The morning call., 1892-01-14
WHAT INTERESTS CALIFORNIA.

A paragraph has been going the rounds
Of Eastern newspapers recently to the ef-
ice. that the Ohio RIVER Railroad Company
Ls, made an offer TO purchase for three mill
jon dollars The Newport News and Nissis-
sirpi Railway. This road is supposed to be
tile one in which Mr.. Huntington has been
interested for some years past At any
rate here is a railroad for sale, which proba-
bly, furnishes a fair illustration Of the way
in which railroad property IS managed in
the United States. We do not know the
length Of the read which can be purchased
for some three millions Of dollars. but sup
pose IL IS eight hundred or q thousand miles
ling. 1t shows that it does not require
much money 70 own railroads at the present
time, for one-balf Of the railroads in the
United States are m0rtgaged for more
money than it cost to build them. In the
fist place the roads were m0rtgaged for
about what the cost Of construction would
be- and then new bonds were issued and
divided as dividends among the spectators.
This explains why half Of the railroads in
the country cannot pay the debts which
they owe. The men who handle the roads
have become immensely rich. but the pub
lie generally have suffered. The Southern
Pacific Railroad IS mOrtgaged probably
for more than it would sell for, but it
Is an organization which has a loca-
ton IN Kentucky to escape taxation.
1t controls the Central Pacific. The
Central Pacific Railroad, as our readers
generally know. received subsidies in bonds
and lands for nearly enough to build the
entire line. and then the concessioDists
secured the consent Of Congress 10 mort
gage tie road still further, and these new
bonds took precedence Of those at first
issued by the General Government This
is how the parties concerned have become
SO wealthy that they can do about anything
they please with this city and State. In
addition to the grants by the Government,
this city and, indeed, other interests made
large donations 10 the railroad to assist in
its construction. The people would not
now complain if they were not oppressed By
excessive freight rates which are sapping
the prosperity Of the city and State. We
commenced this article in order TO illustrate
the business of railroad management, By
referring to the proposed sale Of the New
port News and Mississippi Railway In
this instance an extensive railway line can
be purchased for some three million dollars,
which proves that it does not require much
money to obtain the control Of A railroad.
A few sharDers may purchase the Newport
News and Mississippi Railway for a song,
but the end is not yet. These men may
further mortgage the road and then make
sharp exactions from the people on its line.
Indeed, there is no end to the exactions
which may be made if the parties
concerned are willing to employ a
set Of scaiawags to run legislatures and mu-
inequalities. The question, however, arises
as TO the ownership Of the road. The men
who have possession OF it for the time being
do not in reality own it. hence they do not
care how much the people are oppressed
provided they can enrich themselves there
BY. We might come nearer home for an
eXempifcation OF the management Of rail
roads Take the Central Pacific for in
stance. The persons who have control of it
do not OWN it, for it is mortgaged for all 1t is
worth, but so long as this city and State
consents to be taxed by all manner Of means
the eXactiOns will be kept up. The com
pany will willingly nominate all Of our can
didates for Office, SO long as the people will
vote for them. They will fill the Legis-
latuTe with their instruments, who will op-
pose even fair taxation. They will dictate
who shall be Senators and Representatives
interpret our laws. Nor are the majority
Of our railroads managed very differently
from some lines of steamships. Mortgages
are put upon the vessels in the first instance.
and if their freighting and passenger bust
ness does not speedily enrich the parties
concerned additional mortgages are placed
upon the steamers. Dividends are fire.
quenlly created in the way suggested. 1t
IA - ,eft
own most Of The steamship and railroad lines
on this Coast if they could be taken
subject to the existing mortgages and
be thus utilized. Some Of our citizens may
at first glance be frightened almost out Of
their wits by the idea of Op osng COM
pany which can spend millions Of dollars to
control legislation, but after all is not the
idea a myth. for do not we ourselves fur
nish the means by which we are enslaved?
II we were to stop voting railroad candi-