Rocky Mountain husbandman. [volume] (Diamond City, Mont.) 1875-1943, 1876-01-06

corporations had lost their favor. But their
influence proved, nevertheless, to be CHI
meric:l for the General Assembly of Wis
consin proclaimed, only a few days later,
with decisive majority, their intention to
maintain the "Potter" act for regulating
the freight tariff, which was so objectiona-
bic to the railroad corporations. that they
left nothing untried to secure its repeal.
The simple fact that, in spite OF all their eff
forts, the railroad companies failed to pre-
vent the tariff legislation in the Western
States, or to render the same ineffective
through judicial interference in questioning
their constitutionality, is evidence OF the vic
tory of the grangers over the railroad mag
mates. This victory has a bearing on the flu
ture development of the railroad system in
the United States. In order to fully COM
prehend its Importance, one must recall the
history of the railroad system in America
during the past few years, which will be
found to be so much easier a task, as the his
tory of one road has, during the last ten
years, been that of nearly every other.
What we know about the credit mobilicr OF
the Union Pacific Railroad Company, APP
plies to almost every railroad enterprise
started within the last ten years.
Every company had its credit mobilier
which served to impart q gain to a ring OF
stockholders by means Of a contract which
they had entered into among themselves {;
or Il credit fancier, by whose manipulations
the members of the ring secure for them
selves a share of the profits of the Emission.
The building contract stipulated the amount
of capital to be expended for the erection of
each mile of the road +; which in the credit
mobilier, for instance, amounted in some in
stances, to nearly 500, 900 per mile.
The contractor was paid in bonds, which,
however, were not figured at par, but only
at sixty or seventy cents on the dollar; but
being credited at 100 per cent. to the rail-
road company. The credit .fancicr managed
the sales, fixing the market value from
twenty-five to thirty per cent. higher than
the price at which the bonds were taken by
the contractors.
Another prominent feature in the history
of the railroads in the last ten years is the
imitation of the capital stock. As a most
prominent example of this mode of doing, l
mention the line Of railroad from New York
to Chicago, which is in the hands of Corne-
Illus Vanderbilt Sc Co., and Which is organ
lied by the New York Central and Hudson
River, the Lake Shore and Michigan South
ern Railroads. The imitation inside of the
last couple of Years amounts to over $780,
O00,0 600, which requires, at eight per cent.
an annual interest of $4,000, 900. 70 raise
such an enormous amount Of interest, it is
necessary to raise the rate of freights, and
the stockholders really receive sixteen pei
cent. dividends by this doubling Of the nom
inal value of their shares, at the cost of the
public, who are necessarily obliged to use
their roads.
Another item is the support which coun-
ties, cities, and town corporations have rem.
dered the railroad corporations. In the de-
sire of having railroads, and in order to adj
vance their speedy erection, the people were
inclined to support these enterprises at the
expense of the community, and where i
did not exist, public opinion was worked III
to it. Especially were the farmers of the
Western States made to believe that through
the railroads, great gates to wealth would
be opened to them. Soon there was scarcely
Il county in the West that did not want
railroad, and the immense amount of debt
which the counties, cities, and town cor
porations heaped upon themselves, gives
evidence OF the manner in which the rail
road companies ayailed themselves of tina
{ desire. The amounts of these debts has on
ly been ascertained in a few cases. Speake