The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1883-05-23
100000 ACRES FOR A DOLLAR.
One OF the Most Remarkable Land
Grants on Record.
How Huge job was Engineered Through
CoDgress-Dfd the Secretary of the
Interior CO-Operate?-Jay
GOuld's Finger In It.
Washington Special. |

The ease with wbich railroad corporations
secure favors from the Governmst ofiicres has
aroused the pertinent inquiry, Howis itdone?
The Colfax (Ls. Chronicle would be pleased
for Congressman Blanchard, or some person
informed on the subject, to give us some en-
lightenment The clerk of Grant
parish has inst finished re-
cording mortgage from the New
Orleans Pacific Railway Company to Dillon
and Alexander, trustees, of New York, in
which the lands of the railroad are hypothe-
Gated for loan of money. We were under
the impression all along that the Com
pany was to have its land patents recorded
the first thing, and that the settlers
would be allowed to apply for a pur-
chase of the lands occupied by them, under
the terms and stipulatlons agreed upon with
Mr.. Wheelock. AS no mention of the gree
ment is made, we would like to know how
this mortgage operates toward settlers"
There is food for reflection on reading
the above, and as one who knows some
of the main points on which the Chronicle
wants information, l propose to fur
nish it. The duties of Trusteeship by
the gentlemen named are very simple.
The grant OF land was given in 1871 to aid
the construction of the New Orleans, Baton
Rouge and Vicksburg Railroad from New
Orleans to Shreveport, La. The law can be
found in Section 90 of the Act OF Congress,
approved March 8, 1871, knewn as the Texas
Pacific bill. The road was to have been
built in five years, or by March s. 1876
but it was never begun. The COm-
pany had printed some four or five
millions of dollars worth of bonds
which, as alleged, were given to Senators and
members OF the House for their votes in pass.
ing the hi I, and the balance was distributed
among the sO.cllled Directors and lobby
friends. Thus matters stood until 1880, when
it was learned that another road was being
built upon the same line This read had no
grant, ana expected none. Gould was con
structing it as an outlet for his Texas road TO
New Orleans.
The old Company had their bonds, but
they possessed no market value. They
thought they saw a chance TO reaizs by Sc
curing the cooperation OF the Secretary OF
the ln;eriCr in obtaining 1000 900 acres of
land. Feelcrs were thrown out and when
the servants OF the people, who were sworn
and paid TO serve the people, were approach
ed, some OF them aided IN communicating the
robbery. Hon. L +. Peyson of Illinois,
SAID that it was q fact that the road
had the promise of the Department
7 in advance that if the New Orleans Pacific
Company bou ht the land, they should have
IL. They did buy and they have got il. The
sale was made, as per records of the interior
Department, on January >, 1881 and the deed
says the consideration was 81. Two millions
Of acres OF land were sold for 81 The true
terms of the sale we're that when the lands
were secured from the Government, they
should be mOrtgsged in bulk for what they
were worth, the proceeds TO be divided on a
basis of one third to the defuRct road and
two-thirds TO the New Orleans Pacific This
created trouble, 90 some of the persons that
were not taken care OF complained, and
brought about 9 compromise. Contracts
were made by which all the old bonds, for
which not one cent of cash was ever paid,
were to be taken up ct twenty cents on the
dollar and that contract is held in trust by
parties mutually agreeable TO ali. Mr.. Dillon,
representing Gould, Dodge, Wheelok & Co.,
and Alexander, representing Gaylord, FlaI-
nagan and Others are the Trustees to hold
the money cotton on the mortgage and 10
tettle all the contracts outstanding. These
contracts are held by four ex-SenatOrs as
many or more members of the House, and
three members OF the next House,
Mr.. Wheelock made the agreement as
President OF the New Orleans Pacific Rad, and
at that time Poors Manual shows that the
New Orleans Pacific had been absorbed in
June, 1861, by the Texas Pacific Road. The
truth is that had certain members of Congress
from Louisiana opposed the grant it never
would have been given, but as they worked
night and day to consummate the scheme. no
one is to blame but the people for sending
such Representatives to Congress.
G. NJ. Dodge, an ex-member of Congress
and now connected with the New Orleans
Pacific, knew how to work his point better
than by employing a lawyer. There is
party here who signs his application for
seat in'the reporters gallery in Congress and
affirms on honor that he is not connected
with any scheme before Congress. He was
the man who wanted to fight Resgan's Inter
State commerce bill, and proclaimed
his right, in the heat OF his anxiety, as
the owner Of a railroad. He has been
for years the lobbyist OF the Union Pacific
rosd. The Secretary of the Interior was once,
if not now, an attorney for tue Union Pacific.
Dodge wanted work done of delicate nat
uTe, and a lawyer was not required, as both
law and equity were agaiR,t his schemes.
What ne wanted was a man who could talk
in a confidential way to Teller, and Mr..
Painter was believed to Re the man, and he
was employed So we'll was the work done
that with the power of Gould's influence,
within less than sixty DAYS millions of
dollars were realized from a thing thought to
be dead.