in controversy and scandals. Authorization and funding In February 1860, Iowa Representative Samuel Curtis introduced a bill to fund the railroad. It passed the House but died when it could not be reconciled with the Senate version because of opposition from southern states who wanted a southern route near the 42nd parallel. Curtis tried and failed again in 1861. After the southern states seceded from the Union, the House of Representatives approved the bill on May 6, 1862, and the Senate on June 20. Lincoln signed the Pacific Railroad Act of 1862 into law on July 1. It authorized creation of two companies, the Central Pacific in the west and the Union Pacific in the mid-west, to build the railroad. The legislation called for building and operating a new railroad from the Missouri River at Council Bluffs, Iowa, west to Sacramento, California, and on to San Francisco Bay. Another act to supplement the first was passed in 1864. The Pacific Railroad Act of 1863 established the standard gauge to be used in these federally financed railways. Federal financing To finance the project, the act authorized the federal government to issue 30-year U.S. government bonds (at 6% interest). The railroad companies were paid $16,000 per mile (approximately $ per mile today) for track laid on a level grade, $32,000 per mile (about $ per mile today) for track laid in foothills, and $48,000 per mile (or about $ per mile today) for track laid in mountains. The two railroad companies sold similar amounts of company-backed bonds and stock. Union Pacific financing While the federal legislation for the Union Pacific required that no partner was to own more than 10 percent of the stock, the Union Pacific had problems selling its stock. One of the few subscribers was The Church of Jesus Christ of Latter-day Saints leader Brigham Young, who also supplied crews for building much of the railroad through Utah. Durant enticed other investors by offering to front money for the stock they purchased in their names. This scheme enabled Durant to control about half of the railroad stock. The initial construction of Union Pacific grade traversed land owned by Durant. Durant's railroad was paid by the mile, and to further inflate its profits, the Union Pacific built oxbows of unneeded track, and by July 4, 1865, it had only reached from Omaha after 2½ years of construction. Durant manipulated market