The New York herald., 1870-05-22
HowAaDy CASE AND RAILROAD MATTERS.

AutuOrtty Oh COu0rooo 20 C0ver Frau0n-A
thousand Million Dollars Wanted-A Cool
ReQvsst-Paper Railroad Managers and
Real Railroad Managers-senator Casser-
ly's Speech.
WASHINGTON, May 10, 1870.
The Howard investigation mas gone far enough
now for every one here to see its approximate re-
suits. General Howard was authorized BY Congress
to do certain things. There Is little doubt that no
stretched his authority to the utmost but proba-
bly, not far enough to lay himself liable to criminal
law. tits quite likely that 'authority OF Congress-
will be found for every act OF the Bureau ring,
whether fraudulent or otherwise.
The following is submitted as authority for certain
very questionable transactions:-
WAR DEPARTMENT.,
'oA'A0 "A'0f LANDS. w1saiseTos March i. isss}
First Brsvs Br,s.dsr General deorgs w. Ballooh chic.
ds6arsng q tins bureau win irsnstsr the sum OF
SoIDoTssa oya ssess And
Coxre.. sct 70 uniyersy
$s ssss
ssS z .ss
s
order Of sreves Major 2 Howard
:%lsr order No. dated April = ;r.n:sTs$
$25.0O0 to the University fund.
/. We all know that Congress did not intend to
authorize the construction Of regular university
when 1t passed "an act for the support OF the army
for the year ending June 80 1Sss and for other pur
poses.n
HON. FERNANDO WOOD FLY ON THE WHEEL.
It's unfortunate that Mr.. Wood should see ut to
thrust himself forward in this business. The inves-
tigation would have taken place all the same If no
sucn man as Hon. +. Wood had ever been in exist
atv,vr NIfoon in md fofno
had decided to 20 ON with the work when Mr.. Wood
stepped forward and assumed the leadership It
would have been well II some one who enjoyed
larger amount OF public confidence had taken the
lead. However, the lesson will be valuable If Con-
gress Will only learn hereafter to be very chary or
granting any BODY p9tc or CORPORATE antnoly 70
build railroads, establish national banks or issue
bonds secured by mortgage Of public lands or other
government property.
A THOUSAND MILLION DOLLARS WANTED.
Bills have been introduced during the last and
present sessions asking Congress to 'authorize
tain corporations to Issue bonds to an unlimited
extent. One thousand million dollars would not
supply the demand.
An advocate OF one of these corporate benenciarIes
in presenting the claims of his patron on the floor OF
Congress, said:-
The company not here to-day to ask for
things. First to put the national impress upon
" DE n et
the estimation Of foreign capitalists who have great respect
The perfect GOODNESS of this advocate Is refreshing
even In the month OF May. The company nave not
ye. e c5 m sr nave the
ask to have "the national impress put upon Its
mortgage"
CORPORATIONS THAT DO NOT ASK TO HAVE UNCLE
SANS SIGN MANUAL ON THEIR BONDS.
The New York Central, New York and Eric,
Baltimore and ONO, Chesapeake and Ohio Railroad
Companies, and hundreds Of others that might be
named, are well known corporations, owning and
IlrnUt ndc YntlQ of ~.
do not ind any OF their managers on the door OF
Congress demanding authority TO have the national
sign sign manual on their bonds" A large amount OF
these corporations bonds are In the market at very
II Congress would only grant authority to have
would, doubtless, be found far .'more desirable In
the estimation Of foreign capitalists" and might
approximate to par as soon as the desired author
ity' could be obtained. do not find, however, that
1t has been asked in single instance In benalf Of
either OF the above named well known and well es.
tabished companies. 1t ls only corporations that
own and control paper railroads. without a mile OF
real track laid, who ask It.
PAPER RAILROADS.
The sublime efrontery OF modern paper railroad
to describe. In demanding government aid to carry
out their schemes they boldly ask free Gift OF sum
equal TO the entire cost OF constructing first class
one hundred per cent or so In addition to DIVIDE
among themselves. In too many instances they
SENATOR CASSERLY,
ia his admirable speech Of April 90 characterized
this excess of national generosity as follows =
What build road complete, equip 1t and
open ready for business to the public one thing What
n sss
me e say Of all sound policy as between the government
on that the government shall in put the
e is rs s IN s to % @
give the road substantially when finished company
2 ssS q building Ss road @ !,
sa 1s al acon o . sitting Of the whole
the extent Of the aid as L Is called is demoraizing, the
Ens oafs' ias G' III each
S Dn e S
worst policy possible In the r place, Congress should
bic building given road should then s piDS~ have
o h sHi
be sci in motion and should furnish its full part while gov
insisted the provision that least of the
% hsre #.
grant to the one companp which first asked IT, 1t should
Of the Union companies or nd
yduas able and wiling to build the road better for
All Of these features necessary Every of them
public utterly void Of its most obvious
THE WORST FEATURE OF 1T.
The lavish gifts Of the government to most OF the
paper railroad adventurers is worse than thrown
manage to get possession of the franchise and hold
1t for Ave or ten years, or until they can find COM
over the route when sale Of the franchise and
grant, encumbered with mortgages, contracts and
other debris, Is made.
Thus 1t happens that the capitalists who build the
roads have to bear, first, the expense of clearing
the franchise and grant OF all its financial debris and
OF afterwards building their road making the enter
prise about twice or three times as expen.
sve as it should be. On the other hand the lobby
iss or paper railroad dealers, manage to get one or
two prices for the charter, without doing any work
whatever except to load it down with the usual
accumulation OF financial debris for as soon as the
bill is through Congress the franchise Is al once
mortgaged or In some way entangled with con-
tracts In one case-the Memphis and Ell Paso-the
evidence in the report OF Senators Howard Stewart
and Rice shows that the bonds were put upon the
market before the passage OF the bill In the Senate.
In order that ! may not msrepresent Will quote
the exact language of the United States Senate SUBJ
committees report, page so, as follows:--
Itwas known in France that for sessions
of the Memphis and Paso Company before Con.
gres asking for subsidy and extension Pacific unaer
the OF The Southern franBconnenta Copies this
b were In the hands OF these gentlemen in Paris During
the sessions OF last repeated changes the
bill and finally IN the shape OF grant for the right of
nation OF the fact Of passage Of the bill by the House
reached Paris about the time when the bonds
used and in ignorance changes in