The Story of the First Trans-Continental Railroad | Page 7

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restriction to one hundred and fifty miles was withdrawn in subsequent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