CHAPTER II.

_The Proposition in Congress._

Situation 1861--Curtis Bill of 1862--Amended Charter of 1864--Further

Amendments--1866--Legal Complications in New York--Controversy With

Central Pacific.

Commencing with the session of 1835, when a memorial on the subject of

railroad communication between Lake Michigan and the Pacific Coast,

was presented by Hartwell Carver, up to the present, the Pacific

Railways have been ever present in Congress. The Catalogue of

Government Publications gives one hundred and eighty-five having the

Union Pacific, or Pacific Railroads as their subject.

It is not necessary to recount the many schemes for the construction

of these roads that were proposed to Congress. We have already

outlined the principal ones previous to 1861.

At this time our country was in the midst of its greatest

difficulties. The North and South unable to harmonize over the slavery

question, had recourse to the arbitration of arms. The Union forces

had met with numerous and severe reverses. The people of the Pacific

Coast were loud in their demands for better means of communication.

The Government was straining to what seemed the breaking point, their

credit and resources to carry on the war and as a Government

enterprise the building of a Pacific Railway was out of the question.

All were convinced of not only the desirability of such a line but of

the absolute necessity thereof, and it had resolved itself into a

question of ways and means. Previous discussions had thrashed out the

chaff and it now remained for Congress to winnow the wheat. Government

surveys had demonstrated the existence of five feasible routes through

or over the Rocky Mountains. The Northern, now followed by the

Northern Pacific Railroad, the South Pass, Snake and Columbia Rivers,

now traversed by the Union Pacific Railroad to Granger, thence the

Oregon Short Line and Oregon Railway and Navigation Company. The

Middle Route-Union Pacific Railroad in connection with the Southern

Pacific Company (Central Pacific Railroad). The thirty-ninth parallel

route, now followed by the Santa Fe Route and the Southern via El

Paso, now followed by the Sunset Route. The first two while available,

could be eliminated owing to their not reaching California direct, as

could also the two latter, on account of their traversing in part at

least, country that was then in a state of insurrection.

These reasons were in themselves sufficient to determine the

selection, but with the many other arguments advanced, there was no

trouble in bringing Congress to adopt practically unanimously the

"South Pass" "Middle" "True Pacific" Route as it was variously

called. For years this had been the route of the fur traders and

trappers, the emigrant, the Overland Stage, and the Pony Express, and

if these various interests had agreed as to this being the shortest

and best route it was evident there were good and sufficient reasons

for their decision, it being incontrovertible that it was the shortest

one that reached the desired territory. Especially as their decision

was reinforced by the result of numerous surveys made by the

Government.

The bill creating the Union Pacific Railroad was known as the "Curtis

Bill" from its author, Congressman S. R. Curtis of Iowa. It carried

the title of "An Act to aid in the construction of a railroad and

telegraph line from the Missouri River to the Pacific Ocean and to

secure to the United States Government, the use thereof for postal,

military, and other purposes."

This act passed the Senate, June 20th, 1862, by a vote of thirty-five

to two and became a law July 1st, of that same year. In addition to

creating the Union Pacific Railroad Company it also authorized the

Central Pacific Railroad Company to build a railroad from Sacramento

to the eastern boundary of California, where it was to connect with

the Union Pacific Railroad. The bill also recognized a Company

chartered by the legislature of Kansas under the name of the

Leavenworth, Pawnee and Western Railway Company, later known as the

Kansas Pacific Railway. This latter line was to be built from

Leavenworth west to a junction with the Union Pacific Railroad at or

near the hundredth Meridian or about two hundred and fifty miles west

of Omaha.

The principal features of the bill so far as the Union Pacific

Railroad were concerned, were, the creation of a Board of

Commissioners consisting of one hundred and fifty-eight commissioners

to represent the interest of the United States Government and who were

to be named by the Secretary of the Interior. These were to constitute

a preliminary organization.

The Union Pacific Railroad proper was to commence at a point on the

hundredth Meridian, west of Greenwich, between the Valley of the

Platte River on the north and the Valley on the Republican River on

the south, with branch lines to be known as the Iowa Branch from said

point to the Missouri River. On the west it was to extend to the

Eastern boundary of California, where it was to connect with the

Central Pacific Railroad.

The Capital stock of the Company was to consist of ten thousand shares

at one thousand dollars each, not more than two hundred shares to be

held by any one person. Right of way through public lands was granted

with the privilege of taking therefrom, without charge, earth, stone,

lumber, or other material for construction purposes. The Company was

granted every alternate section of land as designated by odd numbers

to the amount of five sections per mile, on each side of the road

within the limits of ten miles, not sold, reserved or otherwise

disposed of by the Government, and to which a pre-emption or homestead

claim had not been made up to the time the road was finally located,

mineral lands being excepted. All lands thus granted, not sold or

disposed of three years after the line was completed, were to be sold

by the Government at not to exceed one dollar and twenty-five cents

per acre, the proceeds to accrue to the Railroad Company. Nothing but

American iron was to be used in the rails. As fast as sections of

forty miles were completed and accepted by commissioners appointed by

the Government for that purpose, one thousand dollar bonds of the

United States bearing six per cent. interest, payable in thirty years,

were to be issued to the Company constructing the line. Sixteen

thousand dollars in bonds to the mile for the distance east of the

Rocky Mountains and forty-eight thousand to the mile for one hundred

and fifty miles for the mountain portion of the line. Three-fourths of

these bonds were to be delivered to the railroad Company as the

sections were accepted, the remaining fourth to be retained by the

Government until the entire line was completed. The bonds to

constitute a first mortgage on the entire line equipment, terminals,

etc? The road to be completed within twelve years, the first one

hundred miles within two years. Five per cent. of the net earnings,

together with the entire amount accruing on transportation furnished

the Government was to be applied to the payment of these bonds,

principal and interest.

The Bill which in reality constituted a Charter, also provided that

the gauge of the road and its eastern terminus should be left to the

President of the United States to determine.

These somewhat onerous conditions were accepted by the promoters.

Subscription books opened but capital fought shy of the proposition.

Two years solicitation only resulted in subscriptions to the amount of

two million dollars being paid up in cash.

It being evident that the necessary funds could not be procured on the

terms of the original act, an appeal was made to Congress resulting in

a supplementary act passing the House of Representatives, July 2nd,

1864, and soon thereafter becoming law. This increased the amount of

the Land Grant to the odd numbered sections within ten miles of either

side the track, and made the bonds of the Government a second mortgage

instead of first, they to be issued on sections of twenty miles

instead of forty, two-thirds of the bonds being available as soon as

the grading was done. The limit extended in which the line must be

completed, and but one-half the earnings on Government business

withheld to meet the bonds. The Company was also authorized to

maintain a ferry or ferries across the Missouri River at Omaha as a

means of connection with the Iowa Lines until such time as they could

construct a bridge suitable for this purpose. Coupled with these

favorable amendments were two provisions that eventually militated

against the Company. One of them permitting the Kansas Pacific Railway

to connect with the Union Pacific Railroad at any point its projectors

saw fit at or east of a point fifty miles west of Denver, Colo.,

instead of at the hundredth Meridian. This created a competitor

instead of a feeder. The second was allowing the Central Pacific

Railroad Company to build on east one hundred and fifty miles to meet

the road from the East instead of stopping at the California State

line. The restriction to one hundred and fifty miles was withdrawn in

subsequent legislation. This resulted in a race as to which Company

should cover the most ground and involved both of them in much

additional expense. With the Charter thus amended, the Union Pacific

Railroad Company which had not thus far done any real work, commenced

active construction. The Credit Mobilier was formed to do the actual

building, and with many trials, discouragements, and unforeseen

expense, the work was continued to its completion.

The initial eastern point had been fixed by the Charter two hundred

and forty-seven miles west of Omaha--at the hundredth Meridian,

branches being contemplated to connect it with the Missouri River. In

1866 Congress authorized commencement at Omaha without reference to

this fact,--the line to extend from Omaha to a connection with the

Central Pacific Railroad.

The question of the gauge or width of track was another matter that

occupied the attention of Congress. The question had by the Charter

been left to the President. There was a divergence of opinions as to

the best gauge for railroad tracks. At this time the Erie, and Ohio

and Mississippi Railroads used a six foot gauge. The California

legislature had fixed five foot as the gauge in that state, while the

principal eastern roads including the Baltimore and Ohio, New York

Central as well as the Chicago and Iowa lines, were what is known as

standard gauge (i. e. four feet, eight and a half inches.) A committee

of Parliament had settled on five feet, three inches as the gauge in

England. President Lincoln had announced himself as in favor of five

foot and the Central Pacific people had ordered their equipment of

that width. The influence of the Chicago-Iowa lines as well as that of

the Union Pacific people, was thrown in favor of the so called

standard gauge, and on March 2nd, 1863, Congress passed what is one of

the shortest laws on the Statute Books, namely,

"Be it enacted by the Senate and House of Representatives of

the United States in Congress assembled, that the gauge of

the Pacific Railroad and its branches through its whole

extent from the Pacific Coast to the Missouri River, shall

be and hereby is established at four feet, eight and

one-half inches."

In 1869 about the time the Credit Mobilier Company was about to turn

the finished road over, disgruntled stock and bondholders under the

leadership of "Jim Fisk" endeavored to wrest possession from the Union

Pacific Railway Company. Certain stock was recorded in his name and

although paid for with a check that was refused by the bank on which

it was drawn, Fisk went into court and secured an injunction

preventing the board of directors acting until his relations with the

Company had been adjudicated by the Courts. Under cover of these legal

proceedings in the state courts, the New York Offices were forcibly

entered, the books and securities of the Company removed and a feeling

of insecurity and uncertainty aroused that caused a serious

depreciation in the value of the securities they were endeavoring to

market. W. M. Tweede being appointed receiver by the State Courts of

such property of the Company as was to be found within its

jurisdiction. It is said the trouble cost the Company some six or

seven million dollars. Appealing to Congress, they were granted

authority to remove its eastern offices from New York City to Boston.

The next appearance in Congress was made necessary by a dispute with

the Central Pacific Company over the point of connection. The Union

Pacific Company claimed their grade extended to Humboldt Wells, five

hundred miles west of Ogden, while the Central Pacific in reprisal

claimed the line to the western end of Weber Canon some thirty miles

east of Ogden. The facts were the two completed lines met at

Promontory Point fifty-three miles west of Ogden, April 28th, 1869. By

act of Congress, it was decided that the Union Pacific Railroad

Company should build the line to Promontory where the two roads should

connect but that the Central Pacific Railroad Company should pay for

and own the line west of Ogden. This was "settled out of Court" and

the action of Congress simply ratified an agreement made by the two

Companies.

The above covers the more important matters so far as the action of

Congress was concerned. Many other minor matters received attention at

their hands--both before and since the completion of the road. As is

stated in the opening paragraph of this chapter, the Pacific Railroads

have been ever present in Congress. The more important questions being

referred to in their order later.

The story of the first trans-continental railroad · 第 2 / 12 章