The Toledo chronicle. [volume] (Toledo, Tama County, Iowa) 1873-1924, 1873-02-13


Brrryrr, pronounced it "the great eat
gambling house which the world ha.
ever seen"
] But what has all this to do with
the Union Pacific Railroad? We
shall see.
| 1t will surprise ono who did not
know the interior feelings Of Ameri.
ca during her vas. civil war, that the
greatest road OF the age, or OF any
age, running across an unpcoplel
continent, and over the loitiest
range of mountains in tho western
hemisphere. should have been under.
taken ~ a time when the whole ma.
,ion was oppressed with the grra,
war. But it was war tor tbs main
tenance of the Union. The heart OF
the people was hot Tor Union. Tn.
plan Tor binding together the conti-
nent from west to east found itself
rushing in the channel of public en-
thusiasm. Congress dealt boun,i
fully with the companies that p.ti
toned ii to lend help. The work
was national, and worthy OF nunlfi
cent patronage, and never did Lcgis
lature more magnlfcently end.w a
great enterprise. Draw two lines
westward across the continent, forty
miles apart. OF this broad belt,
forty miles wide ana thousands long
said Congress, 'let the road have ten
alternate sections Of land per mile
let it have right to issue bonds to,
every twenty miles completed, equal
IN amount to the Government loan
to the road; thvre shall be a loan OF
Government bonds to the road, 10.
sixteen thousand dollars mile, Tor
the portion OF easy conntruc-
,ion; lhirtytwo thousani mile for
the more difficult; aud forty eight
thousand for the mountainous sec.
ton. The Government bonds shall
constitute 4 second mortgage on the
road, the company's own bonds be-
ing a first mortgage on the road and
its franchises; and aaother class OF
bonds, resting upon the lands, shall
be permitted The Trans-contlncn.
tai Road was magnificent enter.
prise more magni6centIy endowed!
The land grant alone was more than
10000 acres per mile, equivalent to
At least twenty square miles ! The
Company could issue bonds on
every completed section OF the road
To All amount equal to the Govern.
ment loan on such section; and the
Government loan, by itself alone,
was sufficient to build the road For
10 good luck wonld have 1t, the acc
tions for which Government agreed
to pay thirty two thousand and for.
ty-elght thousand dollars a mie,
were, I, large extent, not much
more expensive 10 build than those
for which it paid sixteen thousand !!
And yet the road could not be
built! Capitalists did not choose to
advance. At any ordinary rate Of in.
tersst, the enormous sums required.
Unless An extravagant profit could
ba secured they would no venture
what they deemed prodlgious risk.
The victorious temptation was
soon found. A Credit Mobilier OF.
tered to build the road for the
Union Pacific Company. And what
was this Credit Mobilicr? An old
Pennsylvania charter was cheaply
bought its name, ," Fiscal Agency
changed to Credit Mobilier of
America This revamped concern,
like another Noah's ARK, was hauled
aIongside OF the Union Pacific rail
road Company, and into it, atraight-
way, got all the principal members
Of the railroad COMPANY, and q nice
voyage they have made of it What
happened Why as there was but a
difference ot name between Credit
Mobilier and Union Pacific, a. the
same men managed both, and sat to.
day ~ Union Pacific, and to morrow
- Credit Mobilier, the issue was
that tho gentlemen entrusted " tn
the management OF the Union Paci-
fic road, made . bargain with them.
selves TO build the road for about
twice to cost, and pocketed tho pro
fits, which have been estimated at
about thirty million dollars !! The
Nation says:
The way in which they built the
road was tins: First Two hundred
and thirty.eight miles were built uu.
der the management of the Union
Pacific Railroad, at a cost OF $27 500
per mile, aud then the Union Pacliiy
made contract. through Mr.. Oakes
Ames, with the Credit Mobilier to
complete the undertaking at from
$47 900 to SlO3,5OO a mile j; this con
tract was made to apply to the two
hundred and thirty-sight miles al.
ready built; that is to say, the Credit
Mobilier agreed TO build . road al.
ready built, and for this tho same
corporation agreed to receive as a
profit tor having built it The differ.
scce between the actual cost aud tho
contract price. This contract was
made in October 1867, and 1t prove
very profitable. On June 17th 1868
the stockholders OF the Credit Mo
bilisr received so per cent. in cash,
and 40 per cent. in stock OF the
Union Pacific Railroad; on the ID of
July. 1868, 80 per cent. FIRST mort.
gage bonds OF the Union Pacific
Railroad, and 100 per cont. stock;
July 8, 1868, IS per cent. stock, and
- per cent. first mortgage bonds;
September 8, 1868, 100 per cent.
stock, and IS per cent. first mortgage
bonds; December 10, 1868, 200 per
cent. stock; while, before this con