Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1886-04-08
Wilmington. Thursday, April 8, 1886.
mako rhern Paw up.

Pacifc railroad is vivid and loathsome
enough in it's whole Shiny villainy to |
make the blood of every honest reader |
boil in his veins TO think that the colossal |
plunderers,of the people and the govern
ment who have engineered these gigantic
steals should have been permitted SO long
to fatten on their ill-gotten spoils. There
does not seem to be anything specially
new in the Worlds revelations, but the
whole story of robbery and fraud
is brought together once more in
all its glarins hideousness. Therein the
people are told again how the highway
men of Wall street through the payment
of paltry subscription got grip upon
majority of the Union Pacific stock,
then, through their infamous Credit
Mobilier scheme, proceeded to contract
with themselves at enormous rates for
the construction of the road, pocketing
some $50, 000, 900 by the transaction, and
how they have gone on in the same me-
farious way from that day to this. Charles
Francis Adams. Jr., who is now, as the
World puts it, used by the directors as a
stool-pigeon for the presidency of the
road, is himself credited with the follow
ing definition of the Credit Mobilier:
Who then constituted the Credit Mobilier?
1t was but another name for the Pacific rail-
road ring. The members of II were in Con-
gress, they were trustees for che bond
holders, they were directors, they were
stockholders, they were contractors; In
Washington they voted the subsidies, in
New York they received them. Upon the
plains they expended them, and in the
Credit Mobilier they divided them, Ever
shifting characters, they were ubiquitous,
now engineering bill, now a bridge. They
received money into one hand as corpora
ton, they paid it into the other as a con-
tractor. As stockholders, they owned the
road; as mortgages, they hid lien upon
it; as directors, they contracted for its con-
struction, and as members of the Credit
Mobilier, they built 1t. What is the com
munity to pay for 1t ?
And much more to the same effect.
Another glaring swindle was the absorb
ton and capitalization of the Kansas
Pacific and Denver Pacific lines. In
1868 these roads were in the hands OF
receivers, bankrupt financially and
physically, their stock selling in the
market for less than wodollars per share.
Jay Gould, Sidney Dillon, Russell Sage,
Joseph Richardson, Fred L. Ames, Elisha
Atkins, Ezra Baker and F. Gordon Dex.
ter conceived a plan of purchasing the
stocks and bonds of these two roads and
consolidating them with the Union Pacific
Railroad Company, whose stock was sell
ing at about 1870. The $40 900, 900 o.
Kansas Pacific capital stock ant
$4,000 of Denver Pacific stock wer,
purchased for about 81 100000. Tn,
consolidation of these two roads with tn,
Union Pacific took place in 1880; til,
holders of the Kansas Il Denver Pacif,
stock getting over 800 share in stool
of Union Pacific Railroad Company 70
the stock of the Kansas & Denver Pacific
in other words, making clean profit Oh
the deal of about $13, 1000, 600, which wa
all plumber.
These and other swindles ware carrie
out, sometimes in evasion and sometime
IN utter defiance of the acts and authorit
of Congress, and all the bona-fide holder
of stocks of the road, all who were gree
enough to squarely buy and pay for then
were ''suckersn who were thus mercilessl
squeezed for the ACKNOWLEDGEMENT of thos
in the ring. Meanwhile the roads CREATE
creditor, the United States government
the agent of all the people, has bee
systematically and dehantly defraude
out of its Just annual dues until, at IL
present time, $1O5,OOO,OOO in roun
numbers, represents the enormous bulk
the debt. 10 some extent the Congre
sional leniency which has made possib
the piling up of such debt, the WOr
shows, there is good reason to belize
was purchased and paid for. In 1864
Thomas @. Durant, then vice-preside
and general manager of the Union Pact
Railroad Company, came to Washingtt
and, after placing $465, 253.2l where
would do the most good, succeeded
securing legislation subordinating t
government bonds (Which were design
TO take precedence of all obligations)
the first mortgage bonds of the roa
Other methods by which this cheating
the people has been made more and me
barefaced and effective from time to til
are related, at too great length to be de
with here. Succinctly stated, the dir
tors have falsified their reports, cut do
their receipts subsidized the Pacific NJ
and branch roads, transferred extravagi
sums to rolling stock and general expel
accounts, and have in every way done
that they could to swindle the COVE
ment. And now their lobbyists are wo
ing to secure the passage of an extens
bill, giving these public plunderers 81
years more in which to keep up IL
Paliey of lodging settlement with
n Rs$ie. ..
,, If this be the real aim IL view I'll
is only one proper answer TO IN
II to so cheeky demand; that is,
incontinently kick it and its hackers
of Washington and proceed to enfC
the collection of this S105, 900, 900
placing these roads in the hands
receiver. One of the most damaging
jections urged against Mr.. Blaine, dui
his recent candidacy for the presidei
WAS that he was hapd-in-glove with
Gould and that, if he should be cleo
these Pacific railroad swindlers We
escape being brought to account for t
misdeeds. Every one will recall
damaging force of Mr.. Edmunds
quoted declaration: lit is my delibe
opinion that Mr.. Blaine acts as tn
torney of jay Gould. Whenever
Thurman and have settled upon leg
ton to bring the Pacific railroad
terms of equity with the government
has jumped James G. Blaine, musk
hand, from behind the breast-work
Gould's lobby, to fire into our back.
The verdict of the nation, in defei
Mr.. Blaine, carried with it the den
that this corrupt cancer of over tw
years standing shall be cut out b.
roots; that the government shall den
insist upon and compel these railroa
settle up. This demand must be OBJ
There will be wailing and gnashil
teeth and, perhaps, some desperate