Los Angeles daily herald., 1874-09-02
Pacific Railroads, Old and New.

A couple of years ago committee of
Congressman made patient and ex-
haustive examination of the affairs Of
the Union, and partial examination of
the affairs of the Central Pacific Rail-
road Companies. That examination
was directed mainly to the mal-prac-
tices Of a sort of sub-organization
of tie Union Pacific, known as the
Credit Mobilier. During the exami-
nation the reputation of some of the
more prominent statesmen of the
country suffered severely, but it has yet
to be made to appear that the rail-
road companies named were injured
in any sensible manner by the exam
ination. Many unjustifiable practices
of railroad builders were exposed to
the world, and much discredit was
brought upon that class of people and
their operations. But the investiga-
tion has not been injurious, not scarce
ly distasteful to the owners of railroads
already built. On the contrary, they
have reason to rejoice over it, for they
are reaping greater advantage from it.
Its effect was to stop the construction
of other lines of railway, and in that
manner prevent the healthy competi-
ton which would otherwise have
sprung up. The investigation was
pressed in Congress with view to
compelling a closer observation on
the part of the Union and Central Pa
citic Railroad Companies, and it was
hoped that those companies would be
required to answer for many Of their
misdeeds. But as now appears, the
movement is sort of "boomerang"
affair and is coming back to plague
its inventors. The real refractory
companies, the Union and Central,
not only escaped damage, but gained
vastly by the attack, and have in pros
pect indefinite gains from the same
source, as will appear from cursory
retrospect. The Texas Pacific road
under the guidance of Col THOMAS
SCOTT, was making gigantic strides
towards the Western Ocean, when this
action of Congress was inaugurated.
1t was in thefull tide of success, ,and Col.
SCOTT had gone to Europe to negotiate
for money to finish the work; but just
at the moment of his success, the
Credit Mobilier movement eliminated
in the suspension of JAY COOKE & Co.
and Col. SCoTTs negotiations were
brought to sudden and disastrous
close. From position to command
millions, he, in a few hours found
himself unable to procure dollar
The effect upon American railroad Sc
curities was disastrous to the last de-
gree. They became the terror of
European money lenders, and as a
consequence every unfinished railroad,
as we'll as every projected railroad
throughout the country was brought
to stand-still. The Texas Pacific
shared the fate of the rest, and it's
completion was postponed, no one
knows for how many years. The re-
suit of that investigation was sur
prise to many, and had it been fore
seen the calamity would have been
averted. The people at large have
suffered severely from it, but the
people of the Pacific Coast most of all
The early completion of this roaC
would have brought untold advanta
ges to us, and as movement in favor
of restoring the South to relations o
harmony with the rest of the United
States, it would have been worth
much beyond its cost. But the mos
conspicuous end to be gained by i
was the quieting of Indian and borde
disturbances in New Mexico and Ari
zona. 1t would have opened up t.
settlement, country imperial in ex
tent. 1t was one of those great enter
prises that challenged the attention Q
all nations, for all were to share il
the benefits. AS widespread as it