The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-24
UNION PACIFIC RAILRO'
nj EriQNAL RAILROAD .rrvii135 y -,
neiohf AN PROGRESS
OF THE
UNION PACIFIC RAILROAD
RUNNING WEST FROM OMAHA
ACROSS THE CONTINENT.
EIGHT HUNDRED MILES COMPLETE.
CHARACTER OF THE WORK.
FIRST CLASS ROAD.
TWO MILLIONS YEAR SAVED TO THE
GOVERNMENT.


TWO MILLIONS YEAR SAVED TO THE
GOVERNMENT.
On the lst of July, 1862 an "Act to aid in the
construction OF Railroad and Telegraph Line
rom the Missouri river to the Pacific Ocean,
and TO secure to the government the use OF the
same for postal, military and other purposes"
was signed by Galusha A. Grow, Speaker Of
the House. and Solomon Foot, President pro tenn.
OF the Senate, and approved by Abraham Lincoln.
This act was liberal to the projected railroad enter
prise, in that it donated 400 acres OF public lands
for each mile of railroad and authorized loan
OF United States bonds to the amount of ffty mil
lions, for which Government was to hold hrsr
mortgage upon the road. Commissioners were ap-
pointed and subscriptions to the capital stock were
solicited, but the risk esteemed too great, and
an amendatory act was passed In 1864 doubling the
land grant, and in other ways guaranteeing to the
company which should build the great Pacific line
such aid and privileges as had been given to no
other commercial or mechanical enterprise.
There was good reason for this unwonted liber.
atty Beyond the western banks Of the Mississippi
and Missouri more than two million square
miles or the American Union. In 1860 less than half
that area, east Of these rivers, contained than
twentyseven millions Of people. The far Western
States and Territories possess an amount Of mineral
wealth that is not even approached In any other
country on the globe, and a large portion Of their
surface produces the most luxuriant and valuable
crops California the Rocky Mountains and the Sierra
Neyadas have already given US over twelve hun.
dred million dollars In gold and silver and still
giving us seventy-fve millions year. And yet this
great region, stretching for about two thou.
sand miles, from the Missouri to the Pacific,
was inaccessible to the great mass Of the
people, and a great part Of It's rich domain
a nd mi NJ
communication with the settled States than the
emigrant trail should be provided. With these facts
plainly manifest no one ever denied that the road
was Important while but few admitted that 1t could
be built except at fabulous cost OF time and money.
The lowest estimate for construction was more than
500 and 1t is not surprising that the boldest
and most adventurous capitalists refused furnish
30 large sum for an enterprise whose Importance
but few seemed to appreciate, and In which fewer
yet were willing to risk their money. The usual slow
and enormously costly routine Of "public workn
was not to be thought Of For obvious reasons, the
government could not do the work, and private capt.
tasts would not and only undertaken when the
interests Of these parties were united. The Gov
emment agreed to lend their national credit to the
amount OF $780, 900. This credit was loaned to
the Union Pacific RAILROAD Company, building from
Omaha, on the Missouri river, West and to the Gen.
trail Pacific Railroad Company Of California, build
ing from Sacramento east, until the two roads shall
meet.
DETAILS OF THE GOVERNMENT GRANTS.
The very liberal aid granted by the national charter
Is comprised under the following heads:-
L The Rights Of Way ana Material which include
Ill necessary public lands for track stations, depots
timber, stone, &C..
2. The Grant OF Konep-The government grants
Its six per cent currency interest thirty year bonds
to the Union Pacific Railroad to the following
amounts
On the plain portion Of the road, extend
ing from Omaha to the base OF the Rocky
Mountains SIT miles, at the rate OF
on the most pst d i portion Of the road
extending from the eastern base OF the
Rocky Mountains westerly, $50 miles, at
On the remaining i distance westwardiy to.
wards the California State line, at the
distance to be built by the Union Pacific
Company, before meeting with the Cen.
tral Pacific, at LOO miles, this wonld
leave remainder OF 433 miles, at 200
per mile, which Is. 13, s5e0oo
or total for l. 100 miles. s2o, 1928 900
These bonds are issued only on the completion Of
each section Of twenty miles Of road and upon the
certificate of Commissioners appointed by the United
States government that the road is thoroughly built
and adequately supplied with all the machinery,
equipment and fixtures necessary to complete first
class railroad. The interest on these bonds is paid
by the United States Treasury, but Is o charge
against the company. BY Its charter the company
receives one-haf the amount OF Its claims against
the government for transporting Its troops freight,
mails, &C., in money, and the remaining half placed
10 its credit sinking fund, to be applied to the
payment Of the interest and principal of these bonds
It should DO remembered that both divisions OF
the great Pacific line stand upon precisely the same
footing in this and In all other particulars respecting
no ont .
3. The Grant Of Lands.-The government grants to
the company every alternate section Of land for
twenty miles on each side Of the road making In all
twenty sections, equal to 800 for each mile
Of the railroad. For distance Of LOO miles, this
grant, which Is an absolute donation, amounts to
fourteen million and eighty thousand Q4,oso, ooo)
acres. As the railroad follows the rich valley
Of the Great Platte for nearly 900 miles, large
portion Of these lands may be classed among the
most productive in the world, and indeed there
hardly be any land along the line Of such an impor
tant road that viii not command reasonable price
for tillage grazing or timber. 1t will certainly be
quite within bounds to estimate them OF an average
Of 81 so per acre, and competent experts value them
at much higher rate. On the 7th of March, 1858,
the President of the United States signed Congress
sional bill which provides that the alternate sections
Of land belonging to the government on the line Of
the Union Pacific Railroad shall not be sold ct less
than 80 so per acre. t.'45s,s''& fr-s7s'
4 The Loan Grant-The government grants the
company q right to issue Its own FIRST mortgage
bonds on Its railroad and telegraph lines to On
amount equal to that OF the bonds Of the United
States issued to the company. BY special act Of
Congress passed July O. 1891 these first mortgage
bonds made d lien prior to all claims Of the gov.
eminent or to any claims whatsoever. This gives
the Union Pacific Railroad Company the following
resources exclusive OF its capital stock for the con-
struction OF l, 100 miles OF road
United States bonds on 5l7 miles, at
$4,000 per mile. ss,2r7,ooo
United States bonds on $50 miles, at
s!s 200 per mile. 100000
United states bonds on 453 miles, at
$4,000 per mile. 1a,s5eooo
Total. $40, a2s, 900
TO same amount. ...........,. - % aos 600