Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1897-11-11

Bonds Brought About ono
The Union Pacific Railroad fhia
Omaha at auction Monday, ~ m was 81,
forced by the United States ' he, sale
second mortgage. In ordar t ~ d
stock and bondholders tho 49, % prgs,
commit, committee bid in the propertv sa MI;
personal that is to say, trail sl Teal d
stock and bonds. For the ra ,T,A' fo4s
the committee paid S3g, SS3 os ,'o ga mqs
bonds, S13,645,250.99. Tbera f@A
other bids. The price obtained j. Were
to pay the government in fnn ~ s SUM-
in Chancery W. D. Cornish ' o. N Ma1q
conducted con, the sale, and it is said a. II
will be the largest ever given s an MS
eer, as the Union Pacific is f. ~, m auelia
uab' property ever sold At an NV tlM y
The idea of uniting the Atlantioa
cifc coasts by system of railway, 1aa
shape in a bill that passed tbo = ~ l
States Senate June 20. 1862 hv . s OlN
70 to 8. This was the actual st y ,af
the Union Pacific. The House nass a4S
bill by a vote of 104 to p, and f~nS,
later President Lincoln made # I isv
affiXing his signature. "s
A charter for $100,0O0,0C0 Voc :.
the corporation and a land grant ~ ss
CO0,0C0 acres attached. The com.
was formally chartered July . 1870 =
authority to construct a rail- wsv y
Omaha to the eastern boundary ~
State of California. The act ipcorn,
ing the company provided for ga r,n
ment subsidy equal to $4,000 No, -
for that portion of the line betwaa, a
Missouri River and the base of tba NJ
mountains; $4,000 per mile for i
lance Of $50 miles through the morrt,
range; So, GOO per mile for the dsbs
intermediate between the Rocky and q,
RI Nevada ranges, and $4,000 Der M
for a distance of 15G miles tbyour5 4
Sierra Nevada.
The company had also a land e,1
equaling 1880 acres to the mile ri
original act provided that the gOveumar
subsidy should be Il first mortgage on 4
road, but by amendment it was msh
second mortgage, the company being n
thorized to issue its own bonds 10 Il
amount equal to the government subSb
as first mortgage on the line. The vl5I
available capital of the road that wal
ultimately to cost $50,000,0O0 was ar
$21S,C00.
The government had offered in SUBJ
dies more than the cost of the cOnslrl
ton of the road, and Cakes Anes, Of &
ton, Mass, who was interested in III
building of the road, formed COrpt|
ton which became known as "The CNA|
Mobilier of America" which was to nj
ceive all the profits of the constructs
and divide them among the st0ckhodN
in the Credit Mobiljer. The profits we'd
enormous, amounting to SIS, 9229,S& III
der the Ames contract alone and With
one year dividends were paid amOuni
to $40 per cent. on the capital stock.
The matter was investigated by CG
gress and the expulsion of Ames frOma
House Of Representatives, of which b
was then a member, was RECOMMENDED
It was, however, never carried out I'M
first eleven miles of the road were COM
pleted Sept. 25, 1865, and the road Fa'
completed to its junction with the Cen
trail Pacific at PromontoTy Point, uE
May 10, 1860. 4
The meeting of the two roads was daI
celebrated. Gov. Leland Stanford OtlG
ifornia, president of the Central PacN1
was present, as was Vice President ~
rant of the Union Pacific. Ties were hA
for the rails and when they met the ns
spike, which was of gold, was driven lt
egraph wires were connected, so thal cay
blow of the silver sledge was reported Y
stantly in all the large cities from the A
lantic to the Pacific.