MONOPOLY OF TRANSPORTATION. 581 



her of Congress from trie State of Massachusetts, and his 

 brother Oliver Ames, became interested in the Union 

 Pacific Company, and also in the Credit Mobilier Company, 

 as the agent for the construction of the road. The Messrs. 

 Ames were men of large capital, and of known character 

 and integrity in business. By their example and credit, 

 and the personal efforts of Mr. Oakes Ames, many men of 

 capital were induced to embark in the enterprise, and to 

 take stock in the Union Pacific Company, and also in the 

 Credit Mobilier Company. Among them were the firm of 

 S. Hooper & Co., of Boston; the leading member of which, 

 Mr. Samuel Hooper, was a member of the House. Mr. 

 John B. Alley, then a member of the House from Massa- 

 chusetts, and Mr. Grimes, then a Senator from the State 

 of Iowa. Notwithstanding the vigorous efforts of Mr. 

 Ames and others interested with him, great difficulty was 

 experienced in securing the required capital. In the 

 spring of 1867, the Credit Mobilier Company voted to add 

 fifty per cent, to their capital stock, which was then 

 $2,500,000, and to cause it to be readily taken, each sub- 

 scriber to it was entitled to receive as a bonus an equal 

 amount of first mortgage bonds of the Union Pacific Com- 

 pany. The old stockholders were entitled to take this 

 increase, but even the favorable terms offered did not induce 

 all the old stockholders to take it, and the stock of the 

 Credit Mobilier Company was never considered worth its 

 par value until after the execution of the Oakes Ames 

 contract hereinafter mentioned. 



"On the i6th day of August, 1867, a contract was 

 executed between the Union Pacific railroad and Oakes 

 Ames, by which Mr. Ames contracted to build 667 miles 

 of the Union Pacific road at prices ranging from $42,000 

 to $96,000 per mile, amounting in the aggregate to $47,- 

 000,000. Before the contract was entered into, it was 

 understood that Mr. Ames was to transfer it to seven 



