WESTERN INCIDENTS. 61

To aid further in the construction of this road, the law provides that
as certain portions therein specified are fully completed and equipped,
the Secretary of the Treasury shall “issue to said Company bonds of
the United States of one thousand dollars each, payable in thirty years
after date, bearing six per centum per annum interest (said interest
payable semi-annually), which interest may be paid in United States
Treasury notes, or any other money or currency which the United
States have or shall declare lawful money and a legal tender,” as fol-
lows: “For three hundred miles of said road, most mountainous and
difficult of construction, to wit: One hundred and fifty miles west-
wardly ffom the eastern base of the Rocky Mountains, and one hun-
dred and fifty miles eastwardly from the western base of the Sierra
Nevada Mountains, said points to be fixed by the President of the
United States,” forty-eight thousand dollars per mile ; and between the
sections last named of one hundred and fifty miles each, thirty-two
thousand dollars per mile; and for the entire balance of the road, sixteen
thousand dollars per mile. These bonds constitute a second mortgage
upon the whole line of the railroad, rolling stock, and fixtures, and
“one-half of the compensation for services rendered for the Gov-
ernment shall be required to be applied to the payment of the
bonds issued by the Government.” The Company is also authorized
to “issue their first mortgage bonds to an amount not exceeding the
amount of the bonds of the United States, and of even tenor and date,
time of maturity, rate and character of interest,” with the Government
bonds, “and the lien of the United States shall be subordinate to ”
these first mortgage bonds; and it is also authorized to issue these
bonds “to the extent of one hundred miles in advance of a continu-
ous completed line of construction.”

The work of construction has been materially hindered during
the past year by the delay of the President of the United States
in deciding upon a question of location near the eastern terminus.
The laying of track was commenced in July last, and forty miles
were completed and examined by the Government commissioners
on the 6th instant. Since that time the track has been extended
to Fremont, fifty-five miles from Omaha. The grading of the
first one hundred and ten miles is now completed, and arrange-
ments are perfected for opening one hundred miles to the public
before the 4th of July next. The progress of the work is very
much retarded and embarrassed by the want of an easterly railroad
connection; but itis hoped that this will be remedied during the
present year.