The Story of the First Trans-Continental Railroad | Page 8

Pacific
Company over the point of connection. The Union Pacific Company
claimed their grade extended to Humboldt Wells, five hundred miles
west of Ogden, while the Central Pacific in reprisal claimed the line to
the western end of Weber Canon some thirty miles east of Ogden. The
facts were the two completed lines met at Promontory Point fifty-three
miles west of Ogden, April 28th, 1869. By act of Congress, it was
decided that the Union Pacific Railroad Company should build the line
to Promontory where the two roads should connect but that the Central
Pacific Railroad Company should pay for and own the line west of
Ogden. This was "settled out of Court" and the action of Congress
simply ratified an agreement made by the two Companies.
The above covers the more important matters so far as the action of
Congress was concerned. Many other minor matters received attention
at their hands--both before and since the completion of the road. As is
stated in the opening paragraph of this chapter, the Pacific Railroads
have been ever present in Congress. The more important questions
being referred to in their order later.
CHAPTER III.
Mostly Financial.
Preliminary Organization--Board of Commissioners--Company

Organized--Directors and Officers Elected--Hoxie Contract--Credit
Mobilier--Ames' Interest--Compromise Contract--Davis Contract--Cost
of Line--Land Grant.
When the Pacific Railroad Bill passed Congress and received the
President's signature in 1862, there was a well organized company to
take hold of the western or California end. The Union Pacific or eastern
end was not in such good shape. Thomas C. Durant, who was
afterwards Vice President of the Company had with a few associates
taken a prominent part in the matter but no regular organization existed.
Under the Charter there were one hundred and fifty-eight persons
named, who, together with five to be appointed by the Secretary of the
Interior were to constitute a "Board of Commissioners" to effect a
preliminary organization, open books for the subscription of stock and
to call a meeting of the stockholders to elect a board of directors as
soon as two thousand shares had been subscribed and ten dollars per
share paid in.
When the board of directors had been elected, the property or rather the
proposition was to be turned over to them and the duties of the Board
of Commissioners should cease and terminate.
The Company thus organized, should follow established precedents,
stockholders should hold annual meetings, elect a board of directors,
and adopt bylaws and rules for the conduct of its affairs. The directors
thus elected to be not less than thirteen in number, two to be added to
their number by appointment of the President of the United States. The
Board of Directors to elect the officers of the company and exercise
supervision.
The Board of Commissioners met in Chicago in September, 1862, and
organized, electing W. B. Ogden, President and H. V. Poor, Secretary,
as called for in the charter, and subscription books were duly opened.
There was no disposition on the part of moneyed men to subscribe for
the stock and it was only owing to a few public-spirited men coming in
and taking the two thousand shares that the Charter did not lapse. When
the necessary stock had been subscribed, a meeting of the stockholders

was held in New York City, in October, 1863, at which a Board of
Directors were to be elected,--a strange situation confronted them, there
being no man or set of men who were able to assume control, although
there were no lack of cliques who were desirous of doing so, but these
were largely irresponsible parties either lacking in the necessary capital
or not command the confidence of those who did have it.
Something had to be done, and accordingly thirty men of more or less
prominence were elected to the position of directors, some of them
without their knowledge and some declined to serve. The Company
was accordingly organized October 30th, 1863. General John A. Dix,
who was elected President, had been a member of the Cabinet and later
a general in the United States Army, was a man who was universally
respected. The position was not of his seeking, and he gave notice he
had neither the time nor inclination to give active attention to its affairs
and the burden was practically assumed by the Vice-President Elect,
Thomas C. Durant. But two hundred and eighteen thousand dollars the
ten dollars per share called for by the Charter on two thousand one
hundred and eighty shares had been paid in and further funds were not
obtainable. Agitation was kept up and due representation made to
Congress, resulting in an amendment to the Charter being passed. After
the passage of the Supplementary Act in 1864 made necessary by the
failure to secure funds, it was still regarded as an unpromising
investment