Los Angeles herald., 1908-09-02

Chinese, who were paid, as 1 remem-
ber, $50 a month, out of which they
paid their food, wage lower than
anywhere in America.
up to 1865 but little work had been
done on the c. p, but with that year
construction was pushed rapidly. Hun
tington held court in Washington.
Stanford ran the state machine; san
derson the law department; Charley
Crocker supervised the construction;
agents In Canton and Hongkong
shipped thousands of coolies.
1.-THE government was to fix the ter
minal points between the roads. the
u. p building west from Omaha and
the c. p. building east from Sacra-
mento.
"The Union Pacific formed Credit
Mobilier company to finance and build
their end of the road. The Central Pa
cific organized Contract and Finance
company to construct their line. Both
of these subsidiary companies were Or
ganized about the year 1854.
'The directors of the Contract ana
Finance company were the same as the
directors of the Central Pacific.
High Finance
"The Central Pacific transferred all
the first mortgage bonds of the COM
pany, all the bonds of the government
secured by second mortgage, the bonds
received from the state and counties,
and the moneys received from sales OF
stock to the Contract and Finance COM
pany the Contract and Finance COM
pany, in consideration of such transfer,
agreeing to build and equip the road,
and upon it's completion or as fast as
completed, to turn it over to the Cen
trail Pacific company.
"a most unique arrangement for
~ "a nfn nFd n
Crockers owning all the stock of the
Contract and Finance company and all
the stock of the Central Pacific COM
pany except the stock exchanged for
county bonds and sold by private sub
scription, were in position to reap a
golden harvest without advancing a
dollar; and more, in the act of congress
which allowed the road to issue first
mortgage bonds for an amount equal
| to the second mortgage bonds of the
| government there was clause that
| prohibited the government from coli
| lecting the interest on its bonds until
| the maturity of the bonds which, as
remember it, was thirty years after the
completion of the road.
Railroads Beat Thurman
"In passing. for the information of
aspiring statesmen, let 1t be remem-
| bered that when Senators Thurman and
Edmonds in the latter '70s passed bill
| through congress to establish a railroad
sinking fund by allowin gthe govern
ment to retain all of the amount paid
| for mail and military transportation
| and enough of the net earnings to
make the total 25 per cent of the net
| earnings. Thurman was beaten for re-
election in the senate from Ohio by
| railroad influence.
This was the condition in 1866. The
promoters had a good thing. They
wanted it all, both cream and SKINNED
milk, and they got 1t.
up to this time 1t had been unneces-
sary for them to enter politics. They
got what they wanted without lobby
| ing, but were not satisfied.
I'm the legislature of 1S65-66 they
passed bill through both houses CIV
| ing them an additional two or three
millions in state bonds.
Press Wakes Up
ITO this there was a storm of pro-
| test, the Alta and Bulletin of San
Francisco and the Sacramento Union,
the three leading papers of the safe,
opposed any further subsidies most
vigorously, upon the ground that
through the generosity Of the state and
the federal government the Central Pa
| cific had enough of gilt-edged securities
to build the road and own 1t afterward.
Governor Low vetoed the bill.
| George c. Gorham was secretary TO
| the governor, and when he could not
induce the governor to approve the
bill declared that he would run for gov
ernor next year and would see that the
railroad got all it wanted.
1.-THE next year, 1867, marks the time
when the railroad entered politics; they
had many things to do In order to COM
| plete their ownership of this state and
the domination of Nevada as well.
THE control of Nevada was easy,
but they had good fight on their
| they anticipated, for secretly, silently
and cautiously they made their prepara-
| tions; at no time was the public taken
| into their confidence.
These NapoIeons directed their mar
shals; leading merchants and citizens
| throughout the state were enlisted in
their behalf. Lobbyists like Zeke Will
son and Nap Broughton were en-
ployed, and w. B. Carr was political
| generalissimo under Stanford.
Building and Lobbying
'Tn the meantime the real work Of
building the Central Pacific was
pushed, as also was legislation.
placer county was directed in 1855
to sell her Central Pacific bonds at 20
cents on the dollar, the unpaid interest
not to be counted.
| 1.-THE California Pacific was organ
| lied to build from San Francisco to
Marysville, and receive bonds from San
Francisco, Solano, Yolo, Sutter and
Yuba counties, taking over the fran
chise of the San Francisco & Marys-
vile railroad.
"The Oregon & California railroad
was organized and a large grant Of
land given it in both this state and
Oregon.
III. M. Newhall and Peter Donahue
of San Francisco started to build from
San Francisco to San Jose. They re-
ceived several hundred thousand dollars
| in bop5s from Santa Clara, San Mateo
and IAN Francisco. This road was
completed to San Jose in 1867, and a few
years thereafter was extended to Gill
roy. 1t Is now part of the coast line
of the Southern Pacific.
1.-THE London and San Francisco
bank, Milton s. Latham, president, was
supposed to have built and financed
the California Northern to Sacramento,
on its way to Marysville. It was COM
pleted to Sacramento, think, in 1870,
and soon thereafter was transferred to
the Central Pacific. During 1867 the
Central built from Sacramento via
Stockton to San Franciscoskwhich was
done probably to hold the Western Pa
cific franchise and to connect with the
forget the county bonds.
Eliminate Water Competition
"They then bought all the steamers
| OF the California Steam Navigation
company plying between Stockton and
| San Francisco, and Sacramento and
San. Francisco, thus effectua1ly elimin-