Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-05-02


do not live at competing point.
F.-This road is o fair sample OF the
whole. It is huge monopoly. 1t has,
believe, nearly 5000 miles of track, has
swallowed sixty or more roads, and is
ready to gobble up all others it can get.
Railroads will control the politics
of this country and everything else
yet. They have done something for us, to
be sure, and might do great deal more if
they were not all for self, grasping every.
thing.
C.-This, my friend, is quite an arraign-
ment. But If the road has accomplished
what you cay il has, there must be some
brains connected with it somewhere. Say
ing nothing of its being benevolent in
stitution, it strikes me that in business
point of view these sixty roads, run SIS
unit, under one management, must give
the people cheaper freights than if run in
fragments, each fragment having staff of
officers of its own, with, perhaps, diverg-
ing interests aud not sufficient capital to do
with. The universe is run by one CONTROL.
ing intelligence. 1t seems to be monar.
chy or monopoly, and yet it has the ap.
pearance Of being success and benefits the
people. Ii there could be sufficient of this
infinite wisdom instilled into one mind SO
that it could govern a nation in impartial
justice, it would be undoubtedly the best
Government possible. There are many in
situations that seem to thrive better under
one wise head than they could under many
minds conflicting with each other. Banks,
insurance companies and railroads seem to
prosper best under one wise head to take
the lead, and as l understand the his.
tory of this road, this unity system
has been the making of the sections
through which it is operated. It took
these branch roads, soma of them in a
state of bankruptcy, others having no
practical beginning or termination, put in
it's money, made extensions where needed,
brought all under one system of economy,
and let the vast farming communities out
TO good market, with prices such as they
hardly dreamed of realizing. Within the
last seven years, while thus monopolizing
and gobbling up, as you term it, the road
has reduced its freight rates about twenty
per cent, besides serving other mems farms
as yours has been served. Money has been
unsparingly appropriated for the better
equipment of the road. You are out to
the market of the world with good prop.
erty increased skiold in value, prices treb.
| led, products doubled, and if this has any.
thing to do with politics, then it is better
| that politics be run at railroad speed for q
while instead OF in the old ruts it may be
an improvement. As for a monopoly, that
which brings plenty to the board is the
kind to have. You will not be hurt by it
as long as the field is left open for capital
to compete with capital in railroad build
ing, as it does in the Western country. To
Cypress the people would be contrary to
railroad interests. To have healthy, desir-
able and permanent prosperity, all classes
must alike prosper and the benefits must
be reciprocal.
F.-Well, ! think railroads should be
under some legal restrictions. They ought
not to be allowed to water their stock, as
this and other roads have done. When
they get fair dividend on their original
stock they should be satisfied. and the
balance they make should go to the peo-
pie in the shape of further reductions in
freight rates.
C.-Ah let us see In the frat place
these roads are all under legal restrictions,
compelling them to carry passengers for
fare no. above certain figure. As they
| assume the attitude of common carriers
they are subject to the law regulating COM
mon carriers. They are Obliged to take
freight and deliver it without unreasonable
and unnecessary delay, but the carrier sets
his own price. There and ohter restrictions
are made, aud in return for what? For the
privilege of the right of way after the rail-
road corporation has paid the previous
owner every cent the property is worth.
But all the terms of the contract are de-
| fined in the law and the road is built under
that specified agreement. As an after.
thought, when the road has been built,
the State has no right to interfere or
swerve one iota from the terms of the con-
tract. 1t would be unjust, as in any
other transaction between man and man.
Hence the United States Constitution de-
clares 'sNo State shall pass any ex post
fscto law, or law impairing the obligation
of contracts.
Now how stands the matter You live
near this railroad. Eight years ago the
capital stock of this railroad was $50, 000,-
600. To purchase the other roads it added
to its capital. 1t also Issued new stock,
which you call watering, but it was merely
exchanging stock for its first mortgage
bonds, az provided in the articles OF agree
ment when the bonds were issued. 1t also
issued bonds to provide means fer more
rolling stock and the better equipment of
the road. The company also perceived that
their investment had increased Ia value,
and stock was issued representing this in
crease, and thus added to the assets, as is
usual and legitimate in all enterprises-in
all less that one.tR elfth of theentire stock.
The balance up to SIPS, 600, 900 represents
actual purchase. While they have added
less than one-twelfth to their entire capital,
you have added five times the value Of your
capital to your assets, to which you claim
an undoubted right, and you get Sper cent.
on the whole, the railroad having helped
you to all. The railroad divides per cent.
on little more than the originai; capita,
after many of the stockholders have lain
ont of their interest for years, and that
little more " you think should go to the
people, while you think you should keep your
entire increased capital and income. To be
consistent, when you have made per
cent on your farm, at the rate of S. psr
acre, you should divide the rest of your
income among the consumers. You should
not allow yourself so to water your CAPT.
tai. After having furnished the country
with freight rates that have given it such
prosperity aHu faiseu prices Oh plouuce W
figure as high as the consumer can well
bear, 1t would seem but fair that the bene.
fits should be reciprocal The railroad
having blessed the farmer, he should be
willing that it should have also the fruit of
its enterprise. But no !; you get six-fold
profit on your original capital, and would
hold the railroad compsny to their original
capital and confiscate to yourselves all the
- -. J.
to the skiold value of your own. In
other words, you would take As per cent.
on your original capital and restrict the
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