New-York tribune., 1872-09-28
PROOF OF BLAINE'S FRAUDS
ONE MILLION SIX HUNDRED THOUSAND FOR
HIS INFLUENCE.


HIS INFLUENCE.
HOW THE PACIFIC RAILWAY, EASTERN DIVISION
WAS BANKRUPT BY BLACKMAIL-A START
LING STORY OF IMMENSE FRAUDS AND THE
GRoSSEsT CORRUPTION.
Astounding as were the Developments in the case
of the Credit Moblier they prove to be only brief
and single chapter of many in the infamous history
of our national legislation and administration Adj
ditionol facts have come to light and reveal damn
ing evidence Of bribery and corruption in the halls
of Congress: and the men who have betrayed their
high official trusts and sacrificed their personal
honor for plunder are shown in their true charac-
ters as national highwaymen leyying toll and
blacbmail upon national enterprises The art OF
placing stock where il would do the most good" SO
successfully practiced by the Hon. Oakes Ames In
behalf of the Credit Moblier was not novelty with
him or with the honorable Congressman VINO
through him found so rich placer.
When the true history of the Union Pacific Rall-
way comes to be written, it will startle the nauoh
with its record of the blackest corruption and the
most villainous Vaccinations. From It's inception
TO it's completion it has been scheme OF unparal-
leled fraud Few, except those Immediately con-
cerned knew that when the grand project OF uniting
the Pacific coast with the East by railway Wlnch
would be national i'll it's character and the very luea
of which thrilled the national heart with patriotic
emotion. that a group embracing some OF the same
Congressman who figured in the Credit Mobilier
opposed its progress at its inception, and IL was
not until they were bought like so much mer-
chandise that the promoters OF the railway re-
ceiyed the authorization necessary to enable them
to proceed with their enterprise. Chief among the
men who thus opposed the road until he was
bought TO support it, was the Hon. Speaker
Blaine of Maine, who went into Congress poor man,
and is now credited with possessing million dollars
The circumstances of the matter are briefly as fo-
lows:
In 1855. when the Pacific Railroad was an object in
the remote future the Territory of Kansas, through
its Assembly, incorporated the Leavenworth Paw
nee and Western Railroad Company, TO run from
Kansas City to Denver, Colorado distance of G3S
miles The promoters of this enterprise were nearly
all residents of Kansas, who foresaw the future
necessity for additional railroad facilities
Later, the project Of the Pacific Railway
became more generally agtated, and the
promoters, realizing the Importance of their
position appealed to Congress for the necessary aid
to become a portion of that railroad. For time
they were unsuccessful, but they finally trumphed
and secured the passage Of what is known as the
Pacific Railroad act of 1862, which authorized them,
under the title of the Union Pacific Railroad East
erm Division, to build their road to the Tooth
meridian of longitude, and then intersect with the
main line of the Pacific Railroad. Upon the passage
of this bill, the Company represented its property
and resources as follows:
Company's Indian lands obtained by treaties
with the Delaware and Pottawattomie tribes
of Iudians). ss,54oOOO
Congress land grants 64O0 acres per mile, at
s. 80 per 4,5loDO
T. s six Der cent year bonds per mile 100000
Compapy = capital stock 100000
Total. slc'o-UVVV
The lands referred to reputed to be the finest
bottom lands in the country and worth an immense
sum. Despite these favorable circumstances the
promoters of the LeavenwOrth, Pawnee and Western
Railroad, or as it had become known, the Union
Pacific Railroad, Eastern Division, on May IA, ls63
consummated a bargain with Samuel Hallett and
Others, through Gen. James {. Stone of Kansas,
whereby the Railroad Company disposed of their
stock franchises, etc. valued at SlS6@OOOO to these
latter named gentlemen, for a palIy sum OF be-
tween $2OO,O0O and 100000.
Now the question arises why did shrewd railroad
men dispose of this immense property for such
beggarly pittancef Simply because their enter
prise had become so involved by their abiliesint the
shape of pledges of stock, bonds, ETC.. to members
of Congress and others who voted for their fran
chises and subsidies and other services that it had
deprecated to the value for which il had sold.
When Hallett and others purchased the railroad
they insisted upon having statement OF It's
liabilities. Gen. Stone sat down. and with
his own hand wrote q list headed as follows: The
Leavenworth, Pawnee and Western Railway Stock
Contracts made for the Company by J. c. Stone and
Thomas Ewing, jr,' agents Of the Company, to
secure the ratification Of the Delaware and POtta-
watomie treaties and the passage of the Pacific
Railway bill" This was a confidential statement,
intended exclusively for the of the new owners of
the road Among the entries made therein were the
following:
r. McBratney, Kansas supposed obe for s. C. Pomeroy
Shares subject 10 assessment 1900 Issued, s5OOOj
shares not subject, none.
W. W. GayloId-Shares subject TO assessment 1000
issued, 100000; shares not subject, none.
e. W. Chase OF Cbaseyile, y. " but little service re-
ceiyed mostly black-maishares subject to assessment,
none shares not subject, 1000 issued, s5oOOO.
Henry Bennett, Emira, y. Y, supposed TO be for H.
Bennett j. p. Usher Caleb smith, and II. W. Thompson.
usher and Bennett right; let Smith and Thompson
slide-shares subject to assessment none shares not
subject, 10000 issued, sl,oOO,OOO.
Henry Bennett, Elmira GghO - Shares subject 10
assessment 1850 issued, Sl5OO shares not subject 900
issued, $4,000.
Magal QAnow nothing about iO-shares subject to
assessment, 400 issued 10000 shares not subject 200
issued, $4,000.
j. NJ shackleford, Ky. GignU - Shares subject to
assessment issued. $4,000 shares not subject none
WIN. Holloway pighU-shares subject TO assessment,
100 Issued, $500 shares not subject, none.
wv Chase aseyille-shares subject to assessment,
none; shares not subject 500 issued, $4,000.
s. Rey nods ght)-shares subject to assessment, 200
issued. sl0OOO shares not subject, none.
Reynolds supposed to be for C. Mitchell of Indiana
rght-shares subject assessment, 200 Issued, $4,000
shares not subject, none.
The Hon. j. l.. Rice, Missouri rghU-shares subject