The liberal donations, advances, and privileges provided for in this law
were granted by the General Government for the purpose of securing the
construction of these roads, which would complete the connection between
our eastern and western coasts; and they were based upon a consideration
of the public benefits which would accrue to the entire country from
such consideration.
But the projectors of these roads were not content, and the sentiment
which then seemed to pervade the Congress had not reached the limit
of its generosity. Two years after the passage of this law it was
supplemented and amended in various important particulars in favor of
these companies by an act which provided, among other things, that the
bonds, at the rate already specified, should be delivered upon the
completion of sections of 20 miles in length instead of 40; that the
lands to be conveyed to said companies on the completion of each section
of said road should be ten sections per mile instead of five; that only
half of the charges for transportation and service due from time to time
from the United States should be retained and applied to the advances
made to said companies by the Government, thus obliging immediate
payment to its debtor of the other half of said charges, and that the
lien of the United States to secure the reimbursement of the amount
advanced to said companies in bonds, which lien was declared by the law
of 1862 to constitute a first mortgage upon all the property of said
companies, should become a junior lien and be subordinated to a mortgage
which the companies were by the amendatory act authorized to execute
to secure bonds which they might from time to time issue in sums not
exceeding the amount of the United States bonds which should be advanced
to them.
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