The New York herald., 1869-01-04


WASHINGTON.
startling Developmcnts-Au Alleged Spurious
Railroad Company Gets @6,OOO,OOO and an
Enormous Amount or Lands-TwO Distinct
Corporations Claiming tho Name. Franchise
and United states Subsidy Of the Leaven-
worth, Pawnee and Western Railroad Conn
pany, Now Known as tho Union Pacific,
Eastern Division-Gcneral Grant ON Lobby
Jobbina. ,e.o
The grand army OF lobby jobbers IL becoming de-
moraItzed With q real App0matt0x finale only
eight weeks ahead, ana the HERALD meanwhile
constantly throwing chain shot and shell into its
ranks the situation grows gloomy, as viewed by the
lobby iobbers bat brighter when seen from the tax
payers standpoint.
One hundred ana nfty-nine railroad bills and reso-
Iutions have been introduced in the Fortieth Con-
gress and twice many more are IN preparation IN
the lobby. one thousand million acres OF pubic
land and $500 900 United States bonds would
not supply the demands Of these cormorants. Cor
porations created by Territorial legislatures state
legislatures and even by reconstruction conven-
tions, are all clamorous for United States subsidy
Those tnat have been subsidized once are demand
inc more and the others their 1rst supply.
Three OF these corporations have maneuvred
themselves into an advance guard in grand attack
upon the taxpayers treasury.
THE ATcHIsoN AND PIXIES PEAK RAILROAD CON-
PANYA
now known as the Union Pacifc Central Branch, has
already received direct and indirecr aid from the
government, amounting, 1t is estimated to nearly
$4,000 o0o and now has bill pending in the Senate
granting 1t about S7,000,000 more. II 1t can be
broupht up when there are but few Senators pre-
sent and they not well informed In relation to the
Job It VIII pass The more light 1t gets. however,
the poorer its chance.
THE DENVER PACIFIC RAILWAY AND TELEGRAPH
COMPANY,
chartered by the Colorado Territorial Legislature,
has already rot bill through the Senate, giving it
about 10000 acres Of land, said to be finely tim
bered and worth about $1o,oooooo. The bill is now
in tho House. ON the Speakers table. The more 1t is
ventilated the better for taxpayers.
THE LEAvENwoRrH, PAwNEE AND WESTERN RAIL-
ROAD COMPANY,
now known az the Union Pacific Eastern Division,
chartered by the Kansas Territorial Legislature in
aid amounting it is estimated, to $a2,0oo,o 600, or
thcreabouts; yet the company have got bill
through the Senate granting 1t about s1,o00.o00
more. close examination into this last named
lob reveals new ana really startling features
Tho granting Of an enormous subsidy by
Congress to company Incorporated BY
border Territorial Legislature has been thought
bad enough in all conscience-just about
as bad as whiskey frauds; but far more reckless
disposition OF the peoples lands and bonds appears
to have been made. 1t is alleged by highly respect
able gentlemen, under oath, that the company in
question-the company that has been receiving MIL
lions upon millions Of dollars government subsidy
is mere clique Of spectators. without any known
uivaft IN w ia the hatOry Of
the affair." as set forth in q memorial accompanied
by afIidavits now before the House Judiciary Com
mittee of Congress:-
THE LEAvENwORTH, PAwNEE AND WESTERN RAIL
ROAD COMPANY,
now known as the Union Pacific Eastern Division,
was as have before stated chartered by the Kansas
Territorial Legislature In 1865, subsidized with Dea
ware Indian reserve lands In 1s0l and again in 1862,
by a rider on the Pacific Railroad law Of Congress,
granting It $4,000 per mile in United States
bonds and every alternate section OF land
on each side OF tho road within certain
limits, and o privilegc-of second mortgage under
the government. Soon after this portion Of the
directors, it is alleged seeded, Illegally formed
new company and afterwards resumed their places
in the old organization. II Is further alleged under
oath that the managers of the new company took,
by superior force OF arms, possession Of the road,
drove the old company's contractors and laborers
from their works. ana have held possession ever
sncc receiving meanwhile tho United States bonGs
and land subsidy thst nghtfully belongs to the old
company.
In 1891 Mr. Ffwarf tcarned presented . lengthy
memorial a. caBxr~s- accompanied with evidence,
setting forth tae-e facts in great detail. II was re.
fcrre6 20 tn usaae Judiciary Committee who de.
claed that a. hsf~ssn tw5 corporations contesting
Cor ps-sc@@isa ~ 80 ROAD ana franchise, the com.
milue wcre D.. caapeiens 10 decide--ihat question
being propeF for the courts. aud for the courts
only.
The question whether the secretary OF the Treas
nry as,sefiax me psople's subsidy TO the com.
pany de-lsnatea ~ coagrcxs 10 receive II, or to
spurious concern without legal organization. does
not seem 10 have been ra scd by or before the com
mittee. The two coniendlng companies were repre-
sented by able counsel But the people do not seen
TO have had any to look after their interest.
Mr.. Lcarneds memorial, with accompanying
evidence, would fll about fifteen columns Of IN,
HERALD therefore excerpt the portions which sci
forth the alleged fac.s emitting oil Irrelevant mat
ers Of detail and the statements relating 10 the vail
dty Of the elections OF the two boards OF directors
EXTRACTS FROM Mr.. IEARSED's MEMORIAL.
To THE HONORABLE THE House OF REPREsES
The pottion o. Edward Learned respectfully re
presents that since April AID. 1885, he has been
fTcSlutnt OF tne lntOn f6clUC KallrOau Company
Eastern Division. formerly known as the Leaven
worth, Pawnee and Western Railroad Company.
The petitioner here states at great length the par
ticuiars relating to organization Of tho new or al
legged spurious company, aud goes 20 state that
sthe two organizations thus accounted Tor and de.
ecrbed have been kept up until the present time
based upon and representing the stockholding In.
terest Of the COMPANY. the other representing pos
session cn.y, and thai forcibly and unlawfplly OBJ
tanned. Your petitioner, upon being duly elected q
director as asoresad aud n pursuance OF authority
conferred By the board, proces led to procure such
enterprise as should remedy q fatal defect In the
then existing law ana further promote the interests
OF the company. pon tnis solicited legislation
having been obtained The spurious organization, by
virtue OF their possession and In defiance OF the
protests OF the company, proceeded to build the
road and 70 demand irVnl the government the bonds
issuable IN aid Of IT, construction - provided by
law.
Your petitioner lheroupon filed with the secre-
tary OF the treasury and the secretary Of the In
terior protests In writing against the delivery to the
applicants or their agents OF the bonds or lands
granted 10 the company. The subject was referred