Workmen's advocate. (New Haven, Conn.) 1883-1891, 1888-09-22
EXPENSIVE EXPERIENCE.
One Way of Robbing the People under
Capitalism.


The history of the first transcon-
tinental rrilroad scheme has been
briefly summarized in the st. Louis
NeW Order, and furnishes such good
material for argument against the
capitalist system and "private enter
prise" that it is given our readers to
study:
The Chicago Times has been showing
up the history of the Pacific Railroad
steal. This history shows that the first
contract to build 246 miles of road at
$50, 900 per mile was given to Hoxie,
then practically unknown employee of
the company. A month later he as
signed It to five of the directors, who
had thus practically negotiated the con
tract with themselves. That it was an
advantageous one was shown by the fact
that Dey, the chief engineer at that time,
had estimated that the outside cost
would not exceed $50, 900 per mile.
Rather than raise this estimate to S5O-
600 he resigned.
The five directors then bought the
Credit Mobilier franchise, and that com
pany took their S2lS,000 worth of stock.
They are now managers of both CON
Germs, and the Hoxie contract was made
over to the Credit Mobilier to be paid for
in bonds and stock, the latter to be con-
sidered as worth thirty cents on the
dollar, though the charter provided that
none of it should be issued at less than
par. The contract cost the railroad
company $12,964, ,416. 1t cost Credit
Mobilier to build the road 81, S06, 1873,
leaving for the directors, from their own
contract profit of s., l6S,233,
When the 246 miles of road were fin
ished the directors contracted with
man named Boomer to build west at the
rate of $19, 800 per mile. He built fifty
eight miles, out of which the directors
made nothing. SO they again contracted
with themselves to build the tifty-eight
miles already constructed at $50, 900 per
mile The net difference of $22 $50 per
mile, after paying Boomer and the
equipment, they put into their pockets,
amounting to 81, ,345, 900.
AT this time 1873 miles had been built
west of the one hundredth meridian at
cost of about $4,000 per mile. Then
another stroke of fnanciering was made.
The company contracted with Oakes
Ames, who turned over the contract to
seven trustees for the benefit of the
Credit Mobilier, still identical in person
mel with the road. 1t was for 661 miles
west from the one hundredth meridian,
including the 1888 miles already built, at
prices ranging from $4,000 TO 500, 900
per mile, and aggregating SAT, 1926, 900.
Shortly after the contract was eX
tended for the remaining 1875 miles of
the road on the same terms, and the
profit therefrom was $780,, ,9S4.
Every undertaking of the govern
ment let out to private parties is
more or less used as means of d.
rect robbery of the people and en-
richment of a few "enterprising"
capitalists. The incentive to thus
''make money" is ever present under
the capitalist system, and until the
people adopt socialism they will
have to pay dearly for their green
ness. Socialism, by removing the
incentive to steal, protects Labor
from the exploiters; but the present
system not only permits such steals
as that of the Pacific Railroad, bnt
also protects the possessors Of the
stolen property in using that prop
erty to further exploit the people.
The workman pays it all in long
hours of labor.