The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-02-01
How the Sioux City and Pacific Railroad
COmpany's Land Grant Was Obtained.
HOAX AND JOHN J. BLAIR DID IT.
An Organization in Iowa Similar to the Credit
1obilier-Ex-Secretary Usher and Ex-
Secretary Harlan in tho Work.
PRESIDENT BLA1R,s TESTIMONY.

VI tuc loJn Vi september, 1864, at q meeting OF
the Board of Directors of 'The Sioux City and
Pacific Railroad Company" organized under the
laws Of Iowa. q resolution was passed requesting
the President OF the United States to designate
said company "for the purpose OF constructing and
operating line Of railroad and telegraph from
Sioux City to such point on and SO as to connect
with the Iowa branch Of the Union Pacific Railroad
from Omaha, or the Union Pacific Railroad, as such
company may select" Therefore, by the authority
conferred upon the President by the seventeenth
section Of the act of Congress approved July 1854
entitled can act to amend an act to aid in the con-
struction of railroad and telegraph line from the
Missouri River to the Pacific ocean," &c. &c,
President Lincoln designated in an official order,
under date Of December "a, 1854, the said Sioux
City and Pacific Railroad Company for the purpose
above mentioned.
Hon. William B. Allison, then member of Con-
gress from Iowa, now United States Senator elect
from that State, was designated at the September
meeting OF the directors to present the resolution
quoted above to the President OF the United States
In the meantime hasty steps had been taken by
Senator Grimes, OF Iowa, and James +. Wilson,
Representative efIowa, to procure President Lin
coins designation Of the Sioux City and Pacific
Railroad Company to build the branch, making
flank movement upon Allison. At the next meet
ing Of the Board Of Directors, September /, 1854
John ]. Blair, of New Jersey was elected President
OF the Sioux City and Pacific Railroad Company;
William B. Allison was elected Vice President, and
Cakes Ames and A. w. Johnson, of Maine, were
elected directors.
President Lincoln's action was taken in the
above matter upon the advice Of Hon. J. p Usher
Secretary OF the Interior, who as is shown by his
letter to the President, was Influenced by Con-
gresham and Senator elect William b. Allison.
The following is the Secretary's letter, who says
he enclosed the order which MIR. Lincoln signed:-
"" DEPARTMENT OF THE INTERIOR
sIraI have examined the papers submitted by Hon W.
company 10 construct the Sioux City branch q the Pacific
the City %
spcs Of ine section Of the act Of ap
lure IS ACCORDINGLY enclosed have the honor to be,
very respectfully, our obedient servant, ,,s
The PRESIDENT UNITED STATES.
At this time the entire Iowa delegation in Con.
gress had become actively interested in the Sioux
City and Pacific Railroad Company and large stock
holders.
Shortly after the President gave the above men,
toned authority to the road Mr.. Usher was super
seeded In the Interior Department by James Harlan,
OF Iowa, who afterwards received $4,000 from DR..
Thomas G. Durant, the prince OF railroad builders
and grand dispenser Of liberal
DONATIONS FOR CREDIT MoBILIER.
Secretary Harlan summoned convention OF the
Government Directors, Commissioners and Engi-
neers to meet in the city of Washington the 1st
of February, 1885, to fix the standard of the Pacific
Railroad" &c. II the standard" fixed at that
meeting was very much elevated 1t has
had severe tumble since to reach
its present level. President Blair, Of the Sioux
City Company, under date OF New York, January
30, 1866, wrote "HOn william b. Allison, Vice Pres
dent OF the Sioux City and Pacific Railroad Com.
n (ou.
gress, Washington, ID. Co." TO attend Secretary
Harlan's convention and act for the Iowa corp0
ration.
on the 14th Of April, 1866, Mr. Blair the President
Of the road, wrote Cakes Ames at Washington,
from "B0One Iowa." that the survey was eXpen-
sive" that it required "a large outlay for the en-
cheering party" and II IL became necessary to go
far west OF the Missouri River his engineers would
want a government escort, and Ames was So
licited TO obtain 1t from the government. This early
appeal to the government for protection to build
only 100 miles OF road within the borders OF civ
cation was surprising to those who recOected
that the company had received little more than
one year before,
ONE OF THE MOST VALUABLE LAND SUBSIDIES
that was ever granted to any corporation. NOvem-
Der 16, 1866. President Blair made his annual re-
port to Mr.. McCullOch, Secretary Of the Treasury,
| giving results Of surveys and examinations OF
routes then IN progress, and announcing that the
engineers had selected the rich bottom lands IRON
Sioux City down the valley OF the Missouri as the
! true one on which to build the road. President
Blair closed this report py assuring the Secretary
OF the Treasury that good and reliable subscrip-
lions to the capital stock of the company have re-
Gently been obtained to the amount of s., 600 OOO
prosecute the entire work with vigor and success
In september, 1867, the Sioux City and PACING
Sn the s sS 81
Railroad, contracted with De Witt c. Blair OF
New Jersey, and Cakes Ames of Massachusetts, to
in cash, rs the funds may be required. The agree
ment announced that this was sail to the satisfac-
dent and General Agent of the Sioux city and
Pacific Railroad Company. The contract further
agreed that DE Witt G. Blair and Oakes Ames,
| THE GOBBLERs OF THIS NICE PLUM
should constitute John Blair their sole agent to
construct the said railroad and telegraph line and
to carry out tins contract" IN every particular with
the said company. This agreement was signed by
John l. Blair, as President of the Sioux City and
Pacific Railroad Company, by d. c; Blair and Cakes
Ames W. 7. Glldden J. ]. Blair, d. c. Blair and @.
A. Lambard, Executive Committee Of the Sioux
Blair Cakes Ames william b. Allison and others,
as Directors OF the Sioux City and Pacific Railroad
Oliver Amcs, I'd; John NJ. S. Williams, A. w. John.
son, per J. M. s. Williams; p. w. Penaaaw, per w.
Williams; A. H. Two%Oy Per w H > W, Will
+. L. NJ. Williams, per J. M. 5. Williams: w. II. Will
son, per ]. N. S. Williams; samuel Hooper 1 Co.,
Frank M. Ames, by Cakes Ames, and about fifty
shortly after the iast-mention transaction,
Messrs blair and Ames the Contractors ASSIGNED
to John l. Blair, In trust, for the benefit Of the
stockholders Of the Sioux City and Pacific Railroad
|
profits Of every kind and nature that may arise un.
der the contract &c.
on the 30th or April, 1860, Mr.. John I. Blair ap-
peared as witness In the SUIT OF Charles Lam
bard against John !. Blair, Cakes Ames and the
Sioux City Railroad Company, brought in the su.
preme Court In this city. Mr.. Blair testified that
he then, and had been Tor several years, presi
dent Of the above-named road Among other
things after being closely questioned about his
operations In the management OF the road, he was
asked about proposition which he made to the
company to increase
THE SUBSCRIPTION TO THE CAPITAL STOCK,
and himself moved that such increase be made a.
the directors 1T. He answered that he attended
the meeting OF a committee appointed by the III
rectors, and in stating what took place
there he said 1.-THE subscription stoot
so,oOo.. and proposed to the Boart