ACT OF CONGRESS,
JULY 2, 1864
ALTHOUGH the Central Pacific Railroad Company had accepted the Act of 1862, it was found very difficult to operate under some of its provisions. The Government's first mortgage on the road prevented the company's bonds, having second place, from being sold or used as security for loans without the personal guarantee of Mr. Huntington in New York, and some of the other members in Sacramento. Fifty miles of the road had to be completed in two years, and forty consecutive miles completed before any Government bonds became available. In a letter to James W. Throckmorton, Chairman of the Committee on Pacific Railroads, dated January 25, 1886, Mr. Huntington wrote:
The Act of 1862 served, however, only to show that so stupendous a task could not be successfully carried out under its provisions in the then critical state of the nation's finances.
In spite of all the difficulties, however, the company had made substantial progress by the close of 1863.
When the 38th Congress convened in Washington, Mr. Huntington decided to make an effort to secure more favorable conditions in order to advance the work more rapidly, if not to save it from utter failure. During the first half of the