Famous Givers and Their GiftsBolton, Sarah Knowles
History
Famous Givers and Their Gifts
Bolton, Sarah Knowles
Philanthropists
"The huge snow-clad chain of the Sierra Nevadas," says Mr. Perkins, the
senator from California who succeeded Mr. Stanford, "whose towering
steeps nowhere permitted a thoroughfare at an elevation less than seven
thousand feet above the sea, must be crossed; great deserts, waterless,
and roamed by savage tribes, must be made accessible; vast sums of money
must be raised, and national aid secured at a time in which the credit
of the central government had fallen so low that its bonds of guaranty
to the undertaking sold for barely one-third their face value."
In the presence of such obstacles no one seemed ready to undertake the
work of building the railroad. One of the persistent advocates of the
plan was Theodore J. Judah, the engineer of the Sacramento Valley and
other local railroads. He had convinced Mr. Stanford that the thing was
possible. The latter first talked with C. P. Huntington, a hardware
merchant of Sacramento; then with Mark Hopkins, Mr. Huntington's
partner, and later with Charles Crocker and others. A fund was raised to
enable Mr. Judah and his associates to perfect their surveys; and the
Central Pacific Railroad Company was formed, June 28, 1861, with Mr.
Stanford as president.
In Mr. Stanford's inaugural address as governor he had dwelt upon the
necessity of this railroad to unite the East and the West; and now that
he had retired from the gubernatorial office, he determined to push the
enterprise with all his power. Neither he nor his associates had any
great wealth at their command, but they had faith and force of
character. The aid of Congress was sought and obtained by a strictly
party vote, Republicans being in the majority; and the bill was signed
by President Lincoln, July 1, 1862.
The government agreed to give the company the alternate sections of 640
acres in a belt of land ten miles wide on each side of the railroad, and
$16,000 per mile in bonds for the easily constructed portion of the
road, and $32,000 and $48,000 per mile for the mountainous portions. The
company was to build forty miles before it received government aid.
It was so difficult to raise money during the Civil War that Congress
made a more liberal grant July 2, 1864, whereby the company received
alternate sections of land within a belt twenty miles on each side of
the road, or the large amount of 12,800 acres per mile, making for the
company nearly 9,000,000 acres of land. The government was to retain, to
apply on its debt, only half the money it owed the company for
transportation instead of the whole. The most important provision of the
new Act was the authority of the company to issue its own first-mortgage
bonds to an amount not exceeding those of the United States, and making
the latter take a second mortgage.
Public-domain text, read in full here on John Shaqi.
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