The Saline County journal. [volume] (Salina, Kan.) 1871-1893, 1881-08-25
PROFITS OF RAILROAD sullDiNG.

There never was q time in the his
tory of the country when railroad
building progressed so rapidly as now.
Thus far the present year 3, lis miles
of track have been graded and laid,
and track-laying continues to go on in
various States and Territories at the
rate, in the aggregate, of about a0O
miles a week.
The ordinary toiler and business man
conteinplates with wide-eyed won.
der the colossal fortunes which
railroad men are piling up. In these
flush times, when money Is SO abun.
dant that it is exceedingly difficult to
keep it invested, capitalists are every.
where forming combinations 10 use
their money to profit. Railroad
building has been found to afford the
richest field of operations. The money
is now made i'm the construction of the
roads. The organizers of a corporation
let the contracts for construction to
themselves or their representatives at
enormous figures, and the profits are
divided. The road il bonded to an
extent in proportion to its alleged cost,
and in many instances the proceeds of
these bonds amount te much larger
sum than has been expended i'm this
construction. The surplus, together
with such bonds as may be voted by
the people of the country through
which the lines pass, are put into q
general pot and apportioned out to the
managers. Having thus made hand
some fortunes out of the construction
of a railroad, they care little about
what may become of il in the future.
As long As they can keep hold of ii they
will run il and pocket the proceeds
above operating expenses. Ii there Is
a default i'm the payment of interest on
original cOnstructiOnists. When they
can hold il no longer they let it go to
the bondhOlders.
The manner in which the Union Pa
cific and Central Pacific Railroads
were built is familiar 10 all. The orig
inal machinery of these two corpora
-tions was the Credit MObilier of the
former and the Contract and Finance
company of the latter. The disclOs-
ures of the former through lawsuit
in Pennsylvania several years ago, and
the subsequent investigation ordered
by Congress, created IA great scandal. |
The operations by the Contract and
Finance company Of the Central Pa
cific have often been mentioned in a |
general way, and some attempts have |
been made to show the enormous prof |
its made for its projectors, but things |
were kept so closely by the managers
that the full truth has never come to |
the public. Recent proceedings in the |
courts over the administra-
ton of the estate of the late Mark |
Hopkins, who was one of the four pro-
jectOrs of the California system of
roads, have thrown an electric glare
upon their transactions, and show that |
millions were made by these
men. There is not the shadow of doubt
that the syndicate of four, Stanford,
Huntington and Croker,
put i'm their own pockets through all
their transactions, a round hundred
million of dollars. And all this, too,
was made by the manipulation of 9TH
er peoples money and the subsidies of
The Government. Not dollar of their
own capital was ever invested. They
have defiantly violated their Obliga-
lions to the Government, robbed the
sinking fund and the interest fund
IN brief, have run their roads solely
for their own profit, and regardless Of
The interests of the people or the Gov
which subsidized them They
,laim their roads rs their own private
and resent with Indignation
all attempts of the Government to
regulate or interfere with their opera
ion in any way.
Public attention having been arOus-
ii TO the enermity OF the swindles
Dracticed by these men, OppOrtuni-
les of swindling the government can
Tot now be found, but new methods
nave been devised, the inside work
ngs of which the people do not yet
know. 1t is certain, however, that
he great lines now being constructed
O the Southwest country, and into Old
Mexico, are bOnanZas to the builders
they will all pay when COM
,leted and i'm operation. is another
question, and one which is not cOnsid-
red ut present. the money to build
hem will come from other pockets
han those of the constructors. but
'Ood round sums are certain to stick
o the hands of the latter.
From the best information we can
ather, We conclude that it is very
doubtful if any of the Mexican lines
will pay dividends i'm generation to
ONE i'm fact not until the country is
Americanized, and the present inhab-
tants rooted out.
But all the time there will be the
attest of picking for operators.
Everywhere it is the railroad own ,
rs and managers that are amassing
reat fortunes, and in few years they
ill be the most powerful body of
'ealthy men in the world. |: