Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1884-05-09
Pacific Coast Silver Kings.

Twenty years ago q. T. Huntington
and Mark Hopkins were partners IN the
hardware business in Sacramento, Cal.
In the same city Leland Stanford was an
oil merchant, Charles Croker was no.
ted dry goods dealer. and Judge Crocker
was q lawyer of small means. In 1861
these FIVE men, with fifteen or sixteen
others, formed corporation for the pur-
pose of building the Central Pacific Rail
road. The united fortunes of the incor-
ators at that time did not amount to more
than $4,000. By the statutes OF the
State of California they were obliged to
pay up scertisn percentage on their
stock, that percentage amounting to
Sill 500. The next step after incorpors-
ting the company was to get certian bills
passed through Congress, by which they
obtained subsidies for building the road.
T his they did, but the subsidies were CIV
on such conditions that they could get NO
money from the Federal government un.
til twenty miles Of the road was built.
They induced the State government to
guarantee their bonds, upon which they
raised money enough to build the first
twenty miles Of the road. after which the
enterprise was easy. There was money
enough in the scheme, but there were too
many people to share in it. Accordingly
the Eve men aboye-named either froze out
or bought out all the other stockholders.
Some of the latter, who staid in until the
magnifeence of the scheme began to be
foreshadowed, realized ten for one on
their investments. Having disposed Of
these outsiders, the five projectors of the
scheme formed the Credit and Finance
Company, which was the Credit Mobilier
of the Central Pacific. These five men,
as Directors Of the Central Pacific, made
contractwith themselves. as the Credit
and Finance Company. to build the Cen
trail Pacific Road, giving therefor $27. 0OO,-
900 of Government bonds (which they re-
ceived as subsidy, $27, 100000 of the
company's mortgage bonds. and about
$4,000 900 of land bonds, which they is
sued on their grants. This, of course
came peacemeal as the work was done,
but the above sum, together with about
So. 00O, 900 more of bonds on unsubsided
road which the company afterward bought,
were paid to the Credit and Finance Com.
pany for building the road. Lest some
trouble should arise because of this scheme
the stockholders held meeting endorsed
the action of the directors-that is, the
five men met and endorsed their their own
action In making contract with them
selves.
Out Of the surplus which they made,
after declaring 8 per cent. dividend on
$4,000, 900 of stock, these mon bought all
other railroads in California, all the river
and bay steamers. and tho horse car lines
In San Francisco, establis he'd q mail line
to China, built the Southern Pacific Rail-
road. which they stocked and bonded for
$50, 900 . mile, although it did not cost at
the outside more than $50. 900 mile,
built palaces In city and country, which
did not cost for all of them less than
100000. The earnings of their roads
last year were about $4,000, 900. The
assets OF these men, as stated in th Dir an.
nual report, exceed $500 100000. The
original investment twenty-five years
ago was Sill 500. The story ia wonderful
one, even in this bald outline.
OF the five men who originated thu
Central Pacific. Mark Hopkins and Judge
Croker are dead. The other three own
most of the proceeds of that plan formed
twenty-five years ago. 1t is said that no
agreement in writing was ever made be-
TWEEN them; that in all of the immense
business each trusted the simple word of
bhe other, although at present Huntington
and Stanford, at least, are not on friend.
ly terms. Huntington, Croker and Stan
ford are each about go years old, and
the first two are still vigorous men,
however, is broken in health
WASHINGTON Republican.