The morning news., 1894-06-10

! There are laws regulating the tratf1c
charges of railroads and laws preventing
railroads from forming pools. Indeed,
there are all sorts of laws intended to
/ protect shippers and travellers by rail.
/ but there are no effective laws for the
/ protection of those who purchase railroad
+ securities. False statements are made of
/ the earning power of railroads, and by
/ that means millions of dollars worth of
( securities are unloaded on people who
have not the means of finding out whether
the roads on which the securities are
issued are insolvent or not, or whether
they can earn the interest on their obliga-
tions.
The men who unload worthless securi-
ties on the public are no better than rob
bers, and they ought TO be dealt with as
robbers. It is often the case that the
main object of the men who form COM
pany to build railroad is not to deal
honestly with the public, but to get the
public to invest a great deal more money
in the road than it cost to build it. They
issue bonds and stock to a far greater
amount than the road can carry, and
then get tn public to take the securities
by making a false showing of the roads
earnings. And there are many recent
cases where men have obtained control of
solvent railroad properties, and have
filed their pockets to the injury of the
original security holders by issuing vast
amount of new securities, the interest on
which the properties cannot earn.
Wrecking schemes of this sort are dis
honest, and yet the men who conceive
and execute them are accorded a place
among honest men. Ought they TO be
permitted to enjoy their plunder2 Why
shouldn't they be dealt with just as other
ofenders7
The United States has begun suit to
hold the estate Of the late Senator Stan
ford responsible for a portion of the in
debtedness of the Central Pacific railroad
to the government. The amount of this
Indebtedness is about $40, 900, no part
of which is the government likely to get
The question arises, what became of the
vast sums of money contributed to build
the Central Pacific railroad. 1t is said
| that the road did not cost over $50, 900, COO,
and it has been estimated that it did not
cost over S15,000,000 The government,
besides contributing $50, 100000 in bonds,
! donated 100000 acres of land, esti-
mated to be worth nearly $50 600, 900. The
| first mortgage bonds, in which the gov
ernment has no share, amount to S27, ,SO6.-
| $50, and stock amounting to Sl2O,000,OO0,
has been sold. Much of the stock was
! sold at s120 per share.
The chief men in the company, Stan
| ford, Croker and Huntington were not
worth S400, 900 in 1861. In 1869 they were
| estimated to be worth $4,000, 900, and to-
day Huntington alone is believed to be
worth that much. These three men had
! the management of the company which
| built the road. AS an illustration of how
money was made by them, it is said thai
| Croker received S23, 726, 900 in gold fol
! building 552 miles of the road, seven
| eighths Of which was on a level plain
For another piece of the road of sixty
| eight miles he received S17S. 900 per mile
| although the actual cost was not hal
that amount.
II is apparent, if these figures are cor
| rect, what became of the government.
| money, and how the large fortunes o.
Huntington, Croker and Stanford were
accumulated. Ought not these men, OF
their estates, be made to pay this road:
Indebtedness to the government If not
| why2