Mount Lowe Railway - Troubled Times

Troubled Times

In all there were four hotels along the line, but the extent of the construction, and the poor patronage had stretched Lowe to his limit. By 1898 the railroad fell into receivership under Jared Sidney Torrance, founder of Torrance, California. Both men applied to the government for rights of way to the top of Mt. Lowe. The government realized that the whole railroad was on Federal property (vis-à-vis the San Gabriel Timberland Reserve) and demanded that a proper lease be taken out on the properties. Having reviewed Lowe's standing with the railway, Congress awarded the receivership to Torrance in 1899, and Lowe was left with only the title to the observatory. It was at this time that the railway was reorganized and incorporated as the Mount Lowe Railway. The railway was sold at auction to a Mr. Valentine Peyton of Danville, Illinois, who personally came to California to run the operation.