The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-11-15
RAILROAD SUBSIDIES,
How They are Obtained Ia California.

Inc sacramento Una0n says:-
"W. s. Montgomery gives the copy of an
agreement entered into between the managers
of the San Joaquin Valley Railroad Company of
the first part and certain heavy landholders of
the second part, by which the company binds
itself to build railway from q point on the
western Pacific to Visalia, at the rate of fifty
miles year or more. in consideration that the
land monopolists shall deed to the railway mo-
nOply not less than two hundred thousand acres
OF their land, and in further consideration
that the land monopoly shall use its COM
biped influence to induce the several counties
along the line of said road to donate their bonds
to the amount OF ten thousand dollars per niie
of said road for its whole length; these bonds to
bear interest at the rate of eight per cent. per
annum, interest and principal to be paid by
taxes equally levied on all the property of the
counties so to be bound. 1t is provided in this
agreement that in case a less amount of lands
is given and bonds of the counties secured,
through the influence of the parties of the
second part, it shall be optional with the party
of the first part to reject the contract within six
months from the 1st of January, 1870
"The whole length of the road will be about
$50 miles. The whole amount of county aids
sought would make a principal of 81 500, 600.
At eight per cent, running for twenty-five years,
the interest would amount to $3, 900; the
principal and interest, 81, 500, 900. The interest
tax would be $1,000 per year. Thus the peo-
pie OF the counties are asked, not to subscribe
in stock, or to loan, taking lien on the road,
but to donate to the railroad company. The
200, 060 acres of land, when the road shall have
been completed, will probably be worth $40
per acre, as it will lie close to the line. This
added to the 81 500, 600 of bonds would make
a clear gift of $3,500000, principal. The cost
OF building and eqmpping such a road over the
dead level it is to traverse would not exceed
$40, 600 per mile, or So, 600, 600 in all So that
the railroad company would build their road
exclusively on donations and have a profit of
half a million. With this free gift they might
accommodate the farmers of the mortgaged
counties by carrying their wheat and stock to
market at rates from four to six times as high as
are charged the people of Illinois and Michigan
by roads built wholly with the private capital of
their owners. The worst feature in the agree
ment is that which binds the land monopolsts
TO use their influence to have the couHties
mortgaged to the railway company to the extent
of ten thousand dollars per mile. There are
many ways in which this sort of thing might be
done. It might be done by purchasing voters,
by importing them, 10y fraudulent voting, or by
fraud in the returns, as was attempted In San
Francisco few months ago. But any and every
way contemplates an injury to the bulk of the
small farmers whose lands lie remote from the
line of the road, and whom il is proposed to
tax to build it against their will and their in
teTeEt."