The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-10-30
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A FORM OF ROBBERY.

Ii any of the Southern Pacific officials
who are so prone TO spend their vacation In
the south of Europe should be seized by
banditti aud held for a million or so IN
ransom. they would doubtless declare the
proceeding a high-handed outrage. But
the report of Government commission
appointed to investigate the affairs OF the
Pacific railroads shows the following con-
corning the Central Pacific:
The Central Pacific and Western Pacific aided
portions (S6066 miles, were built for $40.
100000, for which bonds and stocks were issued
by Messrs. Leland Stanford. Coils p. Hunt.
ington, Mark Horklns and Charles Croker, or
under their direction, as follows:
Bonds S702GlGS0
..'..'..'..'...''.. o4ooOOOo
Total issue of stock and bonds. sl24 2Il $50
Cost Of CONSTRUCTION. ............... 4OOUo'oOO
Fictitious cap ital. SS421l, 1850
The bonds reduced 10 a gold basis yielded
2.7OS, 742 50, so that the four men VINO man
aged that company profired to the extent of over
S12, 900 coo III gold, In addition 10 $54, 600. 600
of The stock. which they divided among them
selves and subsequently sold at high figures.
after declaring dlyldends 10 the amount oil S1S,
453,670.
The reader should bear in mind that
this is from a Government report There
was no political capital in it. No one was
employed TO MAKE out a case against rail-
road officials. Yet the commission found
that the four men who constituted the
Central Pacific Railroad Company at the
time profted by its construction 10 the
amount Of S12,0O0000 in gold in excess Of
bonds issued over cost. $50. co., 600 in capital
stock, from which dividends to the amount
of SIS, 453,670 have been drawn. The nigh
figures" at which the capital stock was
subsequently sold are not stated in detail.
The Southern Pacific COmrany. the legal
successor of the Central Pacific, now de-
clsres Itself unable 10 pay the money it boT-
roWed on the Endorsement of this Govern
ment. The report shows that the Central
Pacific Company issued in bonds and stock
So, 2l1 $50 in excess of the cost of the road,
and yet as a company they claim to be in a
position which tor an ordinary business
firm would be declared insolvency. 1t must
lie admitted that the methods Of rObbing
have improved since the time when banditti
held rich prisoners for ransom. But while
methods change the right and wrong OF a
thing remains the same. The fact that a
million people are robbed instead Of the
few the banditti could lay violent hands
upon does not affect the morality of the
transactions. The people on the Pacific
Coast have been charged railroad rates 10
pay interest on the excess of bonds thus
issued, the proceeds Of which have passed
into the private possession of the individuals
who compose the Southern Pacific Com
pany 1t is this exOrbtant railroad charge
that has kept the State back 1t is this one
fact that has prevented the establishment
OF manufacturing industries which would
afford occupation to our own people and TO
immigrants. The State will not prosrer as
| it should until Southern Pacific people are
made subject TO the laws which govern
! other people