The fifth contract was made with J. W. Davis for one hundred and twenty-two miles at twenty-three million four hundred thousand dollars, and was in turn assigned to the same seven trustees for completion. In adjustment of accounts the Union Pacific Railroad Company would turn over to the Credit Mobilier or the Trustees for the Credit Mobilier in payment for the work as fast as it was completed First Mortgage (Union Pacific Railroad) Bonds, Government Bonds, Union Pacific Railroad Income Bonds and Union Pacific Railroad Stock, these being sold or hypothecated by the trustees, furnished them the necessary funds required to pay for the construction work.
As the Union Pacific Stock could only be sold for cash at par according to act of Congress, notwithstanding it was only worth thirty cents on the market, the Railroad Company would give their check to the Credit Mobilier on construction account and this check could then be used in payment of stock, making it a cash transaction.
In settlement of the several contracts, the Union Pacific Railroad Company paid the Credit Mobilier:
| Miles | ||
| Hoxie Contract Omaha to 100th Meridian | 247 | $12,974,416.24 |
| Ames Contract 100th Meridian West | 667 | 57,140,102.94 |
| Davis Contract To point five miles west of Ogden | 125 | 23,431,768.10 |
| ——————— | ||
| 1039 | $93,546,287.28 |
These figures represent stocks and bonds at par and deducting amount of depreciation, would bring the actual cost of the Main Line Omaha to Ogden to about seventy-three million dollars.
There were issued in payment for this construction, equipment, station building, and the expense of the Company during the construction period.
| Government Bonds | $ 27,236,512.00 |
| First Mortgage Bonds | 27,213,000.00 |
| Income Bonds | 9,355,000.00 |
| Land Grant Bonds | 9,224,000.00 |
| Union Pacific Stock | 36,000,000.00 |
| ———————— | |
| $109,028,512.00 |
There were granted to the Union Pacific Railroad Company under its Charter land grants of eleven million three hundred and nine thousand eight hundred and forty-four acres. Up to December 31st, 1866, sales of this land had brought in nineteen million ninety thousand six hundred and seventy-two dollars and forty-two cents and unsold land was then valued at two million three hundred and ninety five thousand five hundred and seven dollars.
During the palmy days of the Credit Mobilier following the adjustment of the differences with the Durant faction, thousands of dollars were spent in advertising and placing the stock. Display advertisements were inserted in all the prominent newspapers and paid agents located in all the important cities. The result demonstrated the wisdom of the expenses, as not only were large quantities of its stock sold but the prices obtained for it were greatly advanced.
No sooner was the completion of the road assured than did antagonism and hostility appear. For instance in 1867 a government inspector appointed for the purpose of examining and accepting completed sections of the road, refused to do so, until he received "his fee" (?) which he put at twenty-five thousand dollars, he being in no way entitled to anything from the Company. By his refusal he tied up the issue of the Government bonds, seriously affecting the credit of the Company at a critical time.