Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-07-02
USEFUL ENMITY.

nifty, it would have been able to blackmail
the community in which it is published
out Of a very much larger sum than has
already rewarded its venal practices. But
Ycnal mahgnity is never associated with
any high order of ability, and as result
the Chronicles attempt to injure all asso-
Citations Of capital which have refused to
be blackmailed by it often fails for want Of
that species of business sagacity which
would enable it to strike effective blows
against business interests. 1t is frequently
subject Of much merrimentin well informed
circles to witness the frantic attempts of
the Chronicle to infict injury upon the cor
porauons it seeks to punish, when these
efforts more frequently play exactly into
the hands Of the parties sought to be in
jured,
Recently the Chronicle desired to show
that the Genital Pacific Railroad had been
very largely subsidized and basing an
argument in. favor of Introduction of fares
on the factAf such subsidy, declared that
the land remaining to the company was
worth an average of s. per acre 1t is
stated on good authority that about the
time of this publication the company was
conducting several negotiations for the
sale of land in large tracts, and in the
promotion of these negotiations found
this testimony of the Chronicle of
very considerable value since the
assertion was made from the ap-
parent standpoint OF hostility, rather
than tavoritism to the company. Times
without number, when the securities of the
company were being placed upon the mar
liet, the hostile declarations Of the Chronicle
concerning the vast resources and incomes
of the corporations have been used with
splendid effect to bolster up these securities.
Exaggerated statements predicting an an
nual income within short period of fifty
millions; declarations that during the year
preceding the publication of these state
mcnts the net profits of the railroad Sys-
TEN of the Pacific coast had exceeded
twelve millions; Muncbauscn estimates of
the size of the private fortunes of the orig
railroad system, such as aScribing to each
OF the five original incorporatorS a private
fortune equal to fifty millions of
dollars; all these things have been ex-
tremcly useful to a corporation which.
within the past twenty years, has borrowed,
to bc expended on the Pacific coast, the
enormous sum Of one hundred and twenty
five millions of dollars. In addition to
this vast sum of money which has found
permanent investment here, the same cor
poration has had from time TO time to 90
into the market with securities held by it.
for the purpose of cficcting temporary
loans.
Now, it should be apparent to the COM
mon comprehension that borrowers upon
this gigantic scale above all things else
need credit-crcdit as successful railroad
builders, rs successful railroad managers,
as being possessed of an immense income.
as being in receipt of enormous profits. and
also as being in possession Of vast private
fortunes. What friendly statement could
not have done for these people, in establish
ing the reputation Of having wealth, in
come. success, and therefore credit. the APP
parently unt1iendly assertion of the exist
encc Of these things. on part of the Chronicle
has ALWAYS easily and readily accomplished
Let anyone point, if they can, to single
instance where any statement apparently
adverse to the railroad people, published in
apparent hostility to them, has been other
than statement calculated 10 promote their
credit and to confer upon them the reputa-
ton of being in the possession of vast
wealth. vast incomes, and generally on the
highway to the most complete and aston
ishing ultimate success.
current instance will fully illustrate
the popularity of this either real or pre-
tended opposition TO railroad interests. The
shrinkage of railroad securities, the dc
preston of the money markets, and the
generally panicky condition of the times
coupled with an unusual demand upon the
treasures of the Pacific coast railways,
forced them into atemporary corner, which
may or may not prove seriously disastrous
The financial stress found exposure in the
determination, since revoked. to with
hold for one month the wages