Michigan, Indiana, and even as far east as Pennsylvania were
used, some of them costing as much as two dollars and fifty cents laid
down in Omaha.

At this time there was no railroad completed into Omaha from the East.
The Chicago and Northwestern being the first to reach there, and its
first train ran into Council Bluffs on Sunday, January 17th, 1867.
Consequently all supplies, other than those coming to them via the
Missouri River, had to be wagoned from Des Moines, Iowa, one hundred
and thirty-three miles.

On the Missouri River the Company had in service six large steamboats
carrying supplies and material for construction from Kansas City where
there was railroad connection with the East by way of the Hannibal and
St. Joseph Railroad and the Missouri Pacific Railroad.

Everything had to be brought in, the country being destitute of even
stone and lumber, involving great expense and delays. While the level
country enabled rapid progress to be made in grading, it was almost
impossible to bring forward the requisite material to keep up with the
graders and track-layers.

The contract for the first hundred miles had been let May, 1864, to
Hubert M. Hoxie. By its terms he was to receive securities to the face
value of $50,000 per mile. Sidings were to be not less than 6 per
cent. of the main line. Station buildings, water-tanks and equipment
was to be furnished by him to the value of five thousand dollars per
mile. Hoxie before this had been in the employ of the Company in
charge of the Ferry between Omaha and Council Bluffs. In March 1865,
his contract was transferred to the Credit Mobilier Company, which as
has been previously stated, was organized by the promoters and
insiders of the Railroad Company to do the actual construction.
Several experiences with individual contractors had demonstrated that
they could not be relied upon, in fact that it required more in the
way of capital-influence, and omnipresence than any individual could
exert, consequently all original contracts for the construction and
equipping of the line were handled by the Credit Mobilier who
subcontracted it with firms and individuals, they by their close
relations with the Company and financial interests as well as by their
wide ramifications, being able to purchase materials and supplies to
better advantage.

Everything was still held at war prices, iron, ties, lumber,
provisions, etc., while currency and the Government bonds on which
they