Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-01-14

lations of the Central Pacific and It's ad-
1uhct companies with its directors. Mr..
rattison found that ''Messrs. Stanford,
ceived over s142,0 100000 in cash and Sc
curities through the Contract & Finance
Company, the Western DEVELOPMENT
company. the Pacific Investment Com
pnny and dividends Of the Central Pa
ciiic Railroad Company. In addition to
this sum of $l42, 100000 they also made
large profits in the operations Of fifteen
directly or remotely sapping the rev.
enpes Of the Central Pacific Company
Moreover, the Central Pacific spent
SASS, 365.6 of which the managers de-
nit others to explain This amount,
which is simply SO much taken from the
resources available fol-, the payment of
the government debt Mr.. Pattison has
and influence egislationP This Rhoi fact mg is
shown by the. Huntington letters.
The story of the other subsidized roads
Is similar. The Contract & Finance Com
pany reappears in the Union Pacific as
the Credit Mobiller. The scandals OF the
Huntington letters were anticipated in
the disclosures of Cakes Ames and his
associates before the Wilson committee
Had the Pacific railroads been built and
managed upon honest methods" said the
loan been properly applied. these com
panies. regarded as whole, could have
declared dividends at the rate of 6 per
cent. per annum for eighteen years. from
present time. upon all the moneys that
they would have been required to pay In
to complete and equip the roads: they
would have owned 2sS miles Of roads free
an original outlay of less than $685. 400. 3Si "A :
three of them the Union Pacific. Central
Pacific and Central Branch. could have
terest advanced by the government to
date. and could have reduced their charges
to shippers to the extent of over $40, O0O,-
600 or nearly $S,000,00O per year
For 81 the stockholders would have real
lied $l.07 In dividends in eighteen years.
and Sill in land sales. The property
would have been free from debt. and for
stockholders would have had in property
over "a; SO that in eighteen years each
dollar would have yielded $61S. But they
chose dishonest methods. At the outset
they divided $112,347115 of fictitious capt.
tai, they dissipated over $107. 900 which
should have been applied to the principal
and interest of the government debt. and
they taxed shippers to the extent of over
$14O ZOO. 600, or nearly $S.OOOOOO a year to
pay for the imitation of the capital of
these companies and for the vicious prac
ties that crept into their management.
That is why the Central and Union Pa
cific railroads now come before Congress
in forma pauperis. to ask the government
to let them off from the principal of their
-
market rate of interest for eghty-nine
years. The pockets of Mr.. Huntington
and his confereeS bulge with the stolen
money that should have settled this claim
in full. The lobbyists that swarm about
the corridors of the capital plying con-
gressmen with arguments for the sacri-
flee of the government debt are paid from
the revenues that ought to be applied to
the bonds. The engineers who are trying
to persuade the Walker board to order
the expenditure of $3O00.000 more of public
funds for the construction of a private
harbor for Mr.. Huntington at Santa Mon
lea are hired at the cost of the treasury
of the United States. The Southern Pa
cifc which has been made the lever for
squeezing down the value of the govern
ments property. was built out of the
earnings of the road whose business it
has been trying to absorb.
The government has allowed the SubSl-
died railroads to produce Il crop of mil
lionaires-it is time now that it made
them produce something for itself. 1t can
stop the drain of business to the Sunset
and make them again the great dividend
paying properties they We're when the
wrecking process began. 1t has already
assumed control of the Union Pacific in
the interest of the private security hold
ers-why should it not retain that control
and add that of the Central in its own?
Has its experience with Mr. Huntington
and his allies during the past thirtyfour
years been such lis to lead il to desire a
continuance of that experience for eighty
nine years more ?-San Francisco EXami-
ner, Dec. %.