ch, not more than two hundred shares to be
held by any one person. Right of way through public lands was granted
with the privilege of taking therefrom, without charge, earth, stone,
lumber, or other material for construction purposes. The Company was
granted every alternate section of land as designated by odd numbers
to the amount of five sections per mile, on each side of the road
within the limits of ten miles, not sold, reserved or otherwise
disposed of by the Government, and to which a pre-emption or homestead
claim had not been made up to the time the road was finally located,
mineral lands being excepted. All lands thus granted, not sold or
disposed of three years after the line was completed, were to be sold
by the Government at not to exceed one dollar and twenty-five cents
per acre, the proceeds to accrue to the Railroad Company. Nothing but
American iron was to be used in the rails. As fast as sections of
forty miles were completed and accepted by commissioners appointed by
the Government for that purpose, one thousand dollar bonds of the
United States bearing six per cent. interest, payable in thirty years,
were to be issued to the Company constructing the line. Sixteen
thousand dollars in bonds to the mile for the distance east of the
Rocky Mountains and forty-eight thousand to the mile for one hundred
and fifty miles for the mountain portion of the line. Three-fourths of
these bonds were to be delivered to the railroad Company as the
sections were accepted, the remaining fourth to be retained by the
Government until the entire line was completed. The bonds to
constitute a first mortgage on the entire line equipment, terminals,
etc? The road to be completed within twelve years, the first one
hundred miles within two years. Five per cent. of the net earnings,
together with the entire amount accruing on transportation furnished
the Government was to be applied to the payment of these bonds,
principal and interest.

The Bill which in reality constituted a Charter, also provided that
the gauge of the road and its eastern terminus should be left to the
President of the United States to determine.

These somewhat onerous conditions were accepted by the promoters.
Subscription books opened but capital fought shy of the proposition.
Two years solicitation only resulted in subscriptions to the amount of
two million dollars being paid up in cash.

It being evident that the necessary funds could not be procured on