New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1897-11-03

mittee without any opposition. The
sale of the road was in itself one of
the most tame and uninteresting per-
fOrmances possible to imagine.
RECORD BREAKER FOR PROFIT
Fabulous Sums Made Out of the Building
of the Union Pacific.
OMAHA, Neb., Nov. 2.-The idea Of
uniting the Atlantic, and Pacific coasts
by system of railways is said to have
been first given public expression in
The Emigrant, a weekly paper pub
ished at Ann Arbor, Mich, from Nov.
IS, 1929, to Dec. 1, 1884. The article
advocating the railway appeared. on
Feb. 6, 1882, and it was eagerly taken
up and discussed by various newspapers
and periodicals. Asa Whitney, a mer-
chant Of New York, who had travelled
in Europe, China and Japan consider
ably, 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 on Jan.
28, 1916. Whitney spent much time
and all of his money in furthering his
schemes, and wound up by selling milk
i'll the City of Washington for liveli-
hood. A bill that passed the United
States senate June 20, 1862, by vote of
% to 5 was the actual starting of the
Union Pacific. The house passed the
bill by vote of 1O4 to 81, and four days
later President Lincoln made it law
by affixing his signature. A charter of
$1O0,OOO,O00 was given the corporation
and land grand of 20,O0O,OO0 acres
attached.
Incorporated July 2, 1862.
The company was formally chartered
July 2, 1862, with authority to construct
a railway from Omaha to the eastern
boundary of the State of California
The act incorporating the company pro-
vided 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; $48,.
600 per mile for distance Of $50 miles
through the mountain range; $32, 900
per mile for the distance intermediate
between the Rocky and Sierra Nevada
ranges, and $48, 900 per mile for q dis
lance of $50 miles through the Sierra
Nevada. The company had also land
grant equaling 1880 acres to the mile.
The original act provided that the
government subsidy should be first
mortgage on the road, but, by amend
ment, it was made a second mortgage,
the company being authorized to issue
its own bonds to an amount equal to
the government as first mortgage on
the line. The whole available capital
of the road that was ultimately to cost
Sc, 900, 900 was only $218,OOO.
Organized the Credit Mobilier.
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 cor
poration which became known as "the
Credit Mobiierof America, " which was
to receive all the profits of the con.
structors and divide them among the
stockholders in the Credit Mobilier.
The profits were enormous, amounting
to $43, 929,328. Under the Ames con-
tract alone and within one year divi-
dends were paid amounting to 545 per
cent on the capital stock. The matter
was Investigated by congress and the
expulsion of Ames from the house of
representatives Of which he was then q
member, was recommended. It was,
however, never carried out.
The first eleven miles Of the road
were completed Sept. %, 1865, and the
road was completed to it's junction with
the Central Pacific at Promotory Point,
Utah, May 10, 1869. The meeting of
the two roads was duly celebrated.
Governor Leland Stanford of California
and president of the Central Pacific,
was present, as was Vice President
Durant, Of the Union Pacific. Ties
were laid for the rails and when they
met the last spike was driven. Tele-
graph wires were connected so that
each blow of the descending sledge was
reported instantly in all the large cities
from the Atlantic to the Pacific
The Last Spike Driven.
The last spike was Of gold and was
driven home into Q tie from California,
! with a silver sledge welded alternately
by Governor Stanford and Mr.. Durant.
Celebrations in honor Of the completion
Of the road were held in most Of the
large cities Of the union.
The road was operated by its officers
until Oct. Is. 1893, when it passed into
the hands OF receivers. It had
been in their control but q few over
four years when it will be bought in By
the reorganization committee. Dur.