The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1881-04-28
REPLY TO STANFORD.

REPLY TO STANFORD.
The A1dacieus Plusocrat Handled
without Gloves.
Gov. Leland Stanford, OF California,
has received pretty rough overhauling
ct the hands of the Chamber Of Com
merce Of New York. Stanford is Presi-
dent Of the Central Pacific Railroad
Compeny, and, some time since, wrote
an elaborate letter on the transportation
problem, to which the special Committee
on RailHoad Transportation Of the Cham
Der Of Commerce takes some very strong
exceptions in report which they have
submitted. They characterize his letter
as remarkable for b0ldness Of as
sertion Of railroad claims and lofty
contempt for the decisions Of our
courts which can only spring from
CONSCIOUSNESS Of power, and which
fairly joins issue with those made in
behalf Of the public" In answer to
Gov. Stanford's assertion that rail-
roads owe no duties to the public
other than those Of the merchant, the
farmer and the laborer, they assert
that the courts. from the lowest to the
highest, have declded that railroads are
public highways and common carriers,
bound to make but reasonable charges,
and these without favoritism or discrim-
nation. In answer to his denial that
determinations against communities or
individuals are practiced by the roads
with which he is connected, they cite
Congressman Daggett, Of Nevada, as
saying The merchant ut Toano, hav-
ing specialicontract, pays So per car
load less freight than the merchant ut
Palisade, although, as before mentioned,
the carriage is l29 miles more. The
freight on 4 box Of eggs from Ogden to
Toano costs one man S3.35 per box, and
the same number Of eggs, in the same
sized box, and of the same weight, costs
another man 65 cents. A hundred
pounds Of squashes cost one man in
freight $1.36, while it costs another So
cents. A carload Of candles is taken
from New York to San Francisco for
$500, but if left at Elko, 619 miles less
distance, the charge is $500. be-
ing the through rate to San Fran
cisco, back to Elko." Regarding
the assertion that it is no worse for rail-
roads to contribute to control the nomi-
nations or elections, they answer that,
while in principle it is not, in practice
it is far more dangerous and objectiona-
hle, it being largely question Of de-
gree, just ~ one predatory animal is
more dangerous than another, according
to its size and strength. They claim
that the fallacy Of the claim that stock
watering does MT affect the public in
terest is shown by the fact that the divi-
dends paid in thirteen years last past on
the watered stock which the late Mr..
Vanderbilt put into the New York Cen.
tral and Hudson River railroad Tin the
years 1863 and 1867 have amounted,
with interest thereon, compounded an
nually, to over $75, ,OOO, 900, or, in other
words, if, instead of initiating these
stocks, they had been maintained at the
amount then outstanding, and rates for
transportation correspondingly lowered,
the public would have been So, ,00O, 900
better of, and $47 ,OOO, 900 Of "water, !"
now quoted ut LAG, would not be in ex-
istence to afford an excuse for further
taxing the production aud commerce Of
the country for all time to come.
Even stealings. they say, have in the
| past been capitalized. prominent exam
ples Of which are found in the former
management Of the Erie and New York
and New Haven railroads. and they add
that "the Central Pacific Railroad Com.
pany have been adopts at these practices,
and through its Construction and Finance
Company It has inflated its obligations to
the fullest extent" Regarding the de.
nunciations Of the Supreme Court Of the
United States by President Stanford, il
il. the committee claim, useless to argue.
Il may, however. they think, account
for the recent attempts to place upon
the Supreme Court bench . prominent
railroad attorney, and in the face Of such
utterances it behooves all patriotic citi
zens to jealously guard against the pre-
ferment in any department of oul
Government Of men who have beer
servants Of great public corporations
who are likely to sympathize will
these corporations to the detrimen
81 the public interest,"" In responss
TO the plea that the railroads should b
left alone to manage their affairs il
their own way, and decide what is ,
reasonable charge for the service rem
dered, the committee quote from Con
gressman Daggett's speech that all tn
money ever invested by the stockholder
toward constructing the Central Pacifi
road was 81, 800, and that the officially
reported value of the road in 1879 owe
liabilities WAS 4l66, ,566, 900, represente
in part by the -, ,OOO, 600 Of watere
stock Of tho Central Pacific and $50,
. 600. 900 Of tho Southern Pacific, bein
a aggregate Of 39O, ,OOO, 900 in STOCK
which cost them only the price Of print
ing, and upon which they arc compe
! ling the public 10 pay them s per cen
! yearly ia dividends. The Souther
Pacific has been constructed and pal
!, for from the earnings Of the Centr.
Pacific, vet the owners issue $50, 600
stock and $40, 900 in bonds per mil
. and charge such rates as will enab
! them to collect annually 8 per cent. 9
! the stock and 6 per cent on the bond
. The report gave rise 70 an unusual
lively discussion. Mr.. Charles Watrol
/ said he had personal knowledge OF Il
1 truth Of Congressman Daggett's d
{ ures. He had been intimately q
3 quainted with Mr.. Hopkins, who owns
but half as much interest in the Cel
!. trail Pacific Construction Company
i Gov. Stanford, and who left when
!, died S22, 600, 900 to 328, ,O0O, 900.
. fhia * 010 000 in Government bon