iLi» yiiupufiMiniio * » 1 B CORNELL UNIVERSITY LIBRARY BOUGHT WITH THE INCOME OF THE SAGE ENDOWMENT FUND GIVEN IN 1891 BY HENRY WILLIAMS SAGE Date Due t '' L- VB»^« -^ \\^ IIIAY-4-2- WmY ^ PRINTED IN U. 9. A. car NO. 23899 Cornell University Library E415.9.T5 B92 Samuel J. Tilden unmasked! olin 3 1924 032 770 640 a Cornell University 9 Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924032770640 rr:v\Tiiiiiif,'^*™i Lccocq, Photographer. SERGT BUCKMAN, M.P.. 1869. SAMUEL J. TILDEN XJNl^dl^SKED! BY LATE SERGEANT IN THE METROPOLITAN POLICE. NEW YORK: PUBLISHED FOR THE AUTHOE, 1876. Entered according to an Act of CoHeresB, in the year 1876, by BENJAMIN E. mJCKMAN, In the Office of the Librarian of Congress, at Washington, D. O. TABLE OF CONTENTS. PACES INTRODUCTION, .. .. .. .. .. .. i to v CH AFTER I. Earliest Kecoeds or S. J. Tildex, .. .. .. .. 1"2 CHAPTER II. Dishonorable Road to Wealth and Power, .. .. .. ..3 " 16 CHAPTER III. Associated IN THE " Oakes Ames," " Tom Scott," AND OTHER Rings, .. 17 "23 CHAPTER IV. A North-western Pioneer. — North-western Pioneering, .. .. 24 " 33 CHAPTER V. Tilden's Perfidious Attorneyship, .. .. .. .. .. .. 34 " 36 CHAPTER VI. Pursuing his Victim, .. .. .. .. .. .. .. .. 39 " 41 CHAPTER VII. Ring Speculations, 42 " 44 CHAPTER VIII. A Dangerous Demagogue, .. .. .. .. .. .. .. 45 " 48 CHAPTER IX. Railroad Combikatioss, -. •• •• •• -• •• ■• -tO " 52 CHAPTER X . Inveigling a President, . . . . . . • • • • • • • • • • 53 IV TABLE OF CONTENTS. PAGES CHAPTER XI. TiLDEN IX Partnership with Tweed, . . . . . . . . - • .. 54 to 58 CHAPTER XII. The Prince of Dissemblers, .. .. ■• .. .. •• .. 59 " flO CHAPTER XIII. BissoLUTiox OF Firm of Tilden, Tweed & Co., 61 " 63 CHAPTER XIV. TiLDEN Wiser than Solomon, .. .. .. .. .. .. .. 64 " 65 ' CHAPTER XV. Opinion of the New York Legislature, .. .. .. .. .. 66 " 67 CHAPTER XVI. A Bogus Reform Member op Same, .. .. .. .. .. .. 68 CHAPTER XVII. Opposing Constitutional Reform, .. .. .. .. .. .. gg " 7q CHAPTER XVIII. TiLDEN AS A Self-Electioneering Manager,.. .. .. .. .. 71 " 74 CHAPTER XIX. The Unprincipled Governor, with Seven Examples, .. .. ' .. 75 " 97 CHAPTER XX. TiLDEN versus Court of Appeals, .. .. .. .. .. .. 98"104 SUMMARY 105 "109 APPENDIX lU"12n ADDENDA 121 INTRODUCTION. TO THE EEADEE. The facts set forth in these pages were as great a surprise to the writer as they can be to the reader ! The circum- stances which have led me to publish them will be briefly stated as my justification before the public for endeavoring to unmask a " reform Governor " ! I am a native of Greene County, in this State, where I was born in 1816. In 1849 I came to this city to prosecute my trade as a house-builder. "When the Metropolitan Police was organized I was one of the first to join it. I rose to the rank of Sergeant, and was on active duty until 1870, when I was honorably retired. During those years 1 reared a family in the city of I^ew York, and accumulated, by slow degrees, a few hundred dollars against a rainy day. After a time, or about the year 1867, 1 saw an enterprise started, which was of great prospective utility, and which, I became satisfied, would, if honestly managed, pay ex- tremely well as an investment, and so put my savings into it. During the first three years I could have sold out at a premium; I not only declined, but induced my most inti- vi INTBODTJCTIOK. mate friends to join me in it, until we jointly had paid for one-twentieth of the whole original investment, or some $10,000 in all. Three years afterwards some "Wall-street operators came into the enterprise under the most specious promises, and we accorded to them the management of its corporate affairs, as a majority of its Board of Directors. They abused their trust most shamefully, so that, in one short year, they had bankrupted the concern in its credit, but for a purpose, as afterward appeared. In process of time they procured the property to be sold under certain legal processes, whc#n, behold ! it was bought in by a new corporation, formed hy themselves, and of which they were also not only a majority of the directors, but a majority of the stockholders as well ! My friends and myself now found that our stock, being controlled by the conspirators, could not be defended at law, while they ttu-ned over the property we had paid for, to themselves, in the guise of a new corporation 1 "We found that our stock then had no value, but that our directors had issued to themselves new stock to represent the old stock we had paid for, and announced that the new was very valuable, as is evidently the fact. About this time I was discharged from a position I had held in the concern, because I was not willing to evade or violate an oath administered to me in Court, under which I was compelled by truth and conscience to testify in a man- ner which did not please the " depredators," but who, about the same time, largely rewarded another employe to commit INTRODUCTION. vii plain and wilful perjury, in a manner which they esteemed would pecuniarily benefit them. I have thus been subjected to a double calamity, hav- ing been without ordinary employment for nearly a year, besides being defrauded out of my hard-earned savings. It occurred to me subsequently that I would occupy a part of my idle time in preparing some account of rapid transit schemes in 'New York city, in general, and of the frauds I had witnessed in that line, in particular. While preparing my notes on that subject, which may be published hereafter, I made the astounding discov- ery that the present Governor of the State of New York was a confederate and adviser of the thieves who stole my property ! Not only so, but I found apparent proof that he had officially perjured himself in order to forward their nefarious scheme. [See Chapter 19, Ex- ample YH.] Upon unearthing this unlooked-for fact, with my instincts as a police-officer, I began to investi- gate farther into the history and antecedents of Samuel J. Tilden. To my sui^prise, I found that I was in almost daily intercourse with other persons who had known him intimately for a score of years, or more, and who did not hesitate to pronounce him a most unscrupulous knave, despite his reputation and riches. Through them I ob- tained access to newspaper slips, and to other documents relating to him, which I examined until convinced that they were right in their estimate of Tilden's true char- acter. viii INTRODUCTION. My intercourse with many other citizens who fully believed him to be a "reformer," led me to see how badly the good people of the State of I^ew York are being "sold" in his case. The question arose, whether I could do a more praise- worthy act than to give the facts regarding this "reform Governor," trading Politician, and Eailroad Lawyer. I concluded that I could not. The same conscience which would not permit me to take a false oath to save a situation on which I was dependent for my daily bread, will not permit me to stand by and see others unwit- tingly bestow honor and high official trusts upon a per- son lacking in common honesty ! Some of my friends, in view of his position, wealth and power, think that I expose myself to great danger of further " persecution, for conscience' sake," in making an exposure of this " Oovernor's " bad record. Others encourage me to go on, with the argument that the American people are sound to the core, in respect to official corruption, and only want reliable facts to make an end of it wherever found; and that, with them to sustain me, " I need not fear what " one bad " man can do unto me." After due consideration, I concluded that "truth is mighty and must prevail " ; and the fact of my having the materials for this exposure unexpectedly brought to my hand, in the shape of " Parton's Eing Manual," " Wads- worth's Affidavits," and other data not easily found else- INTRODUCTION. IX where, decided the question in favor of using them for the public good. To this end I secured editorial aid to arrange the facts in presentable form in the following chapters. As a police-officer is taught to arrest and bring to justice those who are plundering, deceiving, or endan- gering the welfare, of law-abiding citizens, so, when I came to understand the extent of the fraiid now being practised upon the citizens of this State hy the present occupant of the Executive Chair, I deemed it my duty, as a New Torlcer hy hirthright, to give the facts without fear or favor, and without delay. Be the result what it may, I have done my duty, my whole duty, and nothing but my duty, in the premises. BEKJ. E. BUCKMAK. No. 277 Madison Stkeet, New York, Jammry, 1876, SAMUEL J. TILDEN UNMASKED! CHAPTER I. EARUEST BEC0KD9 OF S. J. TILDEK. AxEXANDBR HAMILTON, One of the great founders of this republic, in a public communication, -written near the beginning of this century, on the plan to be adopted for the election of President, gave it as his opinion that " The office of Pkesident -wili, seldom fall to the lot of ant MAN WHO IS NOT IN AN EMINENT DEGREE ENDOWED WITH THE REQUISITE QUALIFICATIONS. TaLENTS FOB LOW INTRIGUE AND THE LITTLE ARTS OF POPULARITY MAT ALONE SUFFICE TO ELEVATE A MAN TO THE FIRST HONORS OP A SINGLE STATE, BUT IT WILL REQUIRE OTHER TALENTS AND A DIFFERENT KIND OF MERIT TO ESTABLISH HTM IN THE ESTEEM AND CONFIDENCE OP THE WHOLE UNION." The truth of the great statesman's surmise as to the possibility of being elected Governor "by talents for low intrigue and little arts of popularity" is already verified by the success of the present incumbent of the Governorship of the State of New York. To these, and these alone, does Samuel J. Tilden owe his present prominence in the State, and his hopes of becoming President of the Nation before his true character is known by the people at large. His belief is that the one thing needful for success in politics is — MONET : that the man who carries the party bag is entitled to the highest honors I His wealth, according to the newspapers, amounts to six millions of dollars, which places him at the head of rich politicians in this country, where the great bulk of that craft are decidedly " impecu- nious ! " He is also without family incumbrances, being the first bachelor Governor in the annals of the State, The questions naturally arise : 1st, How did he get his wealth? and, 2d, How does he use it? These questions we propose to answer in order, and to this end some peculiar but reliable information on the subject has fortunately come to hand. Mr. Tilden, it is well known, did not inherit a fortune. 2 SAMUEL J. TILDEN UNMASKEd! He claims to have been bom in 1814, bnt is suspected of having his dates somewhat "mixed"! In his political speeches and documents he has pointed to his having been a valiant supporter of General Jackson m 1833 — that is to say, several j^ears before he was a voter! This would be rather " vealy support!" It might be made an algebraic problem how much such "support" it would take to elect the hero of New Orleans to the Presidential chair! Ungrateful General Jackson, in all his published letters, never, so much as once, alluded to said " support" ! Young Tildeh entered Yale College, but did not graduate there. He claims, however, to have subsequently completed his collegiate course at the "University of New York." This sounds well. S. J. T. was always a believer in sound instead of in substance ! In the course of events he settled in the metropolis, and hung out his sign as "attorney and counsellor at law." Up to 1846 his business was evidently light, as he evinced a willingness to spend his valuable time in representing a, lower ward constituency of New York City, in the Assembly, at $3 per day and mileage, and in the Constitutional Convention at the same rate. In 1855 he was willing to serve the State as Attorney-General, at. a yearly salary of $2,000, but, surprising to relate, the doughty "supporter" of General Jackson only received 101,369 out of 430,758 votes cast by the^men of that day and generation. " Counting in" circulars and picture-paper political tactics were not then perfected as in after years! Thus it is clear that, twenty years ago, S. J. Tilden could boast of neither fortune nor fame, while his political career had proved but a conspicuous failure. DISHONORABLE EGAD TO WEALTH AND POWER. CHAPTER II. DISHOKOEABLE EGAD TO WEAITH AKD POWER. In 1857 the general crash in railroad enterprises occurred, when good, bad and indifferent concerns in that line fared alike. The same shares that in Consolidated New York Central and Hudson Eiver Railroad Co. will now sell for 8300 could then have been bought for $20. Others were in like proportion. M. S. & N. I. R. R., from $140, went down to $6, but has nearly returned to the former figure, if " "Waterings " be added. In the gen- eral clearing away of railroad debris, and in reconstruction, there was a great opportunity for sharp, shrewd and unscrupulous lawyers. Tilden, then in mature j-ears, saw his chance, and improved it, pre-eminently, so that he came to be known as the railroad lawyer of Wall street. Tilden's first marked success was by his acting as attorney for, and subsequently as partner with, a Chicago speculator named Wm. B. Ogden, the first maj-or of that expansive city. As long ago as in 1852, or thereabouts, a railroad called "The Rock- River- Valley Union Railroad " was started, to lead from Chicago into Wis- consin. Its first financiers were said to have obtained a charter, issued bonds, and then exchanged the bonds in England for railroad iron, which they shipped to Chicago, and sold the rails to raise money to reimburse themselves for the expenses of the charter, and to provide means for grading the track ! This style of financiering was completed when the property was sold under foreclosure, and a "reorganized" set of "pro- moters " went in to travel the same path with their disguise of different names. Under the new regime, with the corporate title of " The Chicago, Fond-du-Lac and St. Paul Railroad," Mr. Ogden became president, and its cars were run over some sixty miles or more of its track, when a second collapse followed. Funds were mostly raised in those daj's by loans from Eastern State banks on the railroad company's notes, endorsed by the directors individually. When the company failed, in 1857, the President (Ogden) was endorser of its notes for nearlj' two millions of dollars, and, if pressed for payment, was, in fact, utterly insolvent, although the holder of large amounts of Chicago real estate. In this emergenc}' he put himself into the hands of Tilden, as his attorney, and in the course of thi-ee or four 4 SAMUEL J. TILDEN UNMASKEd! years came out of his embarrassments richer than he was before. The modus operandi was about as follows : To secure himself as endorser, he took the raihoad companj^'s bonds as collateral, at, say, fifty per cent, of their par value. The corporation failing, he became possessed of them by assuming the secured debt. Then Tilden adroitly raised questions of usury in the previous payments of interest to the owners of the notes, and suggested as a compromise exchanging for Ogden's real estate, in Chicago, at a high rate of valuation, or bonds and stock of the road at par, and which were afterwards assessed to furnish more capital for the railroad itself Meantime, all other unsecured ci-editors {and the credit of the company had been designedly run to the last extreme before the failure, in order to get creditor^ property into its assets as far as possible) were offered " common" stock for sixty per cent, of their claims, said stock then being worth a market price of about fifteen per cent, of its par value. The "reorgan- ization" was effected under the new name of the " Chicago & North- western Eailway Co.," Mr. Ogden continuing as President, and Tildeb being made Trustee for the bondholders. The new additional millions in stock and bonds were apparently not much noticed by the outside public, so that Tilden and Ogden made what would be termed a " very neat operation " out of it. Some of the directors who endorsed the corporation notes with the President, and did not have his lawyer for counsel, were per- manently ruined, one at least of whom died of anxiety, caused by those complicated embarrassments. The most serious drawback afterward realized, was that the newly-named railroad did not actually earn the interest of its new issue of bonds, to say nothing of dividends on its stock. The original Chicago and North Western Line was, in 1864, 249 miles long, with stock and bonds afloat for nearly eleven millions, or $42,000 per mile. By funding coupons, etc., it managed to do business; I but in 1862 failed to earn the. interest on its debt by a deficit of over $150,000. 1863 was not much better, and fresh bankruptcy nearly inevi- table. Here again the crafty genius of Tilden was equal to the emergency, as in this crisis he secretly set about adroitly stealing the " Galena" Rail- road. The ' ' Galena & Chicago " Railroad was then running from Chicago to the Mississippi river. It was the first railroad in the West (having been chartered in 1836). That company had never watered its stock, and seldom, if ever, had it failed to declare an annual dividend of from six to ten per cent. In 1864 it had some 300 miles of road in perfect order, on which was based a mortgage-debt of but $10,000 per mile, and a stock issue of but $20,000 per mile. Its net earnings for 1863 were over $1,000,000, and it had about that sum in cash in its treasury as working DISHONOEABLE ROAD TO WEALTH AND POWER. 5 capital. Its stock, largely owned by those living along its line, was held as a favorite investment for trust funds involving the estates of widows and orphans, being considered as safe as the Bank of England. Tilden, covet- ing the property, seta "consolidation" trap for it. He borrowed money to buy the stock; he borrowed the stock itself; he bought proxies and borrowed proxies. Stealthily and steadily he pursued his course until a majority of the stock or stock proxies was obtained, and his game thereby made sure. He then looked about for more raw material to work into the grand fabric of " consolidation," which his covetous and unscrupulous mind had conceived. He bought up one bankrupt line of railroad known as the "Kenosha & Rockford," 73 miles in length, which never had, and never has, earned its running expenses. The cost to Tilden was about $300,000. It was "consolidated" at $1,400,000! The Peninsula Rail- road in Michigan was also controlled by Tilden ; he had its stocJc issued to himself and partners as a bonus of $100 for every $100 in bonds taken at par, and on which Tilden & Company cleared over one million and a quarter of dollars ! With all these things ready, Tilden, by his set of " dummies " elected as directors of the Galena Railroad, voted in legal phrase and form to " con- solidate" it with the other corporations above mentioned. The million dollars of cash in its treasury they turned over to Tilden's control, and with concurrent proceedings consummated the greatest and most unblushing fraud in railroad property and interests, ever known up to that date, in this or any other country. Be it kemembered, that, by this gigantic fraud, Samuel J. Tilden made a large part of his ill-gotten fortune of "six millions," and organized the first conspiracy known as a rail- road ring in the united states ! As to the animus of Tilden's strategy in "grabbing" the Galena Rail- road, we are enlightened by the sworn testimony of Julius Wadsworth* (a • "To the BonoraUe, the Judges of the Cir- of New York City, precured the proxies cuit Court of the United States within of a large number of the shareholders for and for the Northern District of HU- the election of directors of said Galena nois, in Equity sitting : — & Chicago Union Railroad Company "Julius Wadswobth, of the city of tl^^' 't was on the day of New York, and a citizen of the State of ^^^ stockholders' meeting suddenly pre- New York, brings this bill of complaint in sented by WilUam B. Ogden and those his own behalf. persons above mentioned, acting with him and voted upon in a viva voce manner hy "Your orator further represents, that proxy, and, without any notice to your prior to said time, the said orator, and a great number of the share- SAMUEL J. TILDEN, of New York, and holders representing nearly two millions others to your orator unknown, concerted ■ of dollars, declared passed. together, operating through the brokers ... .... 6 SAMUEL J. TILDEN UNMASKED ! reputable citizen of New Yorlt city), alleging that the same was "fraudu- lent," " secret," and in the nature of a " conspiracy." From his original affidavit occupying twenty-one pripted pages, we clip the annexed germain paragraphs : — • " Your orator represents that said Gale- na & Chicago Union Eailroad -was the first railroad which was constructed leading to and from Chicago, and the first of any importance whatever that was constructed in the State of Illinois ; and that said Kail- road Corporation had been 'for many years so managed and controlled that it had acquired a great reputation for trust- worthiness throughout the United States and Europe, and its stock and bonds were purchased and held as a most reliable, safe, and permanent investment by various parties throughout the United States and Europe. "Its gross earnings per mile for the fiscal year 1863, ending December 31, 1863, were eight thousand eight hundred and eight dollars and forty-two cents per mile, and net earnings three thousand and six hun- dred and seventy-five dollars and ninety- eight cents per mile ; and under the judi- cious, careful, and economical management which characterized said railroad up to June 2, 1864, would soon have surpassed that of any other railroad in the North-west. "Your orator further represents, upon information and belief, and so charges the fact, that prior to the 2d of June, 1864, the stock of the Chicago & North- Western Eailway Company was almost worthless, and possessed no real and intrinsic value whatever. "Your orator would further represent that, at the time of taking possession of the Galena and Chicago Union Eailroad, there was a large amount of money in the treasury, and some forty or fifty bonds of the Beloit and Madison Eailroad Company among its assets, which had not been used in the construction of the road ; that these hands were immediately sold, and the proceeds applied by the said Chicago and North- Western Eailway, and all the money of the Chicago and Galena Union Eailroad Corporation was also appro- priated to the use of the said Chicago and North- Western Eailway Company." "Your orator would further represent unto your Honors, that the Galena & Chicago Union Eailroad Company had always, prior to the 2d day of June, 1864, paid out of its earnings, all expenses for running and operating the said railroad of every name and nature, and the interest upon its bonded indebtedness, and each year provided a sinking fund of many thou- sand dollars, which would liquidate all its bonded indebtedness long prior to its maturity, and has, for a number of years last past, paid a dividend of not less than six per cent, to each and every one of its stockholders, upon the amount of stock held by them, and that its stock was on the 2d day of June, 1864, worth from one hundred and forty to one hundred and forty-seven dollars per share. "And SAMUEL J. TILDEN, are the same persons who are hereinbefore re- ferred to as being specially inimical to the said Galena & Chicago Union Eailroad Company, and the rights and interests of your orator, all of whom your orator charges, were hostile to the best interests of the said Galena & Chi- cago Union Eailroad Company, and were secretly and fraudulently conspiring with the Chicago & North- Western Eailway Company, did, by and with their connivance, and in fraud of the rights of your orator, and the stockholders of the said corporation, fraudulently take possession of all o^ the property, rights, privileges and franchises of said Galena & Chicago Union Eailroad Company. . . And the said TILDEN, as attorney and di- rector of said road, have recently caused said stock of the Peninsula Eailroad Com- pany to be exchanged for stock of the DISHONORABLE ROAD TO WEALTH AND POWER. The confiscation of the " Galena" propertj' was complete! It was for- ever sunk under the load of the fraudulent and watered issue of stock and bonds procured by Tilden and Company. The next year (1865), having leased some 250 miles of road in Iowa, they claimed to have a line of 930 miles, with a capital of $40,000,000 ! Deducting the 257 miles of leased roads and the 137 miles put in by Tilden, which did not then, and never have paid their total running expenses, it left 542 miles to ' ' float " a valua- tion of $82,500 per mile, of which the old "Galena" road was the main paying portion ! When the properties were consolidated, the Galena stock was worth in the Stock Market about $140 per share. Since then — that is to say, in eleven years — two dividerfds, one of 3 per cent, and one of 5 per cent, respectively, have been paid, but in both cases from money borrowed for the purpose. The stock is now (1876) quoted in the market at 38 for common stock, and 50 for preferred do. The capital is already above $50,000,000 ! Had Tilden and Company failed in their fraudulent acquisition and " consolidation" of the original Galena Kailroad, its stockholders would have received since that time about $110 per share in annual dividends, which added to the value of the stock in 1864, as fixed by Mr. "Wadsworth, would have a^regated fully $250 per share ! Chicago & North-Western Railway Com- pany, on the following terms to wit : for every share of one hundred dollars of the stock of said Peninsula Kailroad, the Chicago & North- Western Eailway Com- pany exchanges or gives fifty dollars of preferred stock, and fifty dollars of common stock, which they specially issue for said purpose, thereby watering and diluting the stock of the Chicago & North- Western Kailway Company to an extent wholly without precedent . . . . . in fraud of all the rights of your orator and all stockholders similar to himself, including 14,000 shares of stock which they had issued on the pretence of paying for the Kenosha & Eockford Eailroad, which coSt them about $300,000, and various other matters and things of like character, .... and your orator is informed and believes that there has been an over-issue of stock on various pretexts and pretences by said Chicago & North- Western Eailway Com- pany, which have not yet been reported to the stockholders, of some two or three millions of dollars " And your orator shall ever pray. "JULIUS WADSWOETH. " Hekvet, Anthont & Galt, " Solicitors for Complainant, " A. W. Aekington, of Counsel. " State op New York, "I " City and County of New York, i " On this seventh day of January, 1865, personally appeared before me, the above- named Julius Wadswokth, and made oath that he has read the above Bill of Complaint signed by him, and knows the contents thereof, and that the same is true of his own knowledge, except as to those matters which are therein stated to be .on information and belief; and as to those matters he believes them to be true. [SEAl.] "JAMES A. WELCH, " Notary Public. " Eesiding in the City and County of New York." 8 SAMUEL J. TILDEN UNMASKED.' In lieu of this, said stockliolders have received $8 in cash dividends, and $47 in average value of stock at present prices, or $55 in all. Some allowance should be made for realizations from fictitious watering of the stock, otherwise the Galena stockholders alone, lost a sum identical with the present estimate of Tilden's accumulated stealings, or private fortune, viz., "Six Millions"! Mr. "Wadsworth, the maker of the foregoing affidavit, was a trustee for the original Galena Eailroad bondholders, and the owner of three shares of its stock. He brought a suit in the United States Court to test the legality of the Tilden Consolidation. The result of the first trial was announced in the papers as follows : — "THE GREAT RAILROAD CASE. "{From the Chicago BepubUcan, July 9, 1S6S.] "The United States Circuit Court, Judges Davis and Treat, yesterday, refused the injunction prayed for by a portion of the stockholders in the Galena & Chicago Railway Company, to restrain the consol- idation of that road with the North-Western Railway Company, and for the appoint- ment of a receiver, etc. The Court, in refusing the injunction, declined to decide upon the merits of the case. They virtu- ally, if not in fact, decided that the consol- idation was to stand, but that non-con- senting stockholders should be made whole as to the value of the property on the day the consolidation took plaxie." " Editors Chicago Tribune : — Will you be so good as to publish the following, for the benefit of all whom it may concern : — " The case of Julius Wadsworth, which was commenced by him at the request of a number of the minority stock and bond- holders of the Galena & Chicago Unioa Railroad Company, and although an in- junction was not granted, yet an order was entered by the Court, equivalent thereto; viz. : — " ' Finally, those stockliolders of Galena & C. U. R. R. Co. who have exchanged their stock in ignorance of their rights can now be restored, and the bondholders saved from impending ruin by joining in the efforts which are now being made to set aside the pretended consolidation which was consum,mated by trickery and fraud, while the public can be rescued from the despotism of the most gigantic and heartless monopoly ever attempted to be fastened upon a free people, by making proper efforts to sustain those who are now engaged in contending against this self-constituted monopoly. All of the certiflcates are now in the hands of Wil- lianr B. Ogden and Samuel J. Tilden, ready to be given up in case the consol- idalion should be declared invalid. Ad- dress all communications upon this matter to the undersigned, at Chicago, 111., endorsed on outside, " Consolidation Busi- ness." ' " NATHANIEL NORTON, "^Chairman of Committee." Mr. Wadsworth then could appeal, but it was understood that rather than have this champion fraud further ventilated and legally investigated, Tilden caused Wadsworth's stock to be bought, and farther proceedings by him stayed, for a bonus of $30,000 in cash. The money, no doubt, was paid from " Galena " funds, but Tilden reaped the benefit ! DISHONORABLE BOAD TO WEALTH AND POWER. 9 In 1866, or one year subsequent to Mr. "Wadsworth's suit, a pamphlet appeared with the following title : — MA]SJ"UAL )i |nsiriti:ti0n 0)! ^^i^kg^t EAILEOAD AND POLITICAL; WITH A HIBTOBT OF THB QEAin> |tpm, ana forftf^r, "!■,«," AMD THE SECRET OF ITS SUC0HS8 IN PliACING AN OVEKr-ISSDE OF TWENTT MII.LIONS, -WITH A MASOrN 07 THREE MILLIONS EDITED Bl JAMES fARTOJSr, ATITHOB OF THX ** LIFE OF AASON BUSB," ETC., Era NEW YORK Foe Sai^e bt American News Co. and Agencies. 1866. Its author, as appears on its title-page, is a well-known literary authority, and a voluminous writer of biographies and essays. Tilden's "airs," since he had acquired "millions" from railroad steal- ing, and had proceeded to make himself conspicuous in the arena of politics, attracted Parton's attention. The result was the publication of this pamphlet of less than 100 pages, which, for stubborn facts, quiet irony, and effective grouping of railroad and political jobbery into a personal indictment against a dissembling demagogue like Tilden, has never been surpassed. 10 SAMUEL J. TILDBN UNMASKED ! Parton commences thus : — " INTKODUOTORT. " The recent sad spectacle of the public humiliation of the most noted railway pro- moter of England (Sir Morton Peto) (see Note 1), in having to acknowledge that he had been a party to an unauthorized issue of the securities of the 'London, Chatham and Dover Railway,' for a comparatively small amount (£128,000), when hard pressed for funds, and the recollection of a still more mournful case, where the leading railway promoter of the United States (Robert Schuyler) fled the country and died of a broken heart, for a similar cause (see Note 2), has led the author to a, hasty publication of this Manual, as a warning and guide to others. ' ' There is no necessity of such un- pleasant occurrences and sudden reverses. The science of railway management has become so much improved and so well defined that no prominent projector need risk and lose his reputation as Peto and Schuyler and scores of lesser lights have done, but can assure himself by a ' Ring ' policy as readily as by a fire insurance upon his house. "The mistake of Peto and Schuyler was in not dividing their risk and legal- izing their proceedings by a combination with other parties in a manner now tech- nically known as a, ' Ring.' This plan was first adopted, so far as known, in the United States, by an eminent lawyer of Wall Street, S. J. Tilden, and a prom- inent Chicago land operator, William B. Ogden, and has answered an admirable purpose, not only relieving them of a position far worse than either ' Peto ' or ' Schuyler' before denouement, but also enabling them to extend their operations, until they now control the longest and largest railway interest in North America. " Such success as this is certainly worthy of study, and should not longer be suffered to remain in obscurity, when at least a score of energetic, well-meaning railway projectors fail in the United States every year for want of a knowledge of the improved system. In view of this fact. the importance of this Manual at this time can hardly be over-estimated " By success is not merely meant finan- cial prosperity, but also political influ- ence, which in this country is a sure attachment to railway control. . . . The one thing most needful is the command of money. He usually wins who has most and judiciously uses it; and but few can afford to take the chances of political pre- ferment who have not a sure independent income or responsible ' backers.' " On the rule that length of railway determines length of political purse and democratic influence, we have indicated Mr. Tilden's superiority. The result soon culminated in the unanimous appointment of S. J. Tilden to fill the office of chair- man of the Democratic Central Committee of the State of New York, and he is con- sequently ex-officio the head of that party in the whole United States ! " What a pre-eminence thus to lead, as he himself declares, 4,000,000 of intelli- gent freemen I "That his ideas are equal to his posi- tion, the following extract from a speech at the Tammany Society Dinner, demon- strates : — " ' SPEECH OF SAMUEL J. TILDEN. " ' Mr. Samuel J. Tilden responded to the eighth toast. He said : "In choosing between responding for the American continent and the State of New York, nothing less than the whole continent would content me. My last professional engagement was in connection with a meeting for the support of the great Mon- roe doctrine. I consider myself now as re- sponding to and representing the interests of that great doctrine of Republicanism upon the whole American continent, north and south ; the right to extend our free insti- tutions over the entire American continent. I hope and believe that no Maximilian shall ever establish his diabolic govern- ment in this hemisphere. I see around me to-night the representatives of the DISHONORABLE ROAD TO WEALTH AND POWER. 11 army and navy — Parragut and Heintzel- Monroe doctrine, and in asserting that man — and I call upon them to unite with Americans alone shall govern on this me in declaring the supremacy of the continent ! " ' Parton remarks : — " Such then is the tremendously influen- tial position occupied by a single individ- ual, attained, as will be seen in the sequel, by the power of a ' Ring ' arrangement in railway management, enabling him to carry out measures ruinous to Peto and to Schuyler, but to him a source of incalcu- lable wealth and power at the present moment." Parton reviews Tilden's "grab" of the "Galena" Eailroad, and his " consolidation " swindles at great length, from which we subjoin the fol- lowing extracts : — ' • - "Having thus stated the main points of the railway built to run to the "Tilden Mine,' and to carry ore for Mr. Tilden individually, the student will be prepared to judge of the eflScacy of a 'Ring' to cover up mistakes. Such a road as this would have failed up the 'Ring' had they not been able to 'consolidate' it. This they did in the following manner: they mortgaged the road for f 15,000 per mile, and issued stock also, at the rate of $15,000 per mile. The bonds were sub- scribed for at the rate of seventy-five cents on the dollar, and the stock at the rate of twenty-five cents on a dollar, and under Mr. Tilden's drafted law of Michi- gan, was declared full paid. Thus a sub- scriber for $1,000 in cash received a $1,000 7 per cent, semi-annual bond and $1,000 of full-paid stock, or ten shares. The Peninsula road is seventy miles long, including the six miles of useless 'branches;' therefore, the total author- ized capital, $1,050,000 of bonds and $1,050,000 of stock, representing $1,050,- 000, or $15,000 per mile cash. This railway, including the docks at Escanaba, etc., did not cost less probably than $30,000 per mUe, or $2,100,000 (just about double the estimate). "When the funds began to run low, $1,393,000 more stock, apparently from report, was issued, for which about $350,- 000 more in cash was probably realized, if issued at the original rate. This would leave about $650,000 more, which, it was rumored, was borrowed out of the cash found in the Galena Company's treasury, at the time of consolidation. " Mr. Ogden was President of both com- panies, and Tilden was trustee for both sets of bondholders, and held control of most of the Peninsula stock, of which he is believed to have been by far the great- est owner. Consolidation was proposed, the two roads having only a gap of 120 miles between them (or the length of Green Bay), and the 'Ring,' on the rules laid down in this Manual, got a vote of the stockholders (see Note 5) authorizing it, and then the directors passed a resolu- tion to have the President treat with the trustee for securing the control of the invaluable line. Immediately the stock commenced going up, until sales of Penin- sula stock, on which" $25 was actually paid, were quoted at the Board at about $90 ! The President of the C. & N. W. felt constrained to hurry, for fear it might go higher, and the Grand Legalizer inti- mated that some of the owners were op- posed to taking any such doubtful stock as C. & N. W. for their Peninsula! At last the bargain was struck; like coy lovers, the ' high contracting parties ' at last came together. The terms were, that the C. & N. W. should guarantee the Peninsula bonds, at par, and should issue a share of C. & N. W. preferred, and a, share of C. & N. W. common for every two shares of Peninsula, both being reck- oned at par. Thus we find in the report of the Chicago and North Western Com- pany for 1865 that $1,029,000 of boud» 12 SAMUEL J. TIIiDEN UNMASKED ! were so assumed, and $2,000,000 of stock so exchanged, and that $393,000 were still to be so changed, at the option of the Peninsula owners, which delay might have been caused by a dearth of certifi- cate books. " (There is reason to suppose that the Galena original stockholders were not made aware that the Peninsula stock was not, at the time, lona fide full paid, the same as their own.) " The President of the C. & N. W. thus tells the tale in his official report for 1865, with an elegance of language and in finely rounded sentences, which cannot but ex- cite the admiration of any appreciative student of this Manual : — " ' The securities of the Peninsula road rose rapidly, with the increase in value of the equipment materials and work Which bad already been provided and were in brisk demand for near a year before its completion, the stock reaching ^ghty and ninety cents for the dollar, and the bonds were sought for and sold at par. There was danger that they might pass into the hands of holders having interests adverse to the North-Western, and again expose that company to the hazard of losing the benefits of a close connection with it, as the key to the Lake Superior business, so important to the long line of road already extended in that direction. " ' Efforts were made from time to time by the North-Western, previous to its consolidation with the Galena, to secure a permanent connection or consolidation with this road, but were unsuccessful, the owners of it then being indisposed except at too high rates. " ' Meanwliile, at the annual meeting, at the time of consolidation between the Galena and North-Western Railroads, in June, 1864, authority was conferred upon the Board of Directors by the stock- holders to consolidate with the Peninsula, if terms acceptable could be obtained. "Subsequently better terms were ob- tained {these dissembling lies were writ- ten or dictated by Tilden beyond doubf], and in October, 1864, after the consoli- dation between the Galena and North- western, a consolidation was effected with the Peninsula Railroad Company, by an exchange of one-half share of the common stock and one-half share of the preferred stock of the company, for one full share of the stock of the Peninsula Railroad Company.' " We will now review the consolidation brought about by the 'Ring' of the Peninsula Railway. " They obtained a guarantee of $1,029,000 of bonds, issued at seventy-five cents on the dol- lar, which Mr. Ogden reports were worth par. There is a profit of $257,350 " They received, or had the option of taking $1,196,500 in preferred stock, which Mr. Ogden in his printed circular of the same year says averaged a value of $90 a share. It cost them $25. 777,725 " They also had in the same way $1,166,500 netting in com- mon stock, which Mr. Ogden in same circular quoted at $54, costing them $25, leaving them $29 profit per share, or 336,685 $1,371,660 " Here, then, is a profit of almost $1,500,- 000 on one investment of about the same sum for an average of less than one year's time, and which, but for the scientific organization of a ' Ring,' on the principles of this Manual, would have resulted in a loss at least equal to that sum, making a difference of three millions in results. " The result to the original Galena stock-holder is as follows ; — " Cash borrowed from Galena surplus and sunk in Peninsula, extra cost, $650,000 " Interest on $1,029,000 Pen- insula bonds, two years' com- pounded over 150,000 " Dividend on $1,000,000 preferred stock, exchanged Dec. 1st, 1864, 35^000 DISHONORABLE BOAD TO WEALTH AND POWEB. 13 " Diridend on $1,000,000 preferred stock, exchanged June, 1865,* 35,000 " Loss on operating road, in 1865, $200,000; 1866, say $100,000, 300,000 $1,170,000 " Discount of 28 per cent, on bonds sold to make up de- ficiency, $135,800 " Total loss, $1,805,800 "As the ' Galena Division ' was the only portion that could have earned a dividend in that time, this in reality comes out of what that division would have earned for itself if not consolidated, and is equal to twenty per cent, on the whole stock of the original Galena road. It follows, there- fore, that since Dec. 1st, 1864, those stockholders have lost their dividends, otherwise certain (and probably of ten per cent.) and have incurred, by consolidation with the Peninsula, a loss equal to twenty per cent, on the par of their stock." [This was written nearly ten years ago. The loss is now. over one hundred per cent, instead of twenty.] — [Ed.] TILDEN LEVYING SPECIAL TAXES ON FARMERS AND MERCHANTS. In order to make a show of earnings on his " consolidated " and '.' wa- tered" stocks, the rates of freight were, by Tilden's advice, raised on the farmers along the old Galena road; for wheat to Chicago, 72 per cent., and on the merchants from Chicago west, for merchandise, 88 per cent. ! Have not the plundered Galena stockholders and the outraged Illinois and Wisconsin farmers good reason to execrate Samuel J. Tilden as the CHAMPION EAILEOAD ANTI-GEANGEE OF AMEEICA? THE PROOF IS INCONTESTABLE THAT THESE CONSOLI- DATION SWINDLES OF SAMUEL J. TILDEN, FOLLOWED BY THE ADVANCE IN THE RATES OF FREIGHT TRANSPORTA- TION ON THE RAILROAD LINES WHICH HE CONTROLLED, LED TO THE ORGANIZED RESISTANCE OF THE FARMERS IN THE WEST, KNOWN AS THE "GRANGER MOVEMENT"; RESULTING IN THE ENACTMENT OF THE "POTTER LAW" IN WISCONSIN AND RESTRICTIVE RAILROAD LEGISLATION IN VARIOUS OTHER STATES. The annexed extracts from Parton's pamphlet leave no room for doubt as to the correctness of the foregoing statement : — "THE ''SING' versus THE PEOPLE. " We have shown how raUway corpora- tions and individuals are powerless in the hands of a ' Eing.' It now remains to show how the PEOPLE come to grief and are helpless. Their hopes are evidently 'Eing' wOl doubtless be represented at the State Capitol, as heretofore, and beat them in the end. " We shall use newspaper articles mainly. "Here is an extract from a Boston paper towards restraining legislation, but the of January, 1866 : — 14 SAMUEL J. TILDEN UNMASKED ! " ' TKAlfSPOETATION EXCITEMENT AT THE West. — The enormous railroad, canal and lake charges on gram, from the banks of the Mississippi to the Atlantic coast, have fully aroused the people of the North- west, including Illinois, Missouri, lovra, Minnesota and Wisconsin, and they are now giving very emphatic expression to their determination to suhmit no longer to the exactions of transportation companies. It is asserted as a matter of fact, that it costs three bushels of corn to send one to market a distance of one hundred miles ; one hundred bushels to get a pair of boots ; one thousand bushels to get a suit of clothes ; and two tons of corn for a ton of coal. A farmer at Waterloo, Iowa, was actually brought five dollars in deht by a shipment of barley to Chicago. , . . " ' The Chicago people are looking sharp- ly after the railroad companies. One hun- dred and twenty-three of the leading firms have addressed a series of searching que- ries to the various railroad companies cen- tring there, touching the comparative rates of freight upon produce and mer- chandise, the warehouse difficulties, and the charge that railroad officials are inter- ested in elevator and express companies.' " The feeling became so general at the West, mass meetings of farmers having been held at St. Paul's, Minnesota, and in many counties in Wisconsin and Illinois, that open acts of hostility were feared by railway managers. The expedient of se- curing a soothing report from the Chicago Board of Trade was deemed advisable, in January, 186G, and published, thus : — " ' To THE Public : — " ' The Directors of the Hoard of Trade, having under consideration the numerous complaints which have found expression in public meetings and conventions in va- rious parts of the Northwest, at their meeting on the 2ith of January ult., adopted the following preamble and reso- lutions: — " ' Whereas, There appears to be a wide-spread dissatisfaction existing among the producing and mercantile communities of the North-west, growing out of the al- leged oppression and abuses on the part of the railroad companies whose eastern ter- mini are in this city ; and " ' WnEKEASjWe beUeve the proper way of adjusting differences of this character is by free discussion of the matters in dis- pute ; and " ' Wheeeas, This Board of Trade is, in an eminent degree, a representative of the producing interests of the North-west, and may properly be expected to sj-mpathize' with those interests in any question per- taining to their welfare ; therefore, " 'Resolved, That we cordially invite the official representatives of all the railroads herein referred to, to meet the Board of Di- rectors of this Board, and a committee to be invited from the Mercantile Association, for the purpose of discussing the alleged grievances, and to the end that by such discussion a better understanding may be arrived at touching the poiats in issue. Such meeting of conference to be held in the directors' room of the Board of Trade, on Saturday, the 17th inst., at 2 p. m. " ' Assuming that the grounds of com- plaint are set forth and declared by the re- marks and resolutions of the various public meetings that, have recently been held throughout the country, and giving their attention to those points, the committee find that they may be classified as fol- lows : — " ' The consolidations of certain railroad lines, which, it is claimed, work injuri- ously and oppressively upon the interest of the community. ' ' ' Combinations between railway compel/- nies and steamboat lines, which are claimed to create monopolies, and, by high rates of transportation, inflict unnecessary burdens upon those who are obliged to pat- ronize those lines. " 'Excessively high rates for travel and transportation by the various railway lines leading westward from Chicago. " 'Arbitrary rules of railway companies in compelling the delivery of bulk grain to certain elevators, and the lack of notice to consignees of the arrival of shipments.' " Omitting the long statements of details, the conclusions of the Board of Trade were stated thus, on the main points : DISHONORABLE ROAD TO WEALTH AND POWER. 15 "We believe consignees are notified with reasonable promptness of the arrival of bulk grain upon all the roads, except the C. & N. W. E. K. , and we are assured that arrangements will be made that this line should not be an exception. " 'An alleged complicity on the part of railroad officials with the management of grain elevators.' On this point we can produce no proof aside from the statement of the parties themselves. It is proper to say that the charge is most emphatically denied by those gentlemen. " ' The consolidation of certain railroad lines, which, it is claimed, works injuri- ously and oppressively upon the interest of the community.' That such consolida- tion exists is a matter of record, and can- not be denied; and further, that such consolidation has, to some extent, de- stroyed competition is equally patent, but whether it has resulted in unjustly oppress- ing the community, may admit of some argument. If it shall be found that such consolidation results in placing a, higher tariff of travel and transportation upon such line than is justified to secure a fair return for capital invested, or higher than is charged by other lines not similarly sit- uated, then it is clear that such consol- idation is oppressive and an odious mo- nopoly. Comparison of rates with other lines wUl, to some extent, show whether this be true or otherwise. We therefore make a comparison between the rates of freight charged upon leading classes and articles in 1861, before the period of high prices, and the present rates. " The Chicago & North-western Railroad Company have advanced their rates during the period : — " Upon wheat, seventy-two per cent. " Upon coarse grains, twenty-one per ct. " Upon flour, seventy-one per cent. " Upon lumber, thirty-five per cent. "Upon live stock, seventy-three per ct. " Upon merchandise, eighty-eight per ct. " Upon passengers' fares, twenty-eight and one-half per cent. " From present indications, there seems to he a determination to test the relative rights of all by an appeal to legislation. We hope that this may not become necessary, but that a policy may prevail, that, while it secures to the people an entirely just consideration, will not lead to embarrassment of our railway lines. " Signed by the Committee of the Chi- cago Board of Trade." Parton then quotes tlie following resolutions, passed in 1866, by a Con- vention of Farmers along the line of the original Galena Railroad, thus : — " Whereas, Under the present system of railroad combinations and other freight monopolies, the farmer and producer has no redress, and is by the inadequate means of transportation compelled to give two- thirds of his crop to get the other one- third to market ; and " Whereas, We regard the present sys- tem of transportation as little less than a semi-legalized system of plunder, by which a combination of capitalists are rearing immense fortunes upon the ruins of the producing interests of the North-west; therefore, "Resolved, That as we know of no adequate remedy for the present wrongs, or security against future oppression, but legislation, we must turn our attention to the law-making power, and demand such appropriate and efficient legislation as will remedy these evils, and thus teach cor- porations and unholy combinations that the sovereign people have rights which they are bound to respect. " Resolved, That in order to carry these principles into practical effect, we hereby pledge ourselves to co-operate with the people throughout the State in electing a legislature pledged to the same." Parton adds (in 1866) : — " It will be interesting to see how far the people will realize their strength to help themselves. " The ' Eing ' of the C. & N. W., who it is well known are, more or less, con- trolling connecting lines of steamers on the Mississippi, and making great profits there- from, are pushing the thing too far." 16 SAMUEL J. TILDEN UNMASKED.' It will be seen that Mr. Parton quoted from evidence which could not be called in question, and the points which he made were fortified by ample facts as well as by the " logic of events." The effect of this document was disastrous to Tilden. In the first year of his " Chairmanship," and before his partnership with Tweed had taken effect on the city ballot-boxes, he had the mortification of seeing the State elections in the fall of 1866 go against his political combination. Horace Greeley then edited the "New York Tribune" (which did not then get loans of $100,000 at a time from Tilden, or any one else), and in double-leaded editorials called attention to Parton's statements. Other newspapers took up the subject. Tilden was in a quandary ! To dispute the facts he dare not. To ignore them was nearly as bad. To silence them was his policy. An active agent canvassed the city of New York, and bought up every copy offered for sale I We could name a person who handled the money at the time 1 ASSOCIATED WITH "BINGS." 17 CHAPTER III. ASSOCIATED WITH THE "OAKES AMES," " TOM SCOTT," AND OTHEK " EINGS." In the previous chapter the reader will have noted the laying of the foundation of Tilden's wealth in certain raUroad frauds. This chapter will be devoted to the subsequent development of his career in the same line of gain, but in wider fields of operation, and with the eclat of previous success. TUden's residence in Wall street led him to see the great advantages of having a railroad stock established among the list of "fancies "in that arena of stock gambling, as the directors and officers of such a stock company could make fortunes semi-annually, by raising or depressing its market price at their pleasure. At the same time he knew the danger of some "large operator" taking a fancy to use large blocks of stock to control the management, which might inconvenience the ring quietly working inside that corporation. To obviate this risk, TUden invented, or at least introduced, the plan of bondholders having a vote on their secured debt, to the same extent as the stockholders on their unsecured credit. The absurdity of this system will be manifest when applied to private business. What sane man would wish to mortgage his house, with a proviso that the mortgagee should direct ais to the care and maintenance of the encumbered premises? Under these circumstances, the secured creditor would look to improving his security at the expense of the debtor. The effect of course is the same in railroad property. Yet Tilden has contrived to get nearly all the raUroad lines which he has " reorganized" to adopt this anomaly. He also had, in some cases, a provision inserted in the railroad mortgage, which, beside pro- viding for bondholders voting, authorizes the Trustee to vote on all bonds not represented by the individul owner. Of course, he took good care to be the Trustee himself, and the concentration of power thus held by him is far more than is generally known. It is this power which gives him almost autocratic rule in certain rail- roads where his name never appears among the elected officials. The latter may detest, but dare not dispute him. This secret power will explain certain strange proceedings in the Chicago & North- Western IB SAMUEL J. TILDEN UNMASKED ! Railroad, long after Ogden had been turned out of office, by which Tilden could carry on private speculations and gratify personal malice at a manifest expense and heavy loss to the railroad corporation itself, as set forth in another chapter. Tilden was cunningly weaving for himself' this net- work of personal sway around the corporate organization of the last-named road, when Parton's "Manual" appeared in 1866, with the following remarks on that feature of Tilden's tactics : — Rule 2d. — That "Ring" is the most sure of control which keeps its con- struction ACCOUNT OPEN, ITS STOCK BOOK OR SHAKES UNLIMITED ET LEGISLATION; and permits the bondholders to vote. Remarks : The first two points of this rule are not novel, but well-known facts, and need no elucidation to make them ap- parent. The third is a recent invention (first broached, so far as known) by the Grand Legalizer of the C. and N. W. Ring (S. J. Tilden). It is adopted by that company, to the fullest possible ex- tent, even, it is believed, beyond the authority of the Law (note 7). It is the great bulwark of the "Ring," and hence its expansion. The only trouble about it is, that it is an absurdity on its face, and it will be difficult usually to find stockhold- ers to stand its injustice, or not to notice its fallacy. The stock of the Central and North- Western Company being held, it is estimated, to the extent of 90 per cent, by brokers, who are buying and selling daily, they never stop to look into the effect, and hence its use in that " Ring " management is established. It is simply arranging for the creditor to manage the debtor's property while hold- ing a lien upon it, with power of fore- closure and forfeiture at the same time. A principle which presupposes self-interest extinct ! It is like a man mortgaging his farm to his neighbor for half its value, and then renting him the same to pay the in- terest, with agreement that in case the lessee did not make enough profit to pay himself the interest semi-annually he was ' to have the right to foreclose, and take it for his debt, while in actual possession. The supposition is, that in most cases the farm would fail to pay the interest on trial of the plan. With due care of the State Legislature, the " Ring" in such Corporar tion may easily defy the stockholders or the public to interfere with their perpetuity and power, owing to this feature of the bondholder's vote. Henry Keep, then in the zenith of his power, undertook to gam the control of the " North-West Stock," Ogden and Tilden being at the time its sole managers. Keep was able, with his great wealth and prestige, to secure a majority of the votes in 1867, and at the next election turned Ogden and all his retainers out of office ; but the sharp Lawyer had a safe retreat in his Trus- teeship for the bondholders from which Mr. Keep could not expel him, be- cause the bondholders were, as a matter of course, Tilden's friends. Since Mr. Keep's death various Wall-street operators have held control of the stock, Mr. J. Gould being now understood as holding that posi- ^='- Tilden was retained as "Counsel" during Gould's brilliant tion administration of the Erie Railroad, and is doubtless "North-Western." 'retained" in ASSOCIATED WITH "RINGS." 19 TILDEN COUNSEL FOR THE "ERIE RING." On page 336 of Assembly Document, No. 98, for 1873, will be found the foUowmg item, copied from the Erie Kailroad books : — " Samuel J. Tilden, Jan'y to Feb'y, 1869, Legal Services, $20,000." Tilden subsequently appeared before a committee, to say that he actu- ally received but $10,000 for one month's services, viz., February, 1869. The question of amount is, however, not very material ; the fact of his " having a finger in that pie " being thus clearly established. TILDEN COUNSEL FOE A " FORT "WATNE " OPERATOR. Tilden was at another time " Counsel " for a whilom large operator in " Fort Wayne" stock. His profits as such " counsel" will never probably appear in print, but he is known as yet being largely interested in that line, and the trustee of its bonds. His "buU" "client's" history is thus noticed in a Boston paper in 1873 : — " The career of Anthony W. Morse, as less than a year was turned into almost as dazzlingly dishonest and brilliant as that of many millions. His every act was watched Fisk itself, has passed from the memory of by speculators, who bought when he the many, although his dealings covered bought, and sold when he sold. He was one of the most important periods in our the barometer as well as the king of the history — during 1863 and 1864 — and at street. But his time came at last, and, times affected even the policy of the Na- after a reign of less than a year he was tional Government. Morse was hardly hurled from his position by a panic of his more than twenty years of age when he own creating. A year later he died in a •first entered Wall street, in the former second-class New York boarding-house, year. He was married to a shrewd, cool- and his dead body was held for debt, which headed woman, with a few spare thousand was paid by a former business friend." dollars. This was the nest egg which in Since the " Fort Wayne " line has passed into the mammoth combina- tions of the Pennsylvania Railroad, it is understood that Tilden " sleeps" with the notable " Tom Scott, President" of Pensylvania Railroad, and that the latter may take an active part in assisting Tilden to write his name as " President U. S. A." • TILDEN IN THE "CONTINENTAL IMPROVEMENT COMPANY." The above two names suggest a brief notice of their copartnership in the "Continental Improvement Company," chartered by the Legislature of Pensylvania in 1868. 20 SAMUEL J. TILDEN UNMASKED ! It was a full-fledged " Credit Mobilier " concern, of the most grasping and dangerous kind. By a reference to the Certificate of Assent to Incorporation filed by that company on the 21st of May, 1869, it will be seen that Thos. A. Scott held 2,000 shares, or #100,000, and Samuel J. Tildek held 1,000 shares, I or $50,000. This Improvement ( / ) Company then started for plunder, and found it in this wise : — Congress had (in the Pioneer's Bill) granted 1,160,000 acres of public land in Michigan to build a railroad from the south line of that State to Grand Traverse Bay. A corporation was formed for the purpose, and known as the Grand Rapids and Indiana Kailroad Company. With this railroad company the Continental Improvement Company made a contract to build the line of railroad, of 320 miles, for $25,000 per mile, in 7 per cent, gold bonds, $5,000 per mile in capital stock, together with all its cortr struction assets of a partially graded road, etc., and all its land grant. This series of bonds, amounting to $8,000,000, were all issued forthwith, and the "Fort Wayne Railroad" at once guaranteed one half of them, which also bound the Pennsylvania Railroad ; these were sold in London, in 1870, at 87J gold, or over par in currency. The balance were sold in 1872, in New York, at 96, currency. The Continental Improvement Com- pany, therefore, had about $25,000 per mile in cash to build the railroad with. The engineer's estimate was that $4,000 per mile would prepare the track ready for the rails ! This " Construction Companj' " realized there- fore a large percentage of profit from the securities paid over to them, besides having the Land Grant as an extka bonus. The equipment of the railroad was provided for by another issue of 8 per cent, bonds, of $1,250,000 in amount. The Directors of the railroad company became the same, practicallj', as composed the Board of the Continental Improvement Companj', and settled Corporation accounts with each other without any quaiTels ! To the Railroad Commissioner of Michigan the railroad company re- ported, in 1874, its business for the preceding j'car, on about 300 miles of finished road, as follows : — Earnings, 1873 .... $1,119,700 86 Operating expenses . . . $857,295 71 Interest on bonds . . , 560,000 00 $1,417,295 71 Deficit $297,594 85 ASSOCIATED WITH "KINGS." 21 In 1874 it was announced that the Grand Rapids and Indiana Railroad was buying 20,000 tons raiboad iron for " renewals" ! The Report of the Land Department of the Continental Improvement Company, dated July 1, 1873, shows that 90,443 acres of the Grand Rap- ids and Indiana Raih-oad National land grant were sold for au average of 'i-^Ms per acre, "exclusive of village lots." The exhibit was as fol- lows : — Sales, 90,443 acres, at $14.36 . . . $1,405,041 21 Expenses 115,676 12 Net pkofit $1,289,365 09 The whole story is not yet told. Tilden & Co. resisted the payment of any taxes on these lands, because granted for railroad purposes 1 and an appeal taken from the State Courts to the United States Supreme Court, which decided that the same were subject to taxation. The lands escaped taxation, however, for nearly twenty years, while the pioneer settlers had to pay double taxes on their adjacent lands ! Tilden contends that the farmers of Michigan ought to support him, for the Presidency! Has he not ^'■farmed" more land than any of them?!* Comment is unnecessary on the above contrast in the finances of the railroad company which Congress intended to aid by its land grant, and the " Continental Improvement Company," concocted by Tilden and others to steal the National grant for mere private gain. Among the directors of the above-named railroad company (and who, of course, permitted its life-blood to be sucked out by the vampire " Im- provement" Company) appears the name of H. J. Jewett, now President and Receiver of the Erie Railway Company. This may serve to explain the recent telegrams published, t6 the effect that Tilden was to be selected as umpire in all matters connected wilh Erie Railway ' ' reorganization " ! Milk is found in all these railroad cocoa-nuts, but how it gets there involves too much explanation for the space afforded by these pages ! TILDEN THE COUNSELLOR OF THE ' ' CREDIT MOBILIER " FRAUD I It would readUy be suspected by the reader that, when such scandal as that connected with the "Credit Mobilier" Ring in the Pacific Railroad * Tilden is said io control another large from, the Straits of Mackinaw to Marquette, landgrant offered by the Staieof Michigan on Lake Superior, io aid the construction of a line of railroad 22 SAMUEL J. TILDEN UNMASKED ! affairs was investigated, such vultures as Samuel J. Tilden and partners would not be far away. Such proved to be the case. Tilden was employed as the leading counsel of the Union Pacific Railroad Company. His speeches as such in the celebrated " Barnard order" cases were published in the " New York Times" in full, at advertising rates, and the bill no doubt charged to the company's "legal expenses." But this was not all. The alleged fradulent " Oakes Ames contract" itself was drawn or counselled by Tilden! In an article on this matter, in the "New York Times," reference is made to the official record of the Congressional Investigation, thus : — " Mr. Hoar then asked Ames, who pro- " ' Answer by Oakes Ames. We were posed this cunning scheme, — by which informed by counsel whom we consulted everything was placed in the hands of the that tliis issuing of stock as a payment ' Credit Mobilier,' and the following was upon the contract for building the road the testimony as it appears in the official was in entire compliance with law. record: — "^Question hy Mr. Soar. Who were " ' Question hy Mr. Hoar. Were you not the counsel that gave that advice? informed by the counsel who drew this " ' Answer hy Oakes Ames. . . . Ma. contract that this was a violation of law? Samuel J. Tilden. . . .' " Verily, " Sly Sammy " was there ! The " Times " says in this con- nection : — "H appears, therefore, that Mr. Til- direct violation of law which was the vital, den was the individual who advised this point in the whole Credit Mobilier plot." TILDEN " KEORGANIZIKG " THE ST. LOUIS, ALTON AND TEEKE HAUTE RAILROAD. In 1862 Tilden was employed to "reorganize" the above-named rail- road company. He was paid $21,000 for services as counsel, and was made one of the committee of five to purchase the railroad at a judicial sale. The terms of sale required that the parties interested should go through certain formalities within a certain timie. Some of the owners did not comply within the time, and some $284,000 of bonds were left over in consequence. By Tilden's advice, the committee divided these bonds among themselves, after having reported the same as assets of the new company. This is a case of " addition, division, and silence " ! Again, what is known as the "Belleville Branch" was found to have been built on the credit of the above company, but to be owned bj^ a few of the New York directors, who had leased it to the parent corporation at an excessive rental. One of the parties to this breach of trust was Samvd J. Tilden. A full account of the details can be found in the " Tribune " of May 29 1875, and in the " Times" of June 11, 1875. ASSOCIATED WITH "EIKQS." 23 A committee of stockholders was appointed to demand of Tilden an investigation or explanation. Ttie following resolution was also adopted at an informal stockholders' meeting in 1875 : — " 'iJesoZ«e(£, That the committee demand of the corporation; that ihey closed from the officers of the company an inspec- against inspection the list of voting hond- tion of the list of Voting Bondholders.' holders — A large majority of the " Mr. W. C. Whitney, in addressing the whole toting power op the compant — dissatisfied stockholders, stated that since so as to render it next to impossible for the the reorganization, in 1862, Tilden's com- holders of the securities to confer with mittee had heen practically in control each other and carry an election." The result of this agitation was, that Tilden did not deign to make any explanation, but when the time for the farce of an annual election for 1875 came round, the bondholders re-elected himself and his friends as the directors, and " order reigned in "Warsaw," for the minority stockholders were powerless and must meekly " submit to the inevitable." Thus far as to TUden's conspiracies in corporation " rings " : For instances of his treachery to individuals, see next chapter. NOTE. Since the first edition of this book was printed, a four-column article appeared in the two following-mentioned papers; evidently written by Tilden as a defence in regard to the "Terre Haute R. R." case. Subsequently an answer appeared, "inspired" by the former President of the road, who has been "interviewed," as is thus reported in the "N. Y. Commercial Advertiser," of April 8, 1876: — " On the publication of the defence of the Purchasing Committee, which appeared in the ' Cincinnati Commercial ' and the ' New York World,' a. reporter of the ' St. Louis Globe-Democrat ' called again on Mr. Griswold, who was President of the Terre Haute, Alton, and St. Louis Road at the time of Tilden's connection with it, who said : — " The paper in question U tlie work of Gmemor "In 1859 Ipickedupthisroad— theTerreHaute, Tilden, either written for him or photographed Alton and St. LouiB Railroad — a waif. Its men from his words, and is a tissue of fallacious mis- had not been paid for five months. For protection represfntaiions and pettifogging. It is no vin- against executions, its fuel was paid for as it was dication. It admits the appropriation of the so- delivered upon the engines. I carried it alone for cnriljes; says the Purchasing Committee owned six months, and indorsed for it personally in all, them, and if they did not own them, argues that including renewals, to the amount of more than they (especially himself) had earned them. He $500,000. I gave it all my time and all my abilities, disdains to name the amount the committee real- and after four years I delivered it up worth ized, hut from the records and reports before us, $6,000,000. Five thousand dollars a year, without we may estimate not far from $400,000, inciting any commissions for indorsing, was all I was paid the value, at the time, of the stocks, preferred and — all I demanded ; but, if there is any such merit common, forming part of the surplus. in service as is asserted, and if Mr. Tilden or the Purchasing Committee were entitled to steal $200,000 or $"{00,000 of bonds, then I claim it was my honest right to have stolen the railroad itself." The reader will notice that Mr. Griswold charges Tilden with "perfidious attorney- ship " as strongly as does the ' ' Pioneer." 24 SAMUEL J. TILDEN UNMASKED ! CHAPTER IV. A NORTH-WESTERN PIONEER. In all the history of engineering skill and of successful daring, few, if any instances, excel the feats of a young man but twenty-three j^ears of age, who, on the 4th day of June, 1853, as agent for the contractors, formally "broke ground" with the first shovelful of earth from the greatest of Canals with locks (the Suez has no locks), at the outlet of the greatest of Lakes ; and, on the 19th day of April, 1855, being in sole charge of the work, with his own hands opened the sluice which first let the waters flow into the finished prism and locks, as it remains to this day. In another publication farther details may be found, but for the present we propose to merge the name of this remarkable builder into that indicating his general career in the then new North-west. We shall designate him for the present simply as the "Pioneer," for in that character he best appeals to our warmest regards and noblest sympathies. After the completion of the St. Mary's Falls Ship Canal, under his super- vision, and its being thrown open to commerce in 1855, his decision was to become a citizen of the Upper Peninsula of Michigan, not doubting that there, honest and well-directed enterprise would insure a rich reward. He had chosen Marquette (see map) as his home, but had undertaken a public work at Ontonogon (see map) , requiring his presence. In November of that j'ear he was waiting there to take passage on the last steamer passing eastward that season, but a storm interfered with its landing, and so he found this means of egress cut off. There were then no wagon-roads except to the adjacent mines, twenty miles or so distant. Only a winter trail led to the Indian village of L'Ance, at the head of Kewenaw bay, and one other directly south to the head-waters of the Menominee river, and thence through Central "Wisconsin. He must, in any event, wait for snow enough to enable him to use snow-shoes* While waiting thus, the idea struck him that, as he had pioneered the great canal, he would also pioneer the raiboad to those isolated shores. A noble ambition, but how difficult of accomplishment ! The railway then nearest Lake Superior had only' reached the lower end of Lake Winnebago, in Wisconsin (see map) , nearly five hundred miles distant, with a trackless forest intervening. Neverthe- less, the bold "Pioneer" determined to find out what pluck and per- Note. — The lines in sqtjakes on above map indicate the akea of public lands GRANTED BY CONGKBSS, IN 1856, TO AID IN THE CONSTRUCTION OP RaILKOADS IN THE States bokdeeing on Lake Superior, aggregating 6,901,577 acres, as the re- sult OP THE efports op the "Pioneer Commissioner" (C. T. Harvey). Grants to Iowa, and to Minnesota, in 1857, resulting prom same cause, comprising oveb 7,000,000 ACRES, are not shown. A NORTH-WESTERN PIONEER. 25 severance would accomplish. Accordingly, while thus detained at Ontonogon, he drew up a series of Eesolutions on this subject, which were adopted by a dozen or more of the residents of the town, at a meeting held in a barber's shop ! Its projector was constituted their delegate to Congress, but to go at his own risk and expense. Winter, with its wished-for snow having come, with one young man as companion* and two Canadian helpers, he set out (Dec. 3d, 1855) , upon snow-shoes, for Kewenaw Bay, which divides the Copper from the Iron dis- tricts. (See map.) Three days of weary travel, "camping" each night in the woods, brought them to the waters of the bay. There a small canoe-shaped boat was purchased, and the party started in it down the coast. While crossing the entrance of Huron bay a fearful storm arose. They barely escaped destruction by the waves, to land on an uninhabited shore, there to lie for three days exposed to a driving snow-storm that piled in drifts about them and lined the shore with icebergs. (See first landing-place on map.) Theii- provisions giving out, they again, on the partial subsidence of the storm, launched their little craft, and, committing themselves to the angry surf, rowed along the shore where perpendicular cliffs repelled the surg- ing surf with a roar which guided the boatmen on their course, in the dark- ness of the ensuing night ! As the long, gloomy night passed on, having miraculously escaped foun- dering on a sunken reef, and benumbed by the fast-increasing cold, the only alternative was, either to be submerged by the ice, fast accumulating on the boat, or again seek the shore through the breakers — and in the dark! The latter course was chosen, with full knowledge of the fearful hazard. Rocky heights mainly lined the adjacent coast, and any attempt to land seemed certain death, but Providence kindly guided the boat to a low beach, the approach to which, in the utter darkness, they knew simply from the softer surging of the surf, and, following this voice of Providence, they were saved. t The Canadian " Voyageurs " were so nearly frozen that they had to be carried to a fire, which it took the " Pioneer" and his companion hours to kindle among the ice-laden flr trees, and on the ground covered with several feet of snow. (See second landing-place, as indicated on * The companion above referred to was route " from Marquette eastward, in a E. C. Hungerford, Esq. , now residing at boat, in a previous December, wore frozen Chester, Conn., and recently a member of to death by the lake-spray congealing the Legislature of that State. on them. A report of a similar fate be- t Dr. Houghton, the celebrated geologist, falling the " Pioneer " and his party was was lost by the capsizing of his row-boat current for weeks at "L'Ance," where in the same lake-surf on the coast of the he purchased his boat, and sailed thence county named for him. Four men, " en before the storm came on. 26 SAMUEL J. TILDEN UNMASKED ! map.) On the following day the starving party reached Marquette, and the supplies, shelter and rest they so much needed. At Marquette, then a hamlet but now a city, a second meeting was convened, and the "Pioneer's" commission to Congress was endorsed by representatives of the iron interests, assembled in a log school-house, dimly lighted with two or three tallow " dips." After a brief rest, the " Pioneer" resumed his journey southward, in com- pany with two citizens and two teams. The people of the "settlement" (Marquette) turned out and broke a snow-path to the lumber camps of the upper Escanaba river, and in two days the mouth of the river was reached. Here the only path was on the ice, and the only inns were lumber mills along the shore. While pushing forward, opposite Oconto, the ice gave way, and the party narrowly escaped destruction. The fifth day Green Bay city was reached. Here a new meeting was called, and the " Pioneer's " commission further endorsed. Among the speakers on that occasion was a rising country lawyer, who now holds a seat in the Senate of the United States, viz. : Hon. T. O. Howe. Two days more brought the " Pioneer " to Fond-du-Lac, Wis., and to raih-oad connections, late in the month of January, 1856. It wiU be seen that it took nearly twenty days of actual travel to get that distance from Ontonogon ! The "Pioneer" halted at Milwaukee, to lay his business before the manager of the only railway then leading North-west from that city, but his ideas were simply treated with derision. Chicago was the next point made, and there Mr. Ogden was " inter- viewed," who expressed sympathy with the project, but offered no pecu- niary assistance. From Chicago the indomitable "Pioneer" commissioner wended his way to Washington, and as he entered the hotel there, his fur coverings and snow-shoes strung to his baggage attracted a crowd of curious observers. His first move was to call upon General Cass, then Senator from Michigan, and who was his kinsman. His errand explained, the senator advised him to waste no time upon the preposterous idea that Congi-ess would grant any lands to aid a railroad into those hyperborean regions. " Furthermore," said the veteran legislator, " the Southern mem- bers have recently, in caucus, resolved to oppose any and all raih-oad grants, and that ends the matter, at all events for this session." So" said Senator Stewart from the same State, and so said all the Congressmen from the North-west. The " Pioneer " commissioner resolved not to give up his mission as hopeless without making a personal appeal to the Southern members. Upon enquiry, he found that their recognized leader in the A NORTH-WESTERN PIONEER. 27 House was the Hon. Clement C. Clay, of Mobile, Alabama. Before calling on him, however, the " Pioneer'' made a journey to New York, and pro- cured a map to be lithographed, showing a railroad line between Mobile and New Orleans (the two places of greatest importance on the Gulf of Mexico), and Ontonogon and Marquette, the principal points on Lake Superior, and of which the only part then authorized by Congress or endowed by a Land Grant was the portion comprising the then-adopted line of the " Illinois Central R. R.," in that State, and from Cairo to Mobile, under the laws of " 1850," being the first " United States Railroad Land Grant" ever made by act of Congress. Armed with this map, the plucky " Pioneer " returned to Washington, and called on Mr. Clay.* The interview between the two strangers lasted for several hours, at the close of which Mr. Clay promised to reassemble the caucus of Southern members, and have an exception made in favor of endowing the new routes, shown on the map before him ! To realize what a great thing was accomplished by the "Pioneer," in thus securing the co-operation of Mr. Clay and of the Southern members at that time, the fact should be stated that up to that date no railroad in the Northern States had received a grant from Congress since the Illinois Cen- tral Railroad grant in 1860, which was coupled with a grant for a con- necting line through three Southern States to Mobile, as mentioned. Missouri obtained a raiboad grant in 1852, and again with Arkansas in 1853, both then being considered Southern States. ^ In 1854 a railroad land grant was made to the Territory of Minnesota on the 29th of June, only to be repealed on the 4th day of the following August, during the same session of Congress. * TMs session of Congress was the one the greatest of Lakes and the greatest of made memorable by the contest in the Gulfs ; when it is completed, you rivet election of Speaker, which, after more your end of the rail to the hills on the than two months' delay, resulted in the shores of Mobile bay, and I will rivet the choice of General Banks, the "Free-soil" northern end to the cliffs of Lake Supe- candidate. Hot blood of both North and rior. Thus bound together, the Union South was aroused. The " Pioneer " com- cannot be broken." Mr. Clay responded missioner found it no easy matter to meet pleasantly to this diplomatic idea, and from Mr. Clay, and avoid the exciting topic of that moment entered into the proposed the hour. But the result proved him scheme with entire cordialty. The "Pio- equal to the emergency. "Mr. Clay," neer " retired with a favorable opinion of said he, " I hear secession proposed, and Mr. Clay as a high-toned Southern gentle- a division of the Union spoken of, about man, not seeking merely private ends, but town. I have a plan to prevent any such acting for the public interests solely in the catastrophe. Encourage the building of subject before him. this grand raUroad between the shores of 28 SAMUEL J. TILDEN UNMASKED ! No more such grants were considered possible to be sanctioned, until tbe " Pioneer" obtained Mr. Clay's cordial support, as stated. The Mobile route being endowed, the New Orleans or Jackson route was adopted by Mr. Clay, and other routes in the South added to offset addi- tional lines at the North which he intimated a willingness to support. When this fact was reported to Senator Cass and others, they were incredulous, but inquiry soon satisfied them of its truth. Immediatelj- the North-western members held a conference and agreed that, as the ice was now broken, they would add on more lines in the States of Iowa, Minnesota,* Wisconsin and Michigan. They did so by coujiling Iowa and Alabama in a grant, in May, 1856, and the others (except Minnesota) in June of that year. Although vast grants were involved, still Mr. Clay made good his word to the "Pioneer," by securing a solid vote of Southern members therefor. Mr. Ogden had sent an agent in haste to represent his corporate inter- ests ; others did the same, and the result was, that within six months after that skeleton meeting at Ontonogon, and that " Pioneer's" commencement of his perilous journey. Congress had endowed 1,800 miles of railroad in those four North-western States, with 9,574,498 acres of land, beside equally important gifts to various Southern States. The share of these land grants accruing to the Chicago and North-western Eailroad Company alone amounted to over 1,600,000 acres ! f The original cause of this astonishing result was the perilous journey and persistent energy of that young "Pioneer." I have the original map which secured Mr. Clay's sympathy and support to that "pio- neering" idea, which map, on a reduced scale, taken by the photo-litho- graphic process, will be found opposite. The young " Pioneer," then in his twenty-seventh year, did not pro- claim, nor probably realize, the fact, that he had done more to promote the growth of the great North-west than any other man of his time. His only ambition was to be identified with that part of the endowed roads which was to lead to Lake Superior, his adopted home. The reader will natu- rally suppose that the author of this mighty impulse was the recipient of princely reward. Mark the sequel ! Ho found in Mr. Ogden a magnetic gentleman of plausible address, and was only too happy to confide in, and defer to him, as the proper leader of the new enterprise, with its munificent endowment. He had not met with Tilden up to that time. That misfortune came at a lat^r date ! It was agreed by Mr. Ogden and the " Pioneer" that the latter should devote his time and energies mainly in supervising the local surveys, to open a route to the great lake, under the corporate organization known as -„t'^'lt''"''^'*^'''''"'"°J"'""'^°"'^™°'""™="3e (owing to local onuses) until the short SF to continue in force for the rectors,under dateofthe Xm ofAprU, im/make Jf" SfJ? ''^T ^'"'"" ^w °^^^T P|;f'™'».™'* on the mh 0/ May, mi, a ^pr<^pontion to ^^'^JJ'^^"^^ °^ renewal for another like term of Charles T. Uaney to induce him to undertake '^ . . r ' /r,.«„„ "., .„,; i .v 'r,- "-j ." Vo ." the establishment of a passenger and mail r»t™ ,S^f&w^„'''^*"°AJ''^J^4?'''f "' ",?'^.,^ .! route to Lake Superior ma Green Bay, Wisconsin, "f'^i^ S'J?" 9^"?^? »"* North-Western Railway by tchich the said party of the first part would be °r ,,?° t =?„?:' ■ 4 ° President and Secretary benefited ; and offering in consideration therefor »: *^^*''''.'^",?T°,'^ Forwarding Companv of the to him or to the Lake Superior Forwarding Com- lt° X. ^ j ' "'!. ™'y authorized thereto, have eel pany, as his Assignee, certain exclusive privileges L,^'"^ . v ."v " '?"'!j */ '^'' °^ *^ ""* °°°'" «nd benefUs contingent upon his prosecution of the P""'^' ™ "e thereto affixed, etc. enterprise ; and whereas said Hakvey has " Chicago Ss North- Westeun Railway Co., PROSECUTED HIS UNDERTAKING, AS coNTEM- " By P. H. Bmith, Acting Pret'l. PLATED, and now desires to assign his interest "Lake Superior FnHw a nr.™/- r^ and privileges in said route to the Lake Superior IVo^i^iSZY^la^gMi.' A NORTH-WESTERN PIONEER. 31 make the trip from Chicago to Marquette, and from April 23d to the 29th to make the return trip. (See Note 1.) It came to pass that dui^ing that season (1861) he constructed a good road across the peninsula, introduced a line of four-horse stages, and had a steamboat line running in connection on Green Bay, so that the time from Chicago to Marquette, for passengers, by comfortable conveyance, and also for the mails, was reduced to thirty-six hours. (See Note 2.) The physical energy and endurance which he displayed at this time may challenge comparison with that of any other early ' ' Pioneer " in the North-west. (See Note 3.) In 1862 the "Pioneer" made still greater progress towards his all-ab- sorbing aim of the railroad to Lake Superior. On the 21st of February, 1862, he personally filed the articles of a new railroad corporation formed by him and styled the Peninsula Eailroad Company of Michigan. Of the stock of the corporation enough was sub- scribed for in the name of other persons to comply with the General Incorporating Act of Michigan, and to constitute Directors ; but every dollar of cask paid on the stocic, to cover the expenses of convening the State officers^ and for surveys^ and other ovtlays, was paid solely by the ^^ Pioneer J^ Note 1. The following is a diary of the trip of Dr. J. J. St. Clan-, delegate from Lake Superior JDistrict to the Chicago Rebublican Convention (which nominated Lincoln /or hia first term), and of the " Pioneer," who accompanied him. *^ April 2i. 1660. — Left Marquette 6 A. M. ; reached * East Branch ' of Escanaba river, to find it swollen with spring freshet; crossed on an im- provised raft, at great rislc of life ; went to lumber camp of * West Branch ' to find it abandoned and roof gone ; slept there over night. *' Api'il 24. — "Walked twenty-five miles to * Parm ' station ; slept on floor. ^^ April 25. — Rose at 4 A. M. ; hired boat to take us to mouth of river, letting it down over falls with a rope; arrived at 10 A. M. "ApHl 26.— Kougkt Mackinaw boat,and sailed for Menominee river; reached Quimby's hotel 10 P. M. " April 27. — I'ook steamer for CJ-reen Bay city. •' April 28. — Hired team to take ns to Oshkoah. " April 29. — Arrived at Chicago ! " NOTF, 2. The new mail route was strenuously opposed by E. B. Ward, the great proprietor of steamboats on the Western lakes in those days. He caused the postmaster at Detroit to write to the Postmaster- General "that Harvey might as well try to carry the Lake Superior mails to the moon, as through the swamps of the Upper Peninsula, when not frozen."' Learning when the contract mail was to start from Green Bay north, he induced the De- troit post-office (then the distributingposi-office for the North-wedt) to withhold mails due in Minnesota and Dacota, as well as on Lake Buporior, by other routes for weeks previous, and send it all to Green Bay, marked for Marquette, by the first trip ! When the ''Pioneer' arrived at Green Bay, to see tho mail start for the first time, he foiAd some thirty large sacks, or a hundred bushels of mail, wailing transportation! He sent it back by teams to Oskosh, thence by rail to Chicago, assort- ing it himself on the way, and thus fully dis- closing the fraud, of 95 per cent being missent. Meantime, clamorous telegrams and letters poured in from the "Western points on the routes lacking the misdirected mails. Ward laid the blame on the new line; and at one point on Lake Superior the "Pioneer" was hung in effigy by the misinformed citizens ! Going to Washington, he found two U. S. Sen- ators at the P. O. Department in the interest of Ward, urging a discontinuance of the mail route ! The ''Pioneer" heard the statements, and then related his experience with the hundred bushels of mail matter for the new route 1 The senators were indignant when they saw the plot thus ex- posed, to which they were unwitting abettors. They shook hands with the "Pioneer" and de- parted, and the new mail service has remained undisturbed to tiiis day 1 Note 3. During tliatyear the "Pioneer" left the northern end of Green Bay, on horaebacky and alone, at 6 /^ M.^ and arrived at Lake Superior before 2 A. M. of a dark^ rainy nigTU, mitlwut leaving his saddle^ or without having light enough to distinguish the form of hia horse ! JJistancet 43 mileal Another incident is worth preserving : — The '• Pioneer " appeared, " solitary and alone," at Quimby's hotel, at the mouth of the Menominee river, late on Saturday night, April 20, 1861, covered with mud from head to foot. He i informed the landlord that he had swam his horse across a creek, a mile or two distant, in the dark, and found on the opposite side a morass, in which his horse had stuck fasti He had, therefore, left the animal there, but had waded through to dry land himself, and made his way to shelter. Mr. Quimby went out the next day and found the horse in the midst of the quagmire, in the spot where left by the rider I This was the '• Pioneer's " last trip overland from Lake Superior. 32 SAMUEL J. TILDEN UNMASKED ! Neither Tilden nor any of the Chicago and North- Western B. B. Company contributed one cent! The stock was held by the " Pioneer," although, as an act of policy and courtesy, he constituted the President, Vice-President and Secretary of the Chicago and North- Western Railroad Company, Di- rectors and Officers of the new organization. On the 16th of April, 1862, he applied in person to the State authori- ties to obtain the lapsed railroad land grant, as appears from the annexed transcript from the State records. lExtract from State Records.'] "Detkoit, Michigan, April 16, 1862. " A meeting of the Board of Control of Eailroad Grants for the State of Michigan, convened this day at 2 o'clock, P. M., at the Michigan Exchange, upon the call of Governor Blair. Present, — " Hon. Omar D. Conger, Eon. Bovey K. Clarke, Hon. Perley Bills, Hon. Charles Tripp, Hon. Wilder D. Foster. " The Governor being absent, Hon. Omar D. Conger -was called to the chair. The object of the meeting was stated to be to hear the application of the Peninsula Kailroad Company for the grant of lands which this Board is authorized to confer by Act No. 90, approved March 4th, 1861, of the Session Laws of that year. " Charles T. Hakvet, Esq., one of the Directors of the Company, was present, and after conference with the Board, the meeting was, at his request, adjourned to meet at the same place on 24th of April, at 2 o'clock, P. M. "Adjourned. "Attest: "WTLDEK D. FOSTER, " Secretary." At the adjourned meeting on the 24th of April, 1862, his request was granted. He proceeded thence to Washington, and secured the passage of a joint resolution by Congress, extending the time of the grant, and authorizing a change in its location. The first section of the resolution as drafted b}' him is annexed.* The reader is asked to compare the route prescribed by Congress with that adopted by Tilden, as shown on map opposite page 25. ♦UNITED STATES OF AMERICA. PUELTC RESOLUTION KO. 35. JOINT RESOLUTIOIT relative to a certain grant of lands for railroad purposes, made to the State of Michigan, in eighteen hundred and tifiy-six. Resolved, by the Senate and House of Represent- atives of the United States of America, in Con- gress assembled. That the words " WisconBin State line " in the first section of an Act entitled " An Act making n grant of lanife to the State of Michigan, in alternate sections, to aid in the con- struction of railroads in said State," approved Jnne third, eighteen hundred and fifty-six, shall, without forfeiture to said State, or its assigns, of any rights or benefits under said act, or exemption from any of the conditions or ohligations imposed therchy, be construed to authorize the location of the line of railroad provided for in said act,//'o?ft Marquette on Lake Superior, to the Wisconsin State line, upon any eligible route from the town- ship of Marquette aforesaid, to a point on the Wisconsin State line, near the mouth of the Me- nomonee river, and touching at favorable points on Green Bay, with a view of securing a railroad available for military purposes from Green Bay to the waters of Lake Superior. And the line of railroad, as now located in pursuance of said act, from Marquette to the Wisconsin 'State line, ac- cording to the records of the General Land Office, is hereby authorized to be changed, so as to con- form to the route above indicated; wbich line, when surveyed, and the maps and plans thereof filed in the proper office, as required under said act of June third, eighteen hundred and fifty-six, shall confer the same rights upon and benefits to the State of Michigan, and its assigns, in said new line, as though the same had been originally located under said act. Approved July 5, 1862. Department of State, Washinoton, July 25, 1862. The foregoing is a true copy of the original resolution, No 35, on file in this Department. (Signed) "W. C. HUNTER, Chiiif Clerk, A NORTH-WESTERN PIONEER. 33 The " Pioneer" next instituted a regular system of surveys under an engi- ne.«^r of experience recommended by Amasa Stone, Esq., of Cleveland, Ohio. The result was the demonstration that the shortest possible line between the waters of Green Bay and Lake Superior was the best route for a rail- road, and that the ease of its grades, the long stretches of air-line, and the small amount of grading and bridging were quite wonderful.* Besides this, the route lay through the finest tract of timber lands, the best water pow- ers, and agricultural territory, to be found in the Upper Peninsula. When the celebrated firm of railroad builders. Stone & Witt, of Cleve- land, Ohio, saw the final notes of the surveyed route as established by the "Pioneer," they at once ofi'ered to undertake the building of the line in part- nership with the " Pioneer," provided the good-will of the C. & N, W. Eail- road Company was assured. The ' ' Pioneer " applied to Mr. Ogden, as Presi- dent, for such assurance, according to previous pledges. But Ogden was also suprised at the favorable nature of the survey, and, while discouraging Stone & Witt, induced the "Pioneer" to go to New York and confer with Samuel J. Tilden as a most able, experienced, and honora- ble financier in railroad enterprises. Thus, in the spring of 1863, the " Pioneer" met this subtle lawyer for almost the first time on personal business. Tilden had then a great reputa- tion as a successful railroad lawyer, and when he made proposals to act as the "Pioneer's" attorney in the disposal and management of the enterprise, it was quite natural that his specious offer should be accepted. It came to pass, therefore, that, without a dollar of investment or of risk, Samuel J. Tilden had this vast landed property and most promising enterprise freely and promptly entrusted to him as a Trustee for the owner. * EXTEACTS FKOM RePOKT OF SuKVET. CORVES. 13^ a TT a^TT.T.»r n v Twenty-six continuons miles in the Boutbem xsr o. n.. DELDEN, I/. Ji. Section are upon an air-line. Tbe remainder of OP DIBECT EODTE FROM LAKE SUPERIOR, AT SEC. *^^ "'"' '« ""^''y °° Straight UneS, with few and 6, T. 47, R. 24, TO STEAMBOAT DOCK AT GENA, ^asy connecting curvatures the hne being remark. OS UTILE BAT DE HOC. "^''y favorable in these particulars. NOTE. -For sake of calculation in reference to constrdctios work. " cut off," the surveyed line will he divided into • _ _ 2^orth Section. two sections. Ist. From Lalze Superior to Summit Q}"*"*!!'®^- , . , , . ^. Estimatea. or point of divergence, and 2d, from Summit to 247,528 cubic yards earth excavation, @ 25c., $61,882 BavDeNoc 10,000 " " rocli " @$1 .. 10,000 „, ,. ^ ', . ,. . ,, ., 305 lineal feet trestle work, @ $8 2,920 The distance by air- line IS 45 miles. 330 t. .1 u n @ «6 1980 " " surveyed line .46.78 " Box culverts '.'.'.'.'.'.'. l,Zii J^orth Section. — Distance 17.61 " 17 miles clearing and grubbing, @ $435, 7,395 ffrades. — Of level 1.72 10 to 20 feet to mile- . . 2.37 Average cost per mile, $4,855.8i. §35,512 20 to 40 " " . . 2.70 _ ,. „ ,. 40 to 62.81 " ...20.82 - ,... Smth Secium. Qaantities. Estimatea. 'Note. — This Is the result of first surveyed 200.180 cubic yards earth, @ 25c $50,045 line. The engineer In charge reports that some ^'2?^,. " ,,".,™!'' ®?^"1V J'222 slight variations of the line will reduce all the 210 Imeal feet trestle work, @ $8, 1,680 grades to a maximum of forty feet per mile. « ' .' . " ®$o, 150 ■^ Box culverts 810 StnUh Section. — Distance 29.17 miles. 29 miles clearing and grubbing, ffrodes. — Of level 7.81 miles. ig $435 12,615 Between level and 20 $66,300 feet 7.63 " Average cost per mile, $2,273. Between 20 and 40 ft.. 9.89 " Average per mile on whole line, $3,245. " 40 and 42 ft.. 8.34 " Total cost $151,812 84 SAMUEL -J. TILDBN UNMASKED ! CHAPTER V. tilden's perfidious attoenetship. The " Pioneer's " arrangements with Tilden were substantially as follow?: that the land grant (nearly 750,000 acres) and organization of the Pen- insula Railroad Company should be vested in Tilden as attorney, in trust, by a transfer to him of its entire stock then held by the " Pioneer." The expenses of the latter for surveys, etc., were to be refunded to him, and an allowance made to him, for his promoting services, of such sum as three referees should say was just and proper ; that this allowance he could, at his option, apply in pajinent for a tenth interest in the stock, at the same rate per share as Tilden or other cash subscribers took the same. Tilden assured him that the railroad would be pushed to Lake Superior with all possible speed. On this point self-interest seemed to preclude all doubt. Naturally such assurances were deemed satisfactory. A bond was taken of the Company to assure the payment of the award when made, and a letter from Tilden to show the nature and condition of the trust, substantially in form and tenor as follows : — "Law Office S. J. Tildeit, "No. 12 Wall street, May 12, 1863. " Charles T. Hakvet, Esq. : — "Dear Sir, — I propose to act as your attorney in the matter of the Peninsula Kallroad Company of Michigan, in receiv- ing its stock from you and delivering the same to capitalists ■whose subscriptions I am to procure, upon the understanding and agreement between us that I will see that the foUovring stipulations for your benefit are faithfully performed. "First. That your disbursements for expenses of surveys, Congressional and Legislative attendance, etc., shall be re- paid to you in cash forthwith (estimated at about $8,000). ' ' Second. That when your prior claims for services and expenses, during the seven years since you first promoted this land grant, are adjusted by the referees named in the bond, agreed to be delivered to you, by the Company, to secure a maximum sum of $50,000, the amount of their award, shall be paid to you in money whenever the lands can be sold, or, at your option, may be applied in payment of a one-tenth interest in the stock (which will be carried for you until said award is settled), which stock shall be furnished to you at the same rate per share as allotted to myself and the other original subscribers. " Third. In matters connected with the location and construction of the Lake Superior section of said railroad your interests are to be consulted and wishes complied with as far as practicable. " To obviate any hesitation on your part because this memorandum may not be in such form as to be legally binding on the company, I will undertake to retain suf- ficient control to guarantee its observance, and hereby pledge to you my SACRED HONOR for its faithful performance." " (Signed) Samuel J. Tildek." -ATTORNEYSHIP. 35 Upon his faith in the signer's personal and professional integrity, the "Pioneer," witli this written pledge, proceeded to legally transfer to him the whole property, comprising an area of land nearly equal to the State of Rhode Island ! /{ was the great business mistake of the " Pioneer's " life ! Some lawyers thus honored with the confidence of their client, would have been doubly scrupulous, to see every obligation fuUy carried out. Not so with Tilden ! The moment he held the legal title, the confiding owner was treated with indifference, and soon with open hostility ! The referees named in the bond were Hon. E. Fairbanks, Governor of Vermont, and Hon. William Kellj', of Rhinebeck, N. Y. (the latter subscribing for a large interest in the Peninsula stock and bonds) . They chose as third referee Hon. Erastus Corning, of Albany. These three eminent men met at the St. Nicholas Hotel, on the 14th day of May, 1864, and heard a statement of the " Pioneer's " services. They unanimously awarded him the maximum sum named ($50,000), although Mr. Kelly was, as stated, an adverse owner ! The fac-simile of the original award, with the signatures of these gentlemen, is appended, in a photo-lithographic copy thereof: — ^ ife/^.^-^^ ^^^^ ^^c^ ^ ^'^-^^-^ h^y 04G), Ci-Oi/^ 36 SAMUEL J. TILDEN UNMASKED ! Before paying any of the award, and but a few months after its amount was fixed, Tilden sold the Peninsula Railroad to the Chicago and North- Western Railway Company, for a net cash profit of over $1,371,660, as demonstrated by Mr. Parton.* But when the "Pioneer" called for his quota he could get no satisfaction ! At last he despatched a Chicago lawyer to New York, with the original agree- ment as signed by Tilden, to obtain a settlement. Tilden, by bribing the "Pioneer's" lawyer, gained possession of the "sacred honor " document, and either kept, or destroyed it ! The aforesaid lawyer returned to Chicago with- out it, stating that he had left it, atTilden's request, to "refresh his memory," and that he would attend to it shortly ! That lawyer was soon found to be retained as counsel for the Chicago and North-Western Raiboad ! Tlie " Pioneer" never received one dollar on account of Tilden' s " smreA honor" pledge; but the latter, according to well-known instincts of human depravity, cordially hated the client he had thus defrauded out of 8187,166,* as the valuation of the reserved tenth interest. In this transaction the "Pioneer" lost a fortune and gained only an implacable and persistent enemy, as the sequel will demonstrate ! In proof of the accuracy of this narrative we have most of the original documents herein referred to, save only the original guarantee of Tilden's " sacred honor" ; but the draft of the points of that, as made at the time, is used to supply its absence. The Chicago lawyer has departed this life, or his name would be given. * Mr. Parton, in his Manual, page 48, preferred stock, which Mr. Og- Bays : — den in his printed circular of the " We will now review the consolidation same year say§ averaged a value brought about by the 'King' of the of §90 a share. It cost them Peninsula Railway. $25, 777,726 " They obtained a guarantee " '^^^^ ''^^° "^^^ » *e ^^'^<' of $1,029,000 of bonds, issued at "^^^ $1,166,500 netting in eom- seventy-five cents on the dollar, "'"^ =*°'^'^' ^^"^ ^^- Ogde" i^ which Mr. Ogden reports were '^""^ '=^'='^1^'" l"""^^^ ^* «54, worth par. There is a profit of |257,250 ?„f "5]^®™ *!^' ^'^'■'''"S *^^" "They received, or had the $29 profit per share, or 336,685 option of taking, $1,196,600 in $1,871,660 -~— pa^^^y^ |ai& gsii gl!li lull - og=2 " Si|=S 5lS§9 3 S!*S ic».'. = 57 --fs" gsa'-ss 2S|i5i|:ii:* Si|sss||s|| , -S* =.« « S c Lj ■= s 2 PURSUING HIS VICTIM. 39 CHAPTER VI. PURSUING HIS VICTIM. Tilden's control of the Peninsula Railroad gave him almost unlimited power in the repression or development of the various manufacturing and mining points in the iron district. The " Pioneer " was the largest owner in two L. S. Iron Furnaces, which business he was the first to introduce in that section of the North-west. One was located at the mines, and known as the Pioneer furnace. The other, at the mouth of the Chocolet river, a few miles south-east from Marquette, was known as the "Northern" Furnace, where also he had projected the village of " Harvey." Tilden set at work all the agencies he could devise to embarrass and ruin the " Pioneer" in these local busi- ness enterprises ! Notably was this the case respecting the " Pioneer Works," which the " Pioneer," by individual loans and endorsements, had saved from collapse during the trying years immediately succeeding 1857. Tilden conceived the idea of buying up the control of the stock of that company, and of absorbing the property without paying its debts. The "Pioneer" discovered the plot through the annexed telegraphic despatch, kindly placed in Ms hands bj' a friend : — {For facsimile see opposite page.) The signatures of a majority of the stockholders were at once secured to an agreement, not to sell individually, unless all should sell together. Tilden, by an agent, found that one firm of brokers in New York would break their written contract, for a bribe of 500 per cent, over the market value of the stock.* He paid the bribe at once, and by that means obtained the control of the property ! Then, by tricky leases and " consolidations," he placed the property in such position that judgments against the com- pany could not be collected, and caused the "Pioneer" to lose his outstand- ing loans to it ! Besides this there was an unsettled running account, with a balance in the ' ' Pioneer's " favor. The latter was told to produce his vouchers and leave them with the new managers for examination, and, if correct, the same would be settled. He did so, by leaving the original papers with C. J. Cauda, Treasurer, on a personal guaranty of their safe- * The firm, well known In New York city, with no dishonorable intention on their part, he claim that Tilden secured the sale by a trick, forcing it oyer their protest. 40 SAMUEL J. TILDEN UNMASKED ! keeping and return to him. But after waiting years for an adjustment, he again wrote to Canda for a final answer and return of the papers. He received the following letter in reply : — CH