New-York tribune., 1875-01-25
VoL.XXXlV.....No. 1861
WASHINGTON.
THE TEXAS PACIFIC IN NEED OF lNvEsTI-
CATION.

ANOTHER CREDIT MoBIILER-A NET THAT WAS
TO HAUL THE TIHRTY-FoUR MILLION DOLLARS
IrRoM A REGULAR coRREsPoNDEST OF THE TIBUSE''
WAsHINGToN, Jan. 2S-BefOre the Texas Pacific
Subsidy bill is brought INTO the House an inyestl-
cation of the manner in which the original legsia-
tion was procured for the road, and of the opera
tions of the Construction Company that has a con-
tract for building il, would be both timely and in
teresting If / am not greatly mistaken the result
Of such an inquiry wOuld be to bring down larger
thrOng of leading politicians and Christian states
men than were laid low by the Credit Moblller eX
pOsure. few facts, which do not lie very tar be-
low the surface and need not be sought for with the
drap-nets and rud-hoOks OF smelling commit
tee" are appropriate reading Mt this time, and may
stimulate further research III the directions hey IN
dicate.
The bill charte1ing the Texas Pacific Railroad
Company was passed March g. 1871, and the line OF
road specified in il over the old route OF Uen
Fremont's Memphis aud FL Paso Road, which had
aud grant from the State OF Texas obtained before
the war. IL was for the IL PasO Company that
Fremont raised the loan in France which created so
much scandal. When he came to Congress for
land grant from the western boundary of Texas TO
San Diego it was decided TO drop the old name,
which had bad Odor in foreign money markets,
and to call the company the Texas Pacific. A pow
tTful lobby was set at work TO put the measure
through The headquarters of the lobby were sppa-
reutly in the Marshars office Of the Supreme Court
Of the United States, aud It's recognized chief was
Richard c. Parsons, then Marshal and now Repre-
sentative from the Cleveland. Ohio, District.
THE coRPORArORs AND THEIR SECRET ALLIANCES.
In the Senate the powerful champion of the bill
was Senator Cameron and in the House Gen. Butler.
About 100 corporators were named in the first
ton Of the bill and these names, with the influences
which they openly or coyertly represented had
much to do with securing its passage. Aufcng them
were "he following: John {. Fremont, who led the
hist a. was appropriate, for the project was his; g.
III. Doc &c, former Congressman from Iowa, subse-
quently connected with the Union Pacific and the
Credit Mobilier and now principal agent Of Col.
Thomas A. Scott TO secure a subsidy for the Texas
Pacific; J. i. Noah confidential man Of Senator
Spencer; j. D. Cameron, son of the Senator; A. c.
Osborn, supposed 10 represent the Florida Senator
Of that uame G.. c. Poole, brother of Senator Poole
Of North Carolina; J. II. Oglesby, confidential
financial agent of Senator now Governor Kellogg of
Louisiana; Richard c. Parsons, Marshal of
the Supreme Court; j. 4 West. then
Senator-elect from Loui-ia-l: II. c. Warmoth
John Ray, j. ]. iudeling, NJ A.. SOuthworth, and
three "a four other members of Warmoth's
Louisiana Ring; NJ. L. Hunter ex-member thea and
member now from Indiana; w. Flanagan, son Of
the Texas Senator; Powell Clayton, then Governor
and Senator elect from Arkansas; f. w. Rice special
friend of the Iowa Senator and of the Secretary of
War; Timothy Hurley. South Carolina legislator
and jobber; A. 2. X. Stafford, Governor of Arizona
and intimate friend of Senator Stewart; j. b.
Cbayes, Delegate from New-Me2icO; j. w. FOrney
editor of The PHILADELPHIA Press; +. M. Davis Gov
ernor of Texas; A. j. Hamilton, Reconstruction
Governor of Texas; Rush r. Sloan of OHIO; J. y.
Goodwin. famous in connection with the Northern
Pacific lobby. and number of persons put forward
by Senators and leading Congressman as their rep
resentatiVes Besides this class of men there We're
Q few prominent capitalists and railroad men, like
Thos A. Scott Marshall o. Roberts aud II. McCul-
lOch.
Before the bill passed, information quietly cir
cnated among the members IN the Scott interest
that the great railroad king wOud get control of the
charter and would form construction company to
build the road into which he would put his friends
or his friends friends. After the passage Of the bill
the incorporators met in New-York to organize the
company. The scheme to capture the charter and
sacrifice Fremont was known to the old directors
and stockholders of the Memphis and FL Paso Com
panv aud apprehensiOns entertained that there
would be manifestations of excited opposition that
might eliminate i'll violence. 70 guard against this
squad of policemen was sent for and stationed at
the doors leading to the where the cOrpOratC!s
met The Scott interest tiumphed Mt the meeting
BY efforts which stock operators will understand,
and Fremont was Ousted. Soon after, a charter
granted by the Legislature of California to the Cali
fornia and Texas Railroad Company was purchased
or in some way got possession of, and under 1t the
promised Construction Company organized.
Some of the railroad corporations were let in" and
others were lef' out.
"cONVEYING' y TWENTY THOUSAND DOLLARS A MILE
In its main purpose this Construction Company
very closely resembled the Infamous Credit MObiIer
II was an inside ring to bleed the railroad company
by obtaining twice as much money for building the
road as the work was worth. In its details, how
ever it differed considerably in plan from its proO-
type contract was made with the railroad COM
pany to construct the whole line Of road for $4,000
per mile. The estimated average cost per mile
go OOO so that the construction ring figured out
profit on the whole 100 miles of S34OO0O00. pOr
hon of the stock of the Construction Company, like
that of the Credit Mobiler was placed where it
would do most good" The lobbyists and their tools
IN Congress pretended to pay cash for it, and if
brought to book by an investigating committee will
assert that they bought it with their money. II
the whole truth comes out, it will probably
be found that they got il for nothing.
lust as the Credit Mobilier men got theirs
but in a different way. For every dollar
paid in for stock land grant bond of the railroad
of the amount. being seven per cent interest,
was given the stakeholder In the cases of members
Of Congress their representatives. ii is said that
the lobby arranged matters in this way the land
grant bonds issued for the stock apporoned to them
were hypOthecated with certain Pennsylvania
banks for to pay for the stock, and the paid
ND shares were handed over that not cent of the
money Of the recipients of these shares ever left
their pockets. The construction stock was there