, 1873-04-02
RAILROAD h10N0P0LlES.
Second Lecture by Col. Frederick
1Iec1kor.
no Thinks lilo Time VIII Come Whom
Railroads VIII 10 Operated
=. by tho States.

1To Thinks tho Tlme Win Come Whom
Railroads VIII DO Operated
=, by tho States.
Col. Frederick Hcekar delivered tho Bccond
part OF his lecture on Rai1rond Monopolics laat
ovontng ut Burlington Hull, before large anlap-
proclhtiyo audience. Tho aponkor commenced
by saying thht NO would come to the substantial
foundation Of tho influence OF railway rnonop-
olieB and their requirements II wo ask ourselves,
'"Whnt arc railroada and thoir economical na-
turo In roality ?" II wo did not tako our atant-
point on that hido Of the question,
1t would DO playing hido-and-scels
In tho dirk, and NO would loHe ourselves in
details md fall q proy to tho sly monopolists.
Railroads. woro only granted right OF way which,
could bo Annullol should, they bo managed
: against tho intoresta Of tho people, This faot
the companies should writo boh,nd tholr oarB.
: From tho reports Of tho Railway Commissioners
Of all tho stntos 1t appears TINT railroad com-
panfes do not mind ordinances mud regulations
Of state authoritios. It does not need prophet
to mako the prophosy that railroad monopo1iea
would end tho Same as tho institution
Of slavery. One day tho pooplo would, without
much ado, turn ovor tho railroads to tho manage
mont Of tho Statos. Railroad grants woro not
giyon In the interest OF rich corporations, but in
tho irtorost Of tho ontiro people, md to rorvort
this belief WAS nothing more nor loss than m
outrageous ewindle. :. 49,.
The speaker continued, in illustrating TINT
railroad companies act upon tile principle thut
"NVhat can bo nado' muat be mado." It could
be proyon that rntos woro raised Just when tho
poor producers, consumors, Or merchants wero
mostly using tho railroads.
millor who, on account OF tho high rates on
froights, was compelled to pay lower prices for
grain producers, was onco told by railroad
President ~ cannot see what reason you hayo
for complaining, it being mattor of course that
you will mnke the consumer pay for 1t again. u
With such principles as these it was not to be
wondered that tho railroad nahobB wero covering
themBolves with diamonds md sporting thomost
= elegant equipagoa. Ho thon showed by examples
how cheap1y freighta could DO transported. II
tho railroads were properly managed, md yet
would be source Of interest to the" people as
we'll as to tho managers. When England re-.
duced the postage from II to 9 conts the num-
ber Of letters increased from $4,000 600 to 700,
Of ,400, 900, 900. In Dolgium railroad receipts
woro more than doubled by reduction In tho
rato Of freights. III Massachusetts, company
laid out q village Blk n1ilos from Boston, and
gavo FREQ transportation for throo years to oil
who settled there, and In less than two years
tho passenger transport roso from 12,000 to
48, 900, and in Englund workingmen woro car
ried to their 10-mtle distant homes for the small
sum Of ton cents. IIo rotated some amusing
anocdotcs illustrating how railroad cllarters woro
granted by our Legislatures, md then went on
to atato that no sooner WAS such charter granted
than tho company sots to work aud surveys the
rohd, thlkg of noble cities that would rise along
its line, aud, with tic aid Of stump speeches.,
pamphlets, newspaper articles, mud bad whisky,
tho aid Of countloa mud States wero obtained,
who receive for security mortgages" which
we're about as gecure as tho life Of an aeronaut
half Of their nominal value. Now they
hive money, tho honda rise, aud arc
sold before tho bubble burats. OF course tho
tako arst securities. tfho enterprise docs not ct
progress, and hampers and pampera along until
II happily arrives in tho state Of bankruptcy, is
sold d at nuotion which takes place in some out
just enough to ooyor the first mortgages hold by
tho originntora Of the road, County and State
wero swindled, md could whintlo for their in
veBtments if they liked.
people get sucked in by theso nlouopoltsts ?" Ho
would advise his hearers to throw y loving look
at tho legs1atore In Legislatures. as vol as III
Congress, Railroad Committees consisted Of mon
who had an interest In railroads, many Of whom
received largo. yearly wages, as for instance the
Erie Railroad Company had paid to it's legal
friends during the lust soyen months no loss
than 1928, 160. handful Of Hhrewd peoplo
nance relating to railroads, and which ar6 usually
tncomprehenBible to almost everybody. .Adynn-
t1ge was taken OF campaign oxcitemoutB to elect
such men to Legislatures aR have m ax Of thor
own to grind: Honest Legislators could not
comprehend what dangerous, peBtiiorous mir was
surrounding tAem, and by personal anarrela
they were throwloff their guard, and their at
tention drawn from the general and most i'm
portaut issue.
In May, 1879, A1r. Morrill,, Of Maino, in Con-
greRs, uncovered and unmaskod the swindlo by
which railroads were to receive an additional
allowance of threo millions for carrying the
maila. Tho President Of tho Pennsylvania Cen
trail controlled an army Of employos. 6oven
newspaper mon md Journalists wore employed
by thcso monopolista to heautify ind land their
sins, and free pnssea woro not very bitter pills.
One Of the most interesting points in tho OK
tstence Of nationa was tho ground capital Of ral-
roads, its multiplicity, and it's wntoringa. 1t had
-been shown that railroad capital to-day amounts
to no loss than 5000 millions of doilars, and iu
constantly on tho increase, and, as the .proprie-
tors did not likely pay TIC 1obbica out
to discuss tho nature Of the colossal Interest,"
eating debt, because this entire debt lies on the
shoulders Of the nation.
FialI and Gould iaauod and watored Erie Rail-
road bonds in five years. to tho value Of SOL ,36l-
$50, and the watorod stock was sold at S. cents
!. on the dollar, but tho receipts even did not go
to tue Company, but we're talton care Of by tho
thieying Directore, aud almost oil the other
roada lad more than doubled their original
capital.
Whenever there was any talk Of decreasing the
ratos, the whole crowd commenced crying, " Lot
the opposition do that," AZ If wo wore Ignorant
OF tho fact TINT mono was In oxiatcnce. Tho timo
Of opposition had passed. Tho Now York Con-
trail and Erie Roads wero to-ilny making common
causo IN Rcrowing up the prices to suit them
selves, 90 9nd wo, the people, were treated like
sorfa. Tho grand trunk lines in this country
were annihlating every opposition with tho Sc
curty Of llighwaymon, and tho little roais were
bought up with skin and hair. ALI this had Imp
pened time and ngai1.
But not only the producers, but also tho pro-
prietors of bonds, woro powerloss in the hands
Of the few leading spirits Of thoso corrupt cor
porations, who usually arc Rlao tho proprietora
Of coal mines, iron works, etc., and can increase
tho EXPENSES Of their roads at will.
Charters of corporations wero not letters
patent ugainBt the industry OF tie country. Tho
people had tho right to protect themselves, and,
under circumstancoa, may declare such fraudu-
lent increase Of capital null and void.
. Tho chief aim OF corporations WAS to make
every new invention bouoAoial to tho fow, rs
tho 900 year charters boBt show. II tho original
H.