The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1891-04-08
The PACIFIC Roads.

Probably few of the people who are
well aware of the fact that the United
States have been most shamefu,ly robbed
by the Pacific railroads know how extens-
i've the robbery has been or the manner
in which it has been accomplished. When
the debt becomes due, in 1873, the several
roads will owe the government the i'm
mense sum of Sl7S,SS4, 1888; less some
deductions amounting TO about s., 100000.
This is the principal and interest of the
sums advanced for the construction of the
roads, as follows, in bonds: To the Cen
trail Pacific, S25, SS5, l20; to the Union Pa
ciic, So, 236, 5l2; to the Kansas Pacific,
s., 531 ,320; TO the Western Pacific, 81 ,975,-
$40. total OF S64,623,5l2. In addition
these roads were given about % 200 600
acres of land, the greater portion of which
has been sold to settlers and all OF which
is out of reach of the bondholders' or the
governments claim.
For its claim against the roads the gov
eminent has a very flimsy security, viz.
a second mortgage on 2,495 miles OF track,
valued at 500, 100000. On this there is a
first mortgage of S64,6O0,000 lea ing the
government 49,, 100000 of property from
which TO collect S17S. 100000.
The roads have never made an effort
in good faith to liquidate their indebted
ness to the government. On the con-
trary, they have devoted their earnings to
buying additional lines on which the gov
eminent could have no claim, paying big
dividends on watered stock and in other
ways getting their property out of reach
of creditors. These outside possessions
are something enormous. Col. MORGAN,
the government engineer, estimates them
at Sl93,000,000, and Manager KMBALL
said that the road could not afford to ex-
change its coal lands and coal rights for
the government debt.
One method by which the earnings OF
the roads have been absorbed has been
by the watering of stock. The cost of the
roads was S95 ,955, 347, while the roads have
been capitalized at S26S, 3O2, 1852, making
S172,347, l15 of water" in the stock. The
Union Pacific issued $40, 762, 800 of stock,
of which only S400,G50 was paid in, and
the Central Pacific issued S54,O0O,O00 of
stock, on which but $4,000 was ever paid
In. On both these issues dividends have
been paid, so etimes as high as per
cent. per annum.
These are some of the ways in which
the roads have been rendered unable to
pay their Indebtedness to the government.
But other means have been employed by
which the roads have not only succeeded
in keeping the government out of its just
dues, but have enriched the men interest
ed in them. From their very inception
the leading spirits have been filling their
pockets out of moneys contributed by the
government. Competing lines have been
built with the earnings of the subsidized
roads and these roads gobbled up by the
STANFoRDs and HUNTINGToNs. But by far
the greatest portion of the subsidies went
to officers of the Pacific roads who organ
lied construction and supply companies
and as officers of the roads took the
money of the roads and put it into their
own pockets IN the Pooh Bah capacity of
contractors. Thus to HUNTINGTON, STAN
FORD. HOPKINS and CRocKER alone Sl42,-
100000 was paid for construction and
supplies.
In this way individuals have grown
immensely rich. the government has been
robbed and the roads bankrupted.
The settlement OF this question should
soon be arrived at. The farmers party, if
there be one, and the democratic party
should incorporate in their next national
platforms demand that the Pacific rail-
road magnates be forced to disgorge.