The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1863-10-27
THE PACIFIC nA,LwA Az LEASE.

ne Injunction suit now penang IN the
Z. S. Court for this district, is one in
volving more than individual Interest,"
The Union Pacific Railway Company
Eastern division, and both firms OF con.
tractors, each of whom claims right to
build the road, may be interested, as has
been alleged by one of the counsel to the
extent of millions of dollars; but when
we consider that the Pacific Railway is a
national enterprise, and that Congress
has given to its aid a pledge OF over fifty
millions of the peoples money and i'm
mense tracts of the public lands, it is ap-
parent that the case has wider signii-
cance than the value of few thousand
shares of stock, or the profits on the con-
struction of few hundred miles OF road.
We have, therefore, taken pains to
procure the important historical facts nec-
essary to a knowledge of the case now
being tried in this city, before his Honor
Justice Miller and we trust their un-
questionable accuracy may serve, some
what. to illuminate the subject for public
examination.
The Eastern division Of the Pacific
Railway is that portion extending from
the Kansas river, westerly. through the
State of the same name to the Tooth me.
ridlan Of longitude, where it is expected
to unite with the branches from the west
ern boundary of Iowa, and, in coniunc-
ton with these, to form a main line ex-
tending TO the State Of California. The
company was chartered by the State OF
Kansas, and endowed by Congress with
all the privileges given to any of the 9th.
er lines. The Congressional law contain
ing the grants was passed July 1st, 1862.
and the same summer the company (then
known as the Lcavenworth, Pawnee d
Western Il. R. Company contracted
with Canadian firm to construct the
whole line, Of nearly four hundred miles,
Offering most liberal compensation for
the purpose of securing the greatest ra-
pidity of execution and certainty of OBJ
tainiDg the subsidies offered BY the Gov
ernment. A hundred miles Of the road
must, by the terms of the law,
be finished BY the 18th Of November.
1864, under penalty of forfeitures, ruin
Gus 10 the company and hence it was
stipulated between the company and the
contractors that the work should COM
mence on the lst Of November, 1862, and
be pushed forward with the utmost ra-
pidity.
Accordingly the work of construction
appears to have begun on that date-not
on the main line. but an authorized brancb
with force of hco men. 1t continued
during the fall and winter in a manner
quite unsatisfactory 10 the company, who
began at last to be apprehensive that the
contractors lacked the energy and means
to fulfill their obligations so as to avert
the certain forfeiture impending through
noncompliance with the Congressional
law. This anxiety increased with the
lapse of time, till at last it appeared 10 be
a necessity to find other contractors who
possessed the indispensable requisites of
success in work SO important and gi-
gantic.
Early last spring these facts came to
the knowledge Of Samuel Hallett, ESQ.
of New York, fnancier whose reputa-
tion for ability rested on series of sue
cessful transactions, the chief of which
was probably the negotiation resulting in
the success of the Atlantic & Great West
ern Hallway. The establishment of this
great enterprise upon solid basis, took
place during period most unfavorable 10
railroad enterprises, and gave 10 it's author
a reputation for ability second to that Of
no man in America. Hence it only need.
ed an intimation to the L. P. IL w. r. r.
Co. that Mr. Halett was disposed to TAX
an interest in the building of their road
to constitute the commencement of n NO.
gotiation designed to fill the places of the
Canadian contractors with parties better
able to meet the necessities of the case
This negotiation, though commenced
with the sole view of making contract
for construction, grew into one for pur-
chase of the franchise and a reoreaniza
ton OF the company. This was finallv
accomplished, and a new companv ar
ranged, of which Gen. Fremon. was elect
ed President. Consequent upon this
arrangement, the Canadian contractors
who were still destitute of any real force
upon the work, as they were apparently
OF the means to employ one, made &c