Indian chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1882-1902, 1891-01-15
AGAINST RAILROAD TRUSTS.
JAY GouId's "Railroad Trust" scheme Can
lie Defeated By the Government Fore
closing Its Lien.

Z Jul lfuSt Neuetuf &Af
BE Defeated By the Government Fore
closing Its Lien.
The National Economist prints a
circular which has been prepared
for the purpose of exposing Jay
| Gould's gigantic scheme Of forming a
I railroad trust and showing the necessity
OF having the Government take decided
/ steps toward the foreclosure of the Pa
citic railway bonds. All friendly papers
are requested TO copy and all Farmers
/ Alliances are requested To send letters
10 their Congressman and petitions "a
Congress and 20 the Attorney General
as indicated. The circular says;
"ln 1867 the Government loaned the
Union Pacific Railroad Company $685.
51S, 900 per cent bonds, and gave II an
immense land grant, for the purpose Of
building up the West. The road has
been used to enrich its managers. and
its extortionate rates have been such as
10 opprcss the settlers along its route.
According to the report Of the Attorney
General Of Nebraska for issS. the
freight charges on subsidized railroads
in Nebraska are 30 per cent. higher than
on Iowa railroads that have received no
Government aid The road, although
paying in ten years over S2s, 600, 600 in
dividends 70 its stockholders, has never
paid the coupons on its subsidy bonds
These the Government has been com
PEELED 10 pay. and the principal OF the
subsidy, with the balances due ON ac-
count and the unpaid coupons. now
amount to nearly $50 600, 600 The con
troll of this road, reaching from Kansas
City and Omaha to the Pacific coast,
was necessary 10 enable Mr.,
Gould 10 complete his scheme of
railroad trust, !" organized for the pur-
pose of extorting Se2, 400, 900 annually
out of Western producers 10 pay divi-
dends TO Eastern stockholders. II Is
fortunate for the people that he has OBJ
tanned control at a time when the Union
Pacific railroad. alarmed at the ap-
preaching maturity of its subsidy, is a
suppliant to the Government TO extend
that subsidy for fifty years without ade-
quate security. by defeating the pro
posed extension. and having the Gov
ernment foreclose its lien on the road,
the Farmers Alliance can defeat the
railroad trust scheme. Although the
amount properly due the Government
by the road amounts 20 about $50, ,0O0.-
600, Senator Frye, of Maine, introduced
a bill in the last session of this Congress
ducting discount from payments made
by the Government for the account Of
the road, instead of adding interest 10
them; mortgage preceded by SIS. 600 600
bonds, when the Government now has
a second mortgage on the Union Pacific
road lands and assets preceded by
only SSS, 500. 600 bonds. He advised the
Government TO accept these per cent
bonds at par, when better bonds of the
Union Pacific road, paying 81 and 5per
cent are offered at IS and 50. Such an
extension viii be the means Of the Gov
ernment eventually losing the entire
amount Of the subsidy, and only fore
closure of the Government lien at once
can save it, and. by removing the road
from Mr. Gould's control. defeat his
trust scheme. If the Frve hill passes.
Il will place many millions in the
pockets of Mr.. could and other stock
holders of the Union Pacific railroad.
The charter of the Union Pacific pro-
vides that its telegraph line shall he
open to all telegraph companies on the
same terms. This line. although built
by money furnished by the Govern
ment Is now monopolized bv the
Western Union Telegraph Company.
and the control Of the Union Pacific Is
as necessary to Mr.. Gould b defeat Mr.
Nanamaker's plan Of cheap telegraph
facilities as L Is % perfect his railroad
trust The Union Pacific has repeated
u violated the United States laws Of ]