Monopolies -- United States; Railroads and state -- United States
their actions by pecuniary considerations; that these corporations have
been able to purchase the influence of the men selected by the president
to protect the public interest, and that, by reason of such purchase,
the sum of $16,000 per mile, in government bonds, has been duplicated on
fifty-eight miles of the Pacific road. Other abuses, such as the
defective construction of the roads, unlawful payment by the government
of engineering expenses, dishonest returns of the cost of the roads, and
other minor but important abuses of the privileges granted to these
companies, were permitted by these government directors without
objection, showing, beyond all reasonable doubt, that their duties,
prescribed by acts of congress, were of secondary importance when the
interests of the corporations or of these government directors were to
be considered.
While the reckless and dishonest transactions of the company directors
were such as to call out a protest from an honest engineer employed on
the road, prompting him to resign his position as chief engineer rather
than be a party to fraud and scandal, these government directors seem to
have remained silent and inactive. A contract had been entered into with
a man by the name of Hoxie, who had neither personal means, nor position
to command any considerable amount of capital, for the construction of a
portion of the Union Pacific road. While this contract did not possess
all the peculiarities of the contract with the Credit Mobilier, it was
such an outrage upon right and justice, as to elicit from the chief
engineer, Peter A. Dey, the following letter, addressed to General John
A. Dix, after having tendered his resignation as chief engineer of the
Union Pacific road, to General Dix, who was then president of the
company. Mr. Dey says:--
"My views of the Pacific railroad are peculiar. I look upon its managers
as trustees of the bounty of congress. I cannot willingly see them take
a step in the incipiency of the project, that will, I believe, if
followed out, swell the cost of construction so much that by the time
the work reaches the mountains the representative capital will be
accumulated so much that, at the very time when the company will have
need for all its resources, of capital as well as of credit, its
securities will not be negotiable in the market. From my very boyhood I
have associated Mr. Cisco and yourself with Mr. Bronson and Mr. Flagg,
men whose integrity, purity, and singleness of purpose have made them
marked men in the generation in which they lived. Of course, my opinion
remains unchanged. You are, doubtless, uninformed how disproportionate
the amount to be paid is to the work contracted for. I need not
expatiate upon the sincerity of my course, when you reflect upon the
fact that I have resigned the best position in my profession this
country has ever offered to any man.
Public-domain text, read in full here on John Shaqi.
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