The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-11-21
The Teeth of Defiance.

Suits have been commenced against the
Central Pacific Railroad Company for vio-
latng the act of June 10, 1873, which re-
quircs all corporations that received sub
Hidies In bonds or lands to make reports in
conformity with rules to be prescribed by
the Auditor Of Railroad Accounts and TO
submit their books and records to his in
spcction whenever they are demanded.
This corporation is one Of the richest and
most powerful in the world in the sphere of
its operations. II is owned by five persons.
who with the exception OF a short link Of
some forty miles, control az the railroads
and their connections in California and on
the Pacific coast.
The net income is reported at about nine
millions. but there Is good reason to believe
that it far eXcccds that amount; and the re-
cent refusal to show the books or to report
certain results. which would test the truth
fulness OF their exhibits jusiics the sus-
picion that they have been Systematically
cooked and falsificd for years. As such re-
ports could not have been made without
COLLISION on the part Of the Government
directors, investigation will probably prove
that they. too, or part Of them, at least.
connivcd at these frauds
Congress dealt mildly with these great
corporations in the legislation of the last
session, considering the causes that ex-
listed for severe measures. and the extra
ordinary action of the Supreme Court in
holding that the interest on the bonds
loaned by the Government to build the roads
was not payable until the expiration Of
thirty years, when the principal becomes
due. There was no disposition to rctaliate
with harshncss; but, on the contrary the
aim was TO allow them the benefit Of an
equity Ito which their own transactions
with the Treasury gave them no claim
Whatever.
This moderation has been answered in the
spirit which has characterized the whole
conduct Of the Union Pacific, the Central
Pacific, and their branches, constituting to-
gcther a monopoly which clutches within
Its iron grasp the overland trade between
the Missouri and the Pacific, and all the
freight and passenger transportation on the
connecting lines. Immediately after the
adjournment Of Congress, the charges for
freight, already cxorbitant and oppressive,
were put up enormously, in order to show
their teeth Of defiance; and now they have
followed with an open, audacious, and in
sulting refusal TO obey the law.
No alternative is left with Congress,
either in self-respect or in duty TO the
people, but TO enforce its authority In
way that will make the owners. officers,
and directors Of these corporations liable
TO penal punishment for resisting the
statute Halfway measures will not suit
Liberal treatment has been tried and has
failed. The question simply is: Are these
l.
lies, created by the generosity Of Congress,
and intended to promote the public good,
stronger than the law and the Govern
nent?
Litigation in tho courts would suit them
exactly. They are rich enough 10 court ii
and pursue it indefinitely. II east in one
case, they would pay the penalty of $1,000
or 5000, as prescribed by the statute and
renew the contest Immediately on another.
Meantime their books, records, and ac-
counts would be comparatively sacred
against intrusion, by appeals from ono tri-
bunal 10 another, and the whole machinery
organized by Congress would become ut
terly worthless aud dead.
JAY GOULD and his associated comLna-
tiOn are either masters and may dictate
their own terms, as they tried 10 do at the
last session OF Congress, or they must re-
spect the law like other citizens. 1t would
be scandalous mockery TO keep up bu-
reau Of accounts for these railroads at n
cost OF some fifteen thousand n year to start
on, and then depend upon the caprice or the
interest Of the monopOli-ts for material to
carry it on. Mr.. THURMAN. who originated
these measures, will be expected 10 provide
additional legislation for their fulflment to
the last letter. There must be no retreat or
compromise, but n square fight between
Congress and tine corporations for the mas
berry