The story of the first trans-continental railroad : $b its projectors, construction, and history — John Shaqi
The story of the first trans-continental railroad : $b its projectors, construction, and historyBailey, William Francis
History
The story of the first trans-continental railroad : $b its projectors, construction, and history
Bailey, William Francis
Railroads -- United States -- History; Union Pacific Railroad Company
The second contract made was with a Mr. Boomer for one hundred and
fifty-three and thirty-five hundredths miles from the hundredth
Meridian west, at the rate of nineteen thousand five hundred dollars
per mile for that part of the distance East of the North Platte River
and twenty thousand dollars per mile west thereof. Bridges, station
buildings, and equipment to be additional. This contract was also
assigned to the Credit Mobilier. On this, fifty-eight miles were
completed when dissensions arose, occasioned by financial stringency
among the stockholders of the Credit Mobilier. Vice-President Durant
going into court, compelled suspension of action on the third
contract, made March 1st, 1867, with one J. M. Williams who had
assigned it to the Credit Mobilier. This covered two hundred and
sixty-six and fifty-two hundredths miles, commencing at the hundredth
Meridian at the rate of fifty thousand dollars per mile. For a time
matters were at a standstill, injunctions preventing the completion of
present or the making of new contracts.
Finally a compromise was affected between the two factions, Durant and
his friends on the one side, and the Ames interests on the other.
Under this, a fourth contract was made with Oakes Ames for which he
was to receive from forty-two thousand to ninety-six thousand dollars
per mile or forty-seven million nine hundred and fifteen thousand
dollars for six hundred and sixty-seven miles, commencing at the
hundredth Meridian. This it is supposed is the largest contract ever
made by one individual. It was later transferred by Oakes Ames to
seven trustees acting for the Credit Mobilier, he and his brother
Oliver Ames being among the number. This last contract carried the
line to nine hundred and fourteen miles from Omaha.
The fifth contract was made with J. W. Davis for one hundred and
twenty-two miles at twenty-three million four hundred thousand
dollars, and was in turn assigned to the same seven trustees for
completion. In adjustment of accounts the Union Pacific Railroad
Company would turn over to the Credit Mobilier or the Trustees for the
Credit Mobilier in payment for the work as fast as it was completed
First Mortgage (Union Pacific Railroad) Bonds, Government Bonds, Union
Pacific Railroad Income Bonds and Union Pacific Railroad Stock, these
being sold or hypothecated by the trustees, furnished them the
necessary funds required to pay for the construction work.
As the Union Pacific Stock could only be sold for cash at par
according to act of Congress, notwithstanding it was only worth thirty
cents on the market, the Railroad Company would give their check to
the Credit Mobilier on construction account and this check could then
be used in payment of stock, making it a cash transaction.
In settlement of the several contracts, the Union Pacific Railroad
Company paid the Credit Mobilier:
Public-domain text, read in full here on John Shaqi.
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