The record-union., 1897-11-02
UNION PACIFIC
FORECLOSURE,
(Continued from First Page.)

at Ann Arbor. Mich, from November
| Is, 1929 to December i, 1884.
The article advocating the railroad
appeared February 6, 1882, and it was
eagerly taken up and discussed by va
rious newspapers and periodicals. Asa
A. Whitney, a merchant Of New York.
who had Travelled in Europe, China and
Japan considerably, was most promi-
nent in urging the project The aim
and object of his life was the building
of a railroad from Lake Michigan or
the Mississippi River to the Pacific
| Coast.
He first brought the project to the
attention of Congress in a memorial
presented by him to the Senate and to
the Lower House on January 2S, 1913.
! Whitney 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 July 20, 1862, by a vote of % to
| ), was the actual starting of the Union
Pacific. The House passed the bill by
| a vote Of 104 to 21, and four days later
| Pr sident Lincoln made it law by
aflxing his signature. A charter for
Sl00. 100000 was given by the corpo-
ration and a land grant Of 200OO,000
| acres attached.
The company was formally chartered
July ., 1862, with authority to construct
| a railroad from Omaha to the eastern
boundary of the State of California.
The Act Incorporating the company
provided for a Government subsidy
equal to $4,000 per mile for that por-
ton of the line between the Missouri
River and the base of the Rocky Noun
tains, $4,000 a mile for the distance of
| 100 miles through the mountain ranges,
| $50 600 per mile for the distance inter-
| mediate between the Rocky and Sierra
Nevada ranges and $4,000 per mile for
| a distance of $50 miles through the Si-
ezra Nevada. The company had also
a land grant equalling 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 Governments loan as a first mort
gage on the line. The whole available
capital of the road that was ultimately
| to cost $50. 1000. 900 was only $21S,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
constructors and divide them among
the stockholders in the Credit Moblier.
The profits We're enormous, amounting
to S43. 929, ,32s
Under the Ames contract alone and
within one year dividends were paid
amounting to $40 per cent on the capt.
tai stock. The matter was investigated
by Congress and the expulsion of Ames
from the House Of Representatives of
which he was then a member. was rec
commended. 1t was. however, never
carried out.
The first eleven miles of the road
| were completed September - 1865 and
| the road was completed TO its junction
with the Central Pacific at Promontory
| Point Utah, May 10 1869. The meet
| ing of the two roads was duly cele-