New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-07-12
THROUGH TO THE PACIFIC.
THE TWO CONTINENTAL RAILWAY COM.
r. -aFf..f ...-r. PANIES. ,t.r.,.,. a
THE ORGANIZATION, CONSTRUCTIONS
s WORKING TARIFFS, AND GENERAL POLICY
EACH.
FRoM our sPRICAL CORRRsPONDENr

s WORKING TARIFFS, AND GENERAL POLICY
OF EACH. r.
IRON OUR SPECIAL CORRESPONDENT
SAN Francisco, June 16.-There is o story that in
tho early and pOnderous days of The Nation, one of
its owners asked Edmund Quincy "What is the
great lack Of our journals He replied Specific
leyityp fear that this letter, devoted to dry de-
tails about the Continental line, will show Tho same
want.
The Union Pacific Company owns from Omaha to
Promontory ,OS5 miles, il we include the SO miles
between Promontory and Ogden, which are still in
dispute. 1t is New-York organization, embracing
Dr. Durant John Duff, Cakes Anes, Oliver Ames,
r. G. Hazard Samuel Hooper. C. S. Bushnell, II. s.
McComb, and others Practically, the corporation
consists Of ten twelve Between the Credit 40
bier greed for contracts and rings" in the Board
its finances have been badly managed, and good
deal of money wasted. The profits upon construc-
ton have been large, but owing to enormous ex-
penses and loose administration not half so large az
the public believes. STILL the Credit MObilier-a COM
pany within the Company, which has built the road
is said to have divided 25 per cent upon its capital
stock in single year. ..r... -
Diverting these profits to the Credit Mobii instead
of saving them as reserve fund, was a great mis-
take and has often left the railroad company short
of money, and unpardonably slow in paying its
employees But its stockholders arc wealthy men
and have exactly the motives as the Baltimore
and Ohio or the Michigan Central to complete and
maintain frstcIass road. They are perfectng their
line rapidly equpping it generously, and building
ample machine shops of brick and stone, at half
dozen leading points. They ought to reduce rates,
especially on freight, very materially. but they
already carry passengers for cent mile less than
the Central Pacific, and they offer to extend over
their line any tariffs no matter how low which that
company may adopt. In general, think their dl5-
position toward the public is just and reasonable
The Central Pacific owns from Promontory to Sac
ramento. coo miles. Throughthe Western Paclhc-
separate organization, but controlled by the same
men-t is also building from Sacramento to Oakland
Seven miles across the bay from San Francisco I'D
miles This will give it $50 miles OF track not count
| ing the disputed section. r ..t..r ......
Ex-Governor Leland Stanford, C. P. Huntington,
! Mark Hopkins Charles Croker, and f. b. Croker,
all of Sacramento and one other person whose name
| is unknown TO me- are in fact the company. These
six gentlemen virtually own and wholly control the
great franchise. Practically partnership rather
than a corporation they have managed business with
! the shrewdness frugaty and vigilance which care
full men bring to their private affairs. On the plea
that they we're poor California, and only wanted
to build little road at that end of the long line,
they got their company included in the original Act
upon equal terms with the Union Pacific. II any
Congressman were seen." it probably OF their
money which paid for that optical attention. They
built the road themselves without the intervention
| of contractors or other middle men. They hired
Cinnamon at from $50 to sS5 per month. gold, while
the Eastern company paid some Of its laborers as
high as 81 per day. The Central sometimes employed
- 900 men and the Union 1900 the advantage in
! this item alone swelled to many millions.
When the Central people were selling their bonds
in NewYork at the rate of hundreds of thousands OF
| dollars per day, they used TO send forward each
monthly report Of the earnings Of their road by mail
for three cents instead of spending $50 10 transmit
il by telegraph. Remaining free from the internal
quarrels and wretched scandals Of the other COM
pany, they always kept the prices of their bonds
from two 10 FIVE per cent the higher The Union Pa
ciie advertising agent-who did his work upon
commission-has since built brown-stoue house on
Fifth-ave; but know of subordinate in the Cen
trail Pacific who has erected suburban cottage.
The endowment of the Central is unparalleled IN
financial history For hundreds and hundreds OK
miles "a easy to build as the Platte Valley portion
of the Union Pacific upon which only $1,000 per
mile of Government bonds were received itmanaged
to obtain $50 OOO Each company was authorized 70
issue its own first mortgage bonds for an additional
amount per mile elualng the subsidy. so this diiier-
ence must be doubled Here are the figures In round
numbers, copied from the only exhibit just now
available to me. slight deduction should be made
for the discount at which the first mortgage bonds
were sold