The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-11-01
Story Of the Building Of the Pioneer
Transcontinentai Lines.
CAUSE OF THE GOVERNMENT SUBSIDY
Credit Mobiiier Operations md the
Eject Of Investigations Brought
About by Their III tclsscre.

Like Michigan WESTWARD 10 tne nVueA "
the Columbia river in Oregon-practicaiiy
on the present route OF the Northern IA
ciflc. With private funds the first ten
miles Of track were to be built, and THIS
was to entitle Whitney to all the mnds
within thirty miles of the road. Hall OF
these-i e.. the lands along the first hve
miles OF track-were to be turned over 10
him and sold, and thus the funds were to
be secured for building the next section
Of ten miles The remaining half OF the
lands were to be withheld temporarily by
the government as guaranty that the
work would be continued. Whitney, who
travelled all over the country in the in
teresu OF his road scheme. succeeded in
convincing a great msny people OF the
feasibility and desirability of building the
road in this way AS "a result Of his labors
the legislatures OF mere than half the
States of the Union, representing all sec
lions OF the country, passed resolutions for
mally approving the plan. Congress, how
ever, never took the action necessary TO
set the scheme in motion, and soon the
slavery agitation thrust the matter into the
background. When Pacific railway legisla-
ton was finally passed. 1t was in quite
different form.
After Whitney's plan was laid aside
scores Of others were proposed, out of which
workable one was finally evolved. Tie
land grants became smaller. The thirty
sections ON each side OF the track became
twenty. fifteen, ten, and. finally, in the
bill which became law in 1862. 1--WE sec
tions on each side OF the track for each
running mile OF road Once 1t was proposed
that the government secure body of work
men, organize them on a military basis and
build the read directly; again, that the
railway company be authorized to effect
military organization OF It's employees. 1t
was proposed that the company be author
lied to raise money by selling bonds. and
that the government render them salable
by paying the interest; then it was proposed
that the government pay the interest Tor
enc year only, and guarantee 1t for the
subsequent years.
At first the talk was OF one road only,
then other sections became jealous, and
three roads were planneda Northern, a
Central and Il Southern. First the North
ern route was rejected because OF it's near
ness to the British possessions and because
OF the heavy SHOWS Of that region. Then,
in the early COS, the South adopted a course
of action which made 1t very unlikely that
Northern members OF congress would vote
any large sums of none! for internal i'm
prcvements in that section; and the South
ern read was dropped. This left the field
to the Central route.
For years the agitation for railway TO
the Pacific was based on commercial
grounds. Finally. however, II became a
political issue, and thus, during .he great
est civil war which the world has ever
seen, the matter was brought 10 a lead.
By the signature or President Lincoln tie
Pacific railroad act became a law 1uly 2,
1862.
In this law the government made an offer
for a railway to run from Omaha to San
Francisco. For each mile Of this distance
there were to be given, out OF the pul lie
domain. five sections Of land on each side
of the track. This land grant could even
tually be turned into money, but sales
would be slow until the road was built So
another device was arranged for raising
ready money. This was loan of the
credit of the United States. For 600 miles
westward from Omaha the road would run
over level plains, so construction would be
easy and cheap. AS fast as short sections
Of the road were completed the govern
ment agreed to turn over to the railway
company for each mile of this portion sl6,-
900 in United States bonds. These could
be sold and money obtained for further
construction. 1t must be understood that
this was not gift to the road it was q
lean, and both principal and interest were
TO be repaid thirty years later, when the
bonds fell due.
1t was anticipated that the Rocky Noun
tains would make it very hard for the
road to get up from the plains on the cat
interior plateau. So. for the $50 miles
where construction would be most costly,
the bond subsidy was trebled-$4S, 900 per
mile. Then, for the easier portion. crossing
the plateau. the credit lean was S32 900 per
mile. For the $50 miles through the Sierra
Nevada Mountains the subsidy was again
$4,000 per mile, and for the short level
stretch from the mountains to the Pacific
$4,000 per mile. To secure the repayment
Of this, loan the government was 10 take a
mortgage on all the portions of The read
which were built by this aid.
The Western Hortien Of this line wos to
be built by A corporation already chartered
under California State law. the Central
Pacific company. To build the eastern part
a new company was chartered by congress,
the first one to receive q charter from the
Federal government since the Second Ma
tional bank was established In 1916. TT
came into existence the Union Pacific Rail-
road company.
The incorporators OF the Union Pacific
wero as follows:
Walter S Burgess. William P. Bioleett,
Benjamin n. Cheeyer, Charles Fosdick
Fletcher, all OF Rhode Island.
Augustus Brewster. Henry p. Haven,
Cornelius S. Bushnell. Henry Hainm Dad
of Connecticut.
Isaac Sherman Dean Richmond, Roy al
Phelps. William II Ferry. Henry 4. Pad
dock, Lewis ]. Stancliff. Charles A. Secor,
Samuel R. Campbell. Alfred e. Tilton. John
Anderson. Azariah Body, John L. Kenne-
dy II. Carver. Joseph Field, BENJAMIN f.
Camp, Orville w. Childs. Alexander j.
Bergen, Ben Holiday, D. n. Barney. s.
Dewitt Bloodgood. VIM. H. Grant, Thomas
w. Olcutt, Samuel b. Ruggles. James B.
Wilson, of New York
Ephraim Marshal. Charles NJ. Harker, OF
New Jersey.
John Edgar Thompson. Benjamin Hay
wood. Joseph H, Scranton. Joseph Harri-
son. George W. Cass, John II. Bryant, Dan
lei j. Morell. Thomas N. Howe, VIM. F.
Johnson. Robert Finney, John A. Green.
u. r. Myre, Charles +. Wells. Jr., Of
Pennsylvania.
Noah l.. Wilson, Anasa Stone. VIM. II .
Clement. S. s. lHommedieu. John Brough,
William Dennison, Jacob Blickensderfer. OF
Ohio
VIM. NJ. Mcpherson. r. w. Wells. Will
lard p. Hall. Armstrong Beatty, John Cor
by Of Missouri.
S. j. Henseley. Peter Don,hue. G. p.
Huntington. T. d. Judah, James Bailey.
JAMES T. Rysn- Charles Hosmer. Charles
Marsh, ID. o. Mills. Samuel Bell. Louis
McLane. George W. Move. chas. McLaugh-
lin Tiunshv Dane Jobn RohfUson NJ