Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1897-11-03
HISTORY OF THE PROJECT.
Idea of a Rail Line Between atlantic
and Pacific

Omaha, Neb., Nov 1.-The idea of unit
ing the Atlantic and Pacific coasts by Il
system of railways is said to have been
first given public expression in the Emf
grant, weekly paper published at Ann
ArbOr, Mich, from November 1S,. 1929.
to December 1, 1884. The article adyo-
eating the railway appeared on February
., 1882, and it was eagerly taken up and
discussed by various newspapers and pc
riodicals
Asa Whitney, 4 merchant Of New
York, who had travelled in Europe. China
and Japan, was most prominent in urging
the project. The aim and object OF his
life was the building of a railway from
Lake Michigan or the Mississippi river to
the Pacific coast. He first brought the
project to the attention of Congress in
memorial presented by him to the Senate
and to the lower house OF January Is,
1915. Whitney spent much time and all
Of his money in furthering his scheme.
and wound up by selling milk in the city
Of Washington tor livelihood.
A bill that passed the United States
Senate June 20, 1862. by vote Of . to
5, was the actual starting OF the l:nioh
Pacific. The House passed the bill by
a vote of 104 to 21 and four days later
President Lincoln made it law, by atfiX-
ing his signature. charter for S1OO.-
100000 was given the corporation and d
land grant of 20,00O,OOO acres attached.
he company was FORMALLY cQdIftIFtl
July =. 1862, with authority to construct
Il railway from Omaha to the eastern
boundary of the state of California. The
act incorporating the company provided
for a government subsidy equal to SIG
GOO per mile for that portion OF the hne
between the Missouri river and the BASE
of the Rocky mountains, $4,000 per II lie
for Il distance of 100 miles through the
mountain range, So, 900 per mile for the
distance intermediate between the Rocky
and Sierra Nevada ranges and S4S,2U
per mile for a distance OF 100 m!ies
through the Sierra Nevada The com
pany had also land grant equaling J.
800 acres to the mile.
The original act provided that the gov
eminent subsidy should be d first mort
gage on the road, but by amendment it
was made Il second mortgage. the COM
pany being authorized to issue its own
bonds to an amount equal to the gov
eminent as q first mortgage on the line
The whole available capital of the road
that was ultimately to cost S00, 0OO, 600,
was only $21S,000.
The government had offered in subsi-
dies more than the cost of the cOnstruc-
ton of the road, and Cakes Ames OF
Easton, Mass, who was interested IN
the building of the road, formed a cor
poratio which became known as The
Credit Mobilier of America" which was
to receive all the profits of the cOnstruc-
tors and divide them among the stock
holders in the Credit Mobilier. The
profits were enormous, amounting to
$40, 500, 1913.
Under the Ames contract alone, and
within one year, enormous dividends We're
paid. The matter was investigated by
Congress and the expulsion of Ames from
the House of Representatives, of which
he was then q member, was recommend
cd. 1t was. however, never carried out.
The first eleven miles of the road were
COMPLETED September %. 1868 and the
the Central Pacific at PromOntOry Point.
Utah, May 10, 1869. The meeting of the
two roads was duly celebrated. Gov. Le-
land Stanford of California and president
of the Central Pacific, was present, As
was President Durant of the Union
Pacific Ties were laid for the rails, and
when they met the last spike was driven.
each blow of the descending sledge was
reported instantly in all the large cities
from the Atlantic to the Pacific.
The last spike was of gold and was
driven home into tie of California wood
with a silver sledge welded alternately
by Gov Stanford and Mr.. Durant. Ce--
ebrations in honor of the completion OF
the road were held in most of the large
cities of the Union.
The read was operated by its officers
until October 13. 1898. when it passed
into the hands of receivers. 1t will have
been in their control but a few days over
four years when it will be bought in by
the reorganization committee today.
During the receiverShip it has dWindled
from a system that comprised 100 miles
of railroad and $4,000 miles of water
communca ton down to a railway of L
064 miles consisting chiefly of the main
line from Council Bluffs to Ogden, Utah.