, 1874-02-07
THE IRON AND BTEEL MEN,

Philadelphia for Hovoral daya for tho special pur-
poso of getting an inorcase Of tho tarir or pro-
vomiting any reduction Of tho present scalo Of
autaea. They propoao to naomorialtzo Congress
to roboal tho act passed in 1872 reducing tue
dutics on imported steol and iron 10 por cont.
Ihoy hive, however, other baloful objects IN
view. Among tho resolutions proposed In the
CONVENTION WINS ono roolting tho mutual dopeua-
ence cf railroads and iron-makors, md directing
tho appointment Of a committee to consider
"hofl'nr the iron-makers eau do anything to do
Velop now railroads and cheapon tho coat Of their
conat'Iuction. They Lad previously stated that
the Expenditure for iron is about ono-third Of
the Cat Of construction aud equipment Of rail-
roada. Another resolution WAS offered declaring
that the general policy Of subsidlzlng "national
railreads". had boen bencloia1, and i'd
7ieing that such further aid DO extended
to fhe unfinished lines as will insure
their completion. Tho moaning OF theao prop
oBitions cannot be mistaken. Tho wild and rool-
loss systom Of railroad construction followed for
several yoars past was tho main cause Of the re-
GGAt AAhAS4AA pAA40* AAU G1A!1tAY htAp AoVAOA
with railroad bonds and stocls; tho money Of
citizens was loaned out by banks to speculative
continuation companies, and tho result WAS
a financial collapse tint has affected every
branch Of trade and industry in tho country.
These Credit Mobi1ior corporations have ab-
aorhed tue circulating capital Of tho country to
an enormous extent, aud, now that the public
will lond 10 more money to them, Congress Ia
asked to do 30. Tho policy Of subsi-
dizing Irrational railroads" has boon any
thing but encouraging. The Government has
given away for this purpose many millions Of
acres Of public lind and $G4, ,000, 900 Of national
bonds. Foremost among these IL tho Union Pa
oido Company, tho managers Of which placed
$27, ,000, 600 in thoir own pockets, where they
thought it would do tho most good. Tho Gen.
trail Pacific Companys operations have been Of
tho same sort, Tie Northern Pacifo Railroad
and the Texns Poetic Railroad fortunately failed
to get any money subsidy. They both pasa
through deBort aud Wilderness, and ono Of
them In region whore the civilized white man
will never live. Both concerns arc bankrupt.
Both aro owned chiehyin Pennsylvania, and both
are largely in debt to the iron-makers. OF course
these iron-makers would rejoice II Congress
would vote Jay Cooks $50, ,0Oo, 600 to finish tho
Northern Pacific Railroad, and as much more to
Tom Scott to build his road through Texas md
Arizona.
Instead Of granting new subBidieH to tho Pa
citic or any other railroad, Congress- should bo-
gin to collect back what has already becn paid.
The whole grant Of bondB to these roads was
$84, 200, 900, Of which s27 ,000, 600 was to tho
Union Pacific and $26. .0o0, 900 to the Central Pa-
cilo. Up to the alRt OF January, 1874, the
United States had paid for interest on tho loans
to theBo two Companies over $4,000, 900, Of
600, leaving 914 500 900 OF back interest still duo
from tho two Companioa The Central Pacific
Company has outstanding dobts equal to the
value Of it's roads, and has capital etock to tho
sum Of s100, 600, 900 divided among its managers.
It is nov paying dividends upon this fictitious
gtock, and refuses to pay interest on the bonds
loaned to It by the Government. Tho Union
Paol6c Company, notwithstanding the road WAS
built by tho money obsnincd from the Govern
mont, has other bonds outstanding, and haH
also e3O,00o,0 600 capital stook-aN water.
Ita gross receipts have now reached
$1,000, 600 month. It is the duty Of Congress
to require these Companies to'pay not only their
curront interest, but alao+o commence l'quidatiug
tho aErearages. The accrued and unpaid interest
duo from these Companies amounts to more thau
ona-fourth tho principal. They owe altogether
ncarly s5s.0o0, 900. which Is increasing st the
ratio Of S2,500,000 year. At tho ona Of tho
thirty years 1t will equal 1t not exceed, TIM
whole value Of the property, and is secured only
by second mortgage. After the expiration Of
tho thirty years the road may be taken by the
holders Of the flrst-mortgage bonds and the
Government left in the vocatiye.
The iron and steal makors, who for twelve
years have baon receiving an annual bounty
from tho American people, aro, Of course, in
favor Of tho most liberal subsidies to tito two
other railroads which have been oyertaken by
bankruptcy, and wLoso diahonored obligations
are scattered all over the country, and largely
indorsed by the iron and steel makers them
selvos. But Congress docs not ropreaont Jay
Cooke and Tom Scott; nor does 1t represent tho
Union and Central Pacific Railroads; 1t repre-
eents the people, whose intoreats demand that
there be no more subsidies, aud that the COM
panies to whom auch subsldios have already been
aran tad ahall ba coupelletl to nav the fourteen