The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-07-10
mr. HfYEs AND THE SUBSIDY POOL.
wAsH1Narox. July Tom Scott has

gress to pass u bill securing for the Southern
Pacific Railroad Government aid in one share
or another. When his agents and lobby ISIS
canvaseed the list Of members Of the Forts
fourth Congress they found in tho House of
Representatives ut least. a decided opposition
10 subsidy Jobs of any nature. Before the
Forty-fourth Congress had been in session
many months Mr. Scott discovered that he
could not command for his scheme even the
full strength of the fraction which did not look
with disfavor upon subsidies in general. 1t was
well understood that he had n majority Of the
committee. but that fact did not pass his bill.
To pass the bill he had to secure the united sup
port of the subsidy interest. including many
Representatives not disinclincd to jobs in gen
era. but opposed to this particular job. Rock
oning in his favor every doubtful vote. he found
that there was n possibility Of carrying his
measure by bare majority.
To secure the needed votes. Tom SCOTS first
step wns to attach 10 his own interests those of
the Central Pacific This he accomplished by
dividing the southern Pacific franchise. and
giving to Mcssrs Huntington and Croker of
California the control VI tho western part OF tho
line retaining the eastern section for himself
and friends. But even the acquisition Of the
California influence failed To secure for his
scheme tho necessary strength, and Congress
adjourned in August, 1876 without having
voted the subsidy.
Meanwhile. the Presidential campaign had
been opened. Everything was subordinatcd 10
the canvass. Tom SOFT. in order to secure
himself in tho event Of either IIaycs's election
or Tildcns. gave with equal libcraty to tn"
Democratic National Committee and 10 the Re-
publican. His subscription to each party cam
paign fund * Understood TO have been 10000.
He then supposed himself to be all right. So far
~ the executive branch of Government was
conccrncd-it mattcrrd not which side won.
During tho summer the Scott subsidy com
bnaion was further strengthened by an ALI
ancc with the Pacific Mail. But even after this
pool was made. Scott discovered that he still
lacked votes. There were still Congressman
who looked favorably on subsidy hobs but who
couh not be controlled by the existing COM
hnation.
The next move was 10 secure the cooperation
Of JAY Gould. This fnanricr and politician
was engaged in Il contest with the western
| Union Telegraph Company Believing that
Mr. Jay Gould would favorably consider any
proposition that would help the Atlantic and
| Pacific and hurt the Western Union. Tom Scott
instructed his agents to approach the proprietor
! of the Tribune. They proposed to jay Gould an
| arrangement by which his telegraph company
WAS To- have exclusive control of the business
along the southern Pacini line to California.
upon condition that h. gave full support, in and
out OF Congress. to the Scott subsidy job. This
would give Gould the monopoly OF the Califor-
| MIA telegraph business. controlling. n he does.
| the lines along his own road. the Union Pacific.
| To the surprise Of the Scott people Jay Gould
| did not jump at their Offer lie demanded u
| larger price for his support. He represented
that 10y aiding the southern Pacific he was help
INK to build up a rival line to his own. He init
mated that unless Scott would also agree to lend
| him his Influence in certain questions then in
| dispute between the Union Paciilr and the Gov
crnment. no could not consider the proposition.
Thus matters stood when election day arrived.
Jay Gould. unlike Tom Scott had confined his
contributions TO the X publican side. H. had
attended nearly all 81 the consultations held t.
devise plan. Tor CARRYING on the campaign was
hand in glove with Xtch Chandler. ami had
taken extraordinary interest in III defeat of
Tldcn and the election Of Hayes. Both before
and after the 7th 81 November lac was actively
engaged in Hayes interest
Congress finally mot. Republicans Demo
rrats eaeh rnmu-; the election of tl'ir ticket
The politicians wore eagerly booking after IA,
Returning Boards in the disputed States. aud
DISCUSSING. the manner in which the electoral
vote should Joe counted az WashnG'' vi. Durn-
the memorable excitement OF last winter III
subs iys'lirmn- were NOT forgotten. The Pres
ileniM election once decided. and the Forty
fourth Cousr,-s replaced hy "a LOW Legislative
body. Ton : scott and hi- allies believed that thu
time would come to- strike for the subsidy ia,
Gould being an powerful with the Republican
leaders. il heclme more imperative than ever
that his support should tr bought.
Events accelerated the : Gould comhna
ton On Jay Gouiis part it was more nc,,.s
I.If, la. So
cured 10 drprmine how the money loaned b,
the Government To the Union Pacific should h
paid hack. If at all. LAY Gould wns busy lobby
ing for this legislation. lie had friends in Con
.,rcs- whose votes SOFT had been nnnhlc t. cap
rtr'. Tom oti then saw. or thought that Ia
law. why Gould did not accept hi- telegraph
proposition. H. AT once proposed 10 Gould t.
pool in with the southern Pacific suhsid
and the parian Mai! subsidy. the Union
Pacific legislation that Gould mucl
dos red lie offered his own strength
.hc pa.iN Mail strength. and the Hun
tngtou influence TO procure the passage q
Gouds net providing ior the munn"r of pHyin
the Government bonds ISSUED in aid of IT,
Union Pacific. and tn telegraph monopoly o
tnr southern Pacific line Ia boot. IN return fo
Jay Gould~ kind Offices toward the suhsiI
'hcme.
Events in connection with tho Prosiaontr
fraud were moving fu-t. Tine determination {
count huvr- i'm AZ AN hn2aris h.ul become st
llol. NhilD luy Cloud WAS considering Scott
ullmatun. the Electoral b.l passed bot
uou-. s.. and WIS sIsnod los Grant lilnm
elected Judsr Davis Uut.d States senator. au
lpn Bradley WAR placed on thr Commission q
nith Judge with N" cH-'lng vote Jay Gnul
-.rw he oipUrunity lie pointed Quito T.,
, S.tN th" nrHss ~ Of preventing the doo.ara