The Story of the First Trans-Continental Railroad | Page 6

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