On June 20, 1879, the Santa Fe Railway received a land grant from the Mexican government that allowed them to extend their reach through the valley of Sonora through to the coastal town of Guaymas on the Gulf of California. The Sonora Railway (an operating subsidiary) allowed the Santa Fe to effectively compete with the Southern Pacific Railroad for business on the West Coast of the United States. Traffic on the line, however, was light, and Santa Fe pushed further westward in search of a suitable Pacific terminus. Since 1845, the citizens of San Diego (then essentially a sleepy fishing village) had attempted to establish a direct rail link to the east without success. The Texas and Pacific Railway Company (known as the T&P) was created by federal charter in 1871 with the purpose of building a southern transcontinental railroad between Marshall, Texas, and San Diego. The T&P had a significant foothold in Texas by the mid-1880s but construction difficulties delayed westward progress until American financier Jay Gould acquired an interest in the railroad in 1879. The T&P never reached San Diego but instead met the Southern Pacific at Sierra Blanca, Texas, in 1881.