The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-11-01
mANY sw1NDLEs WERE IN IT
History of the Union Pacific Up to
Date.

Omaha, Nov. THE idea of uniting
the Atlantic and Pacific coasts by a
system of railways is said to have been
first given public expression in the
EInigrant, a weekly paper published at
Ann ArbOr, Mich, from November Is,
1929, to December l, 1884. The article
advocating the railroad appeared on
February 6, 1892, and it was eagerly
taken up and discussed by various
newspapers and periodicals. A. s.
Whitney, a merchant of New York who
had Travelled in Europe, China and ia
pan considerably, was most prominent
in urging the project The aim and
object of his life was the building of
railway from Lake Michigan, or the
Mississippi river to the Pacific coast.
He first brought the project to the at
tentiOn Of-cOngress in a memorial pre-
sented by him to the senate and to the
lower house, on January Is, 1S45. Whit
ney spent much time and all of his
money in furthering his scheme and
wound up by selling milk in the city of
Washington for livelihood.
A bill that passed the United States
senate June 20. 1862 by a vote of 25 to
was the actual starting of the Union
Pacific. The house passed the bill by
a vote of 104 to q and four days later
President Lincoln made it a law by af-
fixing his signature. A charter for
$100 600, 900 was given the corporation
and land grant of 20,000,O00 acres at
tached.
The company was formally chartered
July 2, 1862, with authority to con-
struct a railroad from Omaha to the
eastern boundary of the state of Cali
fOrnia.
The act Incorporating the company
provided for government subsidy
equal to $4,000 per mile for the portion
OF the line between the Missouri river
and the base of the Rocky Mountains;
$4,000 per mile for a distance of $50
miles through the mountain range;
$4,000 per mile for the distance inter-
mediate between the Rocky and Sierra
Nevada ranges and S4S, coo per mile for
distance of $50 miles through the ST.
ezra Nevada. The company had also
mile.
The original act provided that the
government subsidy should be a first
mortgage on the road, but by amend
ment, 1t was made second mortgage,
the company being authorized to issue
its own bonds to an amount equal to
the governments claim as first mort
gage on the line. The whole available
capital of the road that was ultimately
to cost $5O,O00,000 was only $218,000.
The government had offered in sub
sides more than the cost of the con-
structiOn of the road and Oakes Ames
OF EastOn, Mass, who was interested
in the building of the road formed a
corporation which became known as
the credit mObilier of America,
which was to receive all the profits of
the construction and divide them
among the stockholders in the Credit
mobilier- The profits were enormous,
amounting to $43. .929, 1928
Under the Ames contract alone and
within a year, dividends were paid
amounting to 545 per cent on the capi-
tai stock. The matter was investi-
gated by congress and the expulsion of
Ames from the house of representa-
tlVes of which he was then a member
was recommended. 1t was, however.
never carried out.
The hrst eleven miles of the road
We're completed September 25, 1865,
and the road was completed with its
he
PromOntory Point, Utah, May 10. 1869.
The road was operated by it's officers
until October 13, 1898, when it passed
into the hands of receivers. During
the receivership it has dwindled from
a system that comprised Z, 700 miles of
railroad and 5000 miles of water COM
mun1cation down to a railroad of 1 064
miles consisting chiefly of the main
line from Council Bluffs to ogden.