ion Pacific Railroad was compelled to accept business
from all connections,--but the terms thereof were not fixed and
instead of accepting a division based on the mileage of the respective
lines as insisted upon by the two lines named, the Union Pacific
Railroad officials demanded a constructive mileage that would result
in their line from Cheyenne to Ogden receiving six tenths of their
local rates between those points when the business was competition
with their long haul via Omaha. An agreement to work on this basis
pending judicial decision was made between the two interests in
September 1874. The question would not down, it was brought before
Congress, Courts, and Arbitrators constituting a "Cause Celebre" the
Pro-rata controversy.

Out of this grew the building of a rival line between Denver and
Cheyenne wholly under the Union Pacific Railroad's control--locally
known as the Colorado Central Railroad. This line was comprised of the
Colorado Central Railroad, Denver to Golden, sixteen miles. It was
commenced on New Year's Day 1868, being the first railroad in the
state of Colorado. Its extension to Longmont, built in 1871, and the
line Longmont to Cheyenne completed in 1877. This line was some one
hundred and thirty miles against one hundred and six by the Denver
Pacific Railroad, notwithstanding which it was used by the Union
Pacific Railroad as its Denver connection until the adjustment of the
differences between the different interests, which was brought about
by an agreement made June 1st, 1878, by which the Kansas Pacific
Railway and the Denver Pacific Railway were to be operated by the
Union Pacific Company. This was followed by an absolute merger of the
three roads, in January 1880 the new combination being known as the
Union Pacific Railway Company.

CHAPTER XI.

_History of the Line since its completion._

Government Indebtedness--Absorption Other Lines--Receivership--Train
Robbers--Settlement With Government.

Upon the completion of the Union Pacific the rates for both freight
and passengers were fixed at what now seems a very high figure. Thus
passenger fares locally were ten cents per mile. Complaints arising,
the matter was taken up in Congress and steps taken towards the
appointment of a Board of Commissioners who should have authority to
fix rates, both freight and passengers.

The whole question of earnings and expenses of the line was an unknown
quantity and as soon as experience d