60 HISTORY OF THE GRANGE MOVEMENT; OR, 



three or four times the par value; but it does not 

 appear that these facts were generally or publicly 

 known, or that the holders of the stock desired they 

 should be." 



As will be seen from the above statement, the stock- 

 holders of the Credit Mobilier were also stockholders in 

 the Union Pacific Company. 



Like all great corporations of the present day, the 

 Union Pacific road was largely dependent upon the aid 

 furnished by the Government for its success. The 

 managers of the company, being shrewd men, suc- 

 ceeded in placing all the burdens and risks of the 

 enterprise upon the General Government, while they 

 secured to themselves all the profits to be derived from 

 the undertaking. " The Railroad Company was en- 

 dowed by Act of Congress with 20 alternate sections 

 of land per mile, and had Government loans of $16,000 

 per mile for about 200 miles ; thence $32,000 per mile 

 through the Alkali Desert, about 600 miles, and thence 

 in the Rocky Mountains $48,000 per mile. The Rail- 

 road Company issued stock to the extent of about 

 $10,000,000. This stock was received by stockholders 

 on their payment of five per cent, of its face. When 

 the Credit Mobilier came on the scene, all the assets of 

 the Union Pacific were turned over to the new company 

 in consideration of full-paid shares of the new com- 

 pany's stock and its agreement to build the road. The 

 Government, meanwhile, had allowed its claim for its 

 loan of bonds to become a second instead of a first 

 mortgage, and permitted the Union Pacific road to issue 

 first mortgage bonds, which took precedence as a lien 

 on the road. The Government lien thus became 

 almost worthless, as the new mortgage which took 



