Daily Los Angeles herald., 1881-08-14
Yos guseles Nerala.
ANOTHER NEW ROAD.
4 0ilt-Edged Dream Of Monopoly-How cur
Modern Highways are Built-Improvsd Law
and Finance.

= 4As"4ekoe 0AveAA " A8ShePvAy-AuW Sak
Modern Highways are Built-Improvsd Law
and Finance.
IFrom the Carson (Nev.l Appsal.I
Yesterday Constable Stern dis.
covered in the city Jail map of
the United States and some rail-
road connections which were en-
tirely new to him. On making
inquiries he discovered that the
map had been drawn by q couple of
prisoners and was the ground plan
Of . big railroad scheme in which
the two were interested.
We PROPOSE" said one of them,
s'to start q new railroad system be.
ginning at Carson and ending in
New York;
When will you begin opera
tlons ?" queried the officer.
"Oh, rs soon as we get out.
Now let me outline the plan, We
start out with some pins, chains
aud com mpasses and make a survey.
We announce through the press
the proposed Carson, Arizona and
Texas line. Then we incorporate
and let in lot of the solid citizens,
appoint q committee to go to the
financial centers and lay in with a
syndicate of bankers to place our
securities. They make a satis-
factory lay, advertise heavy in the
high-toned papers, and the treas
ury begins to bulge. We get the
country excited, the people sub
scribe for the bonds, and they 60
like hot grlddle cakes"
"Do you catch the idea ?"
The Constable began to grow
Interested and nodded his head.
"Well, then we apply for Gov
srnment subsidy, throw few
thousand shares of stock around
Congress, get some of the orators to
talk Of the wealthy country about
to be opened up, great natural re.
sources requiring Developments etc.,
and the thing's done. Then we
sell the land at five dollars an acre
and push our road right through to
Texas.n
s'You get quite start" said the
officer, "but who pays off the
hands?"
"Oh, I forgot one of the most
important accessories; Of course
we organize q construction and
finance company; as directors of
the railroad company we vote
unanimously to give ourselves, as
construction company, fat con-
tracts; then we sub.contract the
construction out to actual con-
tractors at half price, and they pay
the hands or not, just as they
choose. But these are minor de-
tails. Now our next point is New
Orleans. We want more money,
80 we find flaws in the original bill
of sale, and as we take a hand in
electing the judges they pronounce
the title invalid, holders havn't
money to contest it, so we serve
writs of ejectment on the fellows
who have improved our lands and
sell 'em again at higher figures.
This gives us another raise, and
then we freeze out the original
stockholders, sell the road, buy it
in, re0rganize, water the stock like
the devil and give everybody a
chance.n
"But the law steps in"
"Oh, d-n the law. The law
doesn't cover railroads; railroads
are too lively; besides we're put
ting up job now to have a major
ity Of our own men in the United
States Senate Twelve got all the
State 6enates now) and the Su-
preme Court, and then we can head
off any 'communistic attacks,n
you know. When we get our road
to New Orleans out of our earn
ings, our lands, and the taxes we
should have paid the Government,
what we made on the construction
company and the reorganization,
Uncle Sam swoops down, calls for
his money and threatens to take
the road. Well, there's nothing
small about US; we say, take the
old road; it's q busted concern any
how Then he won't want it so
bad, you see, and we continue bust.
ness."
"But how do you freeze out the
stock holdersW
"Why, we hire the Government
Commissioner to make report and
bear the stock. That shakes the
holders out and we rake 1t In In
blocks. Then he makes another
one. you see, and the market raj.
Les"
."But this costs money; you need
Q good lot"
swell, we've made a good lot In
back freights and sOckin' it to the
small shippers and the non co npet-
itive points, to say nothing of Con-
struction Company, our lands and
freezing out Stockholders"
The policeman had no reply.
- "Then from New Orleans we go
to New York;
"But have you made enough to
build the New York road? The
e tstern people won't stand the
back freight racket"
"Maybe not, but the dear public
there are always keen to put up for
railroads. The bankers arrange
all that, and if it's too thin for the
United States they have pals
across the big pond who are al
ways ready to help unload road
on foreign investors, for q divide.
They are always ready to build the
road and let the company run it
and we're the company you
know"
"One splendid racket to work is
when stocks are low we buy, then
form pool with other roads, show
big earnings, stocks advance,
everybody rushes in, and we let
'em boom 1t up till we think they
are high enough, when we quietly
unload, pass the word to break the
pool, we sell short and the lambs
are sheared both ways"