The story of the first trans-continental railroad

by William Francis Bailey

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.