People's Pilot, Volume 5, Number 42, Rensselaer, Jasper County, 23 April 1896 — THE GREAT OCTOPUS. [ARTICLE]

THE GREAT OCTOPUS.

HAS TENTACLES ON EVERY INDUSTRY OF CALIFORNIA. Kohberg That Hake Ordinary Thieves Look Insignificant, and How They Have Plundered Both the People and the Government. By Congressman Bowers, of California. The facts in relation to the building and operation of the Pacific railroad are plainly set'forth in the report of the congressional committee appointed in 1887 to investigate the matter. This report is verified history, and is a revelation of shameless misappropriation of money, of dishonest accumulations of vast fortunes, unparalleled in the history of the United States. But the proper and only question for reasonable men to consider is, what is the best thing to do now; the best for the whole people, not for a very few rich individuals? To arrive at a just conclusion, we must take into consideration the thirty years’ record of the persons for whose benefit this refunding proposition is made. Knowing their methods of doing business in the past, we may fairly conclude that there will be no material change in the future. Speaking of the Central Pacific, the people of the United States loaned to a few men money enough in the form of bonds to build the road, then gave them land enough to equip it; then gave them another grant of land equal to the first; then authorized them to give a first mortgage on the road to themselves for twenty-five millions. They then issued and sold the stock of the road for many more millions, appropriating every cent of the money to their own use. The road was built and became at once one of the best paying properties in the United States. So skillful was the work done by the lawyers of these men, who formulated the different enactments made in favor of the road, that the company was not called upon to pay any interest upon the bonds issued by the United States until their maturity, which was thirty years (the government having paid, up to this time, upward of fifty millions for them). Therefore, they practically had a railroad given them, and an opportunity to divide among themselves, during its construction and immediately after its completion, not less than $100,000,000, obtained by the most shameless methods ever practiced by any corporation in the United States. They then seemed to become aware of the possibilities their position gave them and came to the determination that no other road should be built to California. I heard one of these men declare in the presence of two other directors, in the Horton House, in San Diego, Cal., about the year 1873: “No railroad not owned or controlled by the Central Pacific company shall be built into the state of California while we live. They may come after we are dead, but not before.” That declaration is absolutely true to-day of all of California north of Los Angeles. So soon as these men became fully aware of their opportunities they set to work to secure and occupy what was then, and is practically now, their empire—the state of California, with eight hundred miles of seacoast. They pushed the Southern Pacific from San Francisco south through, the great San Joaquin valley, and the California & Oregon to the north to occupy the approaches to San Francisco, the metropolis of the Pacific coast. They received from congress grants in aid of these roads also, and by the same methods, contracting with themselves to build the roads, they dishonestly obtained many more millions. Then, having secured this system of roads, upon which the government had no claims, these men proceeded to organize themselves into the Southern Pacific railroad company of Kentucky, under the laws of that state; and thereupon these men leased to themselves the Central Pacific railroad for one hundred years. They then secured control of the Panama railroad through their Pacific Mail steamship company, and precluded any practical competition, even by sea. That is the condition of the state of California to-day. Every approach to the metropolis of the Pacific coast is held by the Southern Pacific of Kentucky. The mere statement of facts connected with the methods by which this condition has been brought about would seem almost beyond belief, were they not absolutely proved and apparent. No railroad car enters or leaves San Francisco that is not drawn by an engine owned by the men who are asking the passage of this refunding bill. No freight can be sent from San Francisco via the Panama railroad except upon such terms as the Southern Pacific of Kentucky may dictate. Every business man of that city is completely at its mercy. What wonder, then, that we see interviews from merchants and business men of San Francisco favoring the passage of a refunding bill, which interviews are published as paid advertisements in this city. I may say, in passing, that it is now shown that many of these interviews are infamous forgeries. The persons who appear to • have signed them declare they never had any knowledge of them. Every merchant who has signed one of these interviews would hail with delight a deliverance from the bondage he is in to the Southern Pacific. Every farmer in the state, with the exception of those living south of Los Angeles, and those living immediately adjacent to the lower San Joaquin and Sacramento rivers, is absolutely at the mercy of this concern. San Francisco has for years earnestly struggled to get relief from the galling bonds of this railroad monopoly, without avail. Recently a number of its citizens have joined with the farmers

ana the towns located in tne San Joaquin valley in building a railroad from San Francisco whieh will practically parallel the Soutnern Pacific for nearly three hundred miles down that valley. The Southern Pacific can easily and promptly do all the work within reach of its lines with great profit to itself, and yet let the farmers live; but it has extorted every cent the traffic will bear. This is the motto of that corporation, and the farmer is left with nothing. The railroad takes all. Besides, in the arrogance of its power, it in many cases refuses to move grain for months, knowing that the freight can not escape it. The building of the San Joaquin valley road, under such circumstances, shows to what extent the cupidity and extortion of this corporation has driven the people. Will this congress be found supporting the Southern Pacific in its extortions, making it a present of many millions of money, while the farmers of California are struggling to save their homes from being sacrificed to this gov-ernment-endowed monopoly? I can not believe it will. One of the most significant things in connection with the building of this farmer’s road is that every safeguard known to the law is put into its charier to prevent the road falling under the control of the Southern Pacific. Among other things, it is provided that no director or stockholder of the Southern Pacific shall hold office in the Valley Railroad Company and the amount of stock that can be held by any individual or corporation is limited. Such If the detestation of the people of California for the monopoly. They have seen several other independent railroads partly built In California, and all swallowed bodily by the Pacific cormorant. Why shouldn’t these corporation pay their just debts, the same as anj individual? Why should a special acl be passed by congress to relieve a few rich men and estates from the payment of their just debts? It would be a rank piece of favoritism. Look at the brazen propositions and statements of those who are asking the passage of this bill. It is known that these few men and estates are enormously rich, yet they say the road the government built for them, and from which, by dls honest methods and defrauding the government and the people, they have amassed great wealth, is now insolvent. Why shouldn’t it be insolvent after being subject for years to the mercy and methods of these men? The representative of the Central Pacific was asked, when before the committee on Pacific roads,, a few days ago, "if the road would pay $25,000,000 to the United States provided the gov-, ernment would give it the balance of the debt,” which would amount to over $50,000,000. The reply was that “the ro|ad could not do It”—could not pay one-third its debts. And yet here is proposed a refunding bill which extends the time for the payment of its debts for 100 years at 2 per cent interest, while the government must pay 3 per cent now (and if the present financial policy of the government con tinues in force for five years longer,, will be forced to pay 10 per cent), and proposes to give this road as security for the whole debt. Can effrontery go further? The official report of the secretary of the interior shows that taken together, the two roads—Central and Union—were intended to be one great through highway for the use of the people, which were built with the people’s money, now, under the most adverse circumstances, with the Southern Pacific diverting all possible trade from them, are paying 6 per cent upon the entire amount that the government has paid in aiding and will pay if it takes possession of the roads. No reason exists why the government should lose one penny of the debt due from these roads, except the threatened passage of a refunding bill, which will, Of course, mulct the people of this country out of one hundred millions of dollars for the sole benefit of a few millionaires. And yet in view of the,statements that the roads are not worth half the debt due the United States alone, the most nesperate efforts are being made to hold on to them through a refunding bill. To this end men and space in advertising columns of papers from California to Maine are being hired to contribute to the passage of this bald-face refunding steal. The facts are, that these roads, under a proper and honest management, are to-day as valuable as ever. Their connections are established, towns founded along the line, the country in a measure developed and the road cannot be successfully paralleled. Let it be distinctly understood that ho action by congress is necessary at this time to protect the interests of the government in respect to these roads. The government is fully, authorized, under the law, to collect its debt, to do all things necessary to secure it, without further legislation. Any refunding act will be wholly in the intefests of those parties who are trying to avoid the payment of their Just debts.