In June, 1865, Mr. Hopkins made a report to the president and directors of the Central Pacific upon the general subject of contracts. In this report Hopkins dwelt upon the necessity of rapid construction for the purpose of capturing the passenger traffic between Sacramento and Virginia City; and also in order to comply with the acts of Congress and the state legislature, which required rapid construction of the road. Persons of large capital, he said, seemed unwilling to bind themselves to construct the road as rapidly as necessary. Charles Crocker and Company, on the other hand, had pushed and were pushing the work with extraordinary vigor and success, and had in all cases complied with the orders and directions of the officers of the company. He recommended, therefore, that arrangements be continued with that firm, at rates specified in an accompanying resolution.[107] The directors thereupon adopted this report, and resolved as follows:
Resolved and ordered that Charles Crocker and Company be allowed and paid for all work done and material furnished, or which may hereafter be done and furnished, until the further order of the Board of Directors, in the construction of the railroad of the Company, from section 43 eastward, subject to and in accordance with the terms, conditions and stipulations set forth in the contract with said Charles Crocker and Company, dated September 19, 1863, except so far as the same are modified or changed by this order, at the following rates and prices, and in accordance with the following classification, to-wit:
[Here are inserted the rates for clearing and grubbing, and excavation in various kinds of rock, etc.]
The payments to be made monthly, according to the monthly estimates, five-eighths thereof in gold coin, and the remaining three-eighths in the capital stock of the Company, at the rate of two dollars of capital stock for each one dollar of said three-eighths of said estimate, with the privilege of paying said three-eighths in gold coin in lieu of said stock, at the election of said Company, to be made at the time of such payment.
Summit Valley. Altitude 6,960 feet. Emigrant Mountain and Railroad Pass in the distance
Payments in Cash and Stock
The essence of this arrangement was that Mr. Crocker was to go ahead indefinitely and that he was to be paid not a given sum per mile, but at a given rate of so much per unit for each class of work which he might find it necessary to do. Payments were to be made in cash, and also up to a certain per cent in stock, taken at a valuation of 50 cents on the dollar. Under date of April 16, 1866, Mr. Crocker requested that stock be given him at a valuation of 30 cents on the dollar, instead of 50 cents, and this was agreed to.[108]