, 1875-01-27
SUBSIDY gCHEME2.

AHe 4fdt{oH mahes GoOd point by EhoW-
ing the Intimate connection between tho sue
coss Of subsidy schemes and the failuro Of
Civil-Serv1ce Reform. Subsidies are usually
granted on tho strength cf promised services.
The performance of these services is sure to
be ovadod II it can be. Ordinarily, tho Low
granting the money contains proviso for i'll
spection by certain officials Of the services
rendered. Tile first step in tricEery is to try
to corrupt tho Inspectors. The Crcdit-3lo-
biiior investigation showed that this game
WAS successfully played by OAKEs A,frs. If
this fails, intimidation is tried. Threats Of
political persecution are freely used. The in
Bpcctors aro told to SHUT their eyes or some-
thing dreadful will happen. Finally, il
everything olso has miscarrica, or, in tho first
place, if tho character Of the official makes 1t
certain that bribing and bullying will both be
in vain, advantage is taken Of the shifting
tenure Of Office under our present wretchcd
system, and the honest man, bound to to his
duty, is replaced by q pliant tool enger to DO
bribod. Even whom tho change in office is
duo to general Causes, it is usually good
thing for tho subsidy getting monopolists md
a bad thing for tho subsidy paying pooplc,
Tho now men lack the necessary experience.
shifting responsibility is little botter than no
responsibility. While tho Pacific Mail has been
lobbying Mt Washington, the Treasury and
the Law Departments hive each had four
heads. The former has been managed by
AfccuAIocH, BouTwE1.L, RICHARDSON, and
BRsTow. Tho latter has descended from
EvAREs and HoAR to AKEnHAN and Will
1A1s. The Post-Oiflce Department has also
changed hands or heads. Tho Pacific lIail
Company has had good deal to
do with oil three Of those Depart
nonts. It has found most servicoable
friend in the present Attorney General,
whose published opinion thnt subsidy
granted on certain conditions ought to he
paid II the recipient has, or pretends 10 have,
! any idea Of performing the conditions at
como hopslcssly indefinite time in tho future
| finds no parallel among tho opinions Of his
predecessors, happily for the latters reputa-
ton o. lawyers!
| Tho Nations conclusion is sound. The
| subsidy System hos sometimes succeeded In
Europe becauso-nnd only beeause-the Gov
ernment supervision Ia there iu tho hands Of
skilled men, trained to their work and sure
of thoir places Since this supervision can-
not be secured here, tha subsidy system can-
| not be q SUCCESS, and should ba definitely
abandoned.
The history of the paoiao Mail job shows
TINT subsidy mny do harm all around.
When this Company took care Of itself,
asked no favors from anybody, and earned
/ ttu
high Its stock WAS In den1and, It paid
good dividends on the capital invested. 1t
was an honor to the flag its vessels carricd on
two oceaus. From the day 1t began to be
taken euro OF by somebody also its decline
began. Its managers havo concentrated their
attention ut Washington, and neglected their
business everywhere olse. As ono result,
nine ct thoir groas slips have reood
down into tho waste Of waters, carrying
wealth and lyes with them. Frantic stock
| iobbing hos replaced conservative MANAGE
ment. Tha market has beon manipulated
and the stock has been run up aud down by
the men who were morally and legally bound
to try to keep 1t at fxol yaiue. It's nominal
value has varied with the chances Of subsidy-
getting. The money that should laye been
used to pay dividends to stockholders has
been absorbed In bribing lobbyists and Con-
grearuen. The stock is now going begging
at a.. The Company IL borrowing money On
the street. lta management is by-word
The man who Is forced out Of the Presidency
one day under charges Of dlshonesty Ia en-
treated to retake the otaos tho next. And, to
crown alI, tho public voice imparatively de-