The morning call., 1892-06-01
PROFITS OF RAILROAD BUILDING

The CALL has shown what will be re-
quired in the way of railroads in California
within the next few years. Railroads the
State must and will have, and the only ques-
ton is, Who shall build them? The CALL
believes that this city has the means 10
build the railroads and own them, but we
would advise the citizens Of every town Of
any considerable Importance in the State TO
join IN the enterprise. We have suggested
that few investments can be found which
promise better results than money placed
In or per cent bonds where the railroads
have not cost over $4,000 per mile. In
the construction Of the Union Pacific Rail-
road tie work was placed in the hands OF
the Credit Mobilier, an organization per-
fected purpOSely to make as much money
out of The Government bonds and lands as
possible. These men realized upward of
81, O00 each, and there were numbers of
them The Union Pacific Railroad Com
p8ny vas thus at the very outset deprived
of considerable portion of is assets. The
Central Pacific Railroad Company con-
sisted Of Huntington, Stanford. Hopkins
and Judge Croker in the first instance. but
Charles Croker afterwaTd took the place of
Judge Croker. These men did not call
in outside parties as did the Union
Pacific Railroad Company in the case of the
Credit Mobilier. but they resolved them
selves into what was termed the credit ana
finance committee. In other words, they
let the building Of the road to themselves
under another name, and then they ab-
sorbed the Government and first-moTtgage
bonds and the Government lands, enrehing
themselves Unfortunately II will thus be
H.. e. Ia aI
men commenced playing in the first in
stance. Since that time We believe every
mile Of railroad built. constituting the
Southern Pacific Railroad, the California
and Oregon Railroad, etc, etc, has been
constructed with hired money; with bonds
Issued TO the amount of 30 per cent more
than the roads actually cost. That is, for
every mile Of railroad built outside of the
Southern Pacific, probably not less than
$4,000 has been pncketed by the rail-
road magnates. 1t Will thus be realized
now profitable have been all the railroads
which Messrs. Stanford, Huntington and
Company have handl-d. THE CALL urges
that there has never been offered for Cali
fornia enterprise a more lattering prospect
for making money than the construction Of
several lines OF railroads in this State, and
Tor connections with Eastern roads beyond
Salt Lake City. The only question is to
whom these railroads shall belong when
built. Shall Stanford 81 Co. be permitted
TO 90 on, gathering the money to build the
roads, hedging Us roundabout by cOmbina-
tons which will still further enrich few
men at the expense Of the whole State? The
greater portion of the railroads constructed
within the United States during the past
twenty-five years have been virtually a
swiudle upon the public. for the roads have
had bonds placed upon them for probably
$4,000 per mile more than their actual
cost HE CALL believes that 10 the building
of railroads in this State and in their con-
nectlon WITH the East a field is opening
which promises great wealth 10 the persons
taking such enterprises IN hand. Chicago
has probably not less than forty or fifty diff
fer6nt railroads running out Of that city,
owned by as many different corporations.
California, within the next twenty years.
will probably have not less than twenty
different railroads running out of this city,
and THE CALL predicts that they Will not
all be owned by tie four or FIVE individuals
who have US now chained down and bound
to their terms as taskmasters