The Western Pacific Railroad was formed in December, 1862, by a group led by Timothy Dame and including Charles McLaughlin and Peter Donahue, all associated with the San Francisco and San Jose Railroad, to build a railroad from San Jose north to Vallejo's Mills (mouth of Niles Canyon, later Niles, now part of Fremont), east through Niles Canyon, north to Dublin/Pleasanton, east through the Livermore Valley, and over Altamont Pass to Stockton, then north to Sacramento, with the plan that the transcontinental railroad would follow the Western Pacific to San Jose and then the San Francisco and San Jose to San Francisco. In October, 1864, the Central Pacific Railroad assigned all the rights of the Pacific Railway Acts of 1862 and 1864 to the Western Pacific for the route between Sacramento and San Jose, including land grants. In 1866, the first twenty miles from San Jose had been completed when funding problems halted construction within Niles Canyon. Part of the difficulty was that federal land grants were not available where Mexican land grants had previously been made.