The New York herald., 1870-03-10
TIE SUBSIDY RAILROAD LOBBY At WASH.
INCTOy.

The SUBSIDY RAILROAD LOBBY At WASH.
INGTOy.
The Leavenworth, Pawneo and Western
Railroad Company, and the Atchlson and
Pkes' Peak Railroad Company Again Be.
fore Congress for Additional Subsidies-The
Railroad Rins-Facts for Taxpayers.
WASHINGTON, March 7, 1870.
The railroad lobby, unmlndful OF the exposures OF
its operations last winter IN the HERALD. ana the
disastrous defeat that followed again here IN full
force. In order to get railroad through to the
Pacific Congress granted certain aid to corpora
tions-enough II Is said to build the ana leave
surplus In the hands OF the managers besides.
Taxing advantage OF the precedent thus established
large number OF local Wild cat corporations
chartered by Territorial Legislatures and reconstruc
ti0n conventions, and really OF less importance In
national point Of view than New YORK street rail-
road company, have established regular lobby
here, and succeeded In getting millions upon mil
lions OF dollars nom our national treasury, ana
scores OF million dollars worth OF our national
domain.
Kansas has about 500 miles OF railroad. nearly
every mile built almost at the expense OF the
tional government and presented free gifts the
politicians controlling the subsdzlng operations.
Not content with sucn unbounded iDerallty the cor
morants are here clamorous for more. This Is,
submit, carrying the thing too far. While II may be
good policy TO "ald'' corporations engaged In con-
structng railroads through unsettled public lands
there Is no warrant In reason, law justice for CIV
ing them the roads outright; but, now that have
presented several OF these lobbyists with railroads.
ir would seem as though they nceu not ask Tor
particularly invite The attention OF the taxpayer
tine following interesting facts--
HON. s. c. PoMERoy UNITED STATES SENATOR AND
RAILROAD COMPANY.
Ii any one VIII take the trouble TO look at Mr..
Secretary Boutwels last onclal monthly statement
OF the public dept OF the United states he VIII find
that there was granted ana issucd to the Atchison
and pike's Peak Railroad Company and assl2nees
unuer act or Congress oil July, 1862, and
July, 1864, Sl.6oooOo OF bonds he viii fur
ther see that the accrued interest amounts
10 1860 sos, OF which s7,4ol has been paid by the
company, by transportation OF mails, &C.; S2l6.4O0
has been paid by the United States from the tax
payers treasury aud $4,000 remains unpaid. Would
it not be well for this company pay the interest
on the bonds already received before asking more
"aiohs But The 81. 900 bonds is not all the aid
granted this local road. II receives free gift of
every alternate section OF public lands each side
Of Ito first hundred miles Of road within the usual
limits, the privilege Of noating . prior lien Of
making treaty. with the KlckafoO Indians by
which tuey secured mot magnificent tract OF land.
The entire direct and indirect government aid re
celved by TINS company cannot, / think. be fairly
estimated al less than S6,0U0.0JO. Their proposed
road IRON Atchson, Kan TO Fort Kearney, Neb.,
on the line Of the Union Pacific, is about
250 miles long. IL cannot cost IN that level
country G.o over sso,ooo per mie, equipped. or
So 500 900 In all. Other corporations have managed
to build $50 mlles OF railroad win their own funds
exclusively without dollar OF all from the govern
ment. 1nis company has, however been before
Congress for the past four years demanding more
aid. it asked at one ulne, according TO Senator
Conkiing, about s., 900 900 additional aid, bonds
and lands, bat having De. defeated many times
the managers are asNIng at the present time only
irec gut OF ABOUT So 000 900 Wort OF public lands
n remains to be seen whether they get 1t or not.
Senator Fessenden used 10 say he always observed
that anything could get through the Senate that nad
money III IT,
There Is one feature OF this particular job that is
without parallel in the annals OF the lobby. Hon.
s. G. Pomeroy has ned at one aud the sane time tic
following postlUns:-United states Senator from
Kansas chairman Or The Senate Committee on PUB
Tic Lands and President and acknowledged owner OF
one-s2teenth OF tue AGcnson and Pixies Peak Rail.
ROAD Company. indeed. lie was accustomed at one
time 10 sign letters viii the atX Unted States sena
tor and president OF the Atcnison ana Pixies Peak
Railroad Company. Senator POmerOy - home orsan
acknowledged long time since that Mr. Pomeroy
was only one sixteenth owner OF the road The COM
ments OF the newspapers OF his own party anu State
drove Tie honorable Senator some time since to
resign the presidency and dispose of-nominaly, at
least-hls interest III the concern Taking, however
h,s organs unguardcd statement as basis. we shall
nave no difficulty IN nndinS that lion. Senator
Pomeroys snare of the Atchlson aud Pikes' Peak
Railroad 100000 loan tnat adorns Mr. Boutwel's
monthly statcmenG was exactly Si00,00). AZ TO the
honorable senator's share OF public lands, gener
ousiy given TO the company, OF which Tic honorable
chairman OF the Public Land Committee was himself
president and said nave been one 81 ytecnth owner
leave the readers make their estimates. Is is
any wonder tnat the honorable gentleman has
grown rich very fast since he entered pubic lireg
IL Is not nine years since q Rhode Island Senator
was arra9ned for having Contingent interest III a
government contract; and President Grant was not
permitted TO have his first choice for Secretary
OF the Treasury because his favorite candidate
had an interest IN large importing house. In
man or tine Committee on Public Lands engaged In
helping railway company, or whJch he
IS president president and a,'aa ac5nowladsed part owner
peoples treasury ana public domain, and very
lew THINK 1t worth while 10 question the propriety
OF The transaction. The House eXpels memD Ders Tor
trading IN patry cadeshIps. and the Senate looks
on approyibsly while 1t permits one OF own mem
bers W engage III the operations have described.
THE LEAyENwoRTH, PAwNEE AND WESTERN RAIL-
ROAD COMPANY.
The LeavenwOrth, Pawnee and Western Railroad
Company, since known as the Union Pacnc Eastern
DIVISION, and now styling itself the Kansas Pacific,
chartered by the border ruian Territorial LegIsla
ture OF Kansas in 1855, has already had granted to
1T by the national government under various acts OF
Congress very large amount OF aid In the shape OF
bonds lands and privileges OF liens amounting 1t
Is estimated to about $52 900 S53 oOO OOO It's
managers are nevertheless now IN the lobby OF Con
gress III full force demanding additional aid.
Secretary Bontwefs last public debt statement Is
adorned with an entry OF $3,303 600 OF bonds issued
10 this company. and the item OF 1886 094 interest
paid by the United states on the same and not re-
indirect aid granted Dy Congress under acts
TO this single company may be stated about as fol-
lOwS:--
Bonds issued. So, $4,000
Interest paid on same. 3S5.094
Privilege OF lien under that Of the govern
ment .......................... e.303,o0o
Land subsidy, free gift, estimated 1850, 600
acres and worth iuli ................. 90 ooo 200
Privilege OF issuing third mortgage bonds
az rate OF 49,, 900 per mile, granted by
act OF Congress March 3, 1s6y-road 630
miles long. ........................ 20, 100000
Total aid direct and indirect. ct........$ $53 ISL 09f
me coMpany's road. from Kansas City to Denver,
Colorado IS 630 miles long-665 including It's Leaven.
worm branch. 1t would seem as though the mana
gers might 80 on and finish it, and even bud
branch or TWO before asking more aid
OF Congress. They, however, appear to think
otherwise, for they iobbied ali through the
Fortietn Congress- aided by the strikers OF
tne taru ana Treasury rings for additional aid ana
did succeed IN getting bill through the Senate,