The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-01

Bearing Evil Fruit.
Congress must make up its mind to
definite and logical policy on the railway
| question. We have what the Germans might
call swarmery of bills before the Senate and
the House granting subsidies to newborn
corporations, conveying tracts of land as large
as European kingdoms and principali-
ties, and endowing them with fran
chises that can only be controlled in
the future by rigid legislation. The only ad-
vance that has been perceptibly made towards
an aristocracy in this country has come from
railroads and landhoders. The stupendous
power OF the few men who controlled the
South before the war and exercised an I'M
usual preponderance in our government arose
from the ownership of great tracts of land
and the consequent possession of slaves to till
them. In the North the ambition to hold land
inspires our wealthy citiz ms, and we have
single corporations controlled by small knot
of directors and stockholders, who own as
much land as is embraced in the European
area of the French empire.
The government, having permitted the acqu-
stion of vast landed interests by endowing cor
porations with grants from the public domain,
must control them by the operation of rigid
and careful statutes. Our railway legislation
has been little more than experimental. In
the early times the policy of one powerful polti-
cal party was in favor of internal improve
ments. It was held that in a new and
sparsely settled country, with limited accu-
mutations of capital, the government should
charge itself with the building of railroads and
canals and docks and ships and the improve
ment of navigation. The effect of this policy
was twofold. Politicians obtained control of
giant railways and used them for their own
selfish purposes. The Pennsylvania Central,
the Camden and Amboy and the New York
Central were for years the scandal Of our poll
tics, as our system of canals is even now a
scandal to the politics of this State. There
was no prudent business management The
road was made subordinate to the necessities
of the dominant party. Men were quartered
upon its pay-rolls, contracts were given, free
passes were thrown into every tavern, simply
to effect conventions and control public
opinion. In time the evil worked its own
remedy. The famous policy of internal i'm
provements was buried with the follies of the
past and business men came to manage the
great properties for business purposes. In New
York we still retain control of the canals
but the opinion grows stronger that |
they must be remanded to the care of private |
parties and be sold for the treasury to the |
highest bidder.
While, therefore, the policy of govern
ment is to withdraw from the management of |
public works in States like New Jersey and |
Pennsylvania and New York, the necessity
still exists Of developing the Western coun-
tries. If we give aid to corporations in these |
Territories, we are compelled for our own |
interest to keep careful watch over the prop
erty. The policy which has already borne
fruit is phase of the old policy of internal
improvements. The wings, under Henry
Clay, centended for internal improvements
When the republicans were making their way
to power they pledged themselves to Pacific
Railroad. They were anxious for votes, and
this assurance gave them power in the
Pacific. 1t was redeemed by the passage of
the bill which authorized the building of the
Central Pacific and Union Pacific. But the
legislation on this subject, the building of the
road and the various steps taken to accom-
plsh the work. showed the ignorance and inca
pacity of Congressman when dealing with a
practical public Improvement. We have
little doubt that II the inside his
tory of Pacific Railway legislation was
known we should have chapter of cor
ruption as interesting and painful as any in
the history of Tammany Hall. One corpora
ton was in the first place endowed with gov
eminent bonds more than enough to build the
road. 1t was then permitted to execute q first
mortgage bond, having precedence of the gov
eminent as lien upon the road. In addition
there was land grant which, Of itself, was
enough to have built the road. Laws were
Instead of outstanding these resources the d.
rectors of the road formed an inside ring
called Credit Mobilier, themselves
being the members, and gave this
ring the contract for construction. They
paid the inside ring the government bonds
which came as subsidy, the proceeds Of the
first mortgage bonds and the land grant bonds.
In other words, the princely endowment Of
money and bonds and acres which the govern
ment paid into their right hand as directors
they quietly put into their lef-hand pockets as
railroad contractors, after deducting the cost
of rapidly built and imperfectly constructed
road. The Credit Mobilier gave enormous
dividends. The road that remained was
skeleton.
The Railway Ring which accomplished
these results has been powerful enough TO