New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-01-07
FRAUDS IN RAILROAD MANAGEMENT, And
THEIR REMEDIES.

There are now in the United States $4,000
miles OF railroad. The cost Of these works exceeds W.
100000 900. Their annual earnings exceed tioVVoV"
and equal I'll per head Of our entire population Ihey
transport annually, 125OoOo tuns OF freight OF over
three tuns 10 each person, assuming our entire poPua
ton o he OOOo The value OF their tuDnage, at the
low estimate OF 800 to the tun equals so per eaa anu
tbap their cost Every mile road constructed
adds times its cost to the aggregate 'auo Vi LILO
All tbs vast commerce and wealth are wholly crea
tons OF railroads. and within the short space OF 70 years
such results are possible only In country IKE our OWN
the market whose staples, whether for nome con
sumption expectation, within narrow Dea d Hs
Immediately upon its northeastern coast inc ana more
than 1000 miles from the great seat OF production wheat
moy orans earth roads more than $50 miles
over railroads it will bear transportation 35e0 les
given or that can give value to the products
of the They increase the value OF these products
inst i'm ratio the cost OF transportation IL reduced ut
for them many Of the most densely Inhabited wealthy
portions Of the county would nave re-
ago. for them our commerce considered In refer
existence They lie the foundation OF, and sustain all
| the varied interests Of the country. . -, -
IL inevitable that the possession or such wOrBs
the potent agencies for good ever yet devised by
the ingenuity Of man-should be sought by the grasping
and selfish for the purpose OF turning as far as possible
into their pockets and at the expense OF the nation
the wealth they create The common mode Is 70 add by
rdtering" to their nominal cost Upon such increase
dividends are secured by the Imposition OF rates far in
excess of the cost of transportation The difference be-
tween charge and cost is the OF the gains These
poaons have been carried to such an extent as to en-
| me VT
the country Unless they can be speedily corrected all
its material interests will shortly be in the hands OF few
bnrpose Of adding present possessions
Take the case OF the New-York Central and Hudson
Commerce commerce that cannot well pass over any
other The value Of the absolute control OF this route
of the unrestricted power OF eyyng tolls over every
pound OF m was not slow in seeing and
i'm turning such an immense advantage TO his own
count. His great wealth enabled him TO get possession
of both roads. As as they were fairly III his grasp
no ed "A
so vast "a be, for time. really incomprehensiDlc
niSmons conspiracy against the rights OF the people
| "Ono murder makes Villains thousands hero and
Mr. Vanderbilt became the idol and hero OF the hour
The first act this great drama was the doubling In
1867 Of the capital stock then 100000 OF the hudson
River Railroad. Upon this stock only 30 per cent was
| called up; the transaction, consequently, Melted the
modest s95O0OOO Taught by such instruction. Mr.
cent upon the share capital OF the Central Railroad then
S2s 10000. This dividend produced Sj5OO But these
vast sums by satisfied the OF this financial
cSnysd r the snSe P q 1s 9SS Of
the Central, which produced, with small addl
oR Rsre At U the sIs as @ d9denS was declared
upon the share capital increased at the time to $1,000
sum Of $780, The following is a abuated statement
| OF the several waterings -
let Watering Of Ne.Yors Central. ,cooo
d Watering Of Hudson River .l3e9sSo
% Watering Of Ne~.lork cepra. S51ioO ,oo
Grand 1920
The present share capital Of the consolidated roads in
Guiding the scrip dividend IL S9ooCOOG The %aterlngs
OF Mr.. Vanderbilt consequently exceed the capta act-
! ally paid in, by s7,Gs4OO!
per " cent eSaa the sum Of Yet With al this
profit Of si6S goo principal and sJs9 go OF anla IN
the shape of income tax, the paltry sum OF per
cent on the amount OF bis waterngs We very recently
heard from him at Washin gtOn where he brOwbeat
ing the Commissioner Of internal Revenue who Is at,
never win be if Mr. vanderbilt can prevent it.
The distance from NewYOrk to Buffalo by the line ot
the NewYork Central and the Hudson River Railroad ~
mil
$40 per mile for the whole length OF this line.
In all these waterngs, a dollar OF their amount has
gone roads has their capacity to been
increased single penny On the contrary the cost OF
transportation must have been largely increased in con-
sequence the morale essential TO economical managa-
can never be preserved on works whose managers
rolling in wealth from ilgOten and illegltimate
gains. What il the effect upon the poor workman Of
having constantly before his eyes examples OF enormous
wealth not gotten by saving and patient industry but by
mere tricky what Is really shameless robbery OF the
better his condition, either by negectng his dutes or
by lchng from the company, whenever an opportunity
ofersi viii not universal Generalization, in time, be
Mr. vanderbilt stands ont in bold relief as the greatest
welfare; but he is by means the original in the cor
rupt and outrageous practices described The evil or
nation Of the Central Company by the consolidation OF
$3.50 800 in certificates bearing per cent interest This
added to the recent waterings makes total OF
aliy on this sum equal sl22so5o TIE total waterinss
equal s3O26i to the mile Of the main line OF these roads
The interest annually ON the same equals very nearly
$4,000 per mile.
these additions to the share capital
this concern they are liable to be vastly increased any
day, and will certainly be increased provided increased
charges will produce increased earnings Every cent
OF burden will be imposed upon the road that 1t will
bear. The only limit TO charges will be s ability pay
by what power such enormous taxes assessed upon
the nation BY other than that of the at OF single
individual. Mr.. Vanderbilt seizes road which all must
erey mile Of its line. BY such means he wrings in
addition TO the proper charges Of transportation,
the mechanic and farmer His tribute is levied upon
fOodupon the necessities rather than the luxures
nA
| least able 10 pay.
such example Of the but irresponsible pow
er that have grown up unchecked In our Republic, and
which subject the whole people TO the most o1i0us OF
burdens-to taxation In which they have not only not
the least voice but which most odOus FORM excess
I've amount most injurious IN IT'S application, and lev
led AT the caprice OF seleonsttued and irresponsible
despot But Mr. Vanderbilt has his peer in almost every
OF our great lines. II they have not realized equal
sums is not from any fault of their but because
imposition. All are equally in conspiracy against the
public welfare. All, so far, seem to have enjoyed equal
or to combine against these attacks upon their
an indifference that was very natural when wheat was
worth s. so per bushel will be found to very anna
neraye labor, now pays Mr.. yanderbts imposition
The whole nation Is groaning under this and similar
largely to the mposiions described Charges OF trans
portaon increased for the purpose OF paying dividends
the people. This fact Is beginning everywhere to he
derstood and against the monopolsts everywhere
from Act Of our Legislature The power that makes
unmake II he retain his grasp upon this body
:. 90 regulate Commerce between the states" Wherever
there Is wrong there must be remedy" propose, in
n series OF papers, TO state these wrongs shall then 20
10 the question Of their remedy.
The following persons are announced as con-
shutting the staff of His EXceency John T. Hoffman
lin Townsend. Adutant-Gene Brig Gen. James Me
Ynmade, i4speet4r- General BrlgGen. Samuel William