A dam site at Salmon Falls was too low in elevation to allow for the ditch to exit the river canyon between Red Bank and Mormon Island. Consequently, the dam site was moved to Rocky Bar which had an elevation of approximately 450 feet. With a small dam across the river, the headwaters for the canal would be elevated to 465 feet. The minimal slope of the ditch line would put the water canal at between 390 to 395 feet of elevation at the saddle.
My Dear Mrs. Judah, a subject which has often been upon my mind, and upon which I have often intended to write to you has quite recently been renewed itself with more than usual force. History is now being made for California and much of it false. You know with what studious zeal efforts have been in a certain quarter to bury the memory of Theo. D. Judah out of sight to the future reader of the history of California. You know also how some of his friends have endeavored at times to preserve that memory.
On January 3, 1857, Dr. Bates authorized the payment of $124,000 to Edwin Rowe of the Pacific Express Company for interest due in New York on July 1st. In sworn testimony, Dr. Bates confesses there was no Controller’s warrant for the disbursement. Dr. Bates left the Treasurer’s office at 1:30 PM while Rowe took charge of the gold coins. Dr. Bates told the clerk to drop the key to the safe at his hotel room later that evening. The clerk, Mr. Bunker, left the office at 3:30 PM while Rowe was still in the office counting the money.
The Sacramento Bee remained defiant. They discerned, “If that be the law of the State, then no newspaper will hereafter feel safe in recording the facts connected with any man’s arrest until after he has been convicted.” They concluded, “If Mr. C. H. Gilman is banking on getting $500, or any other sum, from this paper, he had better postpone his hilarity until he hears from the Supreme Court, for certainly The Bee does not propose to permit this matter to rest here. The fight has only commenced.”
The one line of business Amos did try to explain was his investment in a steam engine for a saw mill. He thought the saw mill would produce him the most income, and he was proud of his investment. “The engine belongs to me, a beautiful 12 horse locomotive which cost me $3,000.” He then goes on to loosely explain the business arrangement and business proposition. We also learn that he was the main salesman for the operation.
By today’s standards, it seems absolutely crazy that anyone would invest money in property or infrastructure when there was no clear title to the land and the State of California continually threatened to strip Folsom of his ownership of the Leidesdorff estate. But this was the state of California in the 1850s. Even before the untimely death of Folsom, he and other men were pushing forward with their development plans in Sacramento County. Folsom had been working with the Sacramento Valley Railroad to run a line from Sacramento to Negro Bar on the south side of the American River over the Leidesdorff land grant.