Omaha daily bee., 1883-01-12
TEE BACKBONE LAND GRAB,
A Scheme to Steal 1892, OOO
Acres of the Public
Domain,
Proposed Investigation OF the
Transfer to the New Or
leans Pacific Railroad
for ST. CT Over 49,.
900, 900 Worth
Of Land.

the rleans by which this transfer ia
sought TO be ratified. The resolution
is based upon the allegation that the
deed of transfer was executed In pur.
susuce of a conspiracy to defraud the
government of a large part OF the pub
lie domain, and that corrupt practices
are now being resorted to III order to
obtain from the United States a rati.
f~ication of the deed Of transfer. Should
this resolution be passed, it Ia tie
belief that within two weeks
the committee would be ready
to report to the house. The
publication on Friday last of the story
Of the Backbone land grant is made
the basis of the proposed investigs-
ton. In brief, 1t was then reported
that the New Orleans Pacific railroad
had, in pursuance of an agreement
with the defunct Backbone railroad,
purchased the franchises and land
grant of the latter for the ostensible
consideration of 81, aud for u real
confederation that did not appear In
the formal document. The Backbone
road got from congress- in 1871 a grant
Of twenty actions per mile for its en-
tire length of 3l8 miles. This grant
was a part of the Texas Pacific grant
of nearly 10, 600, 600 acres. The con-
ditlon of tho grant to the Backbone
road war that the road should be built
In five years. 1t never was built nor
ever begun, except on paper. Not an
acre of it's land was ever earned. The
only thing of value 1t possessed was
the grant, and this it lost by failure to
build the road. The New Orleans
Pacific professed to have absorbed its
charter and franchise, though the New
Orleans Pacific built q road entirely
different from the proposed Backbone
road. The New Orleans Pacific, how.
ever, desired to obtain possession Of
the rich land grant of the defunct
Backbone road. This land grant COW
cred some of the richest sugar lands
in Louisiana. 1t ia now alleged that
the private arrangement that was
made was that the New Orleans Pa.
cifc should bond the lands at SO 1000,
600 and give to certain persons who
claimed to have interest in the Back.
bone road 81, 000, 900 of these bonds.
Now, these persons could have had
no lawful interest in the Backbone
road, for 1t was defunct, and Its land
grant had lapsed, but thep were per.
sons who could have prevented the
issuing of the patent or the ratiica'
ton of the grant to the New Orleans
and Pacific.
Many settlers have taken this land
in good faith. Much Of it Is improved
and valuable. Farms are comprised
In it. The settlers, many of them,
pre.empted the land under old laws,
Others have secured lands since 1876,
supposing thai the Backbone grant
had lapsed, and that they could have
tho land by pre.empting it and pay
ing the government prios fer 1t. The
settlers, about a year ago, learned OF
the negotiations that had been going
on between the New Orleans and Pa
ci6o ard the persons pretending toowr
the Backbone interests. They wer'
greatly alarmed. A committee came
to Washington and learned that tht
secretary was almost ready to sign the
patent to the New Orleans Pacific
Congressman Blanchard and Robin.
son, of Louisiana, filed q protest will
Secretary Ktrkwood against the rati
~ication of the grant until the right,
of the settlers could be determined
An agreement was then entered into
with these settlers and Jay Gould
agent by which the agent bount
Gould to guarantee the right
of the settlers. Satisfied with this
the settlers Withdrew their protest
but the guarantee has never been exc
cuted. This action of the settlers
however, stirred up the old Backbon
railroad bondholders, among then
Senator Kellogg. If there was to b
o deal, Kellogg wanted to be In on tn
ground floor. He stood between tn
New Orleans Pacific and the gram
for the secretary did not dare sign til
patent against KelloGg's protest.
Meanwhile, Kirkwood went cut an
! Teller came in as secretary. TelIe'
when in the senate, had favored legi
lative action that would have legaliza
the transfer of the grant. The me
, who are in the New Orleans PRcif
= were the men who urged Teller
appointment as secretary of the II
terror. The transfer of these vaiu.
BILE lands to the New Orleans Pacil
now orly requires Secretary Teller
, signature TO consummate 1t. M
: Frost has been informed that the me
who would receive the 81, 600, on
"a worth of the land bonds are VIM,
Barnum, Mr.. Scott of Erie, the ra
road capitalist, Senator kellogg,
w. Dorsey, ex.Land Commission
Williams, and Congressman ketchui
In addition, MIR. Frost has receiv,
informant IN which involves two cal
net officers 30 seriously that he /
lieves that 1t is duo them that that
90 investigation be made hat tn,
names may be cleared. Mr.. Frost
also informed that it is the New {
losrs Pacific construction compar
70 of which Jay Gould ia president, a
. not the New Orleans Pacific compar
that has been negotiating in the mi
!. nor described.
IL il a fact that Secretary Tell
when in the senate, introduced a
declaring all unearned land gra
forfeited, and enumeratlng in the
all the roads which had failed to OF
II their grants, with the solitary exc
u ton OF the Backbone road. Anot
bill to the same effect was introdu
In the house.