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


| LEGISLATURE.
The HERALD correspondent in London gives
us an important contribution to the history OF
the Erie controversy. The announcement that
there has been a rise in the value of Erie stock
in consequence of the terrific Onslaughts OF the
HERALD will crafty all lovers of truth and fair
dealing and commercial honor. There is no
citadel of fraud, no matter how strongly gar
risoned and intrenched, that will not yield in
time to the incessant and well-directed blows
of an independent and powerful journal.
The walls Of Jericho fell when they heard the
echoes from the rams horns. We anticipate
no such miraculous results in Erie. We mean
| to destroy it as the Malakoff was destroyed, by
heavy guns and incessant pounding 5. for we
regard this Erie combination as the most
powerful and reckless that has been known in
modern times. 1t must fall, or we must con-
fess that our civilization is helpless in the
presence of crime and audacity.
The point of attack now is the Classification
bill. The English holder of Erie, whose
views come to us by cable, does not share this
opinion. To his mind the Classification bill
has merltorious features. To be sure it has
been adopted by many English railways, the
argument being that some arrangement is ne
cessary to prevent INSCRIPTIONS men from sud
denly buying possession of majority of the
stock Of substantial roads and taking possess
sion of the property. Practically danger of
this kind is imaginary. If it were otherwise we
have no right to do evil that good may come;
to violate the first principles of moral law in
the interest of morality. We see in this Classi-
fication bill and its workings in the Erie man
agement an illustration Of the immortality of
the whole proceeding. We see how combi-
nation of INSCRIPTIONS and reckless adventur-
ers may suddenly purchase fraction Of stock
and then make false issues and purchase
the manufactured shares at nominal
figure, and, having gained this power,
intrench themselves by debauching the
Legislature and making law which
gives them four years immunity in
the possession of their stolen gains. And
when, as in the case of Erie, these gains
amount to seventeen millions of dollars year,
we see how the undisturbed use of the money,
with no obligation to pay dividends on the
stock or interest on the bonds or in the i'm
provement of the property, will enable them
to amass large fortunes, to buy opera houses,
manage theatres, decorate troupes Of ballet
girls and singers to rush into the widest
speculations, to take possession of the courts
of justice, and even to dare to make a con-
crirocv to Ovarthrouy tbo crod;f IF tho uo%ior
The immunity which the Classification act has
given to the masters of Erie, and which it may
give to any man who, like them, may plan a
conspiracy against other corporations, is too
serious crime to be condoned by legislation.
We made a blunder when we passed that act.
Our duty now is to remedy that blunder as
promptly and thoroughly as possible.
This being the case, we can well under
stand how the Erie stakeholder, whose
opinions we print, would naturally regard the
Classification act as ''the greatest act of
roguery ever attempted in America 5" nor are
we surprised to know that it ''excites the
greatest reIrobation." 1t is still graver out
rage that holders of stock in good faith cannot
get it registered in their own names and
vote upon it at the election of officers. An
English capitalist may purchase million of
shares, and pay his good money for them;
they are of no more use to him in the actual
management Of his property than q million
of leaves in the vale of Vallambrosa. He
finds them recorded in the name of Mr..
Gould or his representative, and he cann OF
have them transferred to his own use and
profit. So far as the profit is concerned, as
the revenues of the road are diverted to the
personal emolument Of the combination of
gamblers who are in possession, the shares
yield him no more revenue than the frewood
heaped in his cellar. Our laws and legislation
make it possible, therefore, for a man to own
property in America and have no control over
it. In answer to this we have the base argu-
ment that foreigners, and especially English
men, have no rights in American railroads
which we are bound to respect. We virtually
say to foreign investors that if they send
their money to the United States they must
run the risk of confscation. For, in truth, we
have dealt with the foreign holders of Erie,
and, indeed, with all American holders who
are not in the confidence of the Ring,
as though we had conHscated their money.
We take it and use it, and permit it
to drift into the pockets of few gamblers,
and give them no account Of it, and debar
them from the courts and allow them no voice
in the management of their affairs. The great
Ring is sub-divided into forty smaller rings,
in all of which the masters of the road have
an interest. Every article necessary for sup
plies, for rebuilding the road, for roll
ing stock and the development of the
property. is furnished to the great Ring
by the smaller rings, and paid out of the
Erie treasury at their own valuation There