The representative. [volume] (St. Paul, Minn.) 1893-1901, 1899-10-12

! mile Of road built.
" consider the vast amounts OF aid,
given the railroads BY different towns
}. counties and cities in the voting Of mu
: nic1pat bonds and subsidies OF variou.
sorts, the granting Of rights OF way anf
other valuable franchises. And in thi,
connection, the history Of our state 0,
: Minnesota and Of many counties and
towns therein would prove interesting
VI take the period Of time commenc.
1ng with the year 1869, up to which time
, railroad extension may be said to have
been carried on within legitimate lines
) with new fields for all. and non-compet-
ing roads being the rule. The pros
perity OF the railroads existing then at
tracted the attention of enthusiasts and
capitalists and ambitious localities to
railroad1ng, and railroad managers and
exploiters plunged recklessly into rail-
road building. New railroads were
built, existing lines were ,paralleled:
territories already covered by one sys-
tenn were invaded by rivals; every re-
spectacle sized community, and many
small ones, and every boomer and
Spectator in real estate and vacant
lands wanted railroad for some pur-
pose or another, and thus the great war
OF competition between railroads began
IN dead earnest. Multitudes of small
ROADS were built, and such adventures
| DIS the Nickel Plate and the West Shore
which afterwards fell from sheer ex-
naustlon, were inaugurated. COMPETE
TORS built rival roads into the territory
OF older roads, and tapped from oppos-.
ing SIDES the tributary territories. IL
united States was wild VITA railroad.
Ing. The desire to have railroads ho-
came almost craze, and state and
county credit were freely offered to the
enterprlsing railroad builder. The his
tory OF Minnesota repudiated railroad |
bonds, with which we are familiar |
was only one instance out of MANY |
otatlstlcs show that between the years
1865 and 1871 100000 900 were invested
In Western railroads.
II was during this period of unre-
strained railroad building that watered
stocks and bonds Of railroads camo into
ao'ice ana opened up some of the prob
lens which have caused endless dis
cusslon, legislation and litigation dur
Ing all these years, and which are not
yet ended. The early railroad builder
promoter and manipulation was crafty
sn L. |
was sklllful in the art of issuing water
gu STOCKS and bonds. He appealed to |
Inc localities and the individual for aid
u the shape of local bonuses and
bonds. No bonds, no railroad" was
ne threat held over ambitious COM
nunltles. BY well known devices he
managed, if his road actually
ost $l,OOO,OOO,to issue $4,000 900 of stock
no $2,OOO,OO0 of railroad bonds. secured
y mortgage on the road itself He
therefore, had $4,000, 900 Of stocks and
onds, OF which less than a million rem
esenteo value actually put into the
oad and over 100000 was pure
water" In the course of time these
onds and stocks were sold for what
icy would bring, and always below mar
rsely passing into the hands of bona
az owners in Europe and the East.
III the result was that a railroad cost
s $l'ooo,OO0, part of which was raised
municipal bonds, given to the r:il-
al itself, had obligations outstanding
S4'Voo'Ooo upon which it was en-
aVorlng to earn and pay interest and
Then it was that compoti- F
- 1or business among the different
ADS became fierce. In order to secure :,
slness, rates were lowered secret 4
fgalns' determinations and distinc-
us OF all sorts were made, and the
abroad war" was on. Where ono
lroad was able to handle the business
locality, two and sometimes ;hroe
1erent roads divided between tbom
same traffic. Business and com
rec, fast as they grew in those do
oplng days, could not double or
Die themselves at a single bound.
tncy had to await the slower nro.
OF growth. Furthermore. business
sa" their advantage in this strug-
between the railroads for business
SO they in turn crowded the roll
as TO fresh concession. They used
n concession Of one railroad as .
er TO again screw down the rival
ROAD. Meanwhile, the railroads. to
re up losses in certain quarters.
re various distinctions against othe,
favored localities and individuals
an attempt to recoup from one 10.
" losses made in other localitie,
as consequence great Injustice
done less favored localities and
viduals
Concluded next week.