Monopolies -- United States; Railroads and state -- United States
Connect with the incorporation of railroad companies, and special
legislation in their favor, the legislation in favor of "Indian rings,"
"whisky rings," "patent right combinations," and the numerous other
kinds of special legislation, with the advantages presented to
legislators to make personal gain from all these sources, and we can
well understand why men are willing to spend such large sums to secure
an election to the United States senate, or house of representatives.
The baneful effects of the modern code of political morality are not
seen in the legislative department of the government only. The same
disregard of the rights of the people, and a determination to protect
and aid combinations in their efforts toward self-aggrandizement, made
at a sacrifice of those principles which are supposed to govern all
persons holding places of trust, honor, or confidence, seem to influence
to a great degree those holding high position in other departments of
the government. The acts of congress chartering the Pacific railroad
companies make it the duty of the president of the United States to
appoint five government directors for these roads. Under the statutes
these directors cannot own stock in the companies, nor have in them any
personal interest whatever. They are supposed to be free from any bias
for or against the companies: but they are appointed to represent the
government, and to guard against and report to the secretary of the
interior all abuses on the part of the companies, and at such times as
they are required to so report, to also make such suggestions as in
their opinion shall best subserve the interests of the public. It is
made their duty to personally inspect the roads, during their building
and after their completion. At least two of these government directors
must have a place on all important committees appointed by the companies
for the management and prosecution of their business. Any dishonesty on
the part of the companies in letting contracts for the construction of
their roads, or any misapplication of the grants made by congress, must
have been known to these five government directors, or some of them, if
they had properly discharged the duties imposed upon them by law. The
formation of an inside ring, under the title of "The Credit Mobilier of
America," composed entirely of the directors and stockholders of the
Union Pacific company, the letting of the contract for the construction
of the road to one of the directors of the railroad company, who was
also a director in the Credit Mobilier (and a member of congress), at
more than double its actual cost, the transfer of this contract to
certain trustees who were directors in both companies, in the manner
stated in a preceding chapter of this work, and the declaration of large
dividends on the stock of the companies at a time when the work on the
road was barely begun, and before any dividends could possibly have been
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account