Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1878-11-13

-.-- .YusIDrzED RAILROADS.

rxrr surusIDIZED RAILROADS.
n vas foreseen, says the New York Sun,
~ban Mr.. Thurman carried his two meas
,r.s AT the last session, first, requiring the
Y,r;or and Central Pacific Railroads TO
.d,ust their obligations to the Government
on a Axed and positive basis, and, secondly,
amounting an Auditor Of Railroad Accounts
under the Interior Department, to pre-
.cribe A system Of annual and other re-
ports for all railroads subsidized in land
or money, with authority to examine their
books and accounts, that the corporations
would resort TO every expedient to resist
and to defeat the operation OF these just
laws.
Their first act after the adjournment of
Congress was to raise the rate OF freight
Transportation heavily, although the pre-
vious tolls were exorbitant as compared
with other roads. Holding a huge mo-
nopolv. the owners determined to exercise
their mower in the most odious and op-
pressive way, forgetting, as m~onopolists
often do, that this revengeful policy would,
In the long run, react against their own
interest, and provoke sterner treatment by
Congress.
Now they have gone q step further. They
refuse to make reports called for by the
Auditor, or to submit their books to his
inspection, or to render their accounts in
conformity with the law. This stand is
taken by the President Of the Central Pa
ciic, q monopoly owned by five persons,
but it practically represents the Union Pa
ciic, and some forty other roads, all alike
affected by the legislation referred to-
that is to say, roads built by the donation
OF public lands and the loan Of the public
credit. The Act on this subject is explicit
and mandatory, as follows:
SEC. 4.-That each and every railroad
company aforesaid which has received from
the United States any bonds Of the United
States, issued by way Of loan to aid in con-
structing or furnishing it's road, or which
has received from the United States any
lands granted to it for q similar purpose,
shall make to the said Auditor any and all
such reports as he may require from time
to time, and shall submit its books and
records to the inspection Of the said Aud
itor or any person acting in his place and
stead, at any time the said Auditor may
request, in the Office where said books and
records are usually kept; and the said
Auditor, or his authorized representative,
shall make such transcripts from the said
books and records as he may desire.
The only penalty for ''neglecting or re-
fusing to make such reports as may be
called for, or refusing to submit its books
or records to inspection" is a forfeiture
stof o sum not less than one thousand nor
more than Ave thousand dollars in each
case" to be recovered by the Attorney
General for the use and benefit Of the
United States. This penalty is laughed at
by these rich corporations with a net in
come of seven or eight millions q year
each. They could afford to pay it a hun
dreds times over, and then make money
by the operation. Litigation is to them a
source Of profit, because, while it goes on,
they are protected against the inquisitorial
process Of the law, and can devise means
for concealing their enormous gains.
When It is remembered that these mo
nopolists have bought Government in
spectors and directors to make false re-
ports, and bribed other agents to sub
serve their interests, and sought
1t the last session to purchase legis-
lation in their favor, or, alter
natively. to pay largely for preventing ad-
verse legislation, it is easy to understand
their present course. Mr.. James F. Will
son, Of Iowa, was q Government Director
for several years, and in that capacity was
one Of the Credit Mobilier patriots who
served himself and Cakes Ames. While
holding this trust he recently accepted a
fee Of many thousands from the Union Pa
clio. without considering 1t any compro-
mise Of bis idueiary obligation to the
Government. And this Is one Of the mild
examples Of the means employed by Gould
and his ~confsderates to win over public
agents appointed to watch and to counter
act their practices.
As the law now stands, it is powerless for
good. Though clear and emphatic, the
corporations would fight it continuously in
the courts. under every possible pretext
and tschnicality, knowing that il carried
up TO Washington it could not be heard on
the calendar inside Of three years. Every
day Of delay would be q gain to them and
an embarrassment to the Treasury. The
Auditor. accountants, and bookkeepers
would be q useless charge, il the duties as.
signed to them cannot be performed. A
remedy for this defect is, therefore, indis'
pensable, and it will be probably found al
the next session in . penal statute that
will give Gould. Stanford, and the whole
combination . realizing sense Of the power
Of Congress when rightfully exercised.
REMARKS the Stock Report: "Mr. s. T
Gage, well known in railroad circles, has
succeeded to the honors and emolumentl
Of the late General D. D. Cotton, il
the employ Of the Central and Southern
Pacific Railroad Companies. No better
appointment than this could have beer
made. Mr.. Gage is n Of the shrewdest
most active and wide-awake business mel
on the coast, and he will bring to his i'm
portant executive duties . big brain and
tremendous energy. Mr.. Gage has Away
stood high in railroad circles, having for
long time enjoyed the confidence Of Messrs
Stanford and Croker, and on many al
occasion he has won for them and their in
tsrests most important results"
VIZ haven't heard much Of Governs
Bradley since the election. We infer tina
he il on the Comstock. The Gold Hill
Esps has this mention Of him: "sinc'
Ne resent election good old 6overno