The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-08-28

A Metsepelitan Credit Msbflter.
Nobody authorized to speak for the Met
ropolitan Elevated Railroad has yet offered
any defence against the grave statements
made two days since in the HEaALD. Under
the circumstances We are justified in re-
garding the silence of its officers as an adj
mission of the truth of our exposure. We
have been SO friendly to the road, have done
SO much to promote the enterprise, we rem
dered it so much jealous aid In procuring its
charter and privileges that we were panied
been perverted and the privileges abused
to perpetrate gigantic sxtortion and
make it permanent charge on our citizens.
But the proofs seemed conclusive, and our
duty to the public left us no choice. If
the statements we have made are true there
can be no difference Of opinion as to the
enormous abuse of trust perpetrated by the
managers of this favored road. When we
invite denial and demand explanations.
the officers Of the road stand dumb under
accusations which men who set any value on
the good opinion of the community should
not bear in silence if they have any defence.
The offence committed by these mana
gers is the same in nature as the enormities
of the notorious Credit Mobilier, whose
exposure caused so much excitement and
indignation and ruined SO many reputa-
tons ten years ago. The Metropolitan road
is not, indeed, SO large an. enterprise us was
the Pacific Railroad, but in proportion to
its importance the organized malversation
is more stupendous, and the methods are
precisely the same. The Credit Mobiller
did not increase the cost OF construction
more than fourfold; it did not even double
it; but the metropolitan Elevated Railroad
has contrived to swell their debt to thirty
millions, when the actual cost Of the whole
road when completed will not be more than
seven millions. And then the Pacific road
was completed, but the Metropolitan road
has come to dead stand after the building
Of few miles Of it, and there is no evidence
of an honest purpose to finish it. 1t seems
to have been undertaken, like SO many
great mining speculations, with view to
expand its stock, run its price up to high
figure, and then unload it upon q
victimized set of greenhorns What
honesty is there in watering seven
millions worth of capital to thirty mill
ions and exacting rates of fare high
enough to pay dividends on this swollen
and fictitious sum? The process by which
this is done is precisely the process of the
infamous Credit Mobiier. One company
holds the franchise and lets out the con-
struction to another company at a price
which enormously exceeds both the reason
able and the actual cost of the work. In
the case of the Pacific road this was done
by collision between the two companies,
and it is for the Metropolitan road
to prove, if it can, that there
is not a similar collision in the present
case It is incredible that the managers Of
the elevated railroad should have bound
themselves to pay more than four times the
real value of the work without an under
hand arrangement for sharing the mammoth
profits. We suppose it is not in the power
of the press to compel full disclosure Of
the inner workings of this monstrous breach
Of trust, but the Legislature has that power,
and the next session will not pass without
bringing all the hidden management into
the full light of publicity. The next Legis-
lature will resemble the Congress which
investigated the Credit Mobilier. ~, w-sf