56 HISTORY OF THE GRANGE MOVEMENT. 



ceiving a fixed and assured interest upon their bonds, 

 enjoy a further right to exact an additional sum, and 

 one as large as they are able to make it, from the 

 developing business of the country, as dividends on 

 the stock. Instances of this form of railroad financier- 

 ing need not be specified, for it is now the common 

 course of Western railroad construction." 



Perhaps the best instance on record of the manner 

 in which skilful directors of a railroad can procure the 

 construction of their road at the cost of other parties, 

 and secure the profits to themselves, is afforded by the 

 history of the notorious Credit Mobilier Company, 

 which constructed the Union Pacific Railway; and 

 though the story is now old and known to the reader, 

 it will bear repeating here. 



The early history of. the Pacific Railroad is a story 

 of constant struggles and disappointments. It seemed 

 to the soundest capitalists a piece of mere fool-hardi- 

 ness to undertake to build a railroad across the conti- 

 nent and over the Rocky Mountains, and, although 

 Government aid was liberally pledged to the under- 

 taking, it did not, for a long time, attract to it the 

 capital it needed. At length, after many struggles, 

 the doubt which had attended the enterprise was 

 ended. Capital was found, and with it men ready to 

 carry on the work. In September, 1864, a contract 

 was entered into between the Union Pacific Company, 

 and H. W. Hoxie for the building by said Hoxie of 

 one hundred miles of the road, from Omaha west. 

 Mr. Hoxie at once assigned this contract to a company, 

 as had been the understanding from the first. This 

 company, then comparatively unknown, but since very 

 famous, was known as the Credit Mobilier of America. 



