Lewiston teller. [volume] (Lewiston, North Idaho) 1878-1900, 1882-02-09

accumulation of capital is in the hands
of those who made it by an unscrupu-
lous use Of tho opportunities as rail
road managers. If Vanderbilt and
Gould should be deprived Of the money
made in this way, they would be COM
paratively poor men. Their wealth,
therefore, was wrung from the people
whose money built the railroads.
Pass strong and sweeping law max
ing it penitentiary oilense for railroad
managers or railroad officials to specu-
late in their own securities, and there
would at once be an improvement in
railroad management, and an end of
the practice Of watering stocks, by
which process capital upon which the
business of the country is taxed ia un-.
duly swollen.
As an illustration Of this point, take
the case of the Western Union Tcle-
graph Company. BY series of man
ipulations its capital has been increased
to $SO,00O,0O0. Yet all the lines that
it possesses today could be duplicated
for $20,o00,O00. The people who use
the telegraph are compelledto contribute
to dividend on $G0,000,00o of water.
In the last watering process Jay Gould
was prominent, and it is we'll under
stood that he made S5,000,000 by the
operation. He was at the head Of the
Atlantic and Pacific Telegraph Coul-
pany. He opened negotiations with
Vanderbilt, who was at the head Of the
Western Union, for consolidation.
knowledge of this was confined to the
two men. The next move was to break
down the market for the stocks, which
was done by means of false reports and
the cutting of rates. Stocks having
been depressed, the two greater wreck
ers bought largely, and then the con
solidation was announced, the stocks
advanced, and Vanderbilt and Goult
rakcd in their millions, and now tho
country is paying on threefourths wa
ter and one fourth capital.
Another recent case is that of tn
Manhattan Elevated Railroad Com
pany, which, through conspiracy ant
the improper use Of the courts, was de
pressed in value, and the real owner
robbed for the benefit of the conspiro
tors. And this is going on all owe
the country. Capital is accumulatin
to dangerous extent in the hands Q
few men who now virtually contro
directly or indirectly, nearly all til
great railroad lines. These people hav
become rich at the expense Of thos
whose property they were appointe
to manage, and at the further cost {
the country at large. Break up tn
system, and there would not be muc
danger from railroad monopolies. Ye
public men fool away their time tall
ing about the latter, while railroa
wrcckers arc stealing enough in leg
!, way from the public to enable them
:, control Congress.
1t has been said, and well id '
>, think, that there are better men in Il
=, penitentiary than many of those a Il
p head Of great railroad enterprises
y, this country, who do not hesitate
" misuse the property OF other Pcop
40 which they control. This is today Il
n. crowniDg evil in this country, and
of magnitude may le inferred from Il
II fact that the mileage OF railroads
the United States, not including doul
N tracks, is l0l 800 representing ca
n ital Of s5,250, 900, 900, with agsrega
10 gross earnings last year Of s675,oo
. 900.
D. We have spoken in this article
n railroad wrecking. In some cases ban
k ruptcy is unavoidable, but railroads O
.d often built to he wrecked, and as oft
managed with that object in view.
ad prominent railroad capitalist, who
engaged in an enterprise that is /
Ii. wanted and cannot be made protita|
m within the lifetime of a generation, "
IL asked to define the object of luildi
il. such roads, and he promptly replied
,le to sell bonds. Sell bonds, build ,
-, road, and then wreck it. Within
is last six years there were wrecked
N, the United States 251 roads, represe
iuo n milcape of % gDl miles an,