The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1897-11-02
UNION PACIFIC SOLD.
Reorganization Committee Bids
in the Property.
THE BONDS BROUGHT ONE.THIRD.

The Price Paid Is Little Over Fifty
eer VIII Get the Largest Fee Ever Paid
The Idea of Uniting the Atlantic and
Pacific Ocean by Rail Originated in u
Michigan Paper.
Omaha, Nov. 2.-The Union Pacific
railroad has been sold at auction. The
sale was forced by the United States,
holder of a second mortgage. In order
TO protect stock and bondholders, the
reorganization committee bid in the
property, real and personal-that is to
say-track rolling stock and bonds. For
the railroad proper the committee paid
$39. .SS3, ,2S1.S7 for the bonds, $13, ,645,-
25095. There were no other bids. The
price obtained is sufficient to pay the
government claim in full. Master in
Chancery w. ID. Cornish of st. Paul
conducted the sale, and ii is said his
fee will be the largest ever given an
auctioneer, as the Union Pacific is the
most valuable property ever sold at
auction.
A Isit of History.
The idea of uniting the Atlantic and
Pacific coasts by a system of railways
is said to have been first given pub
lie expression in The Emigrant, a week.
ly newspaper published at Ann Arbor,
Mich, from Nov s, 1929, TO Dec. /, 1884.
A bill that passed the United States
senate June 20, 1862, by vote of 25 to
>. was the actual starting Of the Union
Pacific. The house passed the bill by
a vote OF 104 to y and four days later
President Lincoln made II law by af-
fixing his signature. A charter for $780,
600, 900 was given the corporation and a
land grant of 10000, 900 acres attached
The company was formally chartered
July ., 1862, with authority to construct
a railway from Omaha to the eastern
boundary of the state Of California.
Provisions of the Act.
The act Incorporating the company
provided for government subsidy equal
to $4,000 per mile for that portion Of
the line between the Missouri river and
the base Of the Rocky mountains; $4S,-
900 per mile for a distance of $50 miles
through the mountain range; $32, 900 per
mile for the distance intermediate be-
tween the Rocky and Sierra Nevada
ranges, and 5000 per mile for dis
tance of $50 miles through the Sierra
Nevada. The company had also a land
grant equalling 800 acres to the mile.
The original act provided that the
government subsidy should be a first
mortgage on the road but by amend
ment Ii was made a second mortgage,
the company being authorized to issue
its own bonds to an amount equal to the
government subsidy as a first mort
gage IN she line.
Capital Was Only $21S. 900.
The whole available capital of the
road that was ultimately to cost $780,
100000 was only $21S,000. The govern
ment had offered in subsidies more than
the cost Of the construction of the road,
and Oakes Ames Of Easton, Mass, who
was interested in the building of the
road. formed a corporation which be-
came known as The Credit Moblier of
America" which was to receive all the
profits of the constructors and divide
| them among the stockholders in the
! Credit Mobilier The profits We're enor-
NOUS amounting to $43, ,92932S. Under
| the Ames contract alone and within one
| year dividends were paid amounting to
} $40 per cent. on the capital stock. The
matter was investigated by congress
and the expulsion of Ames from the
I house Of representatives, of which he
was then a member, was recommended
IT was, however. never carried out.
Meeting of the Two Roads.
] The first eleven miles of the road were
I completed Sept. 25. 1865 and the road
was completed to its junction with the
| Central Pacific at Promontory Point
Utah, May 10, 1869. The meeting of the
J two roads was duly celebrated. Gov
| ernor Leland Stanford of California
| president of the Central Pacific, was
present. as was Vice President Durant
I of the Union Pacific. Ties were laid fol
[ the rails and when they met the last
spike. which was of gold, was driven
/ Telegraph wires were connected, sc
that each blow of the silver sledges was
reported instantly in all the large cities
from the Atlantic to the Pacific.