The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1881-12-16

growing out Of the rapid construction
aud development OF methods of trans
portation and communication Since
the formation of our government, one
hundred years ago, and especially with.
in tho last quarter OF a eeaturY, tho
wonderful progress in tho sanstruction
OF railroads. and telegraph lihcain the
United Ttates, have presented new and
complicated questions for consideration,
which exert an exceedingly important
influence upon the commetcial, indus.
trial and financial
INTERESTS OF tue PEOPLE.
and which demand the close attention,
and excite the earnest solietudo Of all
who arc interested in tho material wei
fare Of the country.
There has been constructed, up TO
tho year 1850, 93,G7l miles Of railroad,
at represented cost Of 81, ,s97, ,40l ,997.
The principal gain in the construction
of railroads in tho last ten years, has
been confined chiefly to tho Western
aud Pacific States During this time
there has sprung up among spectators
gambling tendency to take advantage
OF this rapid development in the con.
struelion Of railroads, to absorb all Of
the benefits and profits arising there-
from, by initiating tho cos. Of roads and
watering of stocks, in nagrans violation
of all rules Of justice and propriety,
and TO the great de.rimens Of the inter
ests Of commerce, aud Of agricultural
and other industries. Among the
methods Of these gamblers" for their
aggrandizement, are the following:
|. They obtain possession ofa fran
chiao for = railroad route, upon which
they issue mortgage bonds TO double
the amount Of tho cost Of the contem-
plated road, using portion Of the
money received from the sale Of such
bonds ia the construction of the road,
and the payment Of exorbisant salaries
TO themselves, reserviug large surplus
for the purposes Of controlling tho
POLITICS or TnE COUNTRY,
aud paying heavy dividends on stock
issged greatly in excess Of tho actual
COS. Of the road, and for which they do
not ray oae cent, but make it the basis
for taxing tho people high rates Of
frei ,hss AMI fares.
,. Aa the business Of tho country
develops, and the traffic Of the road
in rcases, in order TO make the increase
appear but fair return upog capital,
they 3ater tie stock 70 such en- extent
that the additional dividends absorb eli
the profits of the producer, when, in
fact, the increased business should work
reduction in the cost of transpoFla-
tion. As ono means of protecting
themselves in these unconscionable pro-
ceedings. they issss free passes to pub
lie ofheers and promluent citizens, and
extend other favors which, in effect,
oblisats the resipients as their defend
cfa
,. To enable these parties to cover
up thcr schemes and create public
sentiment favorable to themselves, they
subaidize tho venAl press, and send their
emissaries among the people, for the
purpose Of securing the election to
Office Of men who can be rallied upon 10
subserye their interests.
The laws under these corpora
,ions arc formed, imply that all tho
stock issued shall be paid up in full,
and all the money received for the
same te
HONESTLY APPLIED
to tho construction Of their works. To
insure obedience to these requirements,
the people should pass law compelling
each railroad company to furnish a de
tailed statement, under oath, Of tha.
actual cost of its works; and that its
stock issue shall be confined to the
amount 50 reported, on which stock
holders shall be entitled to dividend
not to exceed ten per cent. per annum
making forfeiture CT franchise the
penalty for violation of such law.
There is evidence on file in the Su-
preme Court Of Ills state, showing that
the cost of the railroad from Portland
to Roseburg, a distance of 1913 miles,
was 80, 1856, There was issued |
of bonds on The line of road from Port
land to the state line, 365 miles, Sl0,-
$50, 900, all of which were sold, and
all the money, save that expended in
the construction, was appropriated By
the promoters of the scheme. There
was issued in addition to the bonds,
$40, ,000,o00 of stock. Under the re.
modelling of this elastic corporations,
tho SI0,05o,000 of bonds have been
converted into seven per cent. interest
bearing preferred stock; and for the
accrued interest on the bonds there has
been issued $5,475,000 of common
steck, making stock debt of $36, $685. |
600 on a road that has only cost g.
7S5,016.16.
Thus, it will be seen, the foundation
has been laid by which. when tho busi-
ness shall have become sufficiently de-
veloped, tax of $2,540,750 may be
levied on the people to pay a Z per
cent dividend on this watered stock.
Some three years ago there existed
on the Columbia and Willamette rivers
line of transportation, with facilities
sufficient to do the business of these
routes. This property was highly esti-
mated at value of $2,000,000, but
was sold to tho o. r. & n. G. for
$5, 100000. In addition to this pur-
chase from the o. S. n. Co., by the
o. r. and N. Co., of the Columbia and
Willamette routes, for which was paid
$5, 600, 600, there vas purchased by the
0. r. and N. Co., the property of the