The New York herald., 1871-02-14
SUBSIDIZED CORPORATIONS.

Pacific Railroad Ring In Trouble-A Man oil
Straw Set Up and X uocked Down-An Alleged
Wall Street Broker said 20 be Bribina Cor
respondents in the Interest Of Economy and
Reform by Good Dinners-Facts Of the
Case-Not Able 10 Pay-Central Pacific
Railroad-Ils Resources-The Union Pacific
Railroad-Four Other National Bcnch-
s-UnpnralIeled ImDudence-Thc LAW
OF Pacific Railroad Subsidies Gives Full
Protection TO tho Governments.
WASHINGTON, Feb. II, 1871.
THE RING MANAGERS IN TROUBLE.
The ring that is endeavorng to f0st the whole ora
part of the interest burden Of the Pacific Railroad
subsidy bonds upon the overburdened taxpayers OF
this country are getting seriously alarmed.
The leading articles in the HERALD OF Tuesday,
the slh, and Thursday, the 9th lnst on "Grant and
the Treasury-The Financial Policy Demanded by
the Country" and ..The Railway and Telegraph
Despotisms,m have created profound impression
here. particularly upon our lawmakers. We may
not see the results this session. but they are certain
as fate.
The rings are driven to their last resort-their
stereotyped charge OF corruption against every IN
dependent journalist who dares to stand up for the
people against all corrupt combinations for plum
dering the nations Treasury.
A correspondent OF this city, who serves a journal
that is run in the interest OF the Pacific Railroad
ring sees fit to set up
MAN OF STRAW
and knock him down again after this fashion. |
quote his despatch:-
One Of the partners OF Wall street frm largely engaged
house in liberal style Sentiment he rosds SSe
is manufactured and sent to New York On pretence Of
assumed facts invented and by champagne,
bonds Of correspondents been roped
into the combinaton and their used 10 further
short interest large The thing worked
Be % spcu. IN Sosssn @
companies there possibly be unpleasant explosion
1t is true that there are large number of wealthy
and hospitaDe gentlemen In this city who give most
excellent dinners Mr. Secretary Fish stands per-
haps first on the list. Mr.. II. d. Cooke OF the firm
Of Messrs. Jay Cooke Co., has given several excel
lent dinners to the press, and many more to his
friends engaged IN other walks of life. In fact,
good dinners here are rather in the regular ORDER
but tnat any journalist is in any way Influenced by
them deny The Idea Is preposterous. 1t could be
entertained only by an oyster house Bohemian.
Certainly no one but a member Of that fraternity
would think OF being influenced by q dinner that
could be obtained any day at first class restaurant
for ten dollars
THE FACT is, SIR,
the ring correspondent makes the above quoted
statement for the purpose OF covering up the real
facts. What are theya Washington correspon.
dents who, having the interest of the whole people
constantly in view, give all the facts as they find
them, suppressing nothing in the interest OF corrupt
combinations are not the sort OF men whose favor
is sought by the ring manager and lobbyist.
The forty million taxpayers Of the United States
we are all taxed from the cradle to the grave-have
no lobby here have heard OF no instance where a
correspondent has been offered money to write In
their interest," except the amount paid by the journal
that employed him.
nave known repeated instances where lobbyists
have offered correspondents money to induce them
to write for or otherwise help lobby jobs.
The real contest is between forty million taxpayers
on one hand and well organized lobby of about
eighty ring managers, intent only on keeping up
high rate OF taxation and the carrying OF their
various plans for taking money from the nation's
Treasury, on the other
In body Of about eighty men may be found the
managers, the real heads OF every Job for taking
money from the Treasury without rendering an
equivalent in return.
AS between the taxpayers and obbers 1t is but too
plain to be seen which side exercises corruptng
influence upon the press.
The pretence that the Wall street bear interest is
brbns the press in the interest OF the taxpayers and
OF economy and reform is the merest subterfuge OF
Daft1ed lobby.
The principal or one OF the principal reasons
given by the Pacific Railroad corporations why they
should not pay the interest on their subsidy bonds
semi-annualy, as 1t accrues, is that they are
able
give US reliable exhibit OF their resources VIII
endeavor TO supply the omission.
In san Francisco letter 10 the HERALD, published
August IS, 1858, ind statement OF some OF the
State and county favOrs heaped upon the Central
Pacific Railroad Company. The State OF California
guaranteed the interest, seven cent, 600
for twenty years. Placer and sacramento counties
subscriptions amounted TO s55000O and San Fran
cisco TO s40o 900. To this must be added the United
States subsidies, s25, 900 in Donds the right OF
prior lieB, guarantee IN fact for $25, 600 first
mortgage bonds and a free gift OF not less than
sal 900 worth of land. And yet 1t Is seriously
pretended here that this magnifcently endowed
interest on its bonds. ! shall be obliged to call on
our friends Messrs. Fisk & Hatch bankers and
financial agents for the company, for little nfor-
nation on that point. Under date Of January 2,
1871 they make the following interesting exhibit
The subjoined table will show the gross earnings and
operating expenses of the main line Of Pacinc
Railroad Salt Lake to San Francsco aud the number of
miles operated each year. from TO the
present time:
Miles Operated Gross Earnings. Ogeyotiag Eroenss
1S65...... u to 56 Gi0l, ,94l " $l21,669 53
1885,. 56 70 81 Se3,9l7 81 20O.7l0 81
1867 "a to 137 l,4.0,653 SO 3S0el3 80
1881. l37 to s65 2,30o,1 IL 643,056 81
1853 49,. .4tS to ZAP b,610s22 20 29a3,523 10
1876 -. 742 to 900 1.9a07l0 9S 405U,b64 95
Total SIS, sl3 39 &s550,546 10