in 1850 with routes from St. Joseph, Missouri to Salt Lake City.

From the start the L&PP was in trouble.  Yes, it had excellent service, but the costs far exceeded the revenues.  Waddell and Majors bought out L&PP rather than be drug down with it and extended its operations to Placerville, California.  Soon it was in deep trouble as well because of discontented workers.  The only thing that could save it was government help.  Russell had another idea...he decided to adopt the Pony Express idea as a means of saving the business.  In 1860 he sent a telegram to Washington: "Have determined to establish a Pony Express to Sacramento commencing 3rd of April.  Time 10 days."

Next Time...The Pony Express
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Today in Pioneer History:  "On August 31, 1888,  Jack the Ripper's first victim is murdered.  Mary Ann Nichols was found murdered in Whitechapel, the first of four victims during the new few months.  No one was ever arrested for these crimes but Jack the Ripper has become a criminal legend.