The Labor enquirer., 1883-09-15
A Dream that is Not All a Dream.
How the Public Robbers
Escape
Punishment, While the Individual
Thief is Brought Up With
ia Short Turn.
The Corporation Racket that Pulls
the Wool Over the Peoples
Eyes.

! ocnoIon "uiCl Conldlleu tne pan vi d
big railroad scheme in which they were
interested.
1--WE propose" said one of them, "tc
start new railroad system beginning
at Carson and ending i'll New York."
"When will you begin operations p
queried the officer.
"Oh, as soon as we get out Now lei
me outline the plan. We start out with
some pins, chains and rompa>scs and
make a survey. We announce the
proposed Carson, Arizona and Texas
line. Then We incorporate and let III
a lot Of the solid citizens, appoint com.
mittce to 90 to the financial centers and
lay in with a syndicate Of bankers tC
place our securities. They make a sat,
istactOry lay, and advertise heavy in the
hightoncd papers. and the treasury be
gins to bulge We get the country eX-
cited, the people subscribe for the bonds
and they 90 like hot griddIe cakes dc
you catch the idea?
The constable began to grow inter,
ested and nodded his head.
"WeII, then we apply for govern
ment subsidy, throw few thousand
shares Of stock around congress, get
some Of the orators to talk of ihe wealthy
country about to be opened up, great
natural resources requiring development
etc. and the things dome. Then we sell
the land at five dollars an acre, and push
our road right through to Texas"
You yet quite a start, said the officer
but who rays olI the hands :'
"Oh, | forgot one Of the most impor
tant accessories of course we organize
a construction and finance company; AZ;
directors Of the railroad 'mpany we
vote unanimously to give ourselves, as a
construction company, futr"ntracts; then
we sub.contract the construction out to
actual contractors at half price, and they
ruy tie hands or not, just as they choose.
Eut these are minor details, Now nur
next point is 'NrN Orleans. We want
more money, 50 we find flaws in the
original bill uf sale, and as we take a
hand in cIcctin4 the judges tn y pro-
nounce the title invalid holders haven't
money to- contest it, 50 We serve writs Of
ccrtment to fellows who have improved
our lands, and sell 'em again at higher
| figures This gives us a..uthcr ra g., and
then we freeze out tie original Stock
holders, sell the road, buy it in, rcorgan-
izc, water the stock like the devil and
give everybody d chance.'
"But the law steps IN
son. damn the law. The law doesn't
cover railroads railroads are too lively;
besides we are putting up a job now to
have majority Of our own men in the
United States senate Jwr'vc got all the
state senates now and the supreme
court and then we can head off any
'cUmmunistlc attacks you know. When
we get our road to New Orleans out OF
our earnings our lands, ard the taxes
we should have laid the government,
what we made on tire construction COM
uanv and the reorganization, Uncle Sam
swUops down, calls for his money and
threatens to take the road. We'll, there :
nothing small about Us We say take the
old road it's busted concern, anyhow.
Then he won't want it 50 bad, YOU see,
and we continue business
"But how do you freeze out the stock
holders %
"Why, we hire the government com
missioner to make a report and bear the
stock. That shakes the holders out and
we rake it in in blocks Then he makes
another one you see and the market raj,
lies
But this costs money; you need Z
good lot.'
"WeIl, we've made a good lot in back
freights and sockin it to the small ship
pers and the non-competitiye points, tc
say nothing of construction company
our land and freezing out stockholders
The policeman had no reply.
"Then from New Orleans We 60 tc
New York."
But have you made enough to builc
the New York road The eastern
people won't stand the back freigh
racket"
Maybe not, but the dear public there
are always keen to put up for railroads
The bankers arrange all that, and if it:
too thin for the United States they have
pals across the big pond who are always
ready to help unload road on foreign
investors for divide. They are always
ready to build the road and let the com
pany run it-and we're the company
you know"
zone splendid racket to work is when
stocks are low we buy, then form poo
with other roads, show big earnings
stocks advance, everybody rushes in, and
we let them boom it up until we think
they are high enough, when we quietly
unload, pass the word to break the pool