Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1873-11-03
HOW GREAT RAILROAD KINGS
ROB THEPEOPLE.
INTERESTING TESTIMONY BEFORE THE
SENATE TRANSPORTATION COMMITTEE.

At a recent session of the Senate
Transportation Committee. in New York
city, Mr. Geo. 0 Jones. of Albany, pre-
scented the following facts. showing how
the merchants of New York and the
people along the lines of the great rail-
roads were taxed, and their business
crippled t, support great railroad spec
ulators of the New York Central and
Erie Railroads:
He presented figures taken from the
reports of the State Engineer, Surveyor,
and Secretary of States Office. showing
that at the time the New York Central
was created by the consolidation Of the
different roads between Albany and
Buffalo, its capital stock, less than
sl7, 100000. and its bonded indebted
ness less than S2,5OO,0OO, represented
a sum very much in excess Of the actual
cost of the property to the stock and
bond-holders at the time; and showed
by illustrating the actual cost of the
Utica and Schenectady Road which
was only 81 100000, representing one
fourth in length of the entire line of
Central after the consolidation.) that
the UutiIe original Gust of New York
property could not have exceeded So 900,
OOO The entire cost of the Hudson
River Road, in 1853, when it was open
ed over its whole line, was less than
SlO,0OO,OO0. That all payments made
before or since that time by the stock
and bond holders of both roads never
exceeded S2.5O0.n0o. He said that
the paid dividends on the original cost
of the entire road between New York
and Buffalo, at the rate of eight per
cent. per annum. would impose a burden
of less than So. 100000 on the commerce
! of this and the industry and travel of
the people living along its line. To pay
dividends on its present capital, he said.
it required $500 OO0-the sum paid
last year. He claimed that the tax was
in violation of the principles of public
use, against public policy, destructive to
the industries of the people, and calcu-
lated to destroy the commercial prosper
ity of this city by driving business from
it into other cities. roads reaching which
represent capital nearer their cost, and
consequently over which no such burden
is imposed He cited the advantages Of
Baltimore. Philadelphia, Boston and
Montreal, and attributed the reason Of
their prosperity and the diversion Of
trade from this city to that cause. He
held that the surplus earnings of the
railroads could not be held as legiti
mate basis for the increase of railroad
Obligations; that companies laid al
their legitimate demands on the public
when they taxed it a sufficient sum tt
pay the necessary operating expenses O.
their roads, keep them in proper repair
and pay fair return, not exceeding
ten per cent per annum on the actua
cost of construction and equipment
The Baltimore and Ohio Road hat
doubled their business within fv,
years. built seventy miles of road arount
the piers and wharves of that city, alon,
which their cars were drawn, and thei
cargoes emptied into vessels with Sigh
expense for handling Return cargoe
were placed on board their cars, ant
delivered to the Western merchants OF
an average of twenty-five cents per cwt
less than the same kind of merchandis
; was delivered from this city. This wa
the real cause of the diversion of tn
sugar and coffee from New York to Bal
timore.
In reply to Senator Norwood, MI
| Jones said there could no comparison b
instituted between the Erie and an
f other road named; that from the da
, the train ran over it, it had been cor
Quoted by set of spectators in Londo
, and Wall street, who have speculated i
t its stock, and operated the road wit
' the sole view of promoting the persona
, interests of its managers. The peopl
/ along its had been plundered, thei
| industries and enterprises retarded, an
: the commerce of New York city bloch
S AIDED by such management. Half a do,
t en- men, said Mr.. Jones, who had bee
S prominently connected with the r"a
: had made private fortunes out of II
: management exceeding the actual co..
s of building the road. These were Drew
/ Gould. and other lesser manipulation
: In response to a question put by Sen;
(; tor Davis with regard to charges Q
local freight, as to whether the amour
S charged for lesser distance ever exceed
d ed that charged for greater whel
; there was competing point, MIR. JON
o said that the larger price obtained
d the rule for the lesser distance. and TIL
r it was not infrequently the case tn
+ property was shipped through the poll
J. of its ultimate destination to a place b
It yond, to which the tariff was less tn;
n that to the former, and then broug
y back by wagons or other conveyances
Il its real destination. That manufac
IS urers as far west as Syracuse were
I A. b,b,t &c con1;noe fbo;,. rroodc RI RI