The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1874-10-22

for the security, benefit and protect on
of the people,
1t must be conceded by all that
great wrongs have been committed on
society by issuing stocks and bonds,
that represent no value, received by
their companies, and the still greater
wrong that is now being committed by
charging freight to pay dividends and
interest on these fraudulent transac-
tons.
The stock and bonds of this cbarac-
ter in the consolidated lines of the New
York Central and Hudson River roads
exceed the actual capital paid into those
corporations.
The management of the line has
been still more disgraceful for
| in that case stocks and bonds
have actually been issued
to reimburse directors for frauds COM
mitted on each other.
The managers of railroads in our own
State have not been less enterprising in
schemes for plundering the public. The
effect of such management upon the
business of the country can be Illus
tratcd better perhaps by example than
argument.
The Baltimore and Ohio Railroad,
operating eleven hundred miles Of road,
pays interest and dividends on less
than twenty-seven millions of capital,
while the New York Central, operating
only eight hundred and fifty-one miles,
pays interest and dividends on nearly
one hundred and six millions of dol
lars, and the Erie, operating Que thou
sand and thirtytwo miles Of road, pays
interest and dividends on over one hun
dred and eighteen millions of dollars.
In the former case the stock
and Indebtedness represent only
the capital paid in and ex-
pended, for the benefit of the
company. The stocks and bonds of the
other companies represent all the fraud
and devices human ingenuity can in
vent.
1t is intimated that wheat can be
transported at a profit from St. Louis
to Baltimore by the Baltimore and
Ohio Railroad ten to fifteen, cents per
bushel cheaper than from the same
place to New York, by either the New
York Central or Erie Railroads. and
during the last year the Baltimore and
Ohio Road transported first class
freight Fifty cents per hundred pounds
cheaper, from Baltimore to ST. Louis
and Chicago, than the other mentioned
roads charged from New York to the
same cities. This brings US face to
face with the follo,ving propositions ::
dire the people Of this country entitled
to the advantages common, honesty df-
fords, or must they pay railroad
charges to make dividends on,
fraud and thus offer
a premium on dishonesty Can gor-
ernmext protect society against such
injustice, or must society submit and
poy diride1lds on all the stocks and
bonds nnscrupuloaIs directors see fit to
issue?
These are questions now being asked
not only in this State but throughout
the whole Union, and no man can say
they are irrelevant or untimely-
An effort is being made by those in
terested in the present management Of
railroads, to represent the farmers
movement as an attack on capital. They
would have itappear that injuries in
ficted on society by their own nisman-
agement, and against which relief is de-
manded are inhenent in the railroad
system itself.
| The facts are far otherwise. Neither
railroads, or any other property, have
any security except in the respect
for Law; and in this country law Is but
an expression of the peoples will
Among the many benefits to accrue
from the proposed regulation, better
and more clearly defined knowledge of
the rights of property and of the re-
sponsibilities its possession imposes up
on its owner, are not the least import
ant. Hereafter capitalists will req uire
that theirsmoney shall be invested in
necessary improvements in enterprises
promising certain return.
Within the last five years, thousand
Of miles Of railroads have been bull. in
this country simply for the profits on
construction These roads are bonded
for more than their actual cost. Out
of forty-nine railroads in Illinois, it is
reported that only seven pay dividends,
while several fail to pay operating ex
penses.
Such facts require no commentary
they show dishonesty either in the con.
struction or Management Of the roads.
Capitalists will soon discover that the
real enemies Of capital sare those who
make fraudulent investments, and not
those who would protect their own hard
earnings from confscatlon.
Let no man be deceived by the pres
cnt clamor about the depressing effects
Of -he farmers movement on railroad
securities. These securities are now
suffering from the same bad manage
ment, that has occasioned this legisla
| ton.
That money squandered or unwisely
invested cannot Yield q return, is . les
son now being pondcred over by CAPT
talists with no little solicitude. As
soon as the public are able to Gscrim-
mate between the good and bad, rail-
road securities will again be in demand.
The days for building railroads for the
profits on construction. and for bonding