St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-06-09
A SHAMELESS CORPORATION.

The developments made by the house
committee on Pacific railroads relative
to the construction of the Central Pa
cific line are even more startling than
the public had reason TO expect. 1t
has long been known that there was
something crooked in the transaction;
otherwise the promoters could not have
become possessed of many millions of
dollars with such apparent ease. SIaD-
ford, Hopkins. Croker and Huntington
were comparatively poor men when
they undertook the enterprise. They
invested nothing themselves except a
small pittance for labor and supplies
for the laborers. The government sub
sidy was sufficient to construct tine en-
tire line and equip it thoroughly. But
the government received no share in
the stock, which was monopolized by
the persons named. and so manipulated
as to return them enormous profits. In
order to carry out their plans these
men found 1t necessary to purchase
Legislatures in job lots, to corrupt the
Judiciary, and to browbeat congress
into foregoing the payment of interest
on the subsidy bonds. The corruption
was widespread. Whomever the syndi-
cate approached became their patient
tools, and an empire was made to con-
tribute to their gain.
The recent litigation over the estates
Of Hopkins. Stanford and Crocker has
resulted in bringing some devious things
to light. The courts have been COM
PEELED to listen to tales of bribery and
extortion that reflected little credit
upon the millionaires. They were
shown to be utterly unprincipled in
their greed, and deliberately set to work
to wreck the road in order that the GOV
eminent should not receive the interest
on its bonds. The earnings disappeared
in mysterious manner. The expense
account was prodigious, and it was all
along suspected that much money
charged to that account was diverted
into the pockets of the syndicate. There
were no dividends paid to other stock
holders. at any rate, and the market
price OF the stock was so manipulated as
to keep it out of the hands of genuine
investors. The game of ''freeze-out"
was played to perfection, and each f1uc-
tuation in the market value was made
to add to the wealth of the operators.
The recent proposition to reorganize
the company and compel the govern
ment to donate its bonds to the corpora
ton was of piece with the general
people had become weary of paying
interest on the bonds, and would be
glad to get rid of this burden by surren-
de1tng the principal. But, fortunately,
there were few faithful representa-
tives on guard, and an investigation
was set on foot which has resulted in
the exposure of the entire shameful
story. The result cannot yet be foretold,
for there is 10 guarantee that the
government will not relin quish it's
bonds. The proper course, however,
would be to foreclose the mortgage held
by the government, and get whatever
may be obtained from the proceeds.
The government bonds are a first lien
upon the property. 1t will bring good
price-far more than its Indebtedness
amounts to-and the present managers
have no right whatever to control it.
But the Pacific railroad lobby is ex-
ceedingly busy at Washington these
days. and needs watching. The men
who manage the legislative department
are utterly inscriptions. They will
undertake to coerce congress, if posi-
BILE, and. failing in that, will attempt
bribery. It is about time, however,
that limit were placed upon their ra-
pacity, and that the peoples property
rights in the road be asserted and main
tanned.