HCR: Early Phase
At this point the Hilo Railroad's southern section was fairly complete, and with strong sugar-related traffic the company was financially healthy. However, the company's fortunes would change drastically when Dillingham and other company owners in 1907 petitioned the US Congress and Territory of Hawaii to build a breakwater and improve Hilo Bay's harbor. In exchange for those projects the Hilo Railroad had to build a line north-northwest of Hilo up the rugged Hāmākua coast. While the 33.5 mile Hāmākua Division was an engineering marvel—the railroad was forced to blast three tunnels and construct 22 large wooden trestles and thirteen large steel trestles—it was the most expensive railroad mile for mile in the world at that time. The tremendous expense forced the company into receivership by 1914, and by 1916 it was sold in foreclosure proceedings.
Read more about this topic: Hawaii Consolidated Railway
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