Sorry, but it's you who are totally confused here.
For 72 years before 1860 those corrupt New York Democrat politicians were the political allies of Southern slave-holding Democrat politicians.
Such Northerners were known at the time as "doughfaced" because they were utterly subservient to Southern slave-masters, and willing to do anything demanded.
So, those "powerful connections to the government" you mention were to the Southern Democrats who ruled in Washington, DC.
How can such a basic fact utterly escape you?
Which is why Richmond is the Center of Finance and Power instead of New York.