7- _- - ~ T ~ ""'\___ ____ EAU OF AGRICULTUR.E-WASHINGTON, D. C ;MIN IOWA TO RAISE COR1 AT 16 CENTS A BUSHEL' ,,M IN IOWA TO RAISE COpN AT 16 CENTS A BUSHEL. A.4. ii -.,.., we-o f IlSTOPRY OF THE GRANGE MOVEMENT; OR, THE FARMIER'S WAR AGAINST MONOPOLIES: BEING & FULL AND AUTHENTIC ACCOUNT OF THE STRUGGLES OF THE AMERICAN FARMERS AGAINST THE EXTORTIONS OF THE RAILROAD COMPANIES. WITH A -IIISTORY OF TILE RISE AND OF TIHE ORDER OF PATRONS OF HUSBANDI ITS OBJECTS, PRESENT CONDITION AND TO WHICH IS ADDED SKETCHIES OF THE LEADING GRA BY EDWARD) W'INSLOW MARTIN, (JAMES D. McCABE, Jr.,) AUTITOR OF "BEHIND THE SCENES IN WASHINGTON," ETC., ETO. Illustrated with 60 Finec Engravings and Portraits of Leading Grangecrs. Issued by subscription only, and not for sale in the book stores. Residents of any State desiring a copy should address the Publishers, aid an Agent will call upon them. See page 541. NATIONAL PUBLISHING COMPANY, CHICAGO, ILL.; CINCINNATI, OHIO; ST. LOUIS, Mo.; PHILADELPHIA, PA.; AND ATLANTA, GA. A. L. BANCROFT & CO., SAN FRANCISCO, CAL. 1874. PROGRESS I Entered according to Act of Congress, in the year 187'i, by J. R. JONES, In the Office of the Librarian of Congress, at Washington, D. G. 'i TO THE FARMERS OF THE UNITED STATES, THE STRONG-ARMED, TRUE-HEARTED HOPE OF THI REPUBLIC, NOW, AS IN THE PAST, THE FIRST TO RISE AGAINST OPPRESSION AND WRONG, THE AUTHOR DEDICATES THIS BOOK AS A TOKEN OF HIS SYMPATHY WITH THEM IN THEIR SUFFERINGS, AND HIS ADMIRATION OF THE HEROIC BATTLE THEY ARE WAGING FOR THE OPPRESSED OF THE WHOLE COUNTRY. i - ~ ______ ___ -__ _____ ____ - 2.I/ _ _ A PRAIRIE HOME. I PREFACE. AYONG the many remarkable events of the present century, there are none more worthy of patient and careful study than the important movement among the agricultural classes, which has been popularly termed "The Farmer's War Against Monopolies." The rapid and astounding growth of this movement, the formation of Farmers' Granges ill every part of the Union, and the remarkable success which has at, tended every step of the Order of Patrons of Husbandry, have made it the most closely and anxiously observed of any of the movements of the day. The people of the United States are deeply interested in it, and on all sides there is a growing desire to know more of it. Men cannot help regarding with a deep interest anl organization which bids fair to embrace the whole agricultural population at an early period, and which proposes to exert the enormous strength and power of this class of our countrymen as a compact and united force for the accomplishment of a definite object. They natu. rally desire to know if this new and powerful element -in our public affairs is to exert its power for good or for evil; whether it is to work for the good of the whole country, with a wise and generous regard for the welfare of all classes, or whether it seeks only the advancement of its own interests regardless of the rights or well-being of others. Even those who laughed at the movement in its infancy, are now forced to confes that the 5 A., -t- f PREFACE. Patrons of Husbandry are today a power which no political party can afford to ignore, and which will soon, perhaps in the next year, be able to decide the majority of the popular elections throughout the Union. It is but natural, then, that the people of the United States should be very desirous of knowing more about this powerful Order. The whole land is full of rumors regarding it, the majority of which are utterly without foundation. The present volume is offered to the public as a means of satisfying their legitimate curiosity upon this subject. It presents a careful, and, it is believed, impartial account of the wrongs from which the agricultural classes have been suffering; the causes which led to the organization of the Order of Patrons of Husbaridry; together with an account of the establishment of the Order, its history, its present condition, its objects, and its plans and prospects fortlthe future. It has long been evident to earnest thinkers that the farmers of the United States are the most cruelly oppressed class of our community. In these pages the writer has sought to set forth these wrongs, and to plead'the cause of the farmer, in the hope of awakening the general public to a realization of the case. AWe cannot afford to allow the farmer to suffer at the hands of his enemies. Upon his weal or woe depends the prosperity of the entire nation. The farmers' cause is that of the people, and it is the aim of this work to show that in battling for the farmers' rights, the Grange is fighting the cause of the whole people. For several years past the country has been suffering from evils of which all have been conscious, but which none had the courage to remedy, until the Grange took up the cause of the oppressed. Prominent among these are the burdens that have been fastened upon the people by the reckless and unscrupulous 6 PREFACE. course of the great Railroad Monopolies that have sprung up in our midst. These vast and powerful corporations have inaugurated a series of abuses which have gradually and effectually undermined the solid basis upon which our finances were supposed to rest. They have debauched and demoralized our Courts and Legislatures; have bribed and taken into their pay the high public officials charged with the making and execution of our laws; have robbed the nation of a domain sufficient to constitute an empire; have flooded the land with worthless stocks and other so-called securities; have established a system of gambling at our financial centres that has resulted in a monetary crisis which must cover the whole land with ruin and suffering; have set at defiance the laws of the land, and have trampled upon individual and public rights and liberties, openly boasting that they are too powerful to be made amenable to the law; and not content with all this, not satisfied with the ruin they have wrought, they propose to petition the National Legislature to give them still greater means of robbing and oppressing the people. The Grange seeks to array the agricultural class-nearly onehalf of our whole population.-as a compact body against these evils, and by thus opposing a solid front to the monopolists and their selfish and unpatriotic schemes, to awaken the entire nation to a sense of the danger with which it is threatened, and secure its co-operation in the enforcement of measures which will remove the evil and bring about a more healthful state of affairs. The Grange offers to the farmers the most practicable means of bettering their condition, and while it confines its membership strictly to the agricultural class, it appeals power filly to the general public for sympathy and encouragement. Believing as he does, that the farmer has suffered great and cruel wrongs, the Author has endeavored to tell his story for him, and to show to the reader wherein it is true. 7 PREFACE. The great and overwhelming interest manifested by the pub lie in the question has made this a fitting time for the appearance of such a book. Evil days are upon us, and it becomes the duty of everyone to inquire the cause of this unhappy state of affairs, which is as remarkable as it is distressing. A more singular phenomenon was never offered for our consideration. There is every reason why trade this season should be abundantly prosperous. Our harvest has been abundant. The markets for our productions are in our favor. We have not only a ready sale for our breadstuffs and provisions, but we have begun to send abroad manufactured goods, for which we have had no foreign purchasers heretofore. Our mills have not been overstocked. Industry has generally shown a healthy and steady activity. Our depressed shipping interest has wonderfully revived. And yet in spite of all this, the country has been driven into one of the most serious and alarming conditions of financial depression it has ever experienced. Everyone is interested in knowing the cause of this evil, and in taking measures to bring about a better state of affairs. The Author has endeavored in.these pages to shed some new light upon the matter in consideration, and assist the reader in the intelligent discharge of his duty as a responsible member of the community. E. W. M. 8 LIST OF ILLUSTRATIONS. co). PAGI 1. The Bureau of Agriculture-Washington, D. C..................... 2. Opening a Farm in Iowa to raise Corn at 16 Cents a Bushel... 3. A Prairie Home.................................................................. 4. D. W. Adams, Master, National Grange.............................. 5. O. I. Kelley, Secretary National Grange.............................. 6. Wm. Saunders, First Master, National Grange..................... 7. Col. John Cochrane, Master of Wisconsin............................. 8. C. D. Beeman, General National Deputy.............................. 9. Mrs. D. W. Adams, "Ceres"............................................... 10. Mrs. J. C. Abbott, " Flora"................................................ 11. T. R. Allen, Master of Missouri............................................ 12. F. H. Dumbauld, Master of Kansas...................................... 13. S. H. Ellis, Master of Ohio................................................... 14. John Weir, Master of Indiana............................................. 15. A Grangers' Procession and Mass Meeting........................... 16. Peter Cooper-Builder of the First Locomotive..................... 17. Cornelius Vanderbilt-the greatest Railroad King in the World............................................................................. 18. Grand Central Railway Depot, New York City-the finest Railroad Depot in the United States................................ 19. The Men who build the Railroads on the Pacific Coast........... 99 20. The Great American Desert-the Country the Pacific Rail roads propose to Improve!................................................ 111 21. Interior of a Palace Car...................................................... 125 22. The Parlor Car-Extra Charge for its Use....................... 127 23. William M. Tweed-Formerly one of the Directors of the Erie Railroad Company..................................................... 134 24. Jay Gould........................................................................... 137 25. Mr. Drew calls on Mr. Fisk.................................................. 140 26. New York Stock Exchange.................................................. 185 27. The President of the New York Stock Exchange announcing the Suspension of Jay Cooke & Co...18................................... 8 9 LIST OF ILLUSTRATIONS. NO. PAGI. 28. Park Bank, New York-the finest Bank Building ill tile United States.................................................................. 192 29. Omalha-Eastern Terminus of the Union Pacific Railroad...... 196 30. Scene on the Truckee-Central Pacific Railroad.................... 200 31. Wild-Cat Railroad Lands..................................................... 203 32. View of the Country to be opened by the Southern Pacific Railroad.......................................................................... 204 33. In the Tunnel-Sierra Nevada. Central Pacific Railroad...... 205 34. Duluth-Eastern Terminus of Northern Pacific R'iilroad...... 209 35. Puget Sound. Proposed Western Terminus of the Nortliern Pacific Railroad............................................................... 213 36. The Falls of the Yellowstone, on the Route of the Northern Pacific Railroad............................................................... 217 37. Camp of Railroad Builders on the Northern Pacific Railroad.. 225 38. Inhabitants of the Country through which the Northern Pa cific Railroad was being built............................................ 238 39. Evening IRecreations of Railroad Gamblers........................... 241 40. Crossing the Plains on the Union Pacific Railroad................. 243 41. Snow Sheds on the Central Pacific....................................... 249 42. United States Treasury-the Medium through which the National Legislature robs the People.................................. 252 43. Mining Village in Pennsylvania............................................. 256 44. Interior of a Coal MAine......................................................... 262 45. Vertical Section of a Coal Mine............................................ 268 46. Scene in the Coal Regions..................................................... 272 47. Western Coal Mine.............................................................. 276 48. VWagoning Grain to Market................................................... 287 49. St. Paul, Minnesota............................................................... 290 50. The Middle-Man's Dream of his Plunder.............................. 296 51. Life among the Middle-Men................................................. 3()5 52. Camp of Wagoners hauling Grain to Market........................... 315 53. What is left of a Crop after paying ItRailroad Charges............ 323 54. Raising the Rates of Railroad Freights................................. 326 655. Farmer Green tries his Reaper............................................. 342 56. Farmer Green mortgages his Farm....................................... 345 57. S. M. Smith, Secretary of the Illinois State Farmers' Asso ciation............................................................................. 358 58. W. C. Flagg, President of the Illinois State Farmers' Asso ciation...............................................................362 59. The Granger's Home............................................................ 375 60. Duncan M'Kay, Treasurer of the Illinois State Famers' Asso ciation............................................................................. 534 10 CONTENTS. PART I. RAILROAD MONOPOLIES. CHAPTER 1. THE RISE AND PROGRESS OF AMERICAN RAILROADS. The first Railroad Enterprises-The Pioneer Railroad-A Modest Begin ning-The Mauchli Chunk Railroad-Inauguration of the Railroad Sys tem-Introduction of Steam-The First Locomotive-Opening of the Baltimore and Ohio Railroad to the Potomac-Improvements in the Construction of the Roads-Rapid increase of Railroads-Building of the Great Trunk Lines between the East and West-Efforts of the Eastern Cities to secure the Western Trade-Completion of the great Roads-Commencement of the Railroad System of the West-Its Rapid Growth-Statement of the Annual Growth and Cost of the Railroads of the United States-Their Present Condition......................................21 CHAPTER 11. HISTORY OF THE "LAND GRAB." How to build Railroads at the Expense of the People-The Public Domain of the Union a rich Field of Operations for Railroad Managers The first Land Grants-How the Illinois Central Road obtained its Lands-A bad Example-Handsome Profits-Inauguration of the Sys tem of Land Grants-The Result-The Nation robbed by Wild Cat Rail road Companies-How Congress aids the Roads in robbing the People Actual Workings of the Subsidy System-Detailed Statement of the Amount of the Public Lands granted to each Corporation-Greed of the Railroads-Bonds and Money demanded in addition to Lands-The Railroad Ring-Eloquent Denunciation of these Schemes of Plunder by Hon E. B. Washburne of Illinois.................................................. 33 11 CONTENTS. CHAPTER 111. WATERED STOCKS. Adroitness of Railroad Managers in securing Valuable Privileges from the Public-Recklessness of the People in granting the Demands of the Road-The only Restraints imposed-How the People made it possible for the Corporations to fleece them-How to build a Road without subs scribing the necessary Funds-A False System-The Story of the Credit Mobilier Swindle-How the Pacific Railroad bled the National Treasury -New System of Railroad Financiering-The Process of "Stock Water ing"-Instances of successful Stock Watering-How a Bankrupt Road was made to pay Good Dividends-Successful Policy of the Pennsyl vania Railroad Company-Vanderbilt's Master Stroke-WWho pays for Watered Stock-A Lesson for the People....................................... 52 CHAPTER IV. THE CONSOLIDATION PROCESS. A Railroad of necessity a Monopoly-George Stephenson's Views-The Interests of the Roads naturally Hostile to those of the People-Foolish Prodigality of the People-Competition disastrous to the Roads-Con solidation of Railroads inaugurated to stop Competition-Success of the Efforts for Consolidation-The Four Enemies of Free Trade-Vander bilt's Success with the New York Central-The Pennsylvania Com pany-Its History-The Reign of Monopoly successfully inaugurated... 76 CHAPTER V. THE TRANSPORTATION TAX SWINDLE. Sources of Railroad Earnings-The Freight Business-Enormous Tribute paid by the People to the Roads-The Railroads irresponsible to the Public-The necessity of the Roads to the Country-Anomalous Posi tion of the Railroads-What are Legitimate and what are Fictitious Earnings-Carelessness of the People respecting their Rights-Their Punishment-Arbitrary Course of the Roads in levying Freights-How the Railroads tax the People-The Community made to pay the Losses of the Roads-Instructive Lessons-How Competition is killed-Efforts of the State of Illinois to protect its Citizens-The Railroads refuse to obey the Law-The Railroad Yoke fastened upon the People............ 88 CHAPTER VI. RAILROAD TYRANNY. Dangers arising from the Railroad Monopoly-Irresponsibility of the Roads-Their Disregard of Individual Rights-A Man's Fight with a Railroad-A Corporation's Idea of a Contract-What a Railroad Ticket 12 13 CONTENTS. is worth-Brutal Assault on Mr. Coleman-A Struggle for Justice The Policy of Railroad Corporations announced-The Public to be tied Hand and Foot-Railroad Testimony-How to manufacture Evidence -What a Negro got by losing his Ticket-A Specimen Railroad Murder -A Life for a Lost Ticket-A new Penalty for Drunkenness-Startling Details —The Avenue of Death-Railroad Kiiiling not considered Murder-Unjust Treatment of Passengers-The Palace Car Swindle-Baggage Smashers-The War on the Merchants —ow a Railroad endeavored to ruin a Business Firm-The Power of the Corporations............ 98 CHAPTER VII. THE CAPTURE OF THE COURTS. gurces of Redress for the People against Railroad Tyranny-Failure of the Courts to afford Protection-Eflibrts of thle Railroads to debauch the Courts of Justice-The Free Pass System-Judicial Stockholders -Designs of the Railroads upon the Law'-A Case in Point-How the Erie Road managed the Courts-A new System of Railroad Jurispru dence-Curious Details —How Boss Tweed became a Director of Erie -Efforts of Fisk & Co. to lockl up Money-Daniel Drew beaten-Tire Government intervenes-The War in the Courts-The Value of an Injunc tion-How the Law was made to aid Sharp Practice-Mr. Jas. Fisk's little Journey-The Country Judge vs. the City Judge-The Railroad makes War on the Press-Arrest of Mr. Samuel Bowles-Justice turned against the People.............................................................. 132 CHAPTER VIl. RAILROAD LEGISLATION. access of the Railroads in managing Legislatures-Efforts to corrupt Congress-The Railroad Lobby at Washington-How the State Legis latures are managed-A Case in Point-The Camden & Amboy Monop oly and the New Jersey Legislature-Erie Legislation-Exploits of the Erie Ring at Albany-The Story of a Check Book-A Disappointed Legislature.............................................................................. 165 CHAPTER IX. RAILROAD STOCK GAMBLING. Wl}o owns the Railroads?-The Old-fashioned Method of building a Road -The Present Style-A Contrast-The Honest Policy not suite,'o the Present Ideas of Railroad Men-The Art of building Railroads with ether People's Money brought to Perfection-The Era of Mortgages The Land Grab System-Demoralization in Railroad Finances-The Gamblers in Power-The Real Owners of the Railroads robbed by the Directors-A Rotten System and its Consequences-The Banks involved CONTENTS. -The Railroads demoralizing the whole Country —The New York Herald's Picture of the United States Senate-Food for Patriotic Refieoeion-Railroad Senators.............................................................. 174 CHAPTER X. THE GREAT RAILROAD PANIC. A Railroad Gamblers' Plot-The New York Gold Clique make War on the Farmers-The Attempt to lock up Money-Trouble in the New York Stock Market-A Railroad the first to succumb-The Money Market on the 17th of September-Scene in the Stock Exchange-The Panic begins-Failure of Jay Cooke & Co.-Effect of the Failure-The Stock Market demoralized-Run on the Union Trust Company-More Suspensions-Worthless Railroad Bonds the Cause of the Trouble Spread of the Panic throughout the Country-The United States Gov ernment offers Aid-Suspension of the Union Trust Company-A Rail road the Cause of the Trouble-The Stock Exchange closed-An Anxious Sunday-The Railroad Gamblers demand that the United States Treasury be opened to them-Firmness of the Government-The Panic subsides-Its Lessons-A Warning to the Country..................... 18$ CHAPTER XI. WVILD CAT RAILROADS. False Assertions respecting Railroad Property-Railroad Building a profit able Work-Useless Railroads-Why they are built-Theory of Wild Cat Railroad Constrtuctors-Forming the Company-A Specimen Enter prise-A Share of the Public Lands-How to raise Money to build a Railroad-Disposing of the Bonds-Where the Money comes from "Judicious Advertising "-Bribing the Press-The Religious News paper Press the best Friend of the Wild Cat Railroads-The Road in Operation-What becomes of the Stock-Where the Profit lies-The Crime,pf the Bankers-A Confidence Game-How to stop Wild Cat Railroad Building..................................................................... 198 CHAPTER XII. THE CASE OF THE NORTHERN PACIFIC RAILROAD. The Road chartered by Congress-An Imperial Gift of Land-The Nation robbed of Fifty Million of Acres-Route of the Road-Character of the Country through which the Road is to be constructed-A Wilder ness-Popular Doubts respecting the Success of the Road-The Capital of the Company-How it was to be raised-The People to pay for tla Road-The Stockholders to receive all the Profits-The Bonds of the Northern Pacific Railroad declined in Europe-A "Popular Loan" inaugurated-Jay Cooke & Co. undertake its Negotiation-A Terrible 14 CONTENTS. Blunder-The Loan does not command the Public Confidenc-The true CharacteroftheScheme-What Might Have Been-The Sequel-Report of the German Commissioners-A Capitalist's View of the Scheme-The Risks too great to warrant the Investment of German Capital-A remark able Statement of the Character and Prospects of the Northern Pacific Railroad................................................................................. 208 CHAPTER Xlil. DANGER AHEAD. Evils resulting to the Country from Railroad Mismanagement-The Dan ger of Monopolies-Disregard of Individual and Public Rights-Eflorts to corrupt the Legislative and Judicial Powers of the Country-How the Corporations menace the Public Liberties-Mistakes of the People Helplessness of the Community-Mr.Thomas Scott's Boast justified A Railroad King-Contrast between Vanderbilt and Drew-Immense Power of Commodore Vanderbilt-A Gigantic Monopoly-A Real Dan ger-An unsafe Power in the Hands of an Interested Man-Danger Ahead-The Way to meet it....................................................... 236 PART II. THE COAL MONOPOLY. CHAPTER XIV. OPERATIONS OF THE COAL RING. Character and Extent of the Coal Deposits of the United States The Supremacy of Anthracite-Enormous Coal Wealth of the Country -This should be a Land of Cheap Fuel-Coal one of the Costliest Articles of Consumption-The Cause of this-The Anthracite Fields Their Location and Value-The Pennsylvania Coal Ring-A Crush ing Monopoly-Efforts of the Corporations to keep up the Price of Coal Condition of the Companies kept secret-History and Present Con dition of the Reading Railroad-A Dangerous Monopoly-Immense Wealth and Power of this Corporation-Ten per cent. on Watered Stock-How Money is extorted from the People by the Coal Ring An Inside View of the Scranton Coal Sales-Amount of the Tax paid by the People to the Coal Ring-An Imperial Tribute-Who are the Sufferers-The Poor driven to Despair-How a Scarcity of Coal is brought about-The People at the Mercy of the Coal Ring-Popular s. Corporate Rights-The Remedy for the Great Evil-How to bring down the Price of Coal and destroy the Power of the Monopoly-The Remedy in the Hands of the People-The Future of the Country at the Mercy of the Coal Ring-The Duty of Congress-Will Congress stand by the People or yield to the Monopoly?............................................. 23 15 CONTENTS. PART III. THE FARMERS' WRONGS. CHAPTER XV. THE AGRICULTURAL CLASSES AND THEIR WRONGS. Detailed Statement of the Agricultural Wealth of the United States, and of the Strength of the Agricultural Class-The American Farmer-His Defects and Virtues-His Character as a Man and a Citizen-The Su perior of the Old World Farmer-He should be the most independent and contented Man on Earth-The actual State of Affairs —Hard Lot of the American Farmer-Difficulty of making the Farm pay-A real Grievance-Wrongs of the Farmer-The Effect upon the Young Men Driven from Home-Sad Story of a Farmer's Daughter-Not an iso lated Case-Cause for Apprehension-A Remedy needed.................... 283 CHAPTER XVI. THE MIDDLE-MEN. A Leading Cause of the Distress of Farmers-Working at Starvation Prices -High Price of Bread-Who is responsible for it-How the Middle Men grow Rich at the Expense of the Farmer-An Unequal Division of Profits-The Farmer receives too little-Comparison between Agricul tural and Manufacturing Profits-The Story of Two Brothers-A.Lesson for Farmers-Profitable and Unprofitable Labor-Contrast between the Middle-Men and the Farmers-Where the Profit on Grain goes-A Palace and a Farm House-Who pay for the Splendors of the Large Cities-Need of the Farmer for Ready Money-How this Necessity is taken Advantage of-The Local Grain Dealers-How they plunder the Farmers-The Excess of Western Production-The Real Cause of it.... 294 CHAPTER XVII. THE RAILROADS AND THE FARMERS. Opportunity of the Railroads to plunder the Farmers-Extent of the Wheat Production of the United States-Amount consumed at Home-The Western Surplus-Amount of Corn produced-The System of High Freights-The West shut out from Market-Effect of the Civil VWar Burning Corn for Fuel-Greed of the Railroad Companies-The Cost of getting Grain to Market-Facts for Farmers-Combination of the Rail roads and the Middle-Men-The Story of a Car Load of Corn-Mr. Walker's Views-The Farmers' Complaint-Railroads disregard the Law-Futile Efforts of the Western States to protect their Citizens How High Freights are arranged-The Dependence of the Farmers upon the Railroads-The Effect of High Freights upon the Value of the. Farm -A Startling Exhibit................................................................. 313 is ~ ~ V~ ~ ~ i;~ A\~~\ jji;/ /1 ~ ~ ~ A Ad a // T. 1'. Alen, aster of Missouri. Col John Cochrane, Master of Wise John Weir, Master of Indiana. Mrs. J. C. Abbott, "Flora." Win. Saunders, First Master, Nat'l Grange. D. W. Adcid SO[EiE OF THE LEADING OFFICERS OF'I 'XIUCKys-H AO sxOlaiV(: do la[(iaO RHI 's~nui-x jo z~s]'plntquan( -]g -J -oI.\o Jo Tasv'sTT9'19 1'S'TTSIO ~~~ \~~ (I ~ ~ ~ ~ \.j <\ 1 /~ A~~\ffl<;~ 4 ~ ;;~~~~~ ~/AJ~ ~ . 1:'/~\ ~~T ------ CONTENTS. CHAPTER XVIII. TIIE STORY OF FARMER GREEN'S REAPER. A Common Fault with Farmers-Not in a Condition to incur Risks-The Danger of running into Debt-The Curse of Mortgages-Labor-Saving Machines —Vhat they are worth-Unfair Prices demanded for them Farmers paying twenty per cent. Interest-An iniquitous Business Danger of Indiscriminate Purchases of Machinery-A few Words of Sober Counsel-Farmer Green and his Farm-Getting on in the World -Farmer Green buys a Reaper-How hlie paid for it-The first false Step-Beautiful Calculations-An Iron-clad Note-In the Toils Arrival of the Reaper-Disappointment-Second Visit of the Agent The Theory of Deferred Paymients-How it works-Deeper in Debt The Farm mortgaged-New Misfortunes-Selling the Homestead-Be ginning anew-What Farmer Green's Reaper cost him-A Lesson for Farmers................................................................................. 336 CHAPTER XIX. FARMER SMITH SPEAKS HIS MIND. The Secretary of the Illinois Farmers' State Association-Speech at Car rollton-Views of a Practical and Thinking Farmer-Sound Views for the Consideration of the Farmers of the Union-Mr. Smith's Home stead-A comfortable Western Farm-A quiet Talk with Farmer Smith -His Statement of the Farmers' Wrongs, and his Views as to the Remedy-Corn selling for less than Cost-" Sixty Bushels of Corn to buy Two Pairs of Boys' Boots "-The Mysteries of Western Coal Selling-The Farms more heavily taxed than the Railroads-The Grange offers the best Remedy, and the best Means of attaining it.............................. 347 CHAPTER XX. VIEWS OF'A WISCONSIN FARMER. The Master of the Wisconsin State Grange-A Model Farmer and his Farm-Colonel Cochrane's Views of the Situation-Conflict between the Railroads and the Farms-The Roads first built with the Farmers' Savings —How the Farmer was induced to buy Railroad Stock-How they are robbed by the Roads-Position of the Middle-men-The Cost of Western Farming-Through and Local Shipments-How the Grange helps the Cheese Makers-Farming in Wisconsin; what it costs and what it pays-The Farmers unable to fix their Prices.........................374 CHAPTER XXI. HOW THIE GOVERNMENT ROBS THE FARMERS. Relative Strength of the Farming and Manufacturing Classes —Estimate of the Number of Employers and Working People-The Farmers at the 2 1'7 CONTENTS. Mercy of the Manufacturers-Need of a free and cheap Market-How the Tariff works-The Government protects the Manufacturers in their Extortions from the Farmers-The Farmer requires a cheap Market -What the Farmer pays for Staple Articles of Consumption-The Farmers making the Fortunes of the Manufacturers-A Tax upon Agriculture-What a Dose of Quinine costs-Necessities taxed more heavily than Luxuries-The Interests of the Farmer opposed to those of the Manufacturer-The Government hostile to the Farmers —Food for wholesome Reflection-How the Farmer can be benefited by a Free Market-How to bring it about.................................................... 389 CHAPTER XXII. THE REMEDY. Review of the Wrongs suffered by the Agricultural Classes —A Minor Evil-The Remedy-The Farmer to receive a fair Return for his Industry-The Farmer's Interest that of the Nation-The Duty of the Country to protect the Farmer-The Kind of Laws needed-The Mo nopolists the Enemies of the Whole People-A Free and Cheap Market demanded-Power of the Farmers of the United States —The Extent to which they control the Popular Vote-Number of voting Farmers The People in Sympathy with the Agricultural Class-What the Farmers can accomplish-Necessity of Union-A great and glorious Revolution at Hand.................................................................................. 400 PART IV. THE ORDER OF PATRONS OF HUSBANDRY. CHAPTER XXIII. ORGANIZATION OF THE ORDER. Mission of Mr. O. H. Kelley to the Southern States-He discovers a Remedy forthe Farmers' Grievances-Conferences at Washington Formation of the Order of Patrons of Husbandry-Organization of the National Grange-Subsequent History of the Order-Increase of the Granges-The Grange in Iowa-Strength of the Order-The Weekly Bulletin-A Wonderful History-Unprecedentedly Rapid Growth of the Order-Comments of the "Tribune" on the Increase of the Granges -The Order in Canada-List of Canadian Granges........................... 407 CHAPTER XXIV. COMPOSITION OF THE GRANGES. Objects of the Order-Male and Female Members-Division into Na tional State. and Local Granges-Officers of the National Grange 18 CONTENTS. Membership limited to Agriculturalists-Organization of the Grange Qualifications of Members-Secrecy required-The Degrees of the Order -The Rituai Degrees of the Subordinate Grange-Degrees of the State Grange-Degrees of the National Grange-Financial Matters-How the Grange is organized-Description of the Working System of the Order -How the Expenses of the Grange are paid-The Secret Feature con sidered-Necessity for and Advantage of Secrecy-Advantages of Fe male Members-Woman's Work in the Grange-Objects of the Order discussed.................................................................................. 419 CHAPTER XXV. THE LAWS OF THE ORDER. Constitution and By-Laws of the Order-Preamble-Organization-De grees-Officers- Meetings -Laws-Ritual - Membership-Fees for Membership-Dues-Requirements- Charters and Dispensations Duties of Officers-Treasurers-Restrictions-Amendments-Birth-day of Ceres to be observed-By-Laws................................................. 431 CHAPTER XXVI. THE GRANGE AS A MEANS OF PROTECTION. Advantages to the Farmers of the Grange-A Means of Combination afforded them-Good Results of Combination-Harmonious Action secured-The Grange intended as a Means of resisting the Farmers' Enemies-How it proposes to correct Abuses-The War against the Railroads-The Grange pledged to secure Measures just to all Parties -The Entire Order working for the Accomplishment of One Object -The Order the Protector of the Farmer-Plan of Action-How Measures are devised and carried out-Position of the Grange towards the Railroads-The Grange not a Political Institution-The Power of the Order, and how it is exerted-Individual Opinions respected by the Order-Prospects for the Future-Its Work-Membership confined to Agriculturalists...................................................................... 440 CHAPTER XXVII. SOCIAL ASPECT OF THE GRANGE. Dull and Monotonous Life of Farmers and their Families-The need of the Farmer for Social IntercourseHard lot of Farmers' Wives and Daughters-Scarcity of Amusements-" All Work and no Play" Demand for a Change-The Work of the Grange-The Grange a Means of Social Enjoyment-Advantages of the Social System of the Grange-Farmers' Wives and Daughters in the Grange-The Lesson of Innocent Enjoyment taught-Festivals and Pleasures of the Grange How the Order promotes Sociability and Friendship among the Farm ers-Interesting Details-Barbecues-Sociables-Public Meetings-The Lesson of Courtesy-What the Grange has done for the Happiness of the Agricultural Class-A Great and Good W o r k................................... 450 19 i CONTENTS. CHAPTER XXVIII. THE LESSONS OF THE GRANGE. The Grange as a Means of disseminating Agricultural Information Grange Tracts-How they are circulated-Efforts of the Order to im prove the Farmer's Condition-The Grange as a School of Reform-It makes' Better Farmers-How it spreads Information-Advice as to Improvements-The Grange the Enemy of Careless and Improvident Farming-It encourages Good and Careful Work-The Stacks of Wheat.-Only Virtuous and Industrious Members admitted into the Order-The Grange making Intelligent Farmers-Becieficial Effects of the Discussions of the Grange-The Grange teaches Habits of Thrift and Economy-Discountenances Debt-The Grange the Enemy of Selfishness-Encourages Education-The Friend of the Schools-The Grange making Better Men as well as Better Farmers-Claims of the Order upon the Sympathy of the Country.................................. 462 CHAPTER XXIX. THE COOPERATIVE FEATURE. Cooperative Feature of the Grange-How the Grange saves the Farmers the Middle-man's Profit-Circular of the Secretary of the National Grange-A Means of Practical Economy-The System of Purchases adopted by the Grange-The System on Trial in Iowa-The System productive of Economy —How the Iowa Grange conducts its Operations -Bringing the Manufacturers to Terms-Tile Plow Trade-A Saving of Fifty Thousand Dollars on Plows-A Liberal System of Discounts Work of the State Agent-Joint Stock Stores established-Method of Cooperative Selling- Elevators established by the Granges-Direct Shipments-Magnificent Success of the Grange in Iowa-The Granges saving more Money than they cost-Efforts to embarrass the Grange Warning of the National Grange-Opposition of the Middle-men A Successful Effort at Cooperation abroad-The History of the Civil Service Supply Association of London-A Lesson and an Encour agement to the Grange........................................................ 471 CHAPTER XXX. THE FUTURE OF THE GRANGE. Retrospective-Future of the Order-What it will accomplish for the Farmer and for the Country-The Grange pledged to a Just and Liberal Course of Action-The Grange not a Destructive Order-Its Stake in the Community-Elements of Opposition-Distrust of Politicians-Political Views of the Granges-Platforms of the Farmers of Illinois, Minnesota, and Iowa-Necessity for the Order to confine itself to its Proper Work.. 5()5 CHAPTER XXXI. LEADING GRANGERS.............................. 515 20 4 HISTORY OF THE GRANGE MOVEMENT; OR, THE FARIMEPtR'S WAR AGAINST IONOPOLIES. PART I. RAILROAD MONOPOLIES. CHAPTER I. THE RISE AND PROGRESS OF AMERICAN RAILROADS. The first Railroad Enterprises-The Pioneer Railroad-A Modest Beginning -The Mauch Chunk Railroad-Inauguration of the Railroad System-In troductionii of Steam-The First Locomotive-Opening of the Baltimore and Ohio Railroad to the Potomac-Improvements in the Construction of the Roads-Rapid increase of Railroads-Building of the Great Trunk Lines between the East and West-Efforts of thte Eastern Cities to secure the Western Trade-Completion of the great Roads-Commencement of the Railroad System of the West-Its Rapid Growth —tatement of the Annual Growth and Cost of the Railroads of the United States-Their Present Condition. FEW things have been so remarkable in the wonderful growth of the American Republic as the increase and expansion of its railway system. A comparatively young man finds no difficulty in renmemnbering the time when the only means of communication between. the various parts of the Union were the canal boat and the stage coach. Half a century has witnessed the wonderful growth of the American railways. It has also witnessed the gradual change of the system, which was 21 22 HISTORY OF THE GRANGE MOVEMENT; OR, designed to be a lasting benefit to the Republic, into one of the greatest dangers which now threaten its existence. We propose to trace in these pages the growth of the railway system of the country, and to present to the reader a statement of its present condition, in order that he may the better appreciate the grave danger with which this immense system threatens the land. it was not until 1826 that capitalists became satin fled of the value of the railway as a means of conmmunicationi between distant points. The first road of this kind in America was a mere tramway for the transportation of granite from the quarries at Quincy to the Neponsett PRiver, in Massachusetts. The total leng,th of this road was about three miles. It terminated at the quarries in a self-acting inclined plane. It was built upon granite sleepers, seven and a half feet long, laid ei,ghlt feet apart. The rails were laid five feet apart, were of pine, a foot deep, and covered with an oak plate, and this with filat bars of iron. The cars were drawn by horses. In January, 1827, a second road was begun, and completed in May of that year, from the coal mines, at Mauch Chunk, Pennsylvania, to the Lehigh River, a distance of nine miles. "From the summit within half a mile of the mines the descent to the river was 982 feet, of which 225 feet were included in a self-acting plane at the river, and twenty-five feet more in a shlute by which the coal was discharged into the boats. The remainder was in a continual descending grade, down which the loaded wagons ran by gravity, one of them being appropriated to the mules by which the empty wagons were drawn back. The rails were of timber, laid on wooden sleepers and strapped with flat iron." f THE FARMER'S WAR AGAINST MONOPOLIES. These roads demonstrated the fact that heavy loads could be drawn with a slighter expenditure of power than must be used on the ordinary highways. Admirable results had been obtained in Europe by the adoption of this system, and by the close of 1827 it had come to be acknowledged in the United States that the railway was the best method of transporting freight. Accordingly measures were set on foot in many of the States, especially in Massachusetts, New York, New Jersey, Pennsylvania, Maryland, and South Carolina, for the construction of various roads, some of which were designed upon a grand scale. Steam had now been introduced upon the European roads as a motive power, and the managers of the American roads at once adopted it as the cheapest and the best means of propelling their cars. Tile Delaware and Hudson Canal Company began, in 1828, the construction of a road from their coal mines to Honesdale, the terminus of the canal. Before the road was fairly begun, they sent Mr. Horatio Allen to England to investigate and report upon the railways of that country and also to purchase their railroad iron. Later still, he was directed to buy three locomotive engines. These purchases were made, and the first, a locomotive, built by George Stephenson, at his works at Newcastle-uponTyne, arrived in New York in the Spring of 1829. It was exhibited for some time in New York, and attracted great attention. The other locomotives were built by other persons, and arrived and were placed on the road in the latter part of 1829. They were the first locomotives used in this country. They were engines on four wheels, furnished with the multitubular boiler and the exhaust blast. 23 24 HISTORY OF THE GRANGE MOVEMENT; OR, In 1829 work was begun on the South Carolina Railroad, designed to connect Charleston with H-amburg, on the Savannah River, opposite the City of Augusta, Ga. Six miles of this road were completed from Charleston before the close of the year. It is an interesting fact that some time previous to the commencement of work upon this road, the directors determined, under the advice of their engineer, Mr. Horatio Allen, who was convinced that horses could not draw cars over this road with profit to the Company, to make a species of horse locomotive "the motive power, and the road was constructed in such a manner as to be wholly dependent upon them, being built upon piles often at a great height above the ground. The company offered a premium of $500 for the best plan of horse locomotive, and this was awarded to Mr. C. E. Detmold, afterward of New York, who constructed one with the horse working on an endless chain platform. It carried twelve passengers at the rate of twelve miles per hour. The same gentleman, in the winter of 1829-30, made drawings of the first American steamn locomotive, called the' Best Friend,' which was planned by Mr. E. L. Miller, then residing in Charleston, made by the Kembles at their shop in West street, and placed on the road late in the summer of 1830. It was a small four-wheeled engine, with upright boiler and water flues close at bottom, and the flame circulating around them. It worked successfully for about two years, when it exploded, and was rebuilt with a flue boiler. Upon this road, in 1831, was first introduced on any road, either abroad or in the United States, the important arrangement of two four-wheeled trucks for locomotives and long passenger cars. These were built from plans de 10 ) A GRANGERS PROCESSION AND MASS MEETING. Izu I,N .1>eg THE FARMER'S WAR AGAINST MONOPOLIES. signed by Mr. Horatio Allen in 1830; and with no essential change his system of double truck running, gear, including the application of pedestals to the springs, has ever since been adopted upon all the roads of the country." In 1828, the Baltimore and Ohio Railroad, the first of the great routes connecting the Eastern and.WVestern States, was begun, the first stone being laid with great rejoicing in the city of Baltimore on the 4th of July of that year. It was originally designed to use horse cars only upon it, and in June, 1830, the road was finished to Ellicott's Mills, a distance of fourteen miles from Baltimore. The cars were drawn by horses. " For a long timne," says the historiani of the road, "notwitlistanding the use of horse power, the railroad was regarded as a great novelty; and the people of Baltimore, with their wives, sisters, or friends, patronized it very extensively. A ride to Ellicott's Mills by railroad was a daily or weekly amusement; and that interesting village became exceedingly popular with all classes of people. The number of cars provided by the company proved entirely inadequate to the trade, both for passengers and merchandise; and although but one track had been finished, the receipts for the first four months showed an aggregate of over twenty thousand dollars." It was at one time proposed to propel the cars on this road by means of sails. By April, 1832, the road was opened to the Point of Rocks, on the Potomac, a distance of seventy miles. Long before this, it had become evident to the comnpany that horse power was utterly inadequate to the demands upon the road. The successful introduction of tteain upon the English roads encouraged the directors 2 fo' HG ISTGRY OF THE GRANGE MOVEMENT; OR, to believe that they could use it with equal success in the'ir own undertaking, and rewards were offered for the construction of the best locomotive suited to the needs of the road. A small locomotive, built in Baltimore by Mr. Peter Cooper, was placed on the line in 1830, and gave considerable satisfaction, but it did not fully meet the requirements of the company. "Agreeably to the invitation of the President and Directors, three locomotive engines were introduced upon the road, in the summer of 1831, of which only one proved to be successful, according to the stipulations of the company. This was the Yorr, having been erected in the town of that name, in Pennsylvania, situated fifty-seven miles north of Baltimore. This engine was erected by Phineas Davis (a very ingenious and worthy man, who subsequently met with an accident which proved fatal, while experimenting with his machinery), of thie firm of Davis & Gardiner, and, after undergoing some slight modifications, was found capable of conveying fifteen tons, at the rate of fifteen miles per hour, on a level portion of the road. It was employed for a considerable time between Baltimore and Ellicott', Mills, and generally performed the trip in one hour, with four cars, being a gross weight of fourteen tons. The engine, it will be observed, was mounted on four wheels, of thirty inches diameter, like those of common cars; and the velocity was obtained by means of gearing with a spur wheel and pinion, on one of the axles of the road wheels. The entire weight was but three and a half tons, and it not unfrequently attained a speed ranging from twenty to thirty miles per hour. It passed over curves with much facility, overcoming those of four hundred feet radius, the shortest on the THE FARMER'S WAR AGAINST MONOPOLIES. road, at the rate of fifteen miles per hour. The fuel u1ed was anthracite coal, which is said to have alswered the purpose very well; but the lightness of the iliachine prevented it from drawing very heavy loads over ascending grades." Tile railroads at this time were built of longitudinal rails pinned down to the wooden or stone cross ties, which were imbedded in the ground, and upon the rails flat bars of iron about half an inch thick, and from two atid a half to four and a half inches in width, were ft,stened by spikes, the heads of which were countersunk in the iron. This species of rail was generally adopted as the cheapest, but it was not long before it attained- an unenviable notoriety as the most dangerous. The ends of the rails would frequently cutrl up, and being caught by the wheels would be thrust through the bottoms of the cars, causing sometimes very serious accidents. The Baltimore and Ohio road was carried steadily forward, accomplishing in its construction feats of engineering which were justly regarded as national triumphs. It climbed to the summit of the Alleghlanies, and passed them by a series of grades at which the most accomplished engineers had halted in dismay when told of them by the friends of the road, and it is not too much to assert that the success of this road was one of the greatest encouragements offered to the persons interested in these enterprises. In the meantime, however, other roads were begun and carried forward with energy. The use of steam as a motive power had overcome the chief obstacle in their way, and the whole country was engaged in schemes for their increase and diffusion thlroughout its 21 28 HISTORY OF THE GRANGE MOVEMENT; OR, limits. In 1830-31, as many as twelve railway companies were chartered by the Legislature of Pennsy-lvania. By the close of the year 1832, Pennsylvania is said to have had sixty-seven lines of railway in operation. In the same year, the principal lines in Masse chusetts and New Jersey were also begun. The most important of these lines were designed to connect the cities of the Atlantic seaboard with the States west of the mountains. The Great West wa just beginning its wonderful growth in population and prosperity, and each of the principal seaports of the East became eager to secure the rich harvest offered by the trade of the West. By means of the Western Railway of Massachusetts, Boston was brought into direct communication with the Erie Canal and the roads now constituting the New York Central Railway, over which the grain of the West was conveyed to Albany. This induced the capitalists of New York to undertake the construction of the Erie Road, which was begun in 1833, but was not finished until 1857. In order to compete still more advantageously with New York, Boston furnishied the means for the construction of the Michigan Central road, and its extension from Detroit to Chicag,o, thus bringing the products of the West directly to Albany and thence to Boston. "It was also sending out its long arms toward the Northwest, reaching the outlet of the great lakes at Ogdensburg, before this point was connected by railroad with the mnetropolis of its own State. These enterprises stimulated Pennsylvania to perfect her line of communication btween Philadelphia and Pittsburg, which from Harris burg to Hollidaysburg was by canal, and thlence over the Alleghany Mountains by a succession of five in eined planes and inltervening levels up the mountain on one side, then by a long level to the five inclined planes and levels w hich terminated below at Johnstown, where another canal took the boats that had been brou,lght over the mountain in sections, and conveyed them to Pittsburg. The canals and inclined planes were done away with, and a continuous road was opened across the State." This was the now famous Pennsylvania Central Railroad. Connections were pushed out from it to Lake Erie at Cleveland, to Chicago, and by way of Columbus and Cincinnati, with the railroads of Ohio, Indiana and Illinois. "Baltimore, feeling the effects of these advances, was impelled to push forward the Baltimore and Ohio road, which had long stopped in the coal region of Cumberland, and it was at last completed to Wheeling on the Ohio. Charleston and Savannah early appreciated the importance of connecting their harbors with the productive districts of the interior by railroads; and when these had penetrated their own States, the line of equal importance to both was extended through North Georgia into Tennessee, connecting, in 1849, Chlatta nooga with those cities. "All these advances into the valleys of the branches of the Mississippi affected the cities of the Gulf of Mexico, and Mobile and New Orleans hastened forward the lines which in the early history of American railroads they had projected for securing to themselves the trade of these valleys." In the Western States the growth of the railway system was not less marked than in the East. In 1838 there were but 22 miles of railway in operation in the West, and this in the State of Kentucky. Four years THE FARMER S WAR AGAINST MONOPOLIES. 20, 30 HISTORY OF TIlE GRANGE MOVEMENT; OR, later, in 1842, there were 274 miles in operation in the West, of which Michigani contained 138 miles. In 1850 thle Western States contained over 1400 miles of railway; and in 1860 over 13,000 miles out of a total of 31,185 miles in the entire Union. In 1872, out of a total of 62,647 miles in the whole Union, the Western States contained over 34,000 miles of railroad. The following Table will show the gradual growth of our railways from the commencement to the present day: Miles open. Yearly increase. 3..........,.................~ 3.......................... 28.......................... 25 41........................... 13 54.......................... 13 131............................. 77 576............................ 445 762............................. 186 918............................. 156 1102.......................... 184 431........................... 329 1843........................... 412 2220........................... 377 2797........................... 577 3319.................. 9......... 522 3S77..................................... 558 4174............................ 297 4311........................... 137 4522........................... 211 4870............................. 348 5336........................... 466 5682........................... 346 6350........................... 668 7475........................... 1125 8589........................... 1114 11,027........................... 2438 13,497........................... 2470 15,672........................ 2175 17,398........................... 1726 1856.......................... 19,251......................... 18 53 1857.......................... 22,625.......................... 3374 Year. 1827........................... 1828........................... 1829........................... 1830........................... 1831........................... 1832........................... 1833.......................... 1834........................... 1335........................... 1836........................... 837......................... 1838........................... 1839...................... 1~0.......................... 1841........................... 1842........................... 1843.......................... 844........................... 845........................... 1846........................... 1847.......................... 1848........................... 1849........................... 1850........................... 1851........................... 1852............................ 1853........................... 1854........................... 1855........................... THE FARMER'S WAR AGAINST MONOPOLIES. Miles open. Yearly increaso. 25,090......................... 2465 26,755........................... 28,771............................ 30,593........................... 31,769........................... 32,471........................... 33,860........................... 34,442........................... 35,351.......................... 36,896........................... 38,822.......................... 428,272........................... 48,860........................... 54,435.......................... 62,647........................... In Poor's "Railroad Manual of the United States" for 1873-74, the following estimate is given of the cost and capital invested in the railways of the United States: Capital Funded and Total Capital Cost of S~~T~iTSS. JStock. other Debt. Accunt. R.R. per nilte. New England States.................................... $129,012,748 $101,597,046 $230,609,794 $50,418 Middle States.............................................. 558,838,174 363,862,600 922,7)0,774 79,427 Western States............................................ 724,686,046 747,939,186 1,472,625.232 50,550 Southern States................................ 171,683,155 230,230,112 401,913,267 36,575 Pacific States............................................... 63,623,990 67,950,000 131,573,990 98,300 Total............................................ $1,647,844,113 $1,511,578,944 $3,159,423,057 55,116 A still more definite idea of the immense system which has grown from the modest beginning at Quincy in 1826, will be gained from the following extract fromn the same Manual: "The total cost of the railroads, the operations of which are given for the past year, is $3,159,423,057, made up of $1,647,844,113 of capital stock, and $1,511,578,944 of various forms of indebtedness, chiefly of bonds maturing at distant periods. The capital stock amounted to 52'15 per cent., and the debt to 47'85 per cent. of the total cost. The cost of these roads per 31 Year. 1858........................... 1859........................... 1S60........................... 1861........................... 1l62........................... 163........................... 1864........................... 1865........................... 1366...................... 1867........................... '1868............... 1869.......................... 1870........................... 1871........................... 1872........................... 1665 2016 1822 1176 702 1389 582 909 1545 1926 3450 6588 5575 8212 .32 HISTORY OF THE GRANGE MOVEMENT; ORI mile was $55,116. The gross earnings for the year were $473,241,055, of which $132,309,270, or 28 per cent., was received for transportation of passengers, and $340,931,785, or 72 per cent., for the transportation of freighit, including under this head the small amount received from' miscellaneous sources.' The receipts per mile were $8256. The ratio of earnings to population was $11.76 per head. The operating expenses for the year were $307,486,682, or 65 per cent. of the gross receipts, leaving $165,754,373, or 35 per cent., as net earnings." Thus, in the comparatively short period of forty-six years, over 67,000 miles of railroads have been constructed in the Union, involving an outlay for construction alone of over three thousand millions of dollars. These vast corporations are the possessors of immense quantities of real and personal estate, employ thousands of operatives and receive and pay out annually sums of hundreds of millions of dollars. It is a wonderful history. 0 0 ~fl ( -. &mdash;-:y~~ - /, I,- - j///y$-ftT ~ C ~ ~` - ~~yy#My~~`~~~%{`;{)`;`{~l:)~5)y${~){l;?{~~)l${${?{){;;:~\)$~:;::s~:::~;~.~y:~:{?i.'%~~ 0`4 j1/KK~~ ----- - -- "I',~ &mdash; 0 ~ Il7~'~ #%M~~~~- ik~~-Th'~ ~-~-~ &mdash;~ &mdash;.`.\.""" H ~ /1/~ ~I ~;~y~~~~wy;~~~~~;;~c~,~-.~'-'~.1i{;;;";{s):';~:~~ - - —,:-/`- \\~-,., -~~ ~ )!~ffi){________ 0 ~ -- ~~~~~~\~$~\:,;;~ K;-;)' - -~ H - /// ~ - &mdash; ~` ~ ~W $Th-~ H 8 - -~ _ - ~ ~ - -~- &mdash; ~ -`A~~'\\-''-~'~ - - ~ - 4y~ - -- -;; &mdash;.` - ~-~,};~- -- -y - ~ \t ".+ I-' - -;-% &mdash;~-~ &mdash; -`I- - -; &mdash; - -~y " - - - - ~ 1 - - - - ~`\4')\:#y~y~);i;ii;~{ H I THE FARMER'S WAR AGAINST MONOPOLIES. CHAPTER II. HISTORY OF THE " LAND GRAB." How to build Railroads at the Expense of the People-The Public Domain of the Union a rich Field of Operations for Railroad Managers —The first Land Grants-How the Illinois Central Road obtained its Lands-A bad Example -Handsome Profits —Inauguration of the System of Land Grants —The Result-The Nation robbed by Wild Cat Railroad Companies-How Congress alds the Roads in robbing the People-Actual Workings of the Subsidy Sys tem-Detailed Statement of the Amount of the Public Lands granted to each Corporation-Greed of the Railroads-Bonds and Money demanded in addition to Lands-The Railroad Ring-Eloquent Denunciation of these Schemes of Plunder by Hon. E. B. Washburne of Illinois. A RECENT writer, describing the construction of a railway, says: "The first step, after selecting the route, is to purchase the land upon which the proposed road is to be built." Many of our roads are built upon land fairly purchased and paid for, but not all; and it was regarded as a great step gained in scientific railroad financiering when a shrewd railway magnate of the West conceived the happy idea of building a road at the cost of the people of the whole country. Previous to 1850, the United States possessed vast tracts of lands in the Western States and Territories. These lands were the common property of the States, and were held by the General Government for their benefit. It was believed at one time that the sale of these lands would produce a large revenue for the Republic, which could be expended in various enterprises for the benefit of the country at large. 3 33 34 HISTORY OF THE GRANGE MOVEMENT; OR, In 1850, however, it occurred to certain of our public men that the public lands might be advantageously used for the purpose of defraying the cost of the various railways which were then in contemplation. Who first conceived the idea is not known, but it was caught up by the Illinois Central Railroad Company, and they succeeded in interesting the late Stephen A. Douglas, Senator from Illinois, in the scheme. Mr. Douglas was captivated by the idea of the great railway intersecting the entire State, and bringing Northern and Southern Illinois into rapid and direct communication with Chicago and Cairo. He saw the importance of the undertaking, recognized the magnitude of the expense attending it, and, in an evil hour for the country, adopted the opinion that the General Government should aid the construction of the road by bestowing upon the company a portion of the public lands, since the successful accomplishment of the undertaking would result in building up the population and increasing the wealth of Illinois. Mr. Douglas, with all his great genius, did not seem to recognize the fact that he was really asking the people of the United States to build a road for a corporation in his own State, or that he was opening a way for a systematic fleecing of the nation for the benefit of private individuals. In 1850, the application of the Illinois Central Company for assistance from the Government was presented in Congress. It was hotly opposed, but supported by the persuasive eloquence of Senator Douglas, the petition was granted. An Act of Congress, approved September 20th, 1850, granted to the State of Illinois six sections of land per mile of road in aid of the construction of a railroad from Cairo to Chicago and Dunleith. THlE FARMER'S WAR AGAINST MONOPOLIES. This grant was transferred by the State to the Illinois Central Company, in consideration of which, and in lieu of all other taxes, the company agreed to pay to the State an amount equal to seven per cent. of the gross earnings from freight and passengers moved over their lines. The amount of land embraced in this grant was about 2,595,000 acres. This immense property consisted of a broad strip of land lying on each side of the line of the road throughout the entire length of the State, and for a distance of about six miles on each side of the track. It was a magnificent grant. The company made a good use of the lands thus acquired. They were promptly surveyed and laid off in sections. Liberal offers-for the company could afford to be liberal since the lands had cost them practically nothing-were made to actual settlers. As they comprised some of the best lands in the State, the railway sections were rapidly taken up, and all along the line of the road there sprang up farms and settlements as if by magic. By the first of January, 1873, the sales of the company amounted to 2,250,633 acres, leaving 344,367 acres on hand. The amount received and due for the lands thus sold up to January 1st, 1873, stands as follows: Principal.................... $ 23,320,463 Net cash............................................. 5,268,557 Advance interest................................. 976,133 Interest notes....................................... 710,328 Notes and deferred payments................. 18,762,213 Sales, including advance interest............ 24,296,596 The example of the Illinois Central Company was not lost upon other corporations. Each had its chainmpion in Congress, and applications for land grants began to pour in upon that body. Having granted such aid 35 HISTORY OF THE GRANGE MOVEMENT; OR, in one case, Congress could not refuse it in others, and the result was that the greater portion of the public domain was given away to railway corporations, the people of the country practically receiving no valuable consideration for the grants. These grants were made to the States and by them conveyed to the respective railways. Congress conveyed to each of the applicants "six alternate sections of public lands of 640 acres each (and equalling 3480 acres to the mile), to be taken by the odd numbers within six miles of the line of the road proposed. In case such a number of sections of odd numbers of public lands could not be found within six miles of such line (in consequence of previous sale), then the grant was to be enlarged so as to apply to the odd sections within fifteen miles of the line on either side, so as to make up the full amount intended to be granted. Many of the grants were subsequently fiurther enlarged so as to apply to sections of odd numbers within twenty miles of the line." So common has the custom of giving the public land to a railway corporation, to enable it to build its road, become, that at present, the first care of the directors of a new enterprise of this kind is to obtain, from the Government, land enough to defray the cost of the road. In other words, men forming a corporation to build a road for their own profit, are shrewd enough to throw the expense of their enterprise upon the people of the country at large. The people pay for the roads; the stockholders receive the profits. Members of Congress seem to agree thoroughly with the railway directors of the present day in the belief that it is the duty of the General Government to make the tax-payers I 36 THE FARMER'S WAR AGAINST MONOPOLIES. of the United States build roads for the benefit of the stockholders. Very many of the railway enterprises of the present day would not be undertaken, but for the hope of receiving Government aid. The: men who organize them, although they do so for their own private benefit, rely upon using the property of the whole people rather than their own. Their plan is very simple. If they can secure a grant of land from the General Government, the public property thus placed in their hands will afford them the means of carrying out their schemes. To be plainer-their plan is simply to rob the nation of its possessions, with the aid or connivance of the august body to whose keeping the trust has been confided. Tile people of the United States are not averse to the granting of aid by the Government to enterprises which are national in their character, which are for the public good, and which will render, at some time, an equivalent for the aid thus extended. The American people are decidedly, and very sensibly, averse to giving their property away, for the benefit of a private corporation, and are opposed to such a use of it by Congress. Just now they are very sore over the immense sums that have been squandered by Congress in this way. The Honorable members are aware of this, but they appear to entertain a lofty contempt for the will of the people, fancying that they are the masters rather than the servants of the nation. The public feeling has been repeatedly expressed, but the work of "subsidizing" by the Government still goes on. Not long since, a leading New York journal gave ,OD7 I 38 HISTORY OF THE GRANGE MOYEMENT; OR, the following forcible statement of the popular view of this question: "Let us say that the property of the Government of the United States —meaning thereby of course the common property of the people of the United Statesis worth $4,000,000,000, or $100 a head. In the management of this property by the few hundred menl who make up what we call the Government, the inmplied trust is that the property will in all cases be managed for the benefit of the whole people, and that ill no case shall one or two, or half a dozen, or a hundred citizens be given any portion to use for their own peculiar personal profit, to the exclusion of the remaining millions. Now if the Government- e., the men under this trust, the trustees of the people in other words-give, say, $500,000,000 of this property to a score of men associated together as a railway or other company, to have and to hold and to use it as their own as much as if it were the product of their own toil, the implied trust is broken; the trustees betray the confidence reposed in them. This is not a fashionable view, we know, but still it is a true one. The wrong is the same in the few men called and calling themselves the Government as if they had committed it in their individual capacities and as private citizens. No man in any capacity has any right to betray a trust reposed. And yet, that such betrayal is not only not wrong, but that it is even nobly, gloriously, beautifully right, is the doctrine underlying the subsidy system. The Government, (so the subsidy doctrine runs,) may, and not only may but should, give the Union Pacific Railroad Company, and the rest, hundreds of millions of public acres and scores THE FARMER'S WAR AGAINST MONOPOLIES. of millions of public money for the purpose of building up and operating a business for the exclusive profit of the said company, to the utter and eternal exclusion of any and all of the millions of other citizens whom the act of incorporation fails to recite. And as with this one particular donation so with scores of others; it is right and proper for the Government to give away to whom it will so much of the $4,000,000,000 as it deems proper. It develops the country to do this; it is progress; it is in the line of the best patriotic thought; the wilderness is thereby made to bloom and blossom as a rose-there are, in short, an infinite variety of fine phrases to conceal the real nature of the breach of trust. One particularly specious plea is that unless the millions were thus robbed in behalf of the scores, the scores could not provide great and beneficent instrumentalities for the use of the millions. It is forgotten that the scores charge the millions as much for the use of the instrumentalities as if they had not been built with the millions' own means, but had come bodily out of the bank accounts of the scores. If a man steal from me enough to buy him a horse and vehicle, and then insists he is doing me an immense service by charging me $5 for carrying me a mile on my own property, he does that on a small scale which subsidized corporations, railroad or any other, do upon a large. Such then is the morality of the subsidy sys tem, which has been fostered into such magnificent proportions. The natural operation of the system is to generate about it a fine swarm of adventurers, of all grades, from the benevolent looking company presi dent, whose gold-rimmed glasses would shrivel in the heat of his indignation did any one call him an adven '42 39 490 HISTORY OF THE GRANGE MOYEMENT; OR, turer, down to the professional lobbyist, whom he uses as the huntsman uses his hound, to run down the game. There being millions at stake, these'adventurers, each in his sphere, are instant in action. They cajole, they seduce, they ensnare, All the arts of temptation ooze from their tongues in drops of honey, and fall from their hands in streams of gold. What wonder if success only too often rewards their nefarious efforts-if the not over-stubborn normal virtue of the Senator or Congressman succumbs? If the records of the Cridit Mobilier investigation reveal anythling, they disclose this-that tactics of this kind were employed with exquisite skill and relentless tenacity; and, despite the half-frantic denials of the victims, it is perfectly evident the strategy of the subsidy adventurers won." The lands granted by the Government to various railway corporations make up a total area of 198,165,794 acres, or about 300,000 square miles-an area larger than the State of Texas, which contains 237,504 square miles. Texas'and the two Virginias combined would make an area smaller than that of the lands thus given away. The total area of the United States is 3,578,392 square miles, and the railway subsidies, it will be seen, comprise nearly one-tenth of the entire Union. The following Table shows the land grants to railways since 1850, and the amount of land actually received or certified by each company: __ _ _ __- I ________ ____ i~ _______ _______- J\\INIIYIIIIII!Il _________ II -. GRAND CENTRAL RAILWAY DEPOT, NEW YORK CITY-THE FINEST RAILROAD DEPOT IN THE ITNIEJ TTS -0 THE FARMER'S WAR AGAINST MONOPOLIES. Acres Acres Granted. Certified. Date of Laws. Rams of Road. Graote CoruIied ILLINOIS. Illinois Central....................................................... MISSISSIPPI. , Mobile and Ohio...................................................... Southern Railroad.................................................... Gulf and Ship Island Railroad................................... ALABAMA. Mobile and Ohio....................................................... Alabama and Florida............................................... Alabama and Tennessee............................................ Northeastern and Southeastern, Alabama and Chatta nooga............................................6180 295 Wills Valley, Alabama and Chattanooga..................... Coosa and Tennessee................................................. Mobile and Girard.................................................. Coosa and Chattanooga.............................................. Tennessee and Alabama Central................................. FLORIDA. Florida Railroad...................................................... Alabama and Florida............................................... Pensacola and Georgia.............................................. Florida, Atlantic and Gulf Central............................ LOUISIANA. Vicksburg and Shreveport....................................... New Orleans, Opelousas and Great Western................ ARKANSAS. Cairo and Fulton...................................................... Cairo and Fulton-additional..................................... 3Memphis and Little Rock-additional......................... 1 Memphis and Little Rock-additional...................... Little Rock and Fort Smith...................................... Little Rock and Fort Smith-additional...................... Iron Mountain Railroad............................................. MISSOURI. Hannibal and St. Joseph........................................ Pacific and Southwestern Branch............................... Cairo and Fulton.................................................... Jl2816..Cairo and Fulton-aadditional..................................... Iron Mountain (Pilot Knob to Helena, Arkansas)........ IOWA. Burlington and Missouri River.................................. Burlington and Missouri River.................................. Chicago, Rock Island and Pacific............................... Chicago, Rock Island and Pacific................................ Cedar Rapids and Missouri River............................... Cedar Rapids and Missouri River................................ Dubuque and Sioux City.......................................... Change of route (Fort Dodge to Sioux City)................. McGregor and Western............................................. Railroad fromn Sioux City to Minnesota........................ Sioux City and Pacific.............................................. MICHIGAN. Port Huron and Milwaukee....................................... Detroit and Milwaukee............................................. Jackson, Lansing and Saginaw............................. Time extended seven years....................................J Flint and Pare Marquette........................................ Act to change the western terminus of road................ Grand Rapids and Indiana......................................... Grand Rapids, from Fort Wayne to Grand Rapids, etc... Bay de Noquette and Marquette................................. Bay de Noquette and Marquette................................. Marquette and Ontonagon......................................... Marquette and Ontonagon.................................... Chicago, St. Paul and Fond-du-Lac........................... 4 : I 41 D.t. f L-.. X... f R..d. Sept. 30, 1850..... Sept.20,1850...... Aug. 11, 1856..... 2,595,053 1,004,640 404,800 652,800 2,595,053 737,130 171,550 ............ Sept. 21, 1850..... May 27, 1856...... 11 11 June 3, 1856...,.... :: 11....... ....... .1 "....... 230,400 419,520 481,920 691,840 206,080 132,480 840,880 150,000 576,000 419,528 394,522 440,700 289,535 171,920 64,784 604,145 ............. ....... O..... 34ay 17, 1856...... 11 11 - ...... ...... :11 11 ...... 442,542 165,688 1,568,729 183,183 610,880 967,840 l,100,667 966,722 438,646 365,539 550,525 458,771 864,000, 791,944 1,161,235 219,262 182,718 1,400,OW 281,984 165,588. 1,275,012 a-.,583 853,211 1 719,193 1,115,408 "iii"iii ............ ............ June 3, 1856....... 11 "....... Feb. 9, 1853........ .July 28, 1856...... Feb. 9, 1853 July 28, 1866 Feb. 9, 1853 July 23, 1866 July 4, 1866....... June 10, 1852 Feb. 9,1853,....' July 28,1866...::: July 4, 1866 May 15, 1856 June 2, 1864...... May 15, 1856...... June 2,1864....... May 15, 1856...... June 2,1864....... May 15, 1856...... June 2,1864....... May 12, 1864...... July 2, 1864....... 493,812 1,158,(ri 3 63,540 ............ ............ 948.643 ioi,iio lil44,904 116,276 1,298,739 123,.3-i 0 1,536,000 256,000 580,000 312,384 355,420 1,052,469 62q,182 531,200 218.880 128,000 309,315 24,1,200 208,062 291,725 95,656 481,774 144,229 778,869 342,406 il ii "i i ............ ............ ............ June 3,1856....... July 3, l866....... June 3, 1856....... July 3, 1866....... June 3, 1856 June 7, 1864....... June 3, 1856....... ]4arch 3, 1865 June 3,1856...... March 3, 1865.... June 3, 1856..... 6,468 30,998 721,469 ,, 629,182 191,607 218,881 ............ 216,919 49,086 li,020 42 HISTORY OF THE GRANGE MOVEMENT; OR, Acres Acres Date of Laws. Name of Road. Granted. Cer~~~~~~~~~~~~~~~~~~~~~~fie~~~ MICHIGAN-Continued. Chicago, St. Paul and Fond-du-Lac (branch) to Mar quette.................................................................. Chicago and Northwestern,....................................... Chicago and Northwestern....................................... WISCONSIN. Toma and Lake Superior............................................ Toma and Lake Superior........................................... St. Croix and Lake Superior...................................... St. Croix and Lake Superior....................................... Branch to Bayfield....387 3.............................. Branch to Bayfield................................................. Chicago and Northwestern.....................1................ (Resolution) change of route................................... From Portage City to Bayfield, thence to Superior........ MINNESOTA. St. Paul and Pacific................................................... St. Paul and Pacific................................................. Br anch St. Paul and Pacific................................... 0 Branch St. Paul and Pacific............................. Authorized change of route................................... Minnesota Central.................................................... March 3 1865..Mi inesotan Cean trail..............29,0 Winona and St. Peter................................................ Winona and St. Peter................................................ Minnesota Valley..................................................) Minnesota Valley.................................................. Extends the time for said road seven years............... 1 Lake Superior and Mississippi................................ Authorized to make up deficiency within thirty miles of west line of said road......................................) Minnesota Southern................................................... Hastings and Dakota River....................................... KANSAS. Leavenworth, Lawrence and Galveston.................... Atchison, Topeka and Santa Fe............................. 2 Union Pacific Southern Branch (M. K. & T.)............ St. Joseph and Denver City....................................... Kansas and Neosho Valley...................................... Southern Branch Union Pacific from Fort Riley to Fort Smith, Arkansas............................................. CALIFORNIA. California and Oregon............................................... Placerville and Sacramento Valley............................. Stockton and Copperopolis......................................... OREGON. Oregon and California...................................... From Portland to Astoria and McMinnville................. In addition to the above grants, the General Govern. ment has granted to the various Pacific railways im. mense tracts of land, making these grants direct to the companies. It has granted to the Central and Union Pacific Railroads a total of 35,000,000 acres, of which only 544,759 had been certified up to.January, 1872. To the Northern Pacific road it has given 58,000,000 of e en................................................... A.". G,,-.t.d. A... Cfil,,L D.t. f L.,,.. N-. f Rod. ........................ July 5, 1862....... March 3, 1865..... June 3, 1856....... May 5, 1864 June 3, 1856....... May 5, 1864 June 3, 1856 May 5, 1864 June 3, 1856....... April 25, 1862..... May 5,11'864 3farch 3, 1857 March 3, 186-5..... March 3, 1857..... March 3, 1865 July 12, 1862...... March 3, 1857..... March 3, 1865..... March 3, 1857..... March 3, 1865..... March 3, 1857..... May 12, 1864 July 13, 1866...... May 5, 1864 July 13, 1866 July 4,1866 July 4, 1866....... March 3,1863..... July 1, 1864....... July 1, 1864....... July 23,1866...... July 25, 1866...... July 26,1866 188,507 375,680 188,800 894,907 675,000 524,714 350,000 318,737 215,000 600,000 1,800,000 162,044 ............ ............ 324,943 163,263 524,718 ............ 311,307 .......... - 466,566 .. ............ .. in. ii 15 ............ 1,040 ............ 367,424 125,480 ............ 660,000 500,000 750,000 725,000 290,000 720,000 690 000 ..iii,ii6 150,000 ............ 800,000 735,000 550,000 2,550,000 1,700,000 2,350,000 1,203,000 1,540,000 203,000 320,000 ............ ............ ............ ............ July 25, 1866...... July 13, 1866...... March 2, 1.867..... ............ ............ ............ July 25 1 1866...... May 4,1870........ 1,660,000............ 1,200,000............. THE FARMER'S WAR AGAINST MONOPOLIES. acres, and to the Atlantic and Pacific road 42,000,000; making a total of 135,000,000 acres to the three Pacific roads, or about 200,000 square miles. Lands, however, lavishly as they have been given, no longer form the limit of railway expectations. The greed of these corporations has extended to the public funds, and bonds and money are now demanded with as much coolness as lands. The railway incorporators have learned that with a pliant Congress it is easy to draw from the National Treasury.the funds they are not willing to provide for their enterprises. In order to effect this, they maintain at Washington a force of paid lobbyists, whose business it is to influence the legislation of Congress by unpatriotic and illegal means. What these means are was shown by the investigations attending the Crddit Mobilier scandal of the last session. Yet, that the reader may the better understand how these railroad leeches fasten upon the Government, we give the following account of the schemes that were introduced into the Fortieth Congress, which was particularly distinguished for them. Many of these schemes were successful: "At present," says a correspondent writing from Washington early in the session, "perhaps there is more money in the various railroad schemes than in any other. And this thing is on a scale which the country does not comprehend, notwithstanding the constant talk about it. Thus far, in the Fortieth Congress, there have been 8eventy-two railroad bills introduced into the Senate alone. Eight were presented at the first short session, fifty-two at the second session, and in the two weeks of the present session eleven have been reported and printed. And these last do not in 43 44 HISTORY OF THE GRANGE MOVEMENT; OR, clude four as gigantic as any which have been passed, yet to come. One is in preparation for which its friends are now gathering power, for the Northern Pacific, one for the Albuquerque line and its several connections; one for Mr. Pomeroy's little private Atchison Pacific-one of the nicest and fattest speculations ever concocted and worked through - having these speciatl qualifications of nice and fat, on account of the small number to divide the spoils; one for two roads south and west from St. Louis, and two or three for Southern Pacific lines from Memphis, New Orleans, and points in Texas. "In all this there are four lines across the Contiilent, with connecting roads enough to stretch out into two more; and then such little ventures as the Atchison and Denver lines by the score. "Of all these bills, fully three-fourths were originated by Republicans. Four Senators brought in nearly half of them. Mr. Pomeroy reported eleven, Mr. Ramsey seven, Mr. Conness five, and Mr. Harlan four. "Mr. Pomeroy did not confine his attention to any particular part of the country. He proposed one land grant through the rich lands about Port Royal, South Carolina, and another one of his measures was for the benefit of his Wisconsin brethren; but, not desiring to be reckoned as worse than an infidel, he made full provision for his own political household in Kansas. We find his name attached to aland grant for a railroad from Lawrence to the Mexican line; to three bills for roads from Fort Scott to Santa F4; to a pleasant arrangement for the Southern branch of the Union Pacific Road-whatever that may be-and also THE FARMER'S WAR AGAINST MONOPOLIES. to a land grant fromn Irwing, Kansas, to New Mexico; and all for the national good, of course. "These, it must be remembered, are such railroads as Northern companies, Northern lobby-men, and Northern Congressmen have concocted. The word concocted is good for most, though a few are meritorious. The Southern States are just beginning to vote, and the scent of Southern men in Congress is now as keen in respect to all material interests as the Northern Congressmran's nose. The reason is evident. Southern smelling is now done with Northern noses. Carpet bags have wrought this change for the South; and as a result, among the very first subjects to call out bills from Southern men are the railroad interests. - "And heading the column, comes Mr. Senator Spencer, with a bill making a land-grant, not through the public domain on the plains, but through the States of Tennessee, Georgia, Alabama, Mississippi, and Louisiana, with permission to get all the'earth, stone, timber, and other materials' for the construction of its roads, off the public lands along its line, and then to receive ten sections of land to the mile, wherever they can find that amount within twenty miles of the line they may see fit to locate, and from Mobile onward to the western boundary of Louisiana; if the land cannot be found within twenty miles of the road, these patriotic gentlemen are to be obliged to hunt it up within forty miles north of their line. As this is the first attempt on the part of a Southern Senator to follow in the paths already worn so smooth by his fellow Republicans from the North, it will be interesting to see what a fine start Senator Spencer, of Alabama, makes. Seci tion second of his bill is in part as follows: 45 HISTORY OF THE GRANGE MOVEMENT; OR, "'SEC. 2. And be it futrther enacted, That, for the purpose of aiding in the construction of the railroad of said company, there be, and is hereby granted to said company, from the public lands of the United States, ten sections of land for each mile of railroad completed and placed in running order by said company, pursuant to its charter. That said lands are granted as follows: On the line of said railroad from the city of Chattanooga, in the State of Tennessee, to the city of Mobile, in the State of Alabama, every alternate section of public land designated by odd numbers, to the amount of ten alternate sections per mile, for each mile of said railroad from the said city of Chattanooga to the said city of Mobile, such alternate section of land to be selected within the limits of ten miles on each side of the centre line of said railroad; and if public lands sufficient for the purpose shall not be found within said limit of ten miles upon each side of said railroad, then the said alternate sections of land are hereby granted, and may be selected within the limits of twenty miles on each side of the centre line of said railroad. And on the line of said railroad from the city of Mobile, in the State of Alabama, to the western boundary of the State of Louisiana, every alternate section of public land, designated by odd numbers, to the amount of ten alternate sections per mile for each mile of said railroad, from the said city of Mobile to the western boundary of the State of Louisiana, such alternate section of land to be selected within the limits of ten miles upon each side of the centre line of said railroad; and if public lands sufficient for the purpose shall not be found within said limits of ten miles upon each side of said railroad, then the said alternate sections of land are 46 THE FARMER'S WAR AGAINST MONOPOLIES. hereby granted, and may be selected within the limits of forty miles north of the centre line of said railroad, excepting, however, from this grant, all mineral lands, and lands sold by the United States, or lands in which a preemption or homestead claim may have attached at the time the line of said railroad shall have been located and established.' "What will the railroad docket of the Senate not contain by the time the Southerners have brought up their side of the railroad jobs to the present proud height of their Northern friends, and shall have added to the Washington lobby, its own army of bloodsuckers, plausible gentlemen of unquestioned honor, and thieves?-for it takes all these, and more, to make a lobby. What a nice thing it will be for taxpayers! "All this presents the railroad interest merely in outline. Every bill deserves a separate letter to show the means used to get it before the Senate, the persons engaged in pressing it, and the parties to be benefited by it; and in due time the principal ones at least will get that chapter. "When the railroad jobs are disposed of, then the deck is only cleared for action against jobs in general. There are, aside from these, the Niagara Ship Canal with a coupon of twelve millions attached; the Commercial Navigation Company, with half as much on its coupon; the bills and schemes for getting damages paid to Southern men for property destroyed during the war, in all hundreds of millions; and then the lobby upon the more modest sum of five millions due from Southern railroads, and in which radical Republicans from Tennessee are deeply interested. The Osage Treaty is a nice plum; and one new feature is, that 47 I. 48 HISTORY OF THE GRANGE MOVEMENT; OR, some Kansas men who showed a vast amount of righteous indignation over it, before their reelection, are, now that their places are assured, helping the swindle on. Alta Veta is comling up again, and to crown all things, if it is possible, the change in the Indian Bureau is to be so managed as to place the present Indian ring on a firmer foundation than ever. "The Republican party can now afford to rectify the irregularities which have crept into all portions of the Government while the great political battle with Rebellion was going on. If those here, as its Congress, will not free themselves from such things, the party need not die if it only throws them overboard. There are honest men enough who can take their places. Let the press watch jobs when the recess closes and the outside lobby, which is here in force, begins to work through its Senators and Representatives." Comnienting upon the same subject, the New York Herald said, editorially: "The corruptions which have grown up in the national government, from the general demoralizations of our late civil war, are fearful to contemplate. One hundred millions a year lost to the Treasury from the spoliations of the whiskey rings' beats out of sight' any thing in the line of whiskey frauds under any other government on the face of the globe; but on a corresponding scale with their field of operations, the Indian rings, the Post-Office and Interior Department rings, the tobacco rings, the frontier smuggling rings, and various other rings, insiders and outsiders, jobbers, contractors, Government officials and private speculators, are pretty well up to the percentage of the enormous stealings of the whiskey rings. The latest develop THiE FARMER'S WAR AGAINST MONOPOLIES. ments, however, show, that in the grandeur and nunber of their schemes of spoils and plunder, the Congre, sional rings of railroad jobbers throw into the shade all the other rings of the lengthy catalogue of confederate Treasury robbers. "A Washington correspondent, who has been looking into the business, reports that one hundred and fiftynine railroad bills and resolutions have been introduced in the Fortiethl Congress (the term of which expired on the 4th of March, with that of President Johnson), and that twice as many more were in preparation in the lobby; that one thousand millions of acres of the public lands, and two hundred millions in United States bonds, would not supply the demands of these cormorants. In other words, their stupendous budget of railway jobs would require sops and subsidies in lands and bonds, which, reduced to a money valuation, swell up to the magnificent figure of half the national debt. "Among the jobs of this schedule is the Atchison and Pike's Peak Railroad Company, or Union Pacific Central Branch, which, after having received Government sops to the extent of six millions, puts in for seven millions more. Next comes the Denver Pacific Railway and Telegraph Company, which, having feathered its nest to the figure of thirty-two millions, puts in for a little more; and this company is reported to be a mere gang of speculators,'without any known legal organization whatever'-a lot of mythical John Does and Richard Roes, who cannot be found when call.ed for. Next we have the Leavenworth, Pawnee and Western Railroad Company, now known as thes Union Pacific, Eastern Division, chartered by tlhe Kansas Territorial Legislature, in 1855, subsidized withl 4 49 51).HISTORY OF THE GRANGE MOVEMENT; OR, Delaware Indian reserve lands in 1861, and then in 1862, by a rider on the Pacific Railroad law, granted sixteen thousand dollars per mile in United States bonds, and every alternate section of land within certain linmits, on each side of the road, and the privilege of a second mortgage. This is cutting it pretty fat. But it further appears that a clique of seceders from the old company illegally formed a new company, and, hlaving by force of arms taken possession of the road, are pocketing the spoils which legally belong to the old company'. All this, too; withl the consent of the President, the Secretary of the Treasury, and Congress. Are they all birds of a feather, that they thus flock together? "From another source we learn that some half dozen other Pacific branch or main stem railroads, Northern and Southern, are on the anvil, involving lands and bonds by tens and twenties and hundreds of millions; that of all these schemes fully three-fourths come from the Republicans in both IHouses; that Senator Pomeroy, of Kansas, has seven of these Job)s on the docket; Senator Ramsey, of Minnesota, four, Senator Conness, of California, five, and Senator Harlan, of Iowa, four. Senator Pomeroy, however, distances all competitors in the number and extent of his jobs; for, as it appears, they include a line fronri Kansas to Mexico, three bills for roads from Fort Scott to Santa Fe, in Texas, a South Carolina line through the Sea Island cotton section, two or three lines from the Mississippi River through to Texas, and I a little private Atchison Pacific, one of the nicest and fattest speculations ever worked through.' "Is not this a magnificent budget, and is not the THE FARMER'S WAR AGAINST MONOPOLIES. audacity of these railroad jobs and jobbers positively sublime? Some of these schemes are in successful operation, but many of them are still in the caterpillar,. or chrysalis, state, and there is a prospect that very few of this class will come out as the full-blown butterfly." Well might the eloquent Illinois Congressman, who now so ably represents the Republic in France, exclaim in indignant rebuke of these schemes of plunder, as he denounced them from his place in the House of Representatives: "While the restless and unpausing energies of a patriotic and incorruptible people were devoted to the salvation of their Government, and were pouring out their blood and treasure in its defence, there was the vast army of the base, the venal and unpatriotic, who rushed in to take advantage of the misfortunes of the country and to plunder its treasury. The statute-books are loaded with legislation which will impose burdens on future generations. Public land enough to make empires has been voted to private railroad-corporations; subsidies of untold millions of bonds, for the same purposes, have become a charge upon the people, while the fetters of vast monopolies have been fastened still closer and closer upon the public. It is time that the representatives of the people were admonished that they are the servants of the people and are paid by the people; that their constituents have confided to them the great trust of guarding their rights and protecting their interests; that their position and their power are to be used for the benefit of the people whom they represent, and not for their own benefit and the benefit of the lobbyists, the gamblers, and the speculators who have come to Washington to make a raid upon the Treasury." 51 t 52 1HISTORY OF THE GRANGE MOVEMENT; OR, CHAPTER III. WATERED STOCKS. Adroitness of Railroad Managers in securing Valuable Privileges from the Public-Recklessness of the People in granting the Demands of the Road The only Restraints imposed-How the People made it possible for the Corporations to fleece them-How to Build a Road without Subscribing the necessary Funds-A False System-The Story of the Cr6dit Mobilier Swindle -How the Pacific Railroad bled the National Treasury-New System of Rail road Financiering-The Process of "Stock Watering "-Instances of success ful Stock Watering-How a Bankrupt Road was made to pay Good Dividends -Successful Policy of the Pennsylvania Railroad Company-Vanderbilt's Master Stroke-Who pays for Watered Stock-A Lesson for the People. WE have seen the eagerness and success with which the railroad corporations of the present day seize upon the public lands, paying the public nothing in return for the immense wealth thus given them; and we have asserted that it is in reality the people who build the roads for the benefit of these corporations. The facts presented sustain our assertion. It is the boast of the modern railway director that he is the friend of the public, and that his work is entirely for the good of the community. He modestly keeps himself in the background, and speaks of his road only, and of the immense advantages that it will bestow upon the regions through which it is to pass, and so plausible and well delivered are his words, that he succeeds in making the public believe that he is really working for the good of others, and investing his own capital for the benefit of the community, without thought for himself. 0 THE FARMER'S WAR AGAINST MONOPOLIES. Thus influenced, the confiding people grant unhesitatingly all the privileges asked for. The right of way is given, lands are donated by Congress, money is subscribed by counties and cities, and the inhabitants of the region through which the road is to be built imagine themselves on the, highway to wealth and prosperity. Trade, they are told, is to come pouring over the new route, a direct market is to be provided for the products of the region, and an era of general prosperity is to be inaugurated. Figures are not wanting to encourage these expectations. The most plausible calculations are made, the cost of the road is given, the annual expenses are estimated, and it is shown to the satisfaction of all that a system of moderate charges for the transportation of passengers and freig,lt will secure to the road a revenue sufficient to meet its expenses, and, in time, to pay a fair dividend upon the capital invested in the undertaking. A little reflection would cause the confiding public to be suspicious of the men who profess to have its interests so much at heart. Capitalists do not undertake railway enterprises from such benevolent motives. Like other men, they seek their individual profit, and the welfare of the public is with them a consideration only so far as it influences their undertaking. They look to receive ample dividends, and are careless of the thanks of a grateful country. "In Amnerica, as in England, the private corporation owning the thoroughfare is thie basis of the whole railroad system. In thus surrendering the control of this system out of its hands, the community as a rule made one and but one reservation in its ownrfavor; it was almost universally stipulated that - the rate of profit 53 54 HISTORY OF THE GRANGE MOVEMENT; OR,' upon the capital invested in the work of construction should not exceed a certain annual per centage, varying, according to locality, from 10 to 20 per cent. Within this limit the corporations were free to earn and divide all they could." But having set this limit, the community allowed the corporations to retain the exclusive management of their roads, and made no arrangement whereby the latter could be held up to the limit thus fixed. No provision was made for ascertaining the real, as contradistinguished from the nominal cost of the roads, nor was anything arranged in regard to arrears of unpaid dividends. A recent writer upon the subject well says: "It was absurd to suppose that even the most honest capitalist would accept the strict construction of a law which insured him a certain loss in each bad year or unprofitable enterprise, and limited him in case of success to a reasonable profit. Of course, therefore, the law was no sooner enacted than it was circumvented. The doubt raised was whether the stipulated per centage was to be paid upon what the property cost its holders, or upon what it was actually worth. Interpreting it in the way last specified, the capitalist proceeded to act accordingly..... It therefore devolved upon the owners of the property to cast up the balance sheet themselves, and to decide all nice points undoubtedly in their own favor. Where a people so provides for its own interests it needs no prophet to foretell the consequences. No landlord deals in this way with a tenant." The community has voluntarily placed itself in the power of the rails ways and its must pay the penalty of such absurd conduct. THE FARMER'S WAR AGAINST MONOPOLIES. In tile early days of railroad financiering it was customary to make sure that funds would be forthcoming, in sufficient quantities to finish the undertaking before embarking in it. But the times have changed since then. In the Western States the public guarantee the cost and furnish the means of paying for the road by the land grants we have been considering. In the Eastern States other expedients are resorted to. In both sections, however, many of the tactics employed are the same. Funds mnust necessarily be procured before the work can be begun, and the manner in which these are generally obtained reveals at once a mastery of the science of railroad financiering. The road for which aid is sought promises well, but it does not yet exist. It is to be constructed. Yet in spite of this the directors of the scheme proceed to pledge the road for the cost of its construction; or in other words they mortgage a work which does not exist. The stock is worth nothing, but there is another means at hand. Bonds are created and put in the'market at a certain stated price. They are usually placed in the hands of some leading banking house in the principal financial centres of the country to be sold. The bonds are sold, and the work of constructing the road goes on with the money obtained for them. "The stock itself then passes as a gratuity into the hands of those advancing money upon the bonds. The result is, that by this ingenious expedient the capitalist holds a mortgage. paying a secured and liberal interest, on his own property, which has been conveyed to him forever for nothing. The stock is at once nothing and everything. Given away, the (donees own and manage the road, and, re 5'o 56 illST(ORY OF TIHE GRANGE MOVEMENT. ceiving a fixed and assured interest upon their bonds, eujoy a further right to exact an additional sum, and one as large as they are able to make it, froml the developing business of the country, as dividends on the stock. Instances of this fbrm of railroad financiering need not be spetified, for it is now the common course of Western railroad construction." Perhaps the best instance on record of the manner in which skilful directors of a railroad can procure the construction of their road at the cost of other parties, and secure the profits to themselves, is afforded by the history of the notorious Credit Mobilier Company, which constructed the Union Pacific Railway; and thpugh the story is now old and known to the reader, it will bear repeating here. The early history of the Pacific Railroad is a story of constant struggles and disappointmenrts. It seemed to the soundest capitalists a piece of mnere fool-hardiness to undertake to build a railroad across the continent and over the Rocky Mountains, and, although Government aid was liberally pledged to the undertaking, it did not, for a long time, attract to it the capital it needed. At length, after many struggles, the doubt which had attended the enterprise was ended. Capital was found, and with it men ready to carry on the work. In September, 1864, a contract was entered into between the Union Pacific Company, and H. W. Hoxie for the building by said Hoxie of one hundred miles of the road, from Omaha west. Mr. Iloxie at once assigned this contract to a company, as had been the understanding from the first. This company,. then comparatively unknown; but since very famous, was known as the Credit Mobilier of America. PTTI)T TJTF TAT PAT rAfloAT) I TITI 4 r.T7TT,T)T,TC, TTTIR, CFNTT,AT, Tlk(TTrT(7 r,,-ATL'ROAT) T,NT TTTI 58 HISTORY OF THE GRANGE MOVEMENT; OR, The company had bought up an old Charter that had been granted by the Legislature of Pennsylvania to another company in that State, but which had not been used by them. "In 1865 or 1866, the late Oakes Ames, then a Menmber of Congress from the State of Massachusetts, and his brother Oliver Ames, became interested in the Union Pacific Company, and also in the Credit Mobilier Company, as the agent for the construction of the road. The Messrs. Ames were men of very large capital, and of known character and integrity in business. By their example and credit and the personal efforts of Mr. Oakes Ames, many men of capital were induced to embark in the enterprise, and to take stock in the Union Pacific Company and also in the Credit Mobilier Company. Among them were the firm of S. Hooper & Co. of Boston, the leading member of which (Mr. Samuel Hooper) was then and is now a member of the House; Mr. John B. Alley, then a member of the House from Massachusetts, and Mr. Grimes, then a Senator from the State' of Iowa. Notwithstanding the vigorous efforts of Mr. Ames and others interested with him, great difficulty was experienced in securing the required capital. "In the Spring of 1S67, the Credit Mobilier Conipany voted to add 50 per cent. to their capital stock, which was then $2,500,000, and to cause it to be readily taken, each subscriber to it was entitled to ret ceive as a bonus an equal amount of first mortgage bonds of the Union Pacific Company. The old stockholders were entitled to take this increase, but even the favorable terms offered did not induce all the old stockholders to take it, and the stock of the Credit THiE FARMER'S WAR AGAINST MONOPOLIES. Mobilier Company was never considered worth its par value until after the execution of the Oakes Ames contract hereinafter mentioned. On the 16th day of August, 1867, a contract was executed between the Union Pacific Railroad and Oakes Ames, by which Mr. Ames contracted to build 667 miles of the Union Pacific road at prices ranging from $42,000 to $96,()00 per mile, amounting in the aggregate to $47,000,000. Before the contract was entered into, it was understood that Mr. Ames was to transfer it to seven trustees who were to execute it, and the profits of the contract were to be divided among the stockholders in the Credit Mobilier Company, who should comply with certain conditions set out in the instrument transferring the contract to the trustees. Subsequently, all the stockholders of the Credit Mobilier Company cominplied with the conditions named in the transfer, and thus became entitled to share in any profits said trustees might make in executing the contract. All the large stockholders in the Union Pacific were also stockholders in the Credit Mobilier, and the Ames contract and its transfer to trustees were ratified by the Union Pacific and received the assent of the great body of stockholders, but not of all. After the Ames contract had been executed, it was expected by those interested that, by reason of the enormous prices agreed to be paid for the work, very large profits would be derived from building the road, and very soon the stock of the Credit Mobilier was understood to be worth much more than its par value. The stock was not in the market, and had no fixed market value, but the holders of it, in December, 1867, considered it worth at least double the par value, and in January or February, 1868, 53, 60 HISTORY OF TIIE GRANGE MOVEMENT; OR, three or four times the par value; but it does not appear that these facts were generally or publicly known, or that the holders of the stock desired they should be." As will be seen from the above statement, the stockholders of the Credit Mobilier were also stockholders illi the Union Pacific Company. Like all great corporations of the present day, the Union Pacific road was largely dependent upon the aid furnished by the Government for its success. The managers of the company, being shrewd men, succeeded in placing all the burdens and risks of the enterprise upon thie General Government, while they secured to themselves all the profits to be derived fromr the undertaking. "The Railroad Company was endowed by Act of Congress with 20 alternate sections of land per mile, and had Government loans of $16,000 per mile for about 200 miles; thence $32,000 per mile through the Alkali Desert, about 600 miles, and thence in the Rocky Mountains $48,000 per mile. The Railroad Company issued stock to the extent of about $10,000,000. This stock was received by stockholders on their payment of five per cent. of its fate. When the Credit Mobilier came on the scene, all the assets of the Union Pacific were turned over to the new company in consideration of full-paid shares of the new cornpany's stock and its agreement to build the road Tile Government, meanwhile, had allowed its claim for its loan of bonds to become a second instead of a first mortgage, and permitted the Union Pacific road to issue first mortgage bonds, which took precedence as a lien on the road. The Government lien thus became almost worthless, as the new mortgage which took THE FARMER'S WAR AGAINST MONOPOLIES. precedence amounted to all the value of the road. The proceeds of this extraordinary transaction went to swell the profits of the Credit Mobilier, which had nothing to pay out except for the mere cost of construction. This also explains why some of the dividends of the latter company were paid in Union Pacific bonds. As a result of these processes, the bonded debts of the railroad exceeded its cost by at least $40,000,000." Mr. Ames was deeply interested in the scheme, being, indeed, one of its principal managers. Being a Member of Congress, he was peculiarly prepared to appreciate the value of Congressional assistance in behalf of the Credit Mobilier. It would seem that the object-of-the Credit Mobilier was to drain money from the Pacific road, and consequently from the Government, as long as possible. Any legislation on the part of Congress designed to protect the interests of the Government, would, as a matter of course, be unfavorable to the Credit Mobilier, and it was the aim of that Corporation to prevent all such legislation. The price agreed upon for building the road was so exorbitant, and afforded such an iniquitous profit to the Credit Mobilier, that it was very certain that some honest friend of the people would demand that Congress should protect the Treasury against such spoliation. It was accordingly determined to interest in the scheme enough Members of Congress to prevent any protection of the National Treasury at the expense of the unlawful gains of the Credit Mobilier. Mr. Oakes Ames, being in Congress, undertook to secure the desired hold upon his associates. The plan was simply to secure them by bribing them, and for this purpose a certain portion of the Credit Mobilier stock was placed in the hands of 61 #1 62'HISTORY OF THE GRANGE MOVEMENT; OR, Mr. Ames, as trustee, to be used by him as he thought best for the interests of the company. Provided with this stock, Mr. Ames went to Waslhington in December, 1867, at the opening of the Session of Congress. The story of his exploits there is now familiar to every one. Reduced to plain English, the story of the Credit Mobilier is simply this: The men entrusted with the management of the Pacific road made a bargain with themselves to build the road for a sum equal to about twice its actual cost, and pocketed the profits, which have been estimated at about THIRTY MILLIONS OF DOLLARS-this immense sum coming out of the pockets of the tax payers of the United States. This contract was made in October, 1867. "On June 17, 1868, the stockholders of the Credit Mobilier received 60 per cent. in cash, and 40 per cent. in stock of the Union Pacific Railroad; on the 2d of July, 1868, 80 per cent. first mortgage bonds of the Union Pacific Railroad, and 10() per cent. stock; July 3, 1868, 75 per cent. stock, and 75 per cent. first mortgage bonds; September 3, 1868, 100 per cent. stock, and 75 per cent. first mortgage bonds; December 19, 1868, 200 per cent. stock; while, before this contract was made, the stockholders had received, on the 26th of April, 1866, a dividend of 100 per cent. in stock of the Union Pacific Railroad; on the 1st of April, 1867, 50 per cent. of first mortgage bonds were distributed; on the 1st of July, 1867, 100 per cent. in stock again." After offering this statement it is hardly necessary to add that tile vast property of the Pacific road, which should have been used to meet its engagements, was soon swallowed up by the Credit Mobilier. 6 TIlE FARMER'S WAR AGAINST MONOPOLIES. The history of the Credit Mobilier is instructive upon another point. It presents to us a skilful and success fuil instance of what is now a common practice with railroad companies-the fictitious increase or watering of the stock of the company. Stock watering has become so common, and has been indulged in with such success, that many persons have come to regard it as a legitimate transaction. A com petent writer has defined the practice as "the re appraisal by its owners of a corporate property which has, or is alleged to have, increased in value on their hands, without any new outlay, and the issue to themselves of new evidences of value equal to such supposed inclerease." But the popular definition-and the true one would be the increase of the stock of a corporation at the expense of the public, and for the purpose of earning dividends upon money never invested. It will be well to consider how this operation of "watering" the stock of a road is performed. Such knowledge will be of value farther on. "The history of the companies which have been consolidated into what is known as the Pittsburg, Fort Wayne and Chicago Railroad, furnishes a very fair illustration. Here the process of watering was early commenced.as a simple and desperate expedient for raising money at an enormous discount for the purpose of completing an enterprise of doubtful success. In the earliest history of one of these companies we read:' The stock subscriptions which were paid in cash into the treasury of the company were very small-amounting, perhaps, in all, to less than three per cent. on the final cost of building and equipping the road. The stock subscriptions were paid for mostly in uncultivated 63 6f4 HISTORY OF THE GRANGE MOVEMENT; OR, lands farms, town lots anid labor upon the road.' Of the whole road as it stands we are told that, of the $18,663,876, now representing the cost of the road and equipment, etc., the shareholders contributed in cash only about ten per cent., or less than $2,000,000; and their contributions in cash, bonds, notes, lands and personal property, labor, etc., amounted to something less than $4,000,000, or rather more than twenty per cent. of the present cost of the work. The difference between this sum and the capital stock, as now shown by the ,~~~~~ books of the company, is made up of dividends which were paid iia stock, interest on stock paid in stock, premium on stock allowed -to stocIhlolders at the tithe of-consolidation, which was paid in Stock, and a balance of stock still held by the trustees. "This, however, was in the early days of the enterprise, the days of doubtful success, when the stock was thought worthless, and was almost given away. But in 1866 a new era dawned upon the Fort Wayne road; it began to pay dividends. In 1870 the stock of the company, the history of a portion of which has just been given, stood at $11,500,000, while its indebtedness amounted to about $13,600,000 more, being in all some $1,150,000 above the cost of road and equipment as they stood upon the books of the comnpalny. In June of this year a lease was effected of the entire property by the Pennsylvania Railroad Company. The Fort Wayne stockholders had their option between annual dividends of 12 per cent. on the stock then in existence, or the more moderate rate of 7 per cent. on a proportionately increased amount. They wisely chose the latter, and forthwith the $11,500,000 of stock became $19,714,000, while the road, which was claimed THE FARMER'S WAR AGAINST MONOPOLIES. to have cost only $24,000,000, was suddenly represented by $33,400,000 of securities, none of which bore a less interest than 7 per cent. "The great masterpieces of Commodore Vanderbilt have, however, so eclipsed all other performances in this line that they may be said to constitute an epoch in the history of paper inflation-it might also be said of bubble-blowing. It is only necessary, therefore, in this connection, to recount the history of the chain of roads, now reduced in number to two, which connect New York and Chicago by way of Albany. The distance between these points is 982 miles. It is useless to begin the story further back than 1852, when the through line was completed, consisting of sixteen independent links, several of which were themselves made up of numerous smaller and once independent roads That was a year of active and much-needed consolidation. The New York Central led off under a special act of legislature. Eleven roads went into the consolidation, with an aggregate capital of $23,235,600. The stock lowest in value of the eleven was settled upon as the par of the new concern, and the stocks of the other ten companies were received at a premium varying from 17 to 55 per cent. By this simple financial arrangement, $8,894,500 of securities, of which not one cent was ever represented by property, but which in reality constituted so much guaranteed stock, was made a charge, principal and interest, against future income. This was the price paid to get rid of the vested rights which had been allowed to settle down upon this thoroughfare. Between 1852 and 1868, the stock and indebtedness of the consolidated company had been increased, for one reason or another, until, when Mr 5~~~~~~~~~~~~~~~~~~~~~~ 5 65 66 HISTORY OF THE GRANGE.'MOVEMENT; OR, Vanderbilt became President in the latter year, they amounted ill round numbers to $40,000,000, representing a road which its construction account showed had cost $36,600,000. Vanderbilt had for some years been President of the Hudson River road, and, as such, in 1867 had doubled its capital stock ($7,000,000), calling in 50 per cent. of the increased amount, and thus watering to the extent of $3,500,000. Extending his control over the Central, hle now proceeded to better his previous instructions. A stock dividend of 80 per cent., not a dollar of which was called in, was suddenly de-clared. Over $2 3, 000,000 of securities were thus created at once. Operations stood still at this point, but only for a moment. The next measure was a consolidation of the Central and the Hudson River Railroads. This was effected in the succeeding year uponI a stock basis of $90,000,000-a further watering of 27 per cent. being allotted to the Central-while the turn of the Hudson River road now having come again, there was provided for it the munificent amount of 85 per cent. The result of these astounding feats of financial legerdemain was that a property which ili 1866 appeared from its own books to have cost less than $50,000,000, and which was then represented by over $54,000,000 of stock and indebtedness, was suddenly shot up to over $103,000,000 in 1870, upon the whole of which interest and dividends were paid. At the same time the cost of the road stood upon the books of the company at less than $60,000,000, or about $70,000 per mile, while in evidences of property each mile was charged with no less than $122,000. The average cost of railroads throughout the world has been somewhat less than $100,000 per mile, while in THE FARMER'S WAR AGAINST MONOPOLIES. America it has stood at about half of that amount. According to the books of the company over $50,000 of absolute water has been poured out for each mile of road between New York and Buffalo. "Thle next step towards Chicago was one of 88 miles to Erie. This was made up of a consolidation of two roads effected in 1867, which went in with $2,800,000 of capital and came out with $5,000,000. The total capital account of the company was then a trifle over $3,200,000. In 1869, the consolidation of the lines between Buffalo and Chlicago was effected, and this road became a party to it with $6,000,000 of stock and $4,000,000 of indebtedness-at least 30 per cent. of water in excess of all cost of construction. "The next step in the line is one of 96 miles to Cleveland; this was filled by the celebrated Cleveland, Painesville and Ashtabula road, which, in the six years between 1862-'67, divided 120 per cent. in stock, 33 per cent. in bonds, and 79 per cent. in cash. Having really cost less than $5,000,000 in money, it was consolidated at nearly $12,000,00. "The next step was from Cleveland to Toledo, 148 miles. Here it was that Vanderbilt began his operations, for in 1866 he secured possession of this road, and signalized his administration of its affairs by the issuing of a scrip dividend of 25 per cent. upon its $5,000,000 of capital. " The last two roads were consolidated into the Lake Shore road, 258 miles in length, in 1867; the stock and indebtedness of the new company was $22,000,000. In 1869 the work of consolidation was perfected from Buffalo to Chicago by the merging of all the connecting, links into the Lake Shore and Michigan Southeri 67 68 HISTORY OF TIlE GRANGE MOVEMENT; OR, Railroad Company, operating nearly 1300 miles of road, represented by $.57,000,000 of stock and indebtedness, which was increased to $62,000,000 in 1871, and which it had the further privilege of increasing to about $73,000,000. These figures throw a very curious light upon the real cost of railroad construction in America. They represent a nominal outlay of but $48,000 per mile, and yet it is not denied that in the amount was included $20,000,000 of fictitious capital. These roads, not improbably, may have cost those who constructed them in cash, actually paid in either directly in money or in dividends which had never been drawn out, the full amount of the consolidation capital. The profits had, it is true, been very unequally divided, but substantial justice was done in the end; what had been lost in one road was made good in another, but as a whole the community was, perhaps, paying for nothing which it had not received. No credit on this account is due to those managing the affairs of the company. They undoubtedly regarded the Vanderbilt operations as masterpieces of railroad management, and only regretted that the earnings of the company under their control could by no possibility justify any similar performances; and yet the contrast between the results hitherto arrived at upon this line, under a system of moderate, average watering, and those achieved further east by Vanderbilt, is singularly suggestive. It is probably safe to say that the Vanderbilt stock waterings between Buffalo and New York annually cost the American people not less than $3,.000,000 in excess of all remuneration which ever, under any construction of right, belonged to the owners of the lines. Under these circumstances it would seem, judging by the example THE FARMER'S WAR AGAINST MONOPOLIES. of the Lake Shore road, that comparatively legitimate and reasonable waterings should satisfy any one not inordinately rapacious. " -. -- *The Pacific Railroad furnishes a fine example of all these ingenious devices In speaking of this enterprise it is not pleasant to adopt a tone of criticism toward the able and daring men who with such splendid energy forced it through to completion. It was a work of great national import and of untold material value. Those who took its construction in hand incurred great risk, and at one time trembled on the verge of ruin. This enterprise was to them a lottery, in which they might well draw a blank, but, should they draw a prize, the greatness of the prize must justify the risk-incurred. The community asked them to assume the risk, and was willing to reward their success. Success was thought to be well worth all it might cost. At the same time the process of construction afforded a curious example of the methods through which fictitious evidences of value can be piled upon each other. The length' of the united road was 1919 miles, and the cost of construction was estimated at $60,000,000. To meet this outlay a stock capital was authorized of $100,000,000 for each of the two great divisions of the line; upon this, however, no dependence was placed as a means of raising money; it was only a debt to be imposed, if possible, on the future business of the country. A curious mystery hangs over this part of the financial arrangements of the concern. Probably not $20,000,000 ever has been, or ever will be, derived from this source. The rest is very clear. There was the Government subsidy of $30,000 a mile and $30,000 a mile of mortgage indebtedness; there was 69 70 HISTORY OF TIHE GRANGE MOYElMENT; OR. a land grant of 12,800 acres a mile, and, where there were States, there were bonds, with interest guaranteed by the State and gifts of real estate from cities, where cities existed; and there were even millions of net earning applied to construction. The means to build the road were not grudgingly bestowed Meanwhile of the real cost of construction but little is correctly known; absolutely nlothing indeed of the western division, or Central Pacific. Managed by a small clique in California, the internal arrangements of this company were involved in absolute secrecy. The eastern division was built, however, by an organization known as the Credit Mobilier, which received for so doing all the unissued stock, the proceeds of thle bonds sold, the government bonds, and the earnings of the road —in fact, all its available assets. Its profits were reported to have been enormous, and they made the fortunes of many, and perhaps of most of those connected with it. Who, then, constituted the Credit Mobilier? It was but another name for the Pacific Railroad ring. The members of it were in Congress; they were trustees for the bondholders, they were directors, they were stockholders, they were contractors; in Washington thle) voted the subsidies, in New York they received them, upon the Plains they expended them, and in the Credit. Mobilier they divided thenm. Ever-shifting characters, they were ubiquitous- now engineering a bill, and now a bridge-they received money into one hand as a cor poration, and paid it into the other as a contractor. As stockholders they owned the road, as mortgagees they had a hen upon it, as directors they contracted for its construction, and as members of the Credit Mobilier they built it. What is the community to pay for it? THE FARMER'S WAR AGAINST MONOPOLIES. "At the close of 1870, with $103,000,000 of their capital yet unsubscribed, and thus reserved for issue, should the earnings of the roads at any future period make watering practicable; with this amount of stock in reserve, the two companies operated 2083 miles of road, represented by stock and debt to the amount of $240,000,000. Thus tile last results of Vanderbilt's genius have been surpassed at the very outset of this enterprise. The line from Chicago to New York represents now but $60,000 to the mile, as the result of many -years of inflation, while the line between Omnaha and Sacramento begins life with thle cost of $115,000 per mile. It would be safe to say that the road cost in money considerably less than one half Of this sum. The difference is the price paid for every vicious element of railroad construction and management; costly constrution, entailing future taxation on trade; tens of millions of fictitious capital; a road built on the sale of its bonds, and with the aid of subsidies; every element of real outlay recklessly exaggerated, and the whole at some future day is to make itself felt as a burden on the trade which it is to create. "Enough has been said to illustrate the bearing which stock-watering and extravagant construction have upon taxation. It would be useless to attempt to estimate the weight of the burden imposed through these means upon material development. The statistics which should enter into any reliable estimate are not accessi ble, and any approximation would be simply a matter of guesswork. A table was published, during the year 1869, in a leading financial organ, comparing the capi tal stocks of twenty-eight roads as they stood on July 1, 1867, and May 1, 1869. During those twenty-two 71 7'2 HISTORY OF TIlE GRANGE MOVEMENT; OR, months it was found that the total had increased from $287,036,000 to $400,684,000, or 40 per cent. Carrying the comparison on nine of these roads back two years further, it was found that, in less than four years, their capitals had increased from less than $84,000,000 to over $208,000,000, or 150 per cent. A portion of this, perhaps 25 per cent. of the whole, represents private capital actually paid in and expended; another portion, perhaps equally large, represents dividends the payment of which was foregone and the money applied to construction; the whole of the remainder may be set down as pure, unadulterated'water,' which calls for an annual tax-levy of some three or four millions a year." It will, of course, be clear to the reader that the motive influencing the men who thus increase their stock is simply to increase the amount drawn from the public as earnings upon the sums supposed to be invested in the road. A road operating with a capital of $3,000,000, and earning ten per cent. upon this, increases its capital, by the watering process to $6,000,000 and claims ten per cent. upon this valuation. In plain English, the road is extorting from the community the $300,000 represented by the earnings upon the $3,000,000 of watered stock. That sum is drawn from the people and transferred to the pockets of the stockholders. Commenting upon this, the Chicago Tiibune in a recent issue said: "The railroads have the full protection of the law in the decisions of tile United States courts, which hole their charters to be in the nature of a contract whiclh the State cannot violate. They can set up the law in THE FARMER'S WAR AGAINST MONOPOULIES. any case where a State Legislature or the people endeavor to deprive them of any of the privileges specifically conferred by their charters. But they will make a mistake if they presume that any law bars out the people from ascertaining whether or not they are complying with their obligations under the contract. The courts will extend to the people the same protection that they extend to the corporations; and, in the conflict between the railroads and the farmers, the principal thing to be determined by evidence is whether the rates charged by the railroads represent a profit on the actual investment, or a percentage on fictitious capital not authorized under the charters, but created in a variety of ways without the investment of money. If the former, the railroad rates will be sustained; if the latter, the rates will be changed, in one way or another, and the railroads will be forced to be content with earnings that will pay a fair interest on the actual investment. "In the eyes of the law a corporation is a fictitious person, created for special purposes and strictly limited to the terms of its charter. It can take nothing by implication. It can form no copartnerships, enter into no business transactions, spread out into no field not explicitly defined in the law which originally brought it into being, or in amendments thereto. Now, we know of no railroad charter which authorizes the corporation to earn a percentage on fictitious capital, and the courts will not construe this to be an unexpressed or implied privilege of the railroads. On the contrary, the law expressly holds that railroads must make fair and reasonable rates-and rates can be neither fair nor reasonable which represent dividends on capital that 73 HISTORY OF THE GRANGE MOVEMENT; OR, has never been invested or profits on stocks fictitiously issued for the benefit of speculators. It is on this ground that farmers can make their best fight, and if they keep close to this line of battle they will be certain of victory. "We have no means of knowing what proportion of the capital stock of the railroads of this country is ficti tious. An estimate made some two years ago placed it at 33 per cent. of the aggregate railroad stocks. The proportion is certainly not less to-day, and probably is much larger. If this be true then the average railroad rates are 33 per cent. higher than they would be if the railroad stocks of the country represented the capital actually invested in constructing and operating thenm. It is the work of the people to ascertain the precise difference between the actual investments and the fictitious stocks, and when this shall have been done there will be a solid basis for determining what reasonable rates are. "The way and means adopted for creating fictitious railroad stocks are at once numerous and ingenious. A popular method is to declare stock dividends. If the Rock Island road, for instance, is earning more money than it cares to have the people know of, it declares a stock dividend. The capital stock is thereby increased and the earnings appear to be less. The fact is, that a means has been provided whereby the earnings may be increased without arousing the suspicion of the public. Ahe new stock represents no investments of capital Whatever, but thenceforth it constitutes a basis on which the railroads claim the right of earning the current rate of interest. The rates of transportation are thus increased to pay interest on stock originally issued for the 74 TIlE FARMER'S WAR AGAINST MONOPOLIES. purpose of covering up excessive earnings. Another favorite way of issuing fictitious stock is by the leasing of other railroads. But the most common means of obtaining fictitious stock is by what is known as the Cr6dit Mobilier plan of bailding railroads. Starting with a land grant from Congress, or subsidies from State or municipal governments, the construction company issues sufficient bonds to cover the cost of building the road, outside of all shrinkage from depreciation, brokers' commissions, etc. These bonds are sold, and the road is built and equipped from the proceeds. The construction company then have the capital Stock of the road intact. Whether it be $1,000,000 or $10,000,000, it has not cost them one dollar. They then commence operating the road, and claim that it should not only earn money to pay the interest on the bonds, but also enough to pay dividends on capital stock that does not represent a single dollar of actual investment. The cost of the road is entirely comprised in the bonds that have been issued, and the capital stock is altogether fictitious. How large a proportion of the 63,000 miles of railroads in the United States has been constructed in this way, it is not possible to say. But the time has come when the people will undertake to find out. The people are willing that the railroads shall earn a fair profit on actual cost, but they can no longer be forced to pay a royalty on fraudulent issues. That time has passed, and thie sooner the railroads make up their minds to it the better it will be for them." I i) HISTORY OF THE GRANGE MOYEMENT; OR, CHAPTER IV. THE CONSOLIDATION PROCESS. A Railroad of necessity a Monopoly-George Stephenson's Views-The Interests of the Roads naturally Hostile to those of the People-Foolish Prodigality of the People-Competition disastrous to the Roads-Consolida tion of Railroads inaugurated to stop Competition-Success of the Efforts for Consolidation-The Four Enemies of Free Trade-Vanderbilt's Success with the New York Central-The Pennsylvania Company-Its History-The Reign of Monopoly successfully inaugurated. A RAILROAD is of necessity a monopoly. It is built for the express purpose of mRonopolizing the trade of the region through which it passes, and its first necessity is to prevent or destroy competition. Competition mneans cheap freights, low fares, and is in the interest of the community. It deprives a corporation of its power to tax the public'with excessive rates, and compels it to make only such charges as are fair and reasonable. The interests of the road demand that there shall be no interference with it from any quarter, that its directors shall have the sole power to fix and arrange the rates for the transportation of passengers and freight, and that nothing shall occur to interfere with the monopoly they seek to establish. The true nature of the railway system was plainly understood and stated by its great founder and advocate in England, George Stephenson. "He saw that a line once built must impose a tax on the community, if only to keep itself in existence. He also saw that if 76 THE FARMER'S WAR AGAINST MONOPOLIES. a competing road was built to divide any given business which could by any possibility be done over a road already constructed, in the end that business must support two roads instead of one. A very slender knowledge of human nature would have enabled him to take the next step, and conclude that any number of competing roads would ultimately unite to exact money from the community, rather than continue a ruinous competition." It may be plainly stated then, that from the very outset, the interests of the public and those of the railroad companies were antagonistic. There was and is an irrepressible conflict between them, and it will require a more than ordinary degree of forebearance and patriotism on the part of the railroads to bring about a compromise. At the outset, the people of the various States, in their eagerness to obtain the roads, granted important privileges without demanding any equivalent. Few restrictions were placed upon the proposed schemes. Corporations were given the right of way, and other important privileges the granting of which often involved the sacrifice of valuable private interests, and the State or the people demanded and received practically nothing in return. The eagerness of the people to obtain the roads was so great that nearly every projected enterprise received the sanction of the State, and was put into operation. In this way many useless roads were built, and the present generation is called upon to suffer for this folly. In one respect, however, the system, as originally inaugurated, was correct. It provided for and allowed the construction of competing roads and thus gave the 77 HISTORY OF THE GRANGE MOVEMENT; OR, public an opportunity to pay a fair price for transportation. This was not as the corporations wished. Their risk was increased by it and their dividends diminished. They began to cast about for ways and means of putting an end to this state of affairs, and at length hit upon an expedient which has well nigh realized their wildest dreams of power and wealth. They inaugurated a policy of consolidation of roads. The great corporations of the East set to work to lease or buy up the lines connecting with them, by which they must reach the Western States, or which acted as feeders to their routes. They succeeded in their object, and soon the railroad system of the country was narrowed down to a few great lines, the minor enterprises disappearing as independent roads and forming parts of the great consolidated companies. The principal railroad enterprises of the United States were undertaken with one common object-to bring the produce of the West to the Atlantic markets and to provide the Western States with the manufactures and wares of the Eastern States. This was the grand prize for which so many plans were laid, and so much skilful work performed. By the process of consolidation, the communication between the seaboard and the West has been limited to four great lines-the New York Central, the Erie, the Pennsylvanial and the Baltimore & Ohio Railroads. At the first glance it would seem that these four lines are sufficient to furnish all the competition necessary to secure fair rates in the matter of transportation. But such is not the case. These four consolidated companies were formed for the express purpose of destroying com 78 THE FARMER'S WAR AGAINST MONOPOLIES. petition, and they stand like four gigantic sentinels over the avenues of trade to enforce their will. They offer the only means of communication between the East and West, and shippers and travellers are compelled to choose between them. Having disposed oftheir rivals, they have now a common interest-to keep rates up to the highlest point, and they have power and wealth enough to carry out their wishes. With power to prevent the constre(tion of any rival lines, these four companies hold the transportation business of the country in their grasp; and, being subject to no practical restraint, they may make such regulations, and compel the public to pay such rates as they may see fit. It will be well to glance at the manner in which the consolidation of the two most powerful corporations was effected. It reveals some curious facts in our railroad history. We tell the story in the language of a brilliant writer,* from wlhomrn we have quoted before: "Twenty-one years ago, the New York Central road, which forms the nucleus of the Vanderbilt combination, was not in existence as a corporation. In 1853 it was chartered, and eleven distinct corporations were merged into it. Five of these corporations, the longest of which could boast but of 76 miles of track, divided among them the 300 miles which separate Albany from Buffalo. The corporation created out of these elements was again, in its turni merged in 1869 into the larger New York Central & Hudson River Railroad Company, which controls within the State of New York but little less than a thousand miles of track, and is represented by rather more than $100,000,000 of capital. The con * Charles F. Adams, Jr. 79 80 HISTORY OF THE GRANGE MOVEMENT; OR, solidation, so far, was perfect, and had taken place under a State law and within State limits. Growth, however, did not stop here; the combinations of capital simply adapted themselves to the forms of a political system. Beyond the limits of New York, the corporation held, in the eye of the law, no property; it did not control a mile of track. At Buffalo, however, the Central connected with another company, itself made up of four separate primal links which had once connected Buffalo with Chicago, and which had united in obedience to the same law of development which had built up the Central. West of Chicago came yet other links in the trans'continental chain. Three lines competed to fill the gap which lay between Chicago and the eastern terminus of the Pacific road,-the Northwestern, the Rock Island, and the Burlington & Missouri. In the autumn of 1869, the consolidation of the Central and the Hudson River took place. Immediately afterwards, at the annual election of the Lake Shore & Michigan Southern, the Vanderbilt interest took open possession of that corporation, controlling a majority of its stock. In May, 1870, it in like manner assumed control of the Rock Island and Chicago & Northwestern. The same parties in interest were now practically the owners of a connected line of road from New York to Omaha; there was no consolidation as yet, but, so far as the public and competing roads were concerned, the close of 1870 found the six parties, which but a short time before had been in possession of the trans-continental thoroughfare, reduced to three. Without taking into consideration the immense influence which their position necessarily gave to them over other and less powerful members of the railroad system, here was a TIIE FARMER'S WAR AGAINST MONOPOLIES. single combination of capital representing the control of at least 4500 miles of road and not less than $250,000,000 of capital. "This, however, is but the result of a loose alliance between men notorious for their feuds and their selfishness; the combination is temporary, depending perhaps upon the continued life of one who lacks little of being an octogenarian. The men who control it not infrequently evince talents of a very high order, and their course is made continually interesting by episodes of dramatic surprise. They lack, however, the greatest and most indispensable element of permanent success,some underlying, indissoluble bond of union. In this respect they differ entirely from the great combination which has gradually taken shape in the neighboring State of Pennsylvania. What is commonly known as the Pennsylvania Central Railroad Company is probably today the most powerful corporation in the world, as, indeed, it owns and operates one of the oldest of railroads. Its organization, as compared with that of its great rival, the New York Central, bears the relation of a republic to an empire. Cesarism is the principle of the Vanderbilt group; the corporation is the essence of the Pennsylvania system. The marked degree in which the character of the people have given an insensible direction to the-management of their corporations in these two States is well deserving of notice. In New York politics the individual leader has ever been the centre; in Pennsylvania, always the party. The people of this last State are not marked by intelligence; they are, in fact, dull, uninteresting, very slow and very persevering. These are qualities, however, which they hold in common with the ancient Romans, and 6 81 -ti. 82.-HISTORY OF THE GRANGE MOVEMENT; OR, they possess, also, in a marked degree, one other characteristic of that classic race, the power of organization, and through it of command. They have always decided our Presidential elections; they have always, in their dull, heavy fashion, regulated our economical policy. Not open to argument, not receptive of ideas, not given to flashes of brilliant execution, this State none the less knows well what it wants, and knows equally well how to organize to secure it. Its great railroad affords a striking illustration in point. It is probably the most thoroughly organized corporation, that in which each individual is most entirely absorbed in the corporate whole, now in existence. With its president and its four vice-presidents, each of whom devotes his whole soul to his peculiar province, whether it be to fight a rival line, to develop an inchoate traffic, to manipulate the Legislature, or to operate the road,with this perfect machinery and subordination, there is no reason why the corporation should not assume absolute control of all the railroads of Pennsylvania. "Such is this great corporation, high in credit in the money-markets of the world, careful withal of its outwvard repute, apparently unbounded in its resources. Organized so long ago as 1831, it had thirty miles of road ready for operation in the succeeding year. Not until 1854, however, was the Pennsylvania Railroad proper completed. It then controlled the line from Harrisburg to Pittsburg, 210 miles, which had cost a little less than $17,000,000, and was represented by about $12,000,000 of stock and $7,000,000 of indebtedness. This might be considered the starting-point; $3,500,000 of annual gross earnings on a capital a little less than $20,000,000. For many years its growth THIE FARMER'S WAR AGAINST MONOPOLIES. was confined to Pennsylvania. In 1869, however, its policy in this respect underwent a change, and it burst through State limits, extending its field of operations over the vast region lying between the great lakes and the Ohio upon the north and south, and the Missouri on the west. This sudden development was, as usufl, the immediate result of competition, and was almost forced upon the corporation in spite of itself, as a measure of defence. The secret history of the railway intrigues and legislative manipulations of 1869 would make a very singular narrative could the whole of it be disclosed. That year was, in fact, a turning-point in our railway progress. The Erie managemlent had then fallen into confessed discredit, and was beginning its remarkable attempt under Messrs. Gould and Fisk to carry on a great commercial enterprise in absolute disregard of every principle of good faith, commonly supposed to be at the basis of civilized transactions. Those managing this thoroughfare were desperately thrusting out in every direction, contracting, buying, and leasing all adjoining roads with a rashness only surpassed by their easy disregard of the obligations thus contracted. Early in 1869 they sought to cut off the connections of the Pennsylvania road, and to shut it up within the limits of that State. For a brief time the battle seemed to go in their favor, but suddenly the tide turned. The result showed that they were no match for the powerful antagonist they had provoked; -their overthrow was so effectual as to have in it some elements of the ludicrous. Bills in the interest of the Pennsylvania company, which it was doubtful if it were in the power of any legislature to pass, were pushed through their various stages, and received exe 83 84 HISTORY OF THE GRANGE MOVEMENT; OR, cutive approval, with a speed unprecedented; contracts, arranged with the Erie managers by boards Of directors, were unexpectedly rejected in meetings of stockholders; and for a time this irresistible power even threatened to wrest from the Erie road its own Deculiar and long-established connections. The result of these operations was that the Pennsylvania Central soon controlled by perpetual lease a whole system of roads radiating to all points in the West and Southwest. By one it reached Chicago, by another St. Louis, and by a third Cincinnati. At Indianapolis it had absorbed a network of routes; at Chicago and St. Louis it had formed close connectiops looking directly towards the Pacific.. Hlere for a time it rested, declaring that its policy did not look to any expansion beyond the Mississippi. The corporation rested, perhaps, but not the ambitious men who controlled it; their individual operations now commenced. They obtained the control of roads endowed with vast land grants in Michigan and in Minnesota; they were the directors of the Northern Pacific; and when the men who had constructed the Uniion Pacific broke down under the multiplicity of their engagements, the first vice-president of the Pennsylvania road appeared as the new president of that road also. The very land grants belonging to the companies these men now controlled amounted to 80,000 square miles, or an area equivalent to the aggregate possessions of four of'the existing kingdoms of Europe. "Weanwhile the Pennsylvania Railroad Company, d'ist ct from its individual directors, now owned or held by lease 400 mniles of road in Pennsylvania, and directly controlled 450 miles more, almost entirely llTHE FARMER'S WAR AGAINST MONOPOLIES. with'n the same State; beyond its limits it leased and operated nearly two thousand miles in addition, holdincg the stock and bonds of railroads, canals, towns, and cities, like some vast Credit Mobilier; it had, indeed, no less than $20,000,000 standing on its books as represented by these investlnents. In the sixteen years its own capital and indebtedness had swollen from $20,000,000 to $65,000,000, withl a liberty secured to increase them to nearly $100,000,000; at the same time the system of roads which it held in its hands returned a yearly income of hardly less than $.40,000,000, of which about $10,000,000 was claimed as net profit. "If, however, as its direction had officially declared, the corporation had no distinct interests to push west of the Mississippi, the same could not be said of the region east of the Susquehanna. In the closing days of 1870 New York was suddenly startled by the announcemrent that the Pennsylvania Railroad had effected a perpetual lease of the whole famous railroad monopoly known as the United Companies of New Jersey. The rumor proved true, and some 450 miles of additional track, besides 65 miles of canals and some 30 steamners in all some $35,000,000 of property, was by this transaction added to the vast consolidation, and brought it to the shiores of New York harbor. "It is unnecessary to consider how much further this combination will carry its operations, or in what they will result. The Pennsylvania road now controls directly and as itself owner or proprietor, and wholly distinct from its directors, more than 3000 miles of track, claiming to represent $175,000,000 of securities, and returning a gross income of at least $40,000,000 85 HISTORY OF THE'GRANGE MOVEMENT; OR, per annum. It is far from impossible that this combi nation may, from its very magnitude, lead to its own downfall." The Erie Railway properly extends from Jersey City to Dunkirk, New Yark, a distance of 451 miles, but with its various branches it now operates a total length of 1032 miles. Until July, 1871, it was the lessee of the Atlantic and Great Western road, which" connecting with the track of the Erie at Salamanca, New York, carried the line to Cincinnati, a distance of 447 miles. Though the lease has been surrendered, the two roads are practically one as regards the question of transportation. The Erie Company own property to the amount of $118,295,979, and, in 1872, the gross earnings were $18,371,887. The Baltimore and Ohio Railroad extends properly from Baltimore to the City of Wheeling, on the Ohio River, a distance of 379 miles, but, with its branches and leased roads, it controls and operates a total of 1067 miles of road. It already touches Lake Erie at Sandusky, and has now in construction a branch road extending from a point 90 miles north of Newark, Ohio, on the Lake Erie Division, to Chicago. The Company own property to the amount of $56,014,481, and, in 1872,.the gross earnings were $13,626,677. Here we have four corporations representing a total ownership of nearly $600,000,000, and an aggregate annual income of-over $100,000,000. It would be impossible to mention in detail all the various attempts at consolidation, successful and unsuccessful, that have been made in this country. What we have given will sufficiently illustrate this part of our subject. All such efforts have a common object, 86 THIE FARMER'S WAR AGAINST MONOPOLIES. and that object is the extortion from an already overtaxed community of the highest rates of transportation that can be obtained. We shall again refer to this portion of our subject, to point out some of the evils arising from the monopoly we have been considering.' 87 88 HISTORY OF THE GRANGE MOYEMENT; OtR, CHAPTER V. THE TRANSPORTATION TAX SWINDLE. Sources of Railroad Earnings-the Freight Business-Enormous Tribute paid by the People to the Roads-The Railroads irresponsible to the Publio The Necessity of the Roads to the Country-Anomalous Position of the Railroads-What are Legitimate and what are Fictitious Earnings-Care lessness of the People respecting their Rights-Their Punishment-Arbi trary Course of the Roads in levying Freights-How the Railroads tax the People-The Community made to pay the Lesses of the Roads-Instructive Lessons-How Competition is killed-Efforts of.the State of Illinois to pro tect its Citizens-The Railroads refuse to obey the Law-The Railroad Yoke fastened upon the People. THE object for which railways are constructed is the earning of interest on the amount of capital invested in them. The only means by which such enterprises can earn money, are by the transportation of freight and passengers. All roads are built with a view to the ultimate freight business that will come to them, the passenger traffic being with most corporations a secondary consideration. As the wealth and productiveness of the country increase, the transportation increases also. In 1840, when there were less than 3000 miles of railroad in operation in the United States, the transportation business of the country amounted to about $8,000,000, or about fifty cents to each inhabitant of the Union. In 1860, it had increased to about $150,000,000, or about $5 to each inhabitant. In 1871, it had grown to the . THE FARMER'S WAR AGAINST MONOPOLIES. enormous sum of $450,000,000, or nearly $12 to each inhabitant. This enormous sum of $450,000,000 may be taken as a fair annual average of the value of our internal commerce. It comes directly from the earnings of the whole people of the United States, and is gathered into the treasuries of the various railway corporations in the form of sums paid for the transportation of passengers and of the products and manufactures of the country. In chartering the railways of the Union, the people have given to the corporations conducting these enterprises, the sole right to regulate the freight charges of their roads. In some eases there has been a stipulation that the earnings of the road should not exceed a certaim percentage upon the capital invested, but, as we have shown, it has been left to the road not only to regulate its charges, but to nmake'such returns of its earnings as it may see fit. The people have surrendered the right to scrutinize the proceedings of the corporation, and the corporation charges whatever rates it pleases, and as much as it thinks the public will pay. Men may travel or not, as they are inclined, but the farmner must send his products to market, and the merchant and manufacturer must transport their wares to the point where there is the greatest demand for them. So the road is sure of its freight traffic. Men are compelled to use it, for it is the only means of transportation open to them. They are fully aware of this, and the corporation is equally aware of it. The railroads then occupy the position of a body within the State, and almost, if not quite, independent of it, levying a tax upon its citizens. Not one man in 89 HISTORY OF THE GRANGE MOVEMENT; OR, the community can escape the necessity of in some way contributing to the earnings of the road. The aggregate amount annually contributed is, as we have seer; enormous. Hlow much of this represents a legitimate profit upon the capital invested in railways? and how much is a wanton robbery of the public? These are questions of the deepest interest to the public, and yet they have attracted so little attention that none of the State Governments have made an effort to obtain the requisite data from which to answer them. We only know what the roads choose to allow us to learn, and they are very careful to keep us from knowing too much; while staggering under this enormous tax, and vaguely comprehending that it is excessive and unjust, no one has undertaken to introduce measures which will lay before the people the full extent of the evil from which they are suffering. We only know that "certain private individuals, responsible to no authority and subject to no supervision, but looking solely to their own interests, or to those of their immediate constituency, yearly levy'upon the internal movement of the American people a tax, as a suitable remuneration for the use of their private capital, equal to about onehalf of the expenses of the United States Government, army, navy, civil list, and interest on the national debt included." The power to levy such charges as they think proper on the transportation of freight being entrusted tc the railway corporations, they are not slow to use it. At certain periods of the year the movement of freights is very brisk, as when the year's harvest is finding its way to market, or when merchants and dealers are sending home the stock they have purchased in the 90 TlIE FARMER'S WAR AGAINST MONOPOLIES. great centres of commerce. Then, when men are compelled to use the roads, the corporations advance the rates. Complaint is useless. The directors know that goods and grain must be carried over the road, and they fix the rates at an extravagant figure, and the shipper is forced to submit to the extortion. The "through rates," as they are called, are high enough, but they do not affect the majority of shippers as much as the local rates. It has become a maxim with railroad men that if in the war of competition a loss is incurred in the "through rates," it must be made up in the amount received for local freights. It is always possible to ship a case of goods or a sack of grain - from New York to Chicago at a proportionately cheaper rate than is charged for the same article from New York to Syracuse. Often times the amount charged for local freight is double that charged for through freight. The reason is that in the through freight transportation, the competition of a few great lines keeps the rate down to a comparatively lower figure; while a given road, enjoying a monopoly of the local business, can charge what it pleases. It is utterly irresponsible, and the shipper is at its mercy. This irresponsibility leads to continual change, especially in the through freight business, and introduces an element of chance into mercantile transactions which sound business men find it hard to contend against. Merchants find it difficult to regulate their purchases, and producers are sometimes utterly at sea in their efforts to calculate their profits, when the tariff may be changed in a day, and all their calculations destroyed. "Just this fluctuation took place in 91 92 HISTORY OF THE GRANGE MOYEMENT; OR, September, 1870, when it, at one time cost far more to send goods from Boston to Chicago than from New York, and shortly after the New York firms had to ship their goods to Boston as the chleapest way of get ting them to the West." During the year 1869, freights between New York and Chicago fluctuated between $5 and $37.60 per ton; and between New York and St. Louis, between $7 and $46 per ton. At one time during that year, the Erie Railroad carried freights from New York to Chlicago for $2 per ton, and soon after advanced the rate to $37 per ton. The year 1870 was remarkable for its fluctuations of this kind, and it led to a singular warfare between the rival lines connecting New York with the West. Each met with considerable losses, but each undoubtedly made these good at the public expense by some operation entirely within its control. "During that year competition was bitter in the extreme; the rates made East and West were simply ruinous. On certain descriptions of freight they literally were reduced to nothing, and cattle were carried over the Erie road at a cent a head, as against one dollar a car, the rate charged on the Central. On other 'articles the reduction was not so great, but, both on passengers and goods, rates were purely nominal, and hardly averaged a third of the usual amounts. Of course this could not last. Early in September, 1870, representatives of the competing lines met in New York, and proceeded to put a stop to competition in the one way possible among monopolists,-by comnbination. The parties in interest were the Central, the Erie, and the Pennsylvania railroads. The competition was mainly from Illinois to New York. In both THE' FARMER'S WAR AGAINST MONOPOLIES. Illinois and New York, laws forbidding the consolidation of competing lines were in force, and all the roads were carrying on operations in one or both of those States. At the meeting in question, it was decided to 'pool' the earnings of the colored lines to all competing points; in other words, all receipts from that business which was supposed to receive a peculiar benefit from competition, were to be paid into a common fund, competition was immediately to cease, fixed rates were to be charged, and thus, at last, all the great trunk lines were to be practically consolidated, in so far as the business community was concerned. This arrangement was agreed to, but broke down for the moment because of quarrels among certain of the individual contracting potentates. The irreconcilables were Messrs. Gould and Vanderbilt, two New York men, who represented two New York' roads; and yet the NewYork statute-book contained a recently enacted law intended to prevent and render impracticable any combination like the one agreed upon. Not being able to effect the desired arrangement there, certain of the same parties went to Chicago, in a State where a similar provision to that in force in New York had been made a part of the Constitution, and there they actually did enter into an agreement, under which all the roads between Chicago and Omaha'pooled' their receipts between those points, and this contract went into effect.. " The failure of the New York negotiators was, however, only temporary; and, moreover, it is by no means clear that its failure was not a disaster to the community. In this combination would at least have been found some degree of certainty and of responsibility. 93 94 HISTORY OF THE GRANGE MOVEMENT; OR, Rates would no longer have varied with every season and to every city; points destitute of competition would not have been plundered, as they now habitually are, that competing points might be supplied for nothing. During the summer of 1870, accordingly, many towns in New England were charged upon Western freights heavily in advance of the sums charged for carrying the same freights on the same roads a hundred or two miles farther on. All because the farther point was served at a loss to the carrier, and, therefore, the nearer had to pay the road profits for both, besides replacing the loss. The agents of the roads do not seek to deny this; they acknowledge and defend it. They say, and say truly:'We must live. If our through business is done at a loss (and they show that it was done for nothing), then our local business must pay for all.' This was the case in New England. Tile cities of central New York fared no better. During a war of rates, almost any manufactured article will be carried from the seaboard to the West for perhaps one half of the amount charged for carrying the article there from a semi-interior point. So also as regards Eastern freights. Syracuse, Rochester, and the like class of cities can neither compete on equal terms with Boston in the markets of the West, nor with Chicago in those of the East. The discrimination against them is said to amount in certain cases to ten per cent. of the whole value of the article transported. Neither, under the competing system, is there any remedy for this evil, and a consciousness of this fact, of the risk to which they are continually exposed, has caused the breaking up of many manufacturing establishments at interior points." i THE FARMER'S WAR AGAINST MONOPOLIES. The State of Illinois has undertaken to investigate the management of its railroads, and to impose upon the railroad companies a series of regulations for the protection of the public. The new railroad law passed by the Legislature of Illinois in May, 1873, directs the Railroad and Warehouse Commissioners to prepare for each railroad in the State a schedule of reasonable maximum rates; prohibits as extortion more than a fair and reasonable rate to be charged for transportation of passengers or freight, or for the use of track; prohibits as unjust discrimination any difference in the prices charged for equal services of these three kinds rendered at different points or to different persons, the penalty being fines. (recoverable in an action of debt, in the name of the People) of $1000 to $5000 for the first offence, $5000 to $10,000 for the second offence, $10,000 to $20,000 for the third offence, and for every subsequent offence $25,000, either party having the right of trial by jury. Moreover, the overcharged person may recover in any form of action thrice the damages sustained, with costs and attorney's fee. As may be supposed, this law gave great offence to the railroad interest of the State, and every obstacle has been thrown in the way of its execution. Indeed the roads have steadily disregarded it. Governor Palmer, of Illinois, in a speech delivered at Springfield, on the 4th of July, 1873, said: "The last Legislature enacted a law for the government of railroads in this State, which is a monument of the patience and reasonableness of the people. It merely declares that the railroads shall not charge for 95 96 HISTORY OF THE GRANGE MOVEMENT; OR, their services more than a fair and reasonable rate; that they shall make no -unjust discriminations in their charges for any kind of service; that to charge a greater sum for services rendered to one person than is charged to another for greater services, shall be presumnptive evidence of extortion; and the whole law merely assumes that the relation of the railroads and their customers shall hereafter exist and continue upon the footing of equality and justice, and that like services shall be presumed to be worthy a like compensation. I regret to be compelled to say that the railroad managers have as yet shown no disposition to accept this law in the just spirit in which it was enacted. On- the contrary, they have found in its passage a new pretext for extortion. They assume, in the first place, that they must have ten per cent. net profit on the n6ninal capital invested in their roads, and the large sums furnished to them by the people is a part of the aggregate upon which the same people are required to pay them the interest. Such a claim is most unreasonable. Their capital was invested in railroads, subject to the fluctuations and casualties of business, and that is all that will be conceded to them. They must also submit the cost and methods of their management to the scrutiny of the juries of the State, and must account for all unnecessary expenses incurred ill efforts to counteract rivals, or to force business into unwilling channels. In their pretended obedience to law, it is manifest they are merely acting a part, intended to test the firmness of the people. They no longer dis criminate, they say. They now apply the knife to the root of every branch of industry. I have seen the proposed tariffs of many of the roads, and they t I I I THE FARMER'S WAR AGAINST MONOPOLIES. are avowals of a distinct purpose to crush out every interest with the utmost impartiality. They intend to compel the next Legislature to repeal the railroad law of last winter; they mean to make war upon every effort to curb them, and to use the people as the -agents of their own undoing." 97 98 H-ISTORY OF THiE GRANGE MOVEMENT; OR, CHlAPTER VI. RAILROAD TYRANNY. Dangers arising from the Railroad Monopoly-Irresponsibility of the Roads Their Disregard of Individual Righlts-A Man's Fight with a Railroad A Corporation's Idea of a Contract-What a Railroad Ticket is Worth Brutal Assault on Mr. Coleman-A Struggle for Justice-The Policy of Railroad Corporations Announced-The Public to be tied Hand and Foot -Railroad Testimony-How to Manufacture Evidence-What a Negro got by Losing his Ticket-A Specimen Railroad Murder-A Life for a Lost Ticket-A new Penalty for Drunkenness-Startling Details-The Avenue of Death-Railroad' Killing not considered Murder-Unjust Treatment of Passengers-The Palace Car Swindle-Baggage Smashers-The War on the Merchants-How a Railroad endeavored to ruin'a Business Firm-The Power of the Corporations. WE have seen the gradual growth of the railroad system of the country; how mnany of the roads have been built at the public expense by means of the immense land grants they have obtained; how fictitious capital has been created by the issuing of watered stock for the purpose of concealing the impositions of the road upon the public; how that which is a monopoly in itself has been made a more odious monopoly by tihe process of consolidation; and how these corporations have committed to them the right to tax the whole community, without being responsible to any one. We come now to consider some of the evils springing from this immense system of monopolies. Conceding all the good results that have been brought about by the successful growth of our railways; admit I i i i THE FARMER'S WAR AGAINST MONOPOLIES. THE MEN WHO BUILD TIHE RAILROADS ON THE PACIFIC COAST. tine all that they have done towards furnishing a rapid and convenient method of communication between distant points, and all that they have accomplished in developing new sections of country, we are sure it will be admitted by the majority of the thinking men of the country that the railroads of the present day are as much of a danger as a convenience to the country, and that unless they are soon subjected to some system of regulation by which they can be compelled to respect the rights of the people to whom they owe their existence, they will become not only sources of danger, but the most annoying tyrannies that have ever cursed a land. That there is danger from this source we hope to show. Practically the railroads of the United States are subject to. no restraint. Nominally they are acting 99 Ii 100 HISTORY OF TIlE GRANGE. MOVEMENT; OR, under the law, but in reality they make themselves superior to it, and when occasion suits them, they do not hesitate to violate and defy it. They claim the right to manage their road for their own benefit only, and are utterly regardless of the rights of others. Tlhe sole object of the directors is to wring money from those who are forced to use the line, and the public, for whose convenience the road is supposed to have been built, are denied the simplest privileges. Scarcely a day passes that some individual's rights are not violated by these companies, and if the injured party is bold enough to carry the matter before the courts, he has a hard task before him to obtain the simplest justice. He has to encounter the immense power of the road, backed by its wealth, and the chances are ten to one against him. He will either be beaten by the money of the corporation, or he will be forced to drag his case along, at ruinous expense, until he abandons it in despair. A fair specimen of the disregard of the railroads for individual rights was afforded a few years ago in the case of Mr. John A. Coleman, of Providence, Rlhode Island. This gentleman was shamefully maltreated and thrown from a train on the New York and New Haven Railroad, and thereby injured for life, merely for demanding to ride over the road with a ticket for which he had already paid, instead of buying a new one.'The case is so characteristic that we shall let Mr. Coleman tell the story in his own words: "About four years ago" (the matter occurred in 1868), says Mr. Coleman, "I purchased a ticket from Providence to New York via Hartford and New Haven. At New Haven my business detained me until too late in the evening to resume my journey by rail. I there II THE FARMER'S WAR AGAINST MONOPOLIES. 101 fore took the eleven o'clock boat, in order to pass a comfortable night and to be able to meet my engagements the next day. That left the railway coupon ticket from New Haven to New York on my hands. I afterwards had no opportunity to use the ticket in the direction in which it was marked-always happening thereafter to travel with through tickets from Boston to New York. In returning to Boston from New York, June 11, 1868, I applied at the office of the New York and New Haven Railroad, in Twenty-seventhl street, New York, for a ticket to Boston via Springfield; the ticket master refused to sell ine one unless I would wait three hours for the train, which left at three o'clock, r. M., going through to Boston. He said he would sell me a local ticket to Springfield, and I could buy another from there to Boston. This would cost me more than seven dollars to Boston, instead of six dollars, the regular through fare, which of course I did not want to pay. I told him expressly that I wished to stop over at a way station one train to do some telegraphing, but without avail; he would not sell the ticket. As I could not wait three hours, I thought it would be a good time to use my old coupon, as I was accustomed to do upon other roads under similar circumstances. Accordingly I presented the coupon to the guard stationed at the entrance to the cars. He rudely and imperiously refused me admittance, stating that the ticket was'good for nothing.' Some warm words passed between us, and he finally called the conductor, who stood near. The conductor was, if possible, more imperious than the guard. He said the ticket was'good for nothing,' and peremptorily ordered me not to go on board the cars. I told him I thought the 102 HISTORY OF THE GRANGE MOVEMENT; OR, ticket was good, and that I was accustomed to use coupons in that way upon all other roads over which I travelled. He replied that' it was no such thing; he travelled more than I did and knew all about it;' and concluded by saying that if I attempted to get upon the cars' he' would put me off.' Severe remarks were made by several gentlemen standing near to the conductor during this time, to the effect that this was another manifestation of the general spirit of insolence and meanness towards passengers for which that road was noted. I then purchased a ticket to Providence via New Haven and Hartford, and got on board the train. I felt irritated at the treatment I had received, and having a constitutional objection to being browbeaten, I determined to ascertain why the practice with regard to tickets on this road was so unlike that upon other roads. Having had time to recover my equanimity somewhat after the cars had started, and supposing the conductor might be still angry and unreasonable, I determined to put the case to him, as one gentleman would to another, and to exercise self-control, that my manner should be quiet and give him no cause for offence. Accordingly, as he approached me in taking up his tickets, I said,' Mr. Conductor, there is no use for you and me to quarrel about this ticket. This is a plain business matter, an affair of dollars and cents only. The case stands like this: I am travelling nearly all the time; and being frequently compelled to diverge from the route that I intended to take in'starting, I am left with unused coupons. These coupons all cost me money; and by the end of the year they would accumtnulate to such an extent that they would represent too large a sum for me to lose.' II THlE FARMER'S WAR AGAINST MONOPOLIES. 103 "The conductor replied,' That coupon is good from New Haven to New York, but it is not good from New York to New Haven. My directors ordered me, three years ago, not to take such tickets, and I shall not do it.'. I then said,'My position is this; I have paid this road a certain amount of money for a certain amount of service, and I think I am entitled to that amount of service, whether my face is turned east or west. You say this ticket is good from New Haven to New York, which is seventy-four miles; I think it is good from New York to New Haven, which is also seventy-four mtiles; and I cannot understand the distinction which you make.' A gentleman who sat before me remarked at this moment,' If there is any meanness which has ever been discovered upon a railroad, it is sure to be found upon this one, for it is the meanest railroad ever laid out of doors.' I replied,' If this is so, I hope they will make an exception in my case, as all I require are the common courtesies of the road and an equivalent for my money.' The conductor said,' I see you are all linked together to make me trouble.' And he went along. "The gentleman who'had spoken to me requested to see my coupon, and remarked that he had never heard the question raised before, and certainly had never heard the case put in that way. He further re marked that,'Whether it was law or not, it was com. mon sense.' A part of the Board of Trade delegation of Boston was in the car, returning from the Philadel phia Convention. Among these were Mr. Curtis Guild, Mr. Eugene H. Sampson, and a prominent railroad di rector of Boston, Mr. B. B. Knight, a cotton manufac turer of Providence, and other gentlemen from both 104 HISTORY OF THE GRANGE MOVEMENT; OR, cities. Several of these gentlemen, who had become interested in the discussion, requested to see the coupon, and they took the same view of the matter that I did. "As we were approaching Stamford, the conductor again came to me, and said in a very abrupt manner, 'Well, sir! how shall we settle this matter?' I said, 'Just as before; there is the ticket, and I wish to go to New Haven; thie circumstances have not altered in the least.' I had determined to take the matter quietly; the conductor saw that it was useless to attempt to frighten me by his imperious manner, and then began to remonstrate, saying,' You have no business to make me disobey my directors, and lose my place upon the road; I have to get my living in this way, and it is mean for you to do so.' This was a new aspect of the case, and I replied,' That is the only embarrassing question which has arisen in this discussion. I have no quarrel with you, and I would not do you a personal injury upon any consideration; but you and I both have travelled long enough to know that this matter is wholly within your discretion. You can take this coupon and turn it in at New York where you turn in your other tickets, and no one will know whether it is taken going east or going west, and no one will care.' My meaning was, that, as no injury was done, no injury could be knowi)n. Hle took the remark the other way; and said, in a sneering tone, evidently for the benefit of the other passengers,' You might just as well ask me to steal ten dollars from the company, because they would not know it.' I replied,'Theoretically, that may be true; but, practically, it is nonsense; you very well know that'I have no intention to defraud this road; but in order to relieve you of all embarrassment about your position, I I ; I,) THIE FARMER'S WAR AGAINST MONOPOLIES. will make you a proposition: I-ere is my address, and these gentlenien know that I am responsible; you take the ticket and turn it in, and if you are even reprinianded for it by your directors, write to me, and I will send you the money for the ticket, upon your promise as a gentleman that you will send the ticket to lme again; for I shall want the ticket.' "The passengers said,' That was very fair and would avoid all trouble.' The conductor said,' It is very fair, but I sha'n't do it, that's all; I want another ticket out of you, sir.' I said,'I shall not give you one.' le said,' Then I shall request you to get off this train at Stamford.' I replied,'I shall just as politely decline to do so.' He said,'Then I will put you off.' I replied in general terms. and with some natural hleat, that I did not believe he was able to do it. He said,' I guess I can put you off if I get help enough.' I told him that was undoubtedly true, but warned him that I would pursue the matter further, if he brought his roughs into the car and laid hands upon me. "At this moment the elderly gentleman who sat in front of me rose and said,' Mr. Conductor, I am a "railroad man" and in my judgment this gentlemn an's position is correct. If he brings it to an issue, I think he will beat you; but if you think he is not correct, but trying to evade his fare, the proper way is to telegraph to New Haven, and have a policeman come aboard and quietly arrest him; that is business-like; but don't you take the law into your own hands and throw him off the train, for that is not done nowadays upon any respectable railroad.' I said,'Certainly, I will submit to a policeman, but I will not be thrown off by him.' The conductor sneeringly replied, We don't do business in i 4 1 C, 5 106 HISTORY OF THE GRANGE MOVEMENT; OR, that style on this road.' I said,' I have been aware of that for ten years past; and I propose to see'if you cannot be compelled to do business in that style upon this road.' He said we were all against him, and he would leave it to the superintendent. "The train had stopped in the mean time at Stamford. I paid no further attention to the conductor, but commenced reading. Very soon some one shouted, 'They are coming for you.' The conductor came in at the head of five or six rough brakemen and baggagemen, and said, pointing to me,'This is the man; pull him out, and put him out on the platform.' They seized my coat and tried to roll me out of the seat. My coat tore, and they did not movemrne. This seemed to enrage them, and they sprang upon me like so many tigers. Two of them seized me by the legs, and as many as could got in back of the seat and seized me by the shoulders and commenced violently wrenching me from the seat. I instinctively grasped the arms of the seat, and they took the cushion and frame up with me. When they got'me into the aisle, and had me completely at their mercy, three heavy blows with thle clinched fist were struck upon the back of my head. Every individual in the car jumped to his feet the instant the blows were struck. The ladies screamed, and some of the gentlemen rushed to stop the conductor and his roughs from striking me. Fearing for my life, I struck one of the ruffians under the chin, and planted a blow square in the face of another. We had a hard struggle until they overpowered me. They carried me horizontally until they reached the car door, when they dropped my feet a little to pass through singly. I struck another away from me, and he went over be !1 .j THE FARMER'S WAR AGAINST MONOPOLIES. 107 tween the cars. They fiercely grasped me again and threw me broadside from the platform of the car down upon the platform of the depot. I struck heavily on my side, my whole length. In this struggle they tore the flesh upon my arm and legs, and they ruptured me for life. The passengers swarmed out of the cars, and gave me their addresses. The superintendent came up, and I told him I would give him a dose of common law, and see if I could not teach him something. Ie said he would give me all the law I wanted, if I wished to test the case. I then ran and jumped on the train as it was in motion. The superintendent and his son and another man ran after and seized me around the body, stripped me off the car, and held me by nlaiil strength until the train was clear of the depot. As soor as they released me, I drew my through ticket frcm my pocket, and asked them why they held me. The superintendent started as though I had struck him, and said,'Why didn't you show that ticket before, sir?' I said,'Because it is not customary to show tickets in getting on at the way-stations; and you did not give me a chance.' He said,' If you had been a gentleman, you would have shown that ticket.' I replied,'I do not ask your opinion as to who is a gentleman, for you are no judge.' He said,'You tried to steal your ride to New Haven and sell your ticket; and now we will give you all the law you want; and we'll show you that the laws in Connecticut are different from where you came from.' "I took that for granted, and returned to New York. When I reached Boston again, i attached the New York and Boston express-train, partly owned by the New Haven road, in the Boston and Albany depot, t I 108 HISTORY OF TIIE GRANGE MOVEMENT; OR, and brought suit against them in the Superior Court of Massachusetts for ten thousand dollars damages. The first trial of the case occurred in April, 1869. The judge charged directly against passengers upon every point. He ruled that the ticket was a contract. That the road had a right to make any rule it pleased for its own government; and if a passenger broke a rule, he was a trespasser; and, being a trespasser, the road had the same right to eject him from its cars that one of the jurymen had to eject a man from his private house if he did not want him there. The only question for the jury to consider was, whether an excess of violence had been used by the road in the maintenance of a right. The jury, after being out only one hour, awarded me thirty-three hundred dollars damages. The judge, at the request of the road, after several weeks' delay, set the verdict aside on the exclusive ground that the amount was excessive. "The second trial occurred in the same court in January, 1870, and resulted in a disagreement of the jury. They stood eleven to one for me, and it was afterwards understood that the man who disagreed had been connected in some capacity with the road. The third trial took place in May, 1870, and resulted in an award of thirty-four hundred and fifty dollars damages. Again the road demanded a new trial, which the judge refused to grant. The road then appealed to the Supreme Court upon points of law. The judge in charging the jury had happened to say, that if the resistance of the plaintiff to ejectmnent from the car consisted in simply refusing to walk out when he was told to go by the conductor, of course blows on the head, such as had been testified to, were unnecessary; and if the jury were i II THE FARMER'S WAR AGAINST MONOPOLIES. 109 satisfied that such blows had been given, a verdict should be rendered accordingly. This bit of common sense gave a new opportunity for the exhibition of that wonderful subtlety called'law.' The Supreme Court, after the usual tedious delay of several months, in which plaintiff and witnesses had abundant time to die, gave the New York and New Haven Railway Corporation another opportunity to fulfil their threat of making it' terrible for the public to fight it, right or wrong.' It decreed that the judge had no right to give an opinion as above, but should have left the question for the jury. Accordingly a new trial was granted, which took place in June, 1871. Up to this time three people connected-with the suit had died, and one witness for the plaintiff had moved to Kansas; while young girls who were on the train when the outrage was committed had passed from girlhood through long courtships and were already matrons. Hlowever, with the impetuosity of a youthful temperament and the knowledge of a just cause, I made another onslaught upon the corporation after only thirteen months' delay since the last trial, and eventually obtained a verdict of thirty-five hundred dollars damages, after one hour's deliberation by the jury. "F6r the fifth time the road demanded another trial, which being refused by the judge, they again appealed from his ruling to the Supreme Court. They asked the judge to charge the jury, that if the plaintiff had a tendency to hernia, or any physical disability that was liable to be increased by violence, the plaintiff ought to have so informed the employes of the road; and failing in that, he, and not the road, was responsible for the consequences. According to the railroad theory, there HISTORY OF THE GRANGE MOVEMENT. fore, if a gentleman is attacked by a scoundrel, unless the victim gives a complete diagnosis of his condition to the ruffian, he, and not the villian who struck him, is responsible for consequences when his skull is broken. To obtain the opinion of the Supreme Court of Massachusetts upon this important point has taken twelve months more, but I am happy to be able to state, that at last one point is established by the Massachusetts courts in favor of the rights of railroad passengers, namely, that it is not necessary for a man to inform a ruffianly aggressor what his grandmother died of, nor to describe his hereditary symptoms, even though it is the employe' of a railroad corporation who comies to strike him. "The case was of simple brutal assault in a public railroad car. The witnesses for the plaintiff were well-known merchants of Boston, who were members of the Board of Trade, railroad directors, and steamboat men, as well as others, including ladies. Their testimony was clear and consistent throughout every trial. Pitted against their testimony was that of the brakemen, the baggage-men and the conductor, every one of whom was in the employment of the road and a party to the assault. Not a passenger who saw the outrage committed in the car was brought forward by the road. The testimony of the emnployes was so absurd upon the first trial, that the court was repeatedly interrupted by laughter. No testimony of theirs upon any after trial has been like that of the first, but was manufactured to suit the theory of the railroad. It has been privately admitted by the road that'the facts were with me, but the law,' meaning, I suppose, the judge's rulings,'was with them.' So simple a case would 110 i I !IT z \' tg~~~~~~~~~~~~~~~~~~~~~~~~\I 11 114~~~~~~~~~~~~~~~~~~~~~~~! 3:I 14 ;O~~~~~~~~~~~~~~~~~~~~~~~~I iIII~ ii I III I'II t I 112 HISTORY OF THE GRANGE MOVEMENT; OR, have been disposed of at a single hearing in a minor court, had it occurred between two poor men. But I have been compelled to pass through four weary trials, lasting four years, gaining quick verdicts from juries, and being defeated only by the first judge, who granted a new trial to this railroad corporation, because thirtythree hundred dollars were excessive damages for the beating and rupturing of a man by their servants. Being the chief justice, his rulings, of course, were taken as the Iaw by the associate judges who presided at the subsequent trials, and from whom I received great courtesy and fairness. "But the contest is finished after the exhaustion of every legal advice, and there is something to be said about it in the interest of the public. I have been repeatedly 4old by parties interested in the road that the company had too much money to be beaten by me, and they would spend enough to defeat me. The paragraph at the head of this article is quoted from a statement made to me by an influential person connected with the corporation. These threats were of no consequence as applied to me, for their object was intimidation. They did not succeed. The corporation is beaten. I have received the money for damages which they said they would never pay, and my personal contest is ended. But these threats were not directed against myself alone, but against the public. If a limb is crushed by the negligence of the railroad men, fight instead of pay the victim, is their theory of dealing with the public; and they will remove all opposition :by the power of wealth, influence with courts, and sheer terrorism.'They may make any rules they I)lease' for the public, and may carry out their arbitrary THE FARMER'S WAR AGAINST MONOPOLIES. 113 designs against the people, in spite of decency or cornnion sense." * During the progress of the trials of this case, one of the officials of the road, in a conversation with Mr. Coleman, arrogantly announced the policy of his cor-. poration in such matters, and in doing so revealed the policy of the entire system of which his road forms a part. "The Road," he said, "has no personal ani. 0ositly againtst you, Ml-. Coleman, but you represent the public; and the Road is determined to make it so ter. i-ible to the public to fight it, right or wrong, that they will stop it. We are not going to be attacked in thi6s way." Let it be remembered. This is the policy of the numerous roads that traverse our country. Each corporation represents a large amount of wealth and power. It claims the right to do as it pleases, to violate the rights of the public whenever they come in conflict with its own selfish ends, and when the public undertakes to assert its rights in the courts, the road,' using its wealth and power for this purpose, "will make it so terrible for the public to fight it, ri,ghlt or wrong, that they will stop it." In plain English, the road assumes to be the master instead of the servant of the public, and it is rapidly making good this assumption. "Every year the power of the railroad corporations to trample upon the rights of the public is becoming greater, notwithstanding its proportions are already frightful. The corporations are centralizing power, mnaking themselves a unit against the public. Tlley * The reader will find the whole of Mr. Colemnan's able and interesting article in The Atlantic _Monthly for December, 1872. i 8 114 HISTORY OF THE GRANGE MOVEMENT; OR, overawe and control the entire business of the country. This is no mere figure of speech. Two men equal in intelligence and means own mills situated upon roads converging at a certain point and equidistant from that point. Their conditions may be precisely alike, and both compete for the same market. By the ruling of the judge (in tile Coleman case) the' railroad has a right to make any rule it pleases for its own government,' and one of the roads makes a rule that its freight tariff shall be double the rates upon the other road. The profit is swept from the manufacturer, and the field given to his competitor upon that other road, his business is ruined, his mill is idle, and becomes worthless; he is shut up by the railroad. The freights may afford the road an exorbitant profit, but the'road has a right to make any rule it pleases.' Does the public charter railroad corporations as pecuniary speculations against itself? Does the public take away private property and give it to a company of private individuals called a railway corporation, so that it may make any rule it pleases, and though it can carry the public at a handsome profit at two cents a mile, it may chlarge three, five, or ten cents per mile, at its pleasure? Does the public intend to furnish a set of men a weapon to cut its own throat? Does it intend deliberately to tax itself through them for a common service, so that a few favored individuals may become inordinately arrogant and rich?" Mr. Coleman was very fortunate in securing substantial justice at the end of his long fight with the railroad. The company fought him persistently, resorting to every artifice, and it would seem that it did not hesitate to introduce manufactured testimony for i 11 i THE FARMER'S WAR AGAINST MONOPOLIES. 115 the purpose of defeating him. In the Atlantic, for May, 1873, in describing some of the incidents of the trial, Mr. Coleman says: "The first witness was as prompt as a well-drilled recruit. He described the incidents of my ejection: the conductor called upon him and some of the other 'boys' to take a man out of the car; they attempted to carry out his order quietly, but the man refused to go; therefore they laid gentle hands on him, whereupon the man kicked and struck and bit, and he (the witness) had to take hold of the mnan's hands to restrain his violence. He swore positively that it took six men to move the man. In answer to an inviting question, he eagerly testified that he saw Mr. Coleman bite one of the boys on the arm,-right through the woollen garment that the man wore. The story was clear, concise, and told with an air of confidence that was quite impressive.'Mr. Witness,' said my lawyer, beginning the cross-examination,'you said just now that you saw Mr. Coleman bite one of the men?' 'Yes, sir; on the arm.''Which arm?' The witness hesitated; he was well prepared in generalities, but not in details. Presently he answered,' The left arm.' ' How many men had hold of Mir. Coleman at this time?'' One man was on his left side and another on his right, others had him by his legs, and I was in front.''These men were abreast of Mr. Coleman, taking him out squarely through the car, were they?' 'Yes, sir.'' Will you swear to that positively?''Yes, sir,' said the witness, resolutely.'Careful, now; are you sure of that?''Yes, sir; I am sure of it.'' On which side of Mr. Coleman was the man who was bitten?' Again the witness hesitated, and his face, I HISTORY OF THE GRANGE MOYEMENT; OR, hitherto calm, grew flushed and anxious. But he answered at last,' The left side, sir.'' Will you swear positively to that also?'.'Yes, sir; I swear positively to it.''Now, sir,' resuined the lawyer,'do you not know that a man of Mr. Coleman's breadth in that narrow car-aisle would completely fill it, so that neither two men nor one could stand at his side, as you swear they did?' Flustered, but not daunted, the witness explained,'The men were a little back of Mr. Coleman;' and witness quitted the stand, leaving the court to meditate on the strange spectacle of a man curving his giraffe-like neck, and fastening his teeth in the left arm of a man who stood on his left side, and a'little back of him!' "Several other honest witnesses gave similar testimony as to the biting, and as to the violent behavior of the plaintiff, and the gentle but firm deportment of the railroad men; these latter struck no blows, but several were delivered by the plaintiff. The harmony of the witnesses was beautiful. They seemed to have beheld the scenes which they described with a single eye: as to the biting, the arm bitten, and the position of the biter, their agreement was perfect. At this stage of the proceedings a recess was taken. On the reassembling of the court, other witnesses for the railroadswere examined; but, strange to say, not one of them could give any particular information as to the biting; they swore that Mr. Coleman did bite, but though they had enjoyed the same opportunities for observation with their predecessors on the stand, they'couldn't exactly remember the details.' Such is the effect of lunch. "The conductor told a plausible story, modelled carefully on my own statement, but differing in certain I 116 i: II TIlE FARMER'S WAR AGAINST MONOPOLIES. 117 points that could be turned against me. It will be remembered that he told me in the cars that the directors had made a' rule' forbidding him to take tickets backward. On cross-examination, my counsel asked him where he was accustomed to turn in his tickets to the company. He attempted to evade the question again and again, but finally answered, with painful reluctance, ' in New York.' It was further extorted from him that the tickets were turned in at New York whether taken in going to or from that city; that it made no difference which way my coupon was Used; and, finally, that the directors of the road had never given him (as he asserted to me) a rule against taking coupons'backward,' but that the superintendent had verbally ordered him not to take them, about three years before! This superintendent, who, with his son, wrenched me from the train at Stamford when I attempted to re-enter it after my ejection, was obliged to swear that it was the exclusive right of the directors to make'rules,' and, further, that they never had made a' rule' touching the ticket question; lie himnself having verbally instructed the conductors not to take tickets'-backward,' which he had no shadow of authority to do. Thus it seems that the'rule' for the violation of which I had been mildly rebuked by the servants of the railroad-a violation which was the soul of the defence, its single excuse and answer to my allegations —was not a'rule' at all, but a mere verbal order given by an unauthorized person. Yet, in the face of the declaration, by one of the highest officers of the road, that there was no'rule,' the judge charged the jury that a'rule' had been broken, that I was a trespasser, and that the railroad company had a right to eject me from the train, eni ~ I 7= HISTORY OF THE GRANGE MOYEMENT; OR, ploying the necessary force and no more! Such a charge concerns every person in the community; for it seems that any of us, for disobedience to a non-existent rule, may be brutally dragged from a railway car, and, seeking redress, shall be informed by the court that the railway company is responsible only for'excess of violence.' "The examination of the superintendent having been concluded, the counsel for the railroad stated to the court that the victim of Mr Coleman's carnivorous ferocity had been discharged from the road immediately after his mifortune; that diligent search had been made for him, but in vain. By one of those dramatic felicities, so frequent in fiction and so rare in real life, just at this juncture a telegram was brought in announcing that the bitten man had been found, and would arrive on a train due in ten minutes. The judge granted the delay asked for, and the spectators brightened up in anticipation.of new and measurably tragic revelations. The delay was brief. In a few minutes the door of the court room was thrust open, and in rushed the witness, breathless with haste. A brisk, bronzed person he was, self-contained and self-satisfied, with locomotive gait, and a habit of gesture suggestive of brake-rods. He mounted the witness stand, was sworn, and delivered his direct testimony with easy indifference, coupling his sentences as he would couple cars, with a jerk. This is his story in brief:' The conductor c'm out the car'n' said, "'S man in there want ye t' take out." Went in the car, and he said, "That's th' man: put'im out!" I jes' took'im up and carried him out through the car out on t' th' platform th' depoAt, an' took'n' set'im down, an' never hurt him a mite.''Did Mr. Coleman bite 118 I I II iI tI THE FARMER'S WAR AGAINST MONOPOLIES. 119 you?' inquired tile counsel for the railroad.' Yes, sir.' 'Did he bite you on the arm?''Yes, sir.' The lawyer asked him no more questions, evidently satisfied with the effect of his evidence thus far, and possibly remembering that, unlike the other witnesses for the road, he had not enjoyed the benefit of lunch. RPemnitted to my counsel for cross-examination, the witness, well pleased with his success, and confident in his own powers, met the inquisitorial onset with calmn dignity. "' Mr. Witness,' said the lawyer,'you were in the car on the day when Mr. Coleman was taken out, were you?'' Yes, sir; I took him out myself.''All! you assisted the men to take him out, did you?'' No, sir; didn't have no men; took him out myself.''Oh! you took him out alone, then?''Yes, sir; took him out alone.''You swear to that?''Yes, sir; swear to it.' 'Nobody helped you?''No, sir; took him out myself.' 'Well, sir,' pursued the lawyer,'you must be a stout fellow to handle a man like that. Won't you please describe just how you took him out?''Well, I jes' went up to th' man, reached one armn'round his neck, so fashion, had his head right up here on my arm,'n' I jes' took'im right through the car out on t' the platform th' depot, an' set'im down and never hurt'im a mite.' "Every face was intent upon the witness and not a sound was heard save his voice, though there were premonitory symptoms of laughter. With a suavity delightful to see, the lawyer said, while he scanned the ,compact frame of the witness,'Why, you must be a powerful fellow!''Yes, sr; I'mn big enough for him.' 'Well, now, will you be kind enough to tell the jury, did Mr. Coleman strike anybody?'' No, sir; I didn't HISTORY. OF THE GRANGE MOVEMENT; OR, give'im no chance; I had'im.''You swear to that positively?'' Yes, sir.' A look of dismay and disgust settled upon the faces of the earlier witnesses for the road, who had graphically and minutely described my violent resistance, my kicks and blows. The spectators giggled, and even the judge relaxed the solemnity of his visage.'Did anybody strike Mr. Coleman?' continued the lawyer.'No, sir; I had'im and didn't give 'ern no chanlice.''You swear to that, too?''Yes, sir.' 'Well, Mr. Witness, when you had Mr. Coleman's head upon your arm, as you described, I suppose you had his face turned a little toward your breast?' The witness, eagerly following this description of the situation and the gestures which illustrated it, his face now flushed and beaded with perspiration (for the work was harder than hle had thought it), nodded assent.'Mr. Colemnan's mouth, then, would come about there?' inquired the lawyer, pointing to the inside of the arm, next to the body.'Yes, sir; that's just the place where he bit me.'' You swear to that positively?'' Yes, sir, positively.' All the witnesses for the road, except the conductor, who did not commit himself as to the biting, swore emphatically that the bite was on the outside of the left arm, some of them placing the bitten man upon the left of the biter; and now comes a third untutored witness, who claimed to be the sufferer, and who of course ought to know the place of the bite, testifying with equal positiveness that the bite was on the inside of his arm. Even the counsel for the road could not refuse to join in the universal merriment which ensued. "On subsequent trials all this testimony as to the biting was rearranged. The victim of my ferocity was obliged to share the honor of taking me out with five I , 0 II i 4 THlE FARMER'S WAR AGAINST MONOPOLIES. 121 auxiliaries, and the bite was transferred to his right arm. Being a draughtsman, I had measured the car, and was ready with a drawing to show that the new theories of the defence as to the method of taking me out left just three inches for the movement of each stalwart brakeman as he walked at my side. "I suppose that I need give no extended report of the argument of the road's counsel. He took the highest ground-the ground that the public had no right to question the management of the road; that the company owned it, and had the right to manage it as any other property is managed by a private corporation; that is, hlie denied the fact that the public is virtually a partner in railroad companies, which it creates and lifts into power by grants of franchises and land. Indeed, this distinction between public and private corporations has been carefillly ignored by the judiciary of the country; and to this tile present alarming domination of railroad corporations is mainly traceable. "I may say, for the encouragement of those who look to the courts for deliverance from a railroad tyranny, whose bonds the judiciary seems willing enough to rivet, that, in every trial, my counsel carried the jury with him, one single juror of the forty-eight excepted. This juror was said to have been formerly an employe' of the New York and New Haven Railroad. The action of the several juries, so far,as the public is concerned in it, is satisfactory and cheering; for it indicates unmistakably that the spring of railroad power in our courts is not in the deliberate judgment of intelligent men; but the judges' charges were in effect restatements of the arguments of the counsel for the railroad touching the general question of the rights and i I i i HISTORY OF THE GRANGE MOVEMENT; OR, powers of railroads. The juries were instructed that the public has no voice in the affairs of railroads; that contracts with passengers were to be made on conditions fixed by one party, the railroad; that if a passenger violated its regulations, an assault upon him by the agents of the corporation was justifiable, though these latter must be careful to avoid excess of violence. The juries were also instructed that if they found that, in this case, the defendants had employed an excess of violence, they must not allow punitive damages, but only such as would compensate the plaintiff for his injuries. Despite these instructions the four juries promptly brought in verdicts in my favor, each one giving heavier damages than its immediate predecessor. On the second trial the jury disagreed, owing to one of its members; I am informed that many of his associates desired to award me $15,000. The first jury agreed upon a verdict of $10,000; but one of their number, versed in the ways of courts, suggested that it would probably be set aside, and that I would consequently be subjected to great trouble and expense; so they rcduced the figures to $3300, which was increased to $3500 on the last trial." All persons are not so lucky as Mr. Coleman. Very few of those who have the courage to seek redress for injuries sustained, succeed in obtaining justice. They must be possessed of either the patience of Job or the wealth of Croesus to maintain their cases against the roads. Instances will occur to every reader of these pages of acts of railroad tyranny. He may himself have been the victimn of some outrage of this kind. A few years previous to the war, the writer chanced to be travelling on the Washington Branch of the \t 122 I I THE FARMER'S WAR AGAINST MONOPOLIES. 123 Baltimore & Ohio Railroad, coming from the Capital to Baltimore. Among the passengers was a negro man, who had no ticket. When tile conductor demanded of him his ticket, he was unable to produce it, and the official at once and very properly told hini he must pay his fare. The poor fellow was terribly confused, and began a stammering explanation of his position. The conductor lost patience, and pulled the bell cord to stop the train. Then, summoning a brakesman to his aid, he seized the poor negro, who made no resistance, and pushed him out upon the platform. There the unfortunate wretch was seized by the two "officials," and, before the train had fairly stopped, was literally thrown from the platform to the ground beyond the track. He fell heavily, and was'doubtless injured, but it was impossible to tell, for the train shot forward again, and the unfortunate victim of railroad brutality was left bellind. Now, suppose this man had been killed by the fall, when thrown from the train, does any one suppose the conductor would have suffered for his crime? The whole power of this very powerful road would have been exerted to shield him. The victim was but a negro, and in those days a poor African had no rightnot even the right to his life. In case he had been killed, his master might have demanded his value in money from the road; it would have been refused, and a suit would have been necessary to recover it. Even then the chances would have been in favor of the road. Some three years ago-perhaps not so long-a train on the New Jersey Railroad was crossing the Hack ensack Meadows, which lie between Newark and I 124 HISTORY OF THE GRANGE MOVEMENT; OR, Jersey City. It was night, and a very dark night at that. One of the passengers was found to have lost his ticket. The conductor refused to accept his explanation. He must pay his fare a second time or leave the train. He refused to submit to the outrage. He was hustled to the platform; but no effort was made to stop the train, which at this moment swept on to the open bridge which crosses the Hackensack river on the outskirts of Jersey City. Another push from the ruffians in charge of the train, and the man was thrown to the floor of the bridge. The momentum of the train made it impossible for him to secure a foothold upon the bridge. He rolled helplessly over the side and into the river, where he was drowned. There was no one to blame, in the opinion of the officials of the road, and every effort was made to prevent an investigation and "keep the matter quiet." No one was punished. The murdered man had dared to refuse to pay twice for his ride, and his life was forfeit to the company. Another instance is that of a man who embarked upon a train in a neighboring State, and was too drunk either to pay his fare or to answer the questions of the conductor. The train was stopped, and he was thrust from it, at a considerable distance from any station. In his helpless condition he staggered on to the track and fell upon it in a drunken stupor. An hour later, a train, following that from which he had been ejected, ran over him as he lay on the rails, and killed him. In the State of Vermont, not long since, an old lady and her daughter, believing that railroad tickets are "good until used," took passage on one of the night trains on a certain road, and, securing berths in the tI i iF THE FARMER'S WAR AGAINST MONOPOLIES. 125 INTERIOR OF PALACE CAR. sleeping car, proceeded to make themselves comfortable for the night. About midnight they were aroused by the conductor, who had discovered that their tickets were two or three days old, or, in other words, had been purchased two or three days before. He pronounced the tickets worthless, and demanded that they should pay their fares in money. This they declined to do. In spite of the lateness of the hour, and the fact that a heavy rain was falling at the timne, the conductor compelled them to leave the train at a little wayside station, where they could procure only shelter from the storm in the cold and dirty waiting-room of the depAt. HISTORY OF THE GRANGE MOVEMENIT. In the city of New York, the Fourth avenue, from Forty-second street to the Harlem river, is used by the trains of the New York Central & Hudson River, the New York, Hiarlemn & Albany, and the New York, New Haven & Hartford railroads. Along this thoroughfare, which is intersected by some ninety odd of the "cross streets" of the city, about eighty trains pass up and down every day. Although in the heart of the city, a dangerously high rate of speed is maintained. Within a single month, as many as three persons have been cut down and killed by the railroad trains, and others have been more or less injured. No one has been punished. The roads using the track hold their officials blameless, and exert their power-the power of the Vanderbilt Monopoly-to prevent investigation and screen the offenders front punishment. The truth is, that railroads, having learned to disregard individual rights, have come to disregard human life. They kill and maim with utter recklessness, and insolently deny the right of the victims to seek redress for their injuries. Descending to minor points, we find the roads intent upon making money and careless of the comfort of their passengers. A traveller purchasing a ticket is promised by the road a seat in the car in which he is to travel. Frequently the train is crowded, and there are no seats left to the late-comers, who must stand during the entire journey. Should the injured party in this case complain to the company of a breach of contract on their part, he would simply be laughed at. Very many lines are now using Palace and Drawing I I } f ! 126 I I THE PARLOR CAR-EXTRA CHARGE FOR ITS USE. 127 128 HISTORY OF THE GRANGE MOVEMENT; OR, room cars, for admission to which passengers are required;to pay a sum in excess of the regular fare. These cars are luxurious and comfortable, and few, who are able to afford it, neglect to use them. There is no reason why they should not be attached to every train. The roads using them, however, do not leave their occupancy to the discretion of the passenger. They compel him to use them by providing an insufficient number of ordinary cars, or cars which are so filthy and uncomfortal)le that men gladly pay the extra charge to escape frdm them. Who is there that has travelled but could tell an eloquent tale of loss in the matter of baggage? It is safe to say, that thousands of dollars are lost annually by the travelling public in the way of trunks and portmnanteaus, broken or injured by the carelessness of railroad employes. But travellers are not the only victims of the "Company's" disregard of private rights. The vast army of shippers of freight throughout the Union represent another class of sufferers; and each man of this class could tell his tale of individual wrong. We could multiply instances; but to do so, would simply fatigue the reader. One characteristic case shlall serve to illustrate this feature of railroad tyranny. It is told in the circular of a Boston firm addressed to its Western correspondents, and it shows in a vigorous light the utter helplessness of the individual in his struggle with the great corporations: "BOSTON, October 31, 1872. "GENTLEMEN: On account of the unusual-and unwarranted action of the Boston & Albany Railroad I I .iI THE FARMER'S WAR AGAINST MONOPOLIES. 129 ..~~~~ Co., in sending broadcast through the West public notice that no property consigned us would be received by them at Albany for transportation to us, unless freight and charges on such were prepaid, we are forced to take this course to set us right with our friends and shippers throughout the West. During the past two years we have received considerable grain over the Red, White, and Blue Transit Liries, such coming to this city over the B. & A. R. R., one of the co-partners to such lines. This grain has been largely short in weight, the losses in transit on cars being many times large and often excessive. We have repeatedly called attention of the R. R. Co. to such shortages, but they leave invariably, and usually in an arrogant and arbitrary way (a way peculiar to this corporation, as our ii,erchants all can testify to), refused to pay any attention to our demands. We lhave submittea to this species of robbery as long as we feel inclined to, and now, having been thus forced to it, take the stand, that, as common carriers, the railroads are liable, and should be held responsible, for failure to deliver property intrusted to them, in like good order and quantity as received by them; that, when we can prove a certain quantity shipped in a car at the West, we are entitled to a like quantity delivered us here, or payment for ,he shortage. We therefore.declined paying the B.,& A. R. R. Co. a lot of their freight bills unless they would allow our shortages, which we were desirous of having them look into, to satisfy themselves as to the justice of. They, however, most positively refused to notice our claims against them, but said we must pay their bills as presented, right or wvrong, and, if wrong, trust to their refunding them when they see fit; and as 9 130 HISTORY OF THE GRANGE MOVEMENT; OR, we have not submitted to their arbitrary demands, blt have decided to hold out, and let our courts settle the question, they have taken the course-as it seems to us out of sheer malice, to injure us-of notifying all their Western connections to refuse all property coinsigned us unless freight was prepaid. This is not through fear that they shall lose by us on freight their due, as they have commenced suit against us for amount of their bills, and we have given them a bond to cover the same, so they are secure on that score; but it is done simply so to annoy us as to make us surrender unconditionally to them. We propose to see, however, if we have any rights at all in the matter, or whether the railroad corporations are the supreme law in themselves, and everything must yield to them. The B. & A. R. R. Co. have even gone so far as to refuse to receive at Albany grain for which we hold through bills of lading, contracting to deliver such at East Boston; and through their influence flour and branl in transit to us, and for which we also hold through bills of ladinfig, contracting to deliver such at East Boston, have been stopped at Toledo and Cleveland. We are also daily in receipt of advices from our friends, that cars for shipments intended for us are being refused by them at all points throughout the West. " SCUDDER, BARTLETT & CO." The instances given are enough to sustain our position-that the railroads recognize no such thing as individual rights. Neither do they recognize nor respect the rights of the public as represented by the State. They are humble enough, plausible enough tI i i i i THE FARM-ER'S WAR AGAINST MONOPOLIES. until the charter is granted and the ro,ad built. Then they do not hesitate to defy even tihe power of the State. They have little to fear from the courts; and they understand the art of managing State Legislatures. Nay, even the National Congress is regarded as subject to themn. 131 I HISTORY OF THE.GRANGE MOVEM!ENT; OR, CIIAPTER VII. THE CAPTURE OF THE COURTS. Sources of Redress for the People against Railroad Tyranny-Failure of the Courts to afford Protection-Efforts of the Railroads to debauch the Courts of Justice-The Free Pass System-Judicial Stockholders-Designs of the Railroads upon the Law-A Case in Point-How the Erie Road managed the Courts-A New System of Railroad Jurisprudence-Curious Details How Boss Tweed became a Director of Erie-Efforts of Fisk & Coq. to lock up Money-Daniel Drew beaten-The Government intervenes-The War in the Courts —The Value of an Injunction-lIow the Law was made to aid - Sharp Practice-Mr. Jas. Fisk's little Journey-The Country Judge rs. The City Judge-The Railroad makes War on the Press —Arrest of Mr. Samuel BowlesJustice turned against the People. WIIEN the individual, or the coimmiunity, is aggrieved by the railroad, redress may be sought from'two sources-the legislature and the courts. These august bodies are popularly supposed to be the very centres and fountains of justice; but are they? People are beginning to lose their faith in the courts — in judges and juries. Recent developments have shown that men who should be spotless are not fit to sit in judgment upon a case involving such issues as are presented in a matter between an individnal and a great corporation. Judges, attorneys, and jurors are often directly or indirectly interested in the cause of the corporation, because they are holders of stock or bonds of some similar enterprise. Or, if the judge be not a stock or bond holder, he has no doubt received at various times courtesies from the road, or some road, in the shape of free passes and the like, which incline him 132 r I I THE FARMER'S WAR AGAINST MONOPOLIES. 1,33 toward the side of the corporation. Railroad men are keen judges of human nature. They understand the use anrid effect of a free pass. They never give the use of themn and its facilities from mere friendship or admiration for a man, be he never so famous. They. grant the favor with the distinct expectation of some day asking and receiving an equivalent. It has been charged in the public press-that a judge of one of the Western Supreme Courts permits a railroad corporation, which is a party to several suits pending before him, to transport, free of charge, building material for his new house; thereby saving him from five hundred to one thousand dollars in freight money. Railroad companies are always glad to number judges of the State courts, and Members of Congress among their stockholders and it is common to make very great concessions to these gentlemen in their purchases. As the late Mr. Oakes Ames expressed it, they are "let in on the ground floor." Appreciating the fact that their interests and those of the public are antagonistic, the railroads of this country have deliberately undertaken to beat the people, and to cheat them out of their rights. In order to accomplish this they have set to work to corrupt and capture both the legislative and the judiciary powers of the States. The history of the Erie Railroad is very instructive of the daring of railroad corporations, and the lengths to which they are willing to go in their outrages upon the public.. It is also suggestive as showing just what can be done in the courts when "properly managed." The following account of one of the "Erie fights," will show how easily the courts can be manipulated by the great corporations. I I i 1:34 HISTORY OF THIE GP4NGE MOVEMENT; OR, )'~~~\jb;~;~ WILLIAM M. TWEED, FORMERLY A DIRECTOR IN THE ERIE ItAILROAD COMPANY. The Erie road had, at the time of the occurrences related below, settled its first quarrel with Mr. Vanderbilt, and had passed into the hands of Messrs. James Fisk, Jr., End Jay Gould, Mr. Drew having retired from the treasurership of the corporation; The first step of Messrs. Gould and Fisk, upon obtaining possession of the road, had been to dismiss the old Board of Auditors, and to concentrate all the power in their own hands as president, treasurer, and controller. Fortu II At II i THE FARMER'S WAR AGAINST MONOPOLIES. 135 nately for them, it being summer, the receipts of the road were very heavy at that time, and the stock had suddenly come into great favor in the English market, and was selling rapidly in London. A new feature was now introduced into the road, and Peter B. Sweeney and Williamn M. Tweed were admitted to the Board of Directors. Erie had formed an alliance with Tmmuany. The infamous Ring of New York, then in the height of its power, had bound itself to sustain the road in any of its outrages. The annual election of the Board of Directors was at hand, and the only fear felt by Messrs. Fisk, Gould & Co. was, that their powerful rival, Commodore Vanderbilt, who was supposed to cherish still his designs upon the road, might obtain possession of a sufficient amount of stock to give him control of the election. In order to prevent this, the transfer books of the company were closed about thirty days ahead of the usual time previous to an election. The device was successful; the election passed off quietly, with no opposition. Fisk and Gould succeeded in reelecting themselves and their friends, and Tweed and Sweeney were included in the board, and the alliance withl Tammany formed as above stated. The month of October, 1868, witnessed the formation of this new combination. The same month witnessed * the beginning of one of their most determined efforts to rob the community and enrich themselves. Their plan was to take advantage of the stringency existing, in the money market, in consequence of the demand for ready money from the rural districts for the purpose of moving the year's harvest, and by suddenly throwing a new issue of stock into Wall street, produce ~ uch a depression in the stock of their road as would I I 1 f i I HISTORY OF THE GRANGE MOVEMENT. enable them, subsequently, to buy up the stock of the road at their own figures, and by producing a greater stringency, compel the dealers to pay them a usurious rate of interest for the use of money and the carrying of stocks. "Towards the end of October it had become perfectly notorious in Wall street that large new issues of Erie had been made, and that these new issues were intimately connected with the sharp stringency thjen existing in the money market.',' On the 27th of October, the Stock Exchange appointed a committee to wait upon the officers of the road for the purpose of procuring such information respecting these new issues as they might be willing to afford. The committee waited upon Mr. Gould, but received only vague assurances. " Mr. Gould informed them that Erie convertible bonds for ten millions of dollars had been issued, half of which had already been, and the rest of which would be, con, verted intc stock; that the money had been devoted to the purchase of Boston, Hartford & Erie bonds for five millions, and also-of'course-to payments for steel rails." The committee endeavored to ascertain if any further issue of stock was contemplated, but were told by Mr. Gould that no new issue was contemplated at that time, except" in certain contingencies;" which mysterious phrase the acute financier declined to explain. The committee went back to the Exchange with the conviction that Erie meant mischief and was not to be depended on. Meanwhile, vague rumors concerning the new issue began to pervade the street, and to alarm the brokers. "It was not until months afterwards that a sworn statement of the secretary of the Erie Railway revealed the fact that the stock of the corporation had been increased from $34,265,300 on the 1st of Jitly, 1868, the 136 I I I I i /1/~ ~ ~ /{i' C4 4~~~~T:~~Y~~/~<~ 11 138 HISTORY OF THE GRANGE MOVEMENT; OR, date when Drew and his associates had left it, to $57,766,300 on the 24th of October of the same year, or by two hundred and thirty-five thousand shares in four months. This, too, had been done without consultation with the Board of Directors, and with no other authority than that conferred by the ambiguous resolution of February 19th. Under that resolution the stock of the company had now been increased one hundred and thirty-eight per cent. in ei,lght months." The suspicions of the committee of the Stock Exchange were soon verified, for the Erie managers at once threw off all reserve, and by forcing new issues of stock upon the market, gradually forced the price of Erie down to 35. The banks, taking the alarm, and knowing what a terrible disaster to them a general panic in the stock market foreboded, held on to their greenbacks, until the enormous sum of twelve millions of dollars was locked up and withdrawn from circulation. The -effect upon the money market was terrible, and the business of the whole country suffered in sympathy with it. Prices of all kinds declined, and trade in every branch began to drop off. The movement of the crops of the year was brought to a sudden stop, it was almost impossible to negotiate a loan; and as much as one and a half per cent. a day was paid for carrying stocks. Wall street and its gamblers were lost sight of in the general distress of the country, find it was evident that unless some relief was speedily found, the reckless men who had brought about the trouble would drive the entire mercantile community into one of the most terrible convulsions it had ever experieniced. When matters had reached this alarming point, the General Government intervened in the interests of le ; t THlE FARMER'S WARY AG.AIN.ST MONOPOLIES. 139 gitimate business, and tile Erie managers were informed that fifty millions of additional currency would be issued if necessary to relieve the community. This threatand only this-brought the conspirators to a halt. They had calculated their movements well, however, and they now wheeled about and began to run up the stock, and instantly sent it from 40 up to 50. "At this point Mr. Daniel Drew once more made his appearance on the stage.... At first he had combined with his old friends, the present directors, in their' locking-up' conspiracy. He had agreed to assist them to the extent of four millions. The vacillating, timid nature of the man, however, could not keep pace with his more daring and determined associates, and after embarking a million, becoming alarmed at the success of the joint operations and the remonstrances of those who were threatened with ruin, he withdrew his funds from the operators' control, anid himself firom'their councils. But though he did'not care to run the risk or to incur the odiurnm, he had no sort of objection to shariing the spoils. Knowing, therefore, or supposing that he knew, the plan of campaign, and that plan jumping with his own bearish inclinations, he continued, on his own account, operations looking for a fall. One may easily conceive the wrath of the Erie operators at such a treacherous policy; and it is not difficult to imagine their vows of vengeance. Meanwhile all went well with Daniel Drew. Erie looked worse and worse, and the golden harvest seemed drawing near. By the middle of November he had contracted for the delivery of somne seventy thousand shares at current prices, averag ing, perhaps, 38, and probably was counting his gains liedid not appreciate the full power and resoutrces of i i 140 HISTORY OF THE GRANGE MOVEMENT; ORj. ~'I~I I I MR. DREW CALLS ON MR. FISK. his old associates. On the 14th of November their tsctics changed, and he found himself involved in terrible entanglements, hopelessly cornered. His position disclosed itself on Saturday.. Naturally the first impulse was-to have recourse to the courts. An injunction a dozen injunctions-could be had for the asking, but, unfortunately, could be had by both parties. Drewas owni recent experience, and his intimate acquaintance with the characters of Fisk and Gould, were not calculated to inspire him with much confidence in the efficacy of the law. But nothing else remained, and, after hurried I' I, I I I 3 i I THE FARMER'S WAR AGAINST MONOPOLIES. consultations among the victims, the lawyers were applied to, tile affidavits were prepared, and it was decided to repair on the following Monday to the so-called courts of justice. "Nature, however, had not bestowed on Daniel Drew the steady nerve and sturdy gambler's pride of either Vanderbilt or of his old companions at Jersey City. His mind wavered and hesitated between different courses of action. His only catre was for himself, his only thought was of his own position. He was willing to betray one party or the other, as the case might be. He hiad given his affidavit to those who were to bring the suit on the Monday, but he stood perfectly ready to employ Sunday in betraying their counsels to the defendants in the suit. A position more contemptible, a state of mind more pitiable, can hardly be conceived. After passing the night in this abject condition, on the morning of Sunday he sought out Mr. Fisk for purposes of self-humiliation and treachery.* He then partially revealed the difficulties of his situation, only to have his confidant prove to him how entirely he was caught, by completing to him the revelation. He betrayed the secrets of his new allies, and bemoaned his own hard fate; lie was thereupon comforted by Mr. Fisk withl the cheery remark that " he (Drew) was the last manwho ought to whine over any position in which he placed himself in regard to Erie." The poor man begged to see Mr. Gould, and would take no denial. Finally Mr. Gould was brought in, and the scene was repeated for his edification. The two must have been satiated * It ought perhaps to be stated that this portion of the narrative has no. stronger foundation than an affidavit of Mr. Fisk, which has not; ho'wever, been publicly -contradicted... 141 0 142 HISTORY OF THE GRANGE MOVEMENT; ORE with revenge. At last they sent him away, promising to see him again that evening. At the hour named he again appeared, and, after waiting their convenienice,for they spared him no humnliliation,-he again appealed to them, offering them great sums if they would issue new stock or lend him of their stock. lHe implored, he argued, he threatened. At the end of two hours of humiliation, persuaded that it was all in vain, that he was wholly in the power of antagonists without mercy, lie took his hat, said,' I will bid you good night,' and went his way. "With the lords of Erie forewarned was forearmed. They knew something of the method of procedure in New York courts of law. At this particular juncture Mr. Justice Sutherland, a magistrate of such pure character and unsullied reputation that it is inexplicable how he ever carne to be elevated to the bench on which he sits, was holding chambers, according to assignment, for the four weeks between the first Monday in November and the first Monday in December. By a rule of the court, all applications for orders during that time were to be made before him, and he only, according to the courtesy of the Bench, took cognizance of such proceedings. Some general arrangement of this nature is manifestly necessary to avoid continual conflicts of jurisdiction. The details of the assault on the Erie directors having been settled, counsel appeared before Judge Sutherland on Monday morning, and petitioned for an injunction restraining the Erie directors from any new issue of stock or the removal of the funds of the company beyond the jurisdiction of the court, and also asking that the road be placed in the hands of a receiver. The suit was brought in the name of Mr. i t I 4 I THIE FARMER'S WAR AGAINST MONOPOLIES. 1,13 August Belmont, who was supposed to represent large foreign holders. The petition set forth at leng,th the alleged faicts in the case, and was supported by the affidavits of Mr. Drew and others. Mr. Drew apparently (lid not inform the counsel of the manner in which he latd passed his leisure hours on the previous day; had he done so, Mr. Belmont's counsel probably would have expedited their movements. The injunction was, however, duly signed, and, doubtless, immediately served. "Meanwhile Messrs. Gould and Fisk had not been idle. Applications for injunctions and receiverships were a game which two could play at; and long experience had taught these close observers the very great value of tile initiative in law. Accordingly, some two hours before the Belmont application was made, they had sought no less a person than Mr. Justice Barnard, caught him, as it were, either in his bed or at his breakfast, whereupon he had held a lit de Justice, and made divers astonishing orders. A petition was presented in the name of one Mcintosh, a salaried officer of the Erie road, who claimed also to be. a shareholder. It set forth the danger of injunctions and of the appointment of a receiver, the great injury likely to result therefrom, etc. After due consideration on the part of Judge Barnard, an injunction was issued, staying and restraining all suits, and actually appointing Jay Gould receiver, to hold and disburse the funds of the company in accordance vith the resolutions of the Board of Directors and the Executive Committee. This certainly was a very brilliant flank movement, and testified not less emphatically to Gould's genius than to Barnard's law; but most of all did it testify to the efficacy of the new combination between Tammany Hall and the Erie I I 144 HISTORY OF THE GRANGE MOVEMENT; OR' Railway. Since the passage of the bill'to legalize counterfeit money,' in April, and the present November, new light had burst upon the judicial mind; and as the news of one injunction and a vague rumor of the other crept through Wall street that day, it was no wonder that operators stood aghast and that Erie fluctuated wildly from 50 to 61 and back to 48. " The Erie directors, however, did not rest satisfied with the position which they had won through Judge Barnard's order. That simply placed them, as it were, in a strong defensive attitude. They were not the men to stop there: they aspired to nothing less than a vigorous offensive. With a superb audacity, which excites admiration, the new trustee immediately filed a supplementary petition. Therein it was duly set forth that doubts had been raised as to the legality of the recent issue of some two hundred thousand shares of stock, and that only about this amount was to be had in America; the trustee therefore petitioned for authority to use the funds of the corporation to purchase and cancel the whole of this amount at any price less than the par value, without regard to the rate at which it had been issued. The desired authority was conferred by Mr. Justice Barnard as soon as asked. Human assurance could go no further. The petitioners had issued these shares in the bear interest at 40, and had run down tile value of Erie to 35; they had then turned around, and were now empowered to buy back that very stock in the bull interest, and in the name and with the funds of the corporation, at par. A law of the State distinctly forbade corporations from operating in their own stock; but this law was disregarded as if it had been only an injunction. An injunction I' iI I II I THE FARMER'S WAR AGAINST MONOPOLIES. 145 forbade the treasurer from making any disposition of the funds of the company, and this injunction was respected no more than the law. These trustees had sold the property of their wards at 40; they were now prepared to use the money of their wards to buy back the same property at 80, and a judge had been found to confer Jn them the power to do so." The resuL of the fight in the stock market was that Drew was beaten. Hle made good his contracts at 57, and lost, as was generally supposed at the time, a million and a half of dollars. From the Stock Board the battle was shifted to the Courts. "On Monday, November 23d, Judge Sutherland vacated Judge Barnard's order appointing Jay Gould receiver, and, after seven hours' argument and some exhibitions of vulgarity and indecency on the part of counsel, which vied with those of the previous April, he appointed Mr. Davies, an ex-chief justice of the Court of Appeals, receiver of the road and its franchise, leaving the special terms of the order to be settled at a future day. The seven hours' struggle had not been without an object; that day Judge Barnard had been peculiarly active. The morning hours he had beguiled by the delivery to the grand jury of one of the most astounding charges ever recorded; and now, as the shades of evening were falling, he closed the labors of the day by issuing a stay of the proceedings then pending before his associate. Tuesday had been named by Judge Sutherland, at the time he appointed his receiver, as the day upon which he would settle the details of the order. His first proceeding upon that day, on find -ing his action stayed by Judge Barnard, was to grant a 10 i 146 HISTORY OF THE GRANGE MOVEMENT; OR, motion to show cause, on the next day, why Barnard's. order should not be vacated. This style of warfare, however, savored too much of the tame defensive to, meet successfully the bold strategy of Messrs. Gould and Fisk. They carried the war into Africa. In the twenty-four hours during which Judge Sutherland's. order to show cause was pending, three new actions were commenced by them. In the first place, they sued the suers. Alleging the immense injury likely to result to the Erie road from actions commenced, as they alleged, solely with a view of extorting money in settlement, Mr. Belmnont was sued for a million of dollars in damages. Their second suit was against Messrs. Work, Schell, and others, concerned in the litigations of the previous spring, to recover the $429,250 then paid them, as was alleged, in a fraudulent settlement.. These actions were, however, commonplace, and might have been brought by ordinary men. Messrs. Gould and Fisk were always displaying the invention of genius. The same day they carried their quarrels into the United States courts. The whole press, both of New York and of the country, disgusted with the parody of justice enacted in the State Courts, had cried aloud to have the whole matter transferred to the United States tribunals, the decisions of which might have some weight, and where, at least, no partisans upon the bench would shower each other with stays, injunctions, vacatings of orders, and other such pellets of the law. The Erie ring, as usual, took time by the forelock. While their slower antagonists were deliberating, they acted. On this Monday, the 23d, one Hlenry B. Whelpley, who had been a clerk of Gould's, and whc claimed to be a stockholder in the Erie and a. l I THaE FARMER'S WAR AGAINST MONOPOLIES. 147 citizen of New Jersey, instituted a suit against the Erie Railway before Judge Blatchford, of the United States District Court. Alleging the doubts which hung over the validity of the recently issued stock, he petitioned that a receiver might be appointed, and the company directed to transfer into his hands enough property to secure from loss the plaintiff as well as all other holders of the new issues. The Erie counsel were on the ground, and, as soon as the petition was read, waived all further notice as to the matters contained in it; whereupon the court at once appointed Jay Gould receiver, and directed the Erie Company to place eight millions of dollars in his hands to protect the rights-represented by the plaintiff Of course the receiver was required to give bonds with sufficient sureties. Among the sureties was James Fisk, Jr. The brilliancy of this move was only surpassed by its success. It fell like a bombshell in the enemy's camp, and scattered dismay among those who still preserved a lingering faith in the virtue of law as administered by any known courts. The interference of the court was in this case asked for on the ground of fraud. If any fraud had been committed, the officers of the company alone could be the delinquents. To guard against the consequences of that fraud, a receivership was prayed for, and the court appointed as receiver the very officer in whom the alleged frauds, on which its action was based, must have originated. It is true, as was afterwards observed by Judge Nelson in setting it aside, that a prima facie case, for the appointment of a receiver,'was supposed to have been made out,' that no objection to the person suggested was made, and that the right was expressly reserved to other partfis to I f I I I 1 i I 1 '6 148 HISTORY OF THE GRANGE MOVEMENT; OR, come into court, with any allegations they saw fit against Receiver Gould. The collusion in the case was, nevertheless, so evident, the facts were so notorious and so apparent from the very papers before the court, and the character of Judge Blatchford is so far above suspicion, that it is hard to believe that this order was not procured from him by surprise, or through the agency of some counsel in whom he reposed a misplaced confidence. The Erie ring, at least, had no occasion to be dissatisfied-with this day's proceedings. "The next day Judge Sutherland made short work of his brother..arnard's stay of proceedings in regard to the Davies receivership. He vacated it at once, and incontinently proceeded, wholly ignoring the action of Judge Blatchford on the day before, to settle the terms of the order, which, covering as it did the whole of the Erie property and franchise, excepting only the operating of the road, bade fair to lead to a conflict of jurisdiction between the State and Federal courts. "And now a new judicial combatant appears in the arena. It is difficult to say why Judge Barnard, at this time, disappears from the narrative. Perhaps the notorious judicial violence of the man, which must have made his eagerness as dangerous to the cause he espoused as the eagerness of a too swift witness, had alarmed the Erie counsel. Perhaps the fact that Judge Suthlerland's term in chambers would expire in a few days had made them wish to intrust their cause to the magistrate who was to succeed him. At any rate, the new order staying proceedings under Judge Sutherland's order was obtained from Judge Cardozo,-it is said, somewhat before the terms of the receivership had been finally settled. The change spoke well for the discrimination ( I' i 'k THE FARMER'S WAR AGAINST MONOPOLIES. 149 of those who made it, for Judge Cardozo is a very different man from Judge Barnard. Courteous but inflexible, subtle, clear-headed, and unscrupulous, this magistrate conceals the iron hand beneath the silken glove. Equally versed in the laws of New York and in the mysteries of Tammany, he had earned his place by a partisan decision on the excise law, and was nominated for the bench by Mr. Fernando Wood, in a few remarks concluding as follows:'Judges were often called on to decide on political questions, and he was sorry to say the majority of them decided according to their political bias. It was therefore absolutely necessary to look to their candidate's political principles. He would nominate, as a fit man for the office of Judge of the Supreme Court, Albert Cardozo.' Nominated as a partisan, a partisan Cardozo has always been, when the occasion demanded. Such was the new and far more formidable champion who now confronted Sutherland, in place of the vulgar Barnard. His first order in the matter-to show cause why the order of his brother judge should not be set aside-was not returnable until the 30th, and in the intervening five days many events were to happen. " Immediately after the settlement by Judge Sutherland of the order appointing Judge Davies receiver, that gentleman had proceeded to take possession of his trust. Upon arriving at the Erie building, he found it converted into a fortress, with a sentry patrolling behind the bolts and bars, to whom was confided the duty of scrutinizing all comers, and of admitting none but the faithful allies of the garrison. It so happened that Mr. Davies, himself unknown to the custodian, was accompanied by Mr. Eaton, the former attorney of the t 150 HISTORY OF THE GRANGE MOVEMENT; OR, Erie corporation. This gentleman was recognized by the sentry, and forthwith the gates flew open for' himself and his companion. In a few moments more the new receiver astonished Messrs. Gould and Fisk, and certain legal gentlemen with whom they happened to be in conference, by suddenly appearing in the midst of them. The apparition was not agreeable. Mr. Fisk, however, with a fair appearance of cordiality, welcomed the strangers, and shortly after left the room. Speedily returning, his manner underwent a change, and he requested the new-comers to go the way they came. As they did not comply at once, he opened the door, and directed their attention to some dozen men of forbidding aspect who stood outside, and who, he intimated, were prepared to eject them forcibly if they sought to prolong their unwelcome stay. As an indication of the lengths to which Mr. Fisk was prepared to go, this was sufficiently significant. The movement, however, was a little too rapid for his companions; the lawyers protested, Mr. Gould apologized, Mr. Fisk cooled down, and his familiars retired. The receiver then proceeded to give written notice of his appointment, and the fact that he had taken possession; disregarding, in so doing, an order of Judge Cardozo, staying proceedings under Judge Sutherland's order, which one of the opposing counsel drew from his pocket, but which Mr. Davies not inaptly characterized as a' very singular order,' seeing that it was signed before the terms of the order it sought to affect were finally settled. At length, however, at the earnest request of some of the subordinate officials, and satisfied with the formal possession he had taken, the new receiver delayed further action until Friday. He little knew the resources of his oppo t II i i I I k It I i i l * THIE FARMER'S WAR AGAINST MONOPOLIES. nents, if he vainly supposed that a formal possession signified anything. The succeeding Friday found the directors again fortified within, and himself a much enjoined wanderer without. The vigilant guards were now no longer to be beguiled. Within the building, constant discussions and consultations were taking place; without, relays of detectives incessantly watched the pseinises. No rumor was too wild for public credence. It was confidently stated that the directors were about to fly the State and the country-that the treasury had already been conveyed to Canada. At last, late on Sunday night, Mr. Fisk with certain of his associates left the building, and made for the Jersey Ferry; but on the way he was stopped by a vigilant lawyer, and many papers were served upon him. His plans were then changed. Hle returned to the office of the company, and presently the detectives saw a carriage leave the Erie portals, and heard a loud voice order it to be driven to the Fifth Avenue Hotel. Instead of going there, however, it drove to the ferry, and presently an engine, with an'empty directors' car at tached, dashed out of the Erie station in Jersey City, and disappeared in the darkness. The detectives met and consulted; the carriage and the empty car were put together, and the inference, announced in every New York paper the succeeding day, was that Messrs. Fisk and Gould had absconded with millions of money to Canada. "That such a ridiculous story should have been published, much less believed, simply shows how utterly demoralized the public mind had become, and how pre pared for any act of high-handed fraud or outrage. The libel did not long remain uncontradicted. The 151 II HISTORY OF THE GRANGE MOVEMENT; OR, next day a card from Mr. Fisk was telegraphed to the newspapers, denying the calumny in indignant terms. The eternal steel rails were again made to do duty, and the midnight flitting became a harmless visit to: Binghamton on business connected with a rolling-mill. Judge Balconm, however, of injunction memory in the earlier records of the Erie suits, resides at Binghamton, and a leading New York paper not inaptly made the timid inquiry of Mr. Fisk,'If he really thought that Judge Balcom was running a rolling-mill of the Erie Company, what did he think of Judge Barnard?' Mr. Fisk, however, as became himn in his character of the Mocenas of the bar, instituted suits claiming damages in fabulous sums, for defamation of character, against some half-dozen of the leading papers, and nothing further was heard of the matter, nor, indeed, of the suits either. Not so of the trip to Binghamton. On Tuesday, the 1st of December, while one set of lawyers were arguing an appeal in the Whelpley case beibre Judge Nelson in the Federal courts, and another set were procuring orders from Judge Cardozo staying proceedings authorized by Judge Sutherland, a third set were aiding Judge Balcom in certain new proceedings instituted in the name of the Attorney-General against the Erie road. The result arrived at was, of course, that Judge Balcom declared his to be the only shop where a regular, reliable article in the way of law was retailed, and then proceeded forthwith to restrain and shut up the opposition establishments. The action was brought to terminate the existence of the defendant as a corporation, and, by way of preliminary, application was made for an injunction and the apt pointment of a receiver. His Honor held that, as only 152 I I I I I i THE FARMER'S WAR AGAINST MONOPOLIES. 153 three receivers had as yet been appointed, he was certainly entitled to appoint another. It was perfectly clear to him that it was his duty to enjoin the defendant corporation from delivering the possession of its road, or of any of its assets, to either of the receivers already appointed; it was equally clear that the corporation would be obliged to deliver them to any receiver he might appoint. He was not prepared to name a receiver just then, however, though he intimated that he should not hesitate to do so if necessary. So he contented himself with the appointment of a referee to look into matters, and, generally, enjoined the directors from omitting to operate the road themselves, or from delivering the possession of it to'any person claiming to be a receiver.' "This raiding upon the agricultural judges was not peculiar to the Erie party. On the contrary, in this proceeding it rather followed than set an example; for a day or two previous to Mr. Fisk's hurried journey, Judge Peckham, of Albany, had, upon papers identical with those in the Belmont suit, issued divers orders, similar to those of Judge Balcom, but on the other side, tying up the Erie directors in a most astonishing manner, and clearly hinting at the expediency of an additional receiver to be appointed at Albany. The amazing part of these Peckham and Balcom proceedings is, that they seem to have been initiated with perfect gravity, and neither to have been looked upon as jests, nor intended by their originators to bring the courts and the laws of New York into ridicule and contempt. Of course the several orders in these cases were of no more importance than so much waste paper, unless, indeed, some very cautious counsel may I I -a 154 HISTORY OF THE GRANGE MOVEMENT; OR, have considered an extra injunction or two very venient things to have in his house; and yet, curios enough, from a legal point of view, those in Ju Balcom's court seem to have been almost the o properly and regularly initiated proceedings in whole case. "These little rural episodes in no way interfe with a renewal of vigorous hostilities in New Yo While Judge Balcom was appointing his referee, Ju Cardozo granted an order for a reargument in the ] mont suit,-which brought up again the appointm of Judge Davies as receiver,-and assigned the hear for the 6th of December. This step on his part b a curious resemblance to certain of- his performan in the notorious case of the Wood leases, and made plan of operations perfectly clear. The period dur which Judge Sutherland was to sit in chambers w to expire on the 4th of December, and Cardozo him was to succeed him; he now, therefore, proposed signalize his associate's departure from chambers reviewing. his orders.'No sooner had he granted motion, than the opposing counsel applied to Ju Sutherland, who forthwith issued an order to sh cause why the reargument ordered by Judge Card should not take place at once. Upon which the co sel of the Erie road instantly ran over to Judge C dozo, who vacated Judge Sutherland's order out hand. The lawyers then left him and ran back Judge Sutherland with a motion to vacate this I order. The contest was now becoming altogether ludicrous. Somebody must yield, and when it was duced to that, the honest Sutherland was pretty su to give way to the subtle Cardozo. Accordingly t i t tI I I I the i 0 THE FARMER'S WAR AGAINST MONOPOLIES. 155 hearing on this last motion was postponed until next morning, when Judge Sutherland made a not undignifled statement as to his position, and closed by remitting the whole subject to the succeeding Monday, at which time Judge Cardozo was to succeed him in chambers. Cardozo, therefore, was now in undisputed possession of the field. In his closing explanation Judge Sutherland did not quote, as he might have done, the following excellent passage from the opinion of the court, of which both he and Cardozo were justices, delivered in the Schell case as recently as the last day of the previous June:' The idea that a cause, by such manoeuvres as have been resorted to here, can be withdrawn from one judge of this court and taken possession of by another; that thus one judge of the same and no other powers can practically prevent his associate from exercising his judicial functions; that thus a case may be taken from judge to judge whenever one of the parties fears that an unfavorable decisionr is about to be rendered by the judge who, up to that time, had sat in the cause, and that thus a decision of a suit may be constantly indefinitely postponed at the will of one of the litigants, only deserves to be noticed as being a curiosity in legal tactics,-a remarkable exhibition of inventive genius and fertility of expedient to embarrass a suit which this extraordinarily conducted litigation has developed. Such a practice as that disclosed by this litigation, sanctioning the attempt to counteract the orders of each other in the progress of the suit, I confess is new and shocking to me,.... and I trust that we have seen the last in this high tribunal of such practices as this case has exhibited. No apprehension, real or HISTORY OF THE GRANGE MOVEMENT; OR, fancied, that any judge is about, either wilfully or innocently, to do a wrong, can palliate, much less justify it.'* Neither did Judge Sutherland state, as he might have stated, that this admirable expression of the sentiments of the full bench was written and delivered by Judge Albert Cardozo. Probably also Judge Cardozo and all his brother judges, rural and urban as they used these bow-strings of the law, right and left, -as their reckless orders and injunctions struck deep into business circles far beyond the limits -of their State, -as they degraded themselves in degrading their order, and made the ermine of supreme justice scarcely more imposing than the motley of the clown,-these magistrates may have thought that they had developed at least a novel, if not a respectable, mode of conducting litigation. They had not done even this. They had simply, so far as in them lay, turned back the wheels of progress and reduced the America of the nineteenth century to the level of the France of the sixteenth.'The advocates and judges of our times find bias enough in all causes to accommodate them to what they themselves think fit..... What one court has determined one way another determines quite contrary, and itself contrary to that at another time; of which we see very frequent examples, owing to that practice admitted among us, and which is a marvellous blemish to the ceremonious authority and lustre of our justice, of not abiding by one sentence, but running from judge to judge, and court to court, to decide one and the same cause.' t "It was now very clear that Receiver Davies might. * Schell v. Erie Railway Co., 51 Barbour's S. C. 873, 374. t Montaigne's Works, vol. ii. p. 816. I —'L 5 6 I I II i II t THE FARMER'S WAR AGAINST MONOPOLIES. 157 abandon all hope of operating the Erie Railway, and that Messrs. Gould and Fisk were borne upon the swelling tide of victory. The prosperous aspect of their affairs encouraged these last-namned gentlemen to yet more vigorous offensive operations. The next attack was upon Vanderbilt in person. On Saturday, the 5th of December, only two days after Judge Sutherland and Receiver Davies were disposed of, the indefatigable Fisk waited on Commodore Vanderbilt, and, in the name of- the Erie Company, tendered him fifty thousand shares of Erie common stock at 70. * As the stock was then selling in Wall street at 40, the Commodore naturally declined to avail himself of this liberal offer. He even went further, and, disregarding Throughout these proceedings glimpses are from time to time obtained of the more prominent characters in their undress, as it were, which have in them a good many elements both of nature and humor. The following description of the visit in which this tender was made was subsequently given by Fisk on the witness stand: "I went to his (Vanderbilt's) house; it was a bad, stormy day, and I had the sharesin a carpet-bag; I told the Commodore I had come to tender 50,000 shares of Erie, and wanted back'the money which we had paid for them and the bonds, and I made a separate demand for the $1,000,000 which had been paid to cover his losses; he said he had nothing to do with the Erie now, and must consult his counsel;.. . Mr. Shearman was with me; the date I don't know; it was about eleven o'clock in the morning; don't know the day, don't know the month, don't know the year; I rode up with Shearman, holding the carpet-bag tight between my legs; I told him he was a small man and not much protection; this was dangerous property, you see, and might blow up;.... besides Mr. Shearman the driver went in with the witnesses, and besides the Commodore I spoke with the servant girl; the Commodore was sitting on the bed with one shoe off and one shoe on;... don't remember what more was said; I remember the Commodore put on his other shoe; I remember those shoes on account of the buckles; you see there were four buckles on that shoe, and I know it passed through my mind that if such men wore that kind -of shoe I must get me a pair; this passed through my mind, but I did not speak of it to the Commodore; I was very civil to him." i i i II I i tI I 158 HISTORY OF THE GRANGE MOVEMENT; OR, his usual wise policy of silence, wrote to the New York Tirnmes a short communication, in which he referred to the alleged terms of settlement of the previous July, so far as they concerned himself, and denied them in the following explicit language:'I have had no dealings with the Erie Railway Company, nor have I ever sold that company any stock or' received from them any bonus. As to the suits instituted by Mr. Schell and others, I had nothing to do with them, nor was I in any way concerned in their settlement.' This was certainly an announcement calculated to confuse the public; but the confusion became confounded, when, upon the 10th, Mr. Fisk followed him in a card, in which he reiterated the alleged terms of settlement, and reproduced two checks of the Erie Company, of July 11, 1868, made payable to the Treasurer and by him endorsed to C. Vanderbilt, upon whose order they had been paid. These two checks were for the sum of a million of dollars. He further said that the company had a paper in Mr. YVanderbilt's own handwriting, stating that he had placed fifty thousand shares of Erie stock in the hands of certain persons, to be delivered on payment of $3,500,000, which sum he declared had been paid. Undoubtedly these apparent discrepancies of statement admitted of an explanation; and some thin veil of equivocation, such as the transaction of the business through third parties, justified Vanderbilt's statements to his own conscience. Comment, however, is wholly superfluous, except to call attention to the amount of weight which is to be given to the statements and denials, apparently the most general and explicit, which from time to time were made by the parties to these proceedings. This short controversy merely i c I I i THE FARMER'S WAR AGAINST MONOPOLIES. added a little more discredit to what was already not, deficient in that respect. On the 10th of December the Erie Company sued Commodore Vanderbilt for $3,500,-, 000, specially alleging in their complaint the particulars of that settlement, all knowledge of or connection with which the defendant had so emphatically denied. "None of the multifarious suits which had been brought as yet were aimed at Mr. Drew. The quondam Treasurer had apparently wholly disappeared from the scene on the 19th of November. Mr. Fisk took advantage, however, of a leisure day, to remedy this oversight, and a suit was commenced against Drew, on the ground of certain transactions between him, as Treasurer, and the railway company, in relation to some steamboats concerned in the trade of Lake Erie. The usual allegations of fraud, breach of trust, and other trifling, and, technically, not State prison offences, were made, and damages were set at a million of dollars. "Upon the 8th the argument in Belmont's case had been reopened before Judge Cardozo in New York, and upon the same day, in Oneida county, Judge Boardman, another justice of the Supreme Court, had proceeded to contribute his share to the existing complications. Counsel in behalf of Receiver Davies had appeared before him, and, upon their application, the Cardozo injunction, which restrained the receiver from taking possession of the Erie Railway, had been dissolved. Why this application was made, or why it was granted, surpasses comprehension. Ihowever, the next day, Judge Boardman's order having been read in court. before Judge Cardozo, that magistrate suddenly revived to a-full appreciation of the views expressed by him in June in regard to judicial interference with judicial 159, 160 HISTORY OF THE GRANGE MOVEMENT; OR, action, and at once stigmatized Judge Boardman's action as' extremely indecorous.' Neglecting, however, the happy opportunity to express an opinion as to his own conduct during the previous week, he simply stayed all proceedings under this new order, and applied himself to the task of hearing the case before him reargued. "This hearing lasted many days, was insufferably long and inexpressibly dull. While it was going on, upon the 15th, Judge Nelson, in the United States Court, delivered his opinion in the Whelpley suit, reversing, on certain technical grounds, the action of Judge Blatchford, and declaring that no case for the appointment of a receiver had been made out; accordingly he set aside that of Gould, and, in conclusion, sent the matter back to the State court, or, in other words, to Judge Cardozo, for decision. Thus the gentlemen of the ring, having been most fortunate in getting, their case into the Federal court before Judge Blatchford, were now even more fortunate in getting it out of that court when' it had come before Judge Nelson. After this, room for doubt no longer existed. Brilliant success at every point had crowned the stra-. tegy of the Erie directors. For once Vanderbilt was effectually routed and driven from the field. That he shrunk from continuing the contest against such opponents is much to his credit. It showed that he, at least, was not prepared to see how near he could come to the doors of a State prison and yet not enter them; that lie did not care to take in advance -the opinion of leading counsel as to whether what lie meant to do might place him in the felons' dock. Thus Erie was wholly given over to the control of the ring. No one i i I k I THIE FARMER'S WAR AGAINST MONOPOLIES. 161 seemed any longer to dispute their right and power to issue as much new stockl as might seem to them expedient. Injunctions had failed to check them; receivers had no terrors for them. Secure in their power, they now extended their operations over sea and land, leasing railroads, buying steamboats, ferries, theatres and rolling-mills, building connecting links of road, laying down additional rails, and, generally, proving themselves a power wherever corporations were to be influenced or legislatures were to be bought. "Christmas, the period of peace and good-will, was now approaching. Tile dreary arguments before Judge Cardozo had terminated on December 18, long after the press and the public had ceased to pay any attention to them, and already rumors of a settlement were rife. Yet it was not meet that the settlement should be effected without some final striking catastrophe, some characteristic concluding tableau. Among the many actions which had incidentally sprung from these proceedings was one against Mr. Samuel Bowles, the editor of the Springfield Republican, brought by Mr. Fisk in consequence of an article which had appeared in that paper, reflecting most severely on Fisk's proceedings and private character-his past, his present, and his probable future. On the 22d of December, Mr. Bowles happened to be in New York, and, as he was standing in the office of his hotel, talking with a friend, was suddenly arrested on the warrant of Judge McCunn, hurried into a carriage, and driven to Ludlow Street Jail, where he was locked up for the night. This excellent jest afforded intense amusement, and was the cause of much wit that evening at an entertainment given by the Tammany ring to the newly-elected Mayor 11 .1' 162 HISTORY OF THE GRANGE MOVEMENT; OR, of New York, at which entertainment Mr. James Fisk, Jr., was an honored guest. The next morning the whole press was in a state of high indignation, and Mr. Bowles had suddenly become the best-advertised editor in the country. At an early hour he was, of course, released on bail, and with this outrage the second Erie contest was brought to a close. It seemed right and proper that proceedings which, throughout, had set public opinion at defiance, and in which the Stock Exchange, the courts, and the Legislature had come ill for equal measures of opprobrium for their disregard of private rights, should'be terminated by an exhibition of petty spite, in which bench and bar, judge, sheriff and jailer, lent themselves with base subserviency to a violation of the liberty of the citizen. "It was not until the 10thl of February that Judge Cardozo published his decision setting aside the Suthlerland receivership, and establishing on a basis of authority the right to over-issue stock at pleasure. The subject was then as obsolete and forgotten as though it had never absorbed the public attention. And another 'settlement' had already been effected. The details of this arrangement have not been dragged to light through the exposures of subsequent litigation. But it is not difficult to see where and how a combination of overpowering influence may have been effected, and a guess might even be hazarded as to its objects and its victims. The fact that a settlement had been arrived at was intimated in the papers of the 26th of December. On the 19th of the same month a stock dividend of eighty per cent. in the New York Central had been suddenly declared by Vanderbilt. Presently the Legislature met. While the Erie ring seemed to have good i II I I i I i. i i THE FARMER'S WAR AGAINST MONOPOLIES. 163 measons for apprehending hostile legislation, Vanderbilt, on his part, might have feared for the success of a bill which was to legalize his new stock. But hardly a voice was raised against the Erie men, and the bill of the Central was safely carried through. This curious absence of opposition did not stop here, and soon the two parties were seen united in an active alliance. Vanderbilt wanted to consolidate his roads; the Erie directors wanted to avoid the formality of annual elections. Thereupon two other bills went hastily through this honest and patriotic Legislature, the one authorizing the Erie Board-which had been elected for one year-to classify itself so that one-fifthl only of its members should vacate office during each succeeding year, the other consolidating the Vanderbilt roads into one colossal monopoly. Public interests and private rights seem equally to have been the victims. It is impossible to say that the beautiful unity of interests which led to such results was the fulfilment of the December settlement; but it is a curious fact that the same paper which announced in one column that Vanderbilt's two measures, known as the consolidation and Central scrip bills, had gone to the Governor for signature, should, in another, have reported the discontinuance of the Belmont and Whelpley suits by the consent of all- interested. * It may be that public and private interests were not thus balanced and traded away in a servile Legislature, but the strong probabilities are that the settlement of December made white even that of July. Meanwhile the conquerors-the men whose names had been made notorious through the whole land in all these * See the New York Tribune of May 10, 1869. 164 HISTORY OF THE GRANGE MOVEMENT; OR, infamous proceedings-were at last undisputed masters of the situation, and no mall questioned the firmness of their grasp on the Erie Railway. They walked erect and proud of their infamy through the streets of our great cities; they voluntarily subjected themselves to that to which other depredators are compelled to submit, and, by exposing their portraits in public conveyances, converted noble steamers into branch galleries of a police office; nay, more, they bedizened their persons with gold lace, and assumed honored titles, until those who witnessed in silent contempt their strange antics were disposed to exclaim, in the language of poor Doll Tearsheet:'An Admiral! God's light, these villains will make the word as odious as the word "occupy," which was an excellent good word before it was ill sorted; therefore, Admirals had need look to't' * Such was the success of a desperate and reckless corporation in managing the courts of a great State. So thoroughly had they performed their work that they were popularly declared to "run the courts." Justice was turned against the people and used as an instrunient of oppression. There are other corporations just as reckless and other courts as complaisant. What has been done in New York has been repeated on a smaller scale elsewhere. The railroads, in their determined effort to fasten their yoke upon the people, are seeking to poison the very fountain of justice and equity. Let the people look to it that they do not succeed. * For the complete account of these extraordinary transactions the reader is referred to "A Chapter on Erie," published by J. R. Osgood & Co., of Boston. The book will repay a careful perusal. ik I I f i li i i f I THE FARMER'S WAR AGAINST MONOPOLIES. 165 CHAPTER VIII. RAILROAD LEGISLATION. Success of the Railroads in managing Legislatures-Efforts to corrupt Con gresThe Railroad Lobby at Washington-How the State Legislatures are maniaged-A Case in Point-The Camden & Amboy Monopoly and the New Jersey Legislature-Erie Legislation-Exploits of the Erie Ring at Albany-The Story of a Check Book-A Disappointed Legislature. WE have shown the efforts of the Railroads to corrupt the courts of justice. We propose now to glance at some of their exploits in the legislative bodies of the country. Railroad companies are constantly asking new favors of and fresh privileges from the representatives of the people. They do not content themselves with resting their claims upon their merits. They "work them through" these bodies by unfair means. They keep a corps of regularly employed secret agents at each State capital, and at Washington, whose express duty is to corrupt the representatives of the people and influence their votes by unlawful means. The late developments in the Credit Mobilier investigation are familiar to all. They show the persistent and systematic manner in which the Pacific Railway endeavored to corrupt the highest legislative body in the land. The President of that corporation testified under oath before a Congressional committee at the same session, that he had contributed $10,000 toward securing the election of a United States Senator from 166 HISTORY OF THiE GRANGE MOVEMENT; OR, Iowa. Mr. Burbridge testified that he had contributed $5000 toward the election of a Senator from Nebraska. Members of Congress are the constant recipients of courtesies from the various railroads. Free passes are given them, special and luxuriously appointed cars are placed at their disposal, and the result is a demnoralization on the part of our national legislators that is constantly developing itself in scandalous affairs which bring the blush of shame to the cheek of every true lover of his country. It is known that shrewd men and women are annually sent to Washington for the purpose of engineering some corporation scheme through Congress. It is known that these persons are entrusted by their principals with large sums of money, and the whole country is satisfied that these sums constitute a gigantic corruption fund, to be used for the purpose of debauching the Congress of the United States. As for the State Legislatures, the people have long since come to regard tllhein as hopelessly corrupt. It is common to denounce the Legislature of the State of New York as the chief of sinners in this respect, but the sad truth is that the Legislature of New York is but a representative body in this respect. Your experienced railroad manager knows that there is not a legislative body in the country in which his compatriots have not attempted bribery with more or less success. Hie canl tell you the exact market value of each legislature in the Union, and when he enters upon the conquest of one of these bodies, he can estimate very near the exact sum it will be necessary to expend upon it. If we choose our illustrations from the New York Legislature, it is merely for convenience. THE FARMER'S WAR AGAINST MONOPOLIES. 167 In the winter of 1872-73, the Third Avenue Street Railroad Company of New York sought of the legislature a charter for the construction of an elevated road along the line of that thoroughfare. The road was and is badly needed by the Metropolis, and the company, with the economy for which it is noted, "refused to pay a cent for the passage of their bill." The scheme had received the endorsement of the public, the entire metropolitan press demanded its adoption, but the legislature rejected the bill. The Third Avenue Conmpany had refused to buy the votes of members, and it must be punished for its insolence. The indignant members rejected the bill. They had been so carefully trained by the railway corporations seeking their aid, to regard their votes as merchantable property, that they turned upon the first corporation refusing to buy, and crushed it. It is popularly believed that the Legislature of New Jersey was for many years in the pay of the famous Camden & Amboy monopoly and its successor, the Pennsylvania Company. It was not until the outraged and indignant people of the State rose against these monopolies, and threatened to put an end to the official existence of the legislators, that the General Assembly of New Jersey saw fit to take steps for the discontinu ance of the wrongs from which the State had suffered for more than a generation. The conflicts of the Erie Railroad under the manage ment of Messrs. Gould and Fisk, afforded many instan ces of the art of manipulating a legislature, and it is popularly believed that many a dollar of Erie funds found its way into the pockets of tile honorable gentle men who assemble at Albany to make laws for the I II f 168 HISTORY OF THE GRANGE MOVEMENT; OR, Empire State. During the session of 1868, it was believed that Erie spent its money lavishly at Albany. It was feared that Commodore Vanderbilt would suc ceed in his attempt to secure the Erie road, and that the New York Legislature would so influence the investigation of the affairs of Erie, which had been begun by the Senate, as to oust the parties into whose hands the road had fallen, and pave the way to his long desired victory. Vanderbilt's power at Albany was well known, and the Erie managers found it necessary to defeat him at all hazards. The friends of Erie introduced into the legislature sundry measures for the promotion of their interests, among others a bill virtually prohibiting the consolidation of the Erie and the Central in the hands of Vanderbilt. This bill was referred to the Committee on Railroads on the 13th of March. On the 20th a public hearing was begun. On the 27th the report of the committee, adverse to the bill, was adopted in the Assembly by a vote of 83 to 32. It was generally understood that this vote was a broad hint that the Assembly would do nothing for Erie withlout being paid for it. The Erie Directors were at this time sojourning in Jersey City, whither they had fled to escape arrest for contempt of court, Judge Barnard having issued warrants for their apprehension. They desired to return to New York, but before doing so it was advisable that a recent issue of convertible bonds, which had been the source of their trouble with the courts, should be legalized; and this could be done only by the Legislature of New York. Accordingly, Mr. Gould, though liable to arrest upon Judge Barnard's process, was sent to Albany to procure the passage of the desired law. Mr. Gould i I 1) t i THE FARMER'S WAR AGAINST MONOPOLIES. 169 reached Albany on the 30thl of January. The next day he was arrested for contempt of court, upon Judge Barnard's process. Bail was fixed at half a million of dollars, and it was immediately given, he being ordered to appear at New York on the following Saturday. lHe spent the interval in attending to the business on which he }had come, and the next Saturday presented himself before Judge Barnard ill New York, and was placed in charge of the sheriff to answer certain interrogatories. Judge Barrett, of the Court of Common Pleas, was resorted to, and he granted a habeas corpus, by virtue of which Mr. Gould was once more brought into court. The hearing of the case was postponed. Judge Barrett then consigned Mr. Gould to the care of an officer, with the positive injunction not to lose sight of him for a moment. Mr. Gould's presence was necessary at Albany, and he at once returned there, accompanied by the officer. Upon reaching Albany he pleaded illness, and declared himself unable to go back to New York, although it is certain that he was well enough to go to the capitol in a heavy snow storm. The upshot of the matter was that, Gould declaring that he was too ill to travel, the officer returned to New York and reported to Judge Barrett that his prisoner had run away. The judge was very indignant, but the matter was hushed up, and Mr. Gould, though at Albany, was theoretically returned to the custody of the sheriff, but was allowed to remain at Albany until the restoration of his health, bail being given for his appearance. He employed his singular period of illness in prosecuting his work with the legislature. "The full and true history of thbs legisiative campaign will never be known. If the official reports of i I 170 HISTORY OF THIE GRANGE MOVEMENT; OR, investigating comnmittees are to be believed, Mr. Gould at about this time underwent a curious psychological metamorphosis, and suddenly became the veriest simpleton in money matters that ever fell into the hands of happy sharpers. Cunning lobby members had but to pretend to an influence over legislative minds, which every one knew they did not possess, to draw unlimited amounts from this verdant habitue' of Wall street. It seemned strange that he could have lived so long and learned so little. He dealt in large sums. He gave to one man, in whom he said he' did not take much stock,' the sum of $5000,'just to smooth him over.' This man had just before received $5000 of Erie money from another agent of the company. It would therefore be interesting to know what sums Mr. Gould paid to those individuals in whom he did' take much stock.' Another individual is reported to have received $100,000 fiom one side'to influence legislatio'n,' and to have subsequently received $70,000 from the other side to disappear with the money; which he accordingly did, and thereafter became a gentleman of elegant leisure. One Senator was openly charged in the columns of the press with receiving a bribe of $20,000 — from one side, and a second bribe of $15,000 from the other; but Mr. Gould's foggy lnental condition only enabled him to be' perfectly astounded' at the action of this Senator, though lie knew nothing of any such transactions. Other Senators were-blessed with a sudden accession of wealth, but in no case was there any jot or tittle of proof of bribery. Mr. Gould's rooms at the Develinil House overflowed with a joyous company, and his checks were numerous and heavy; but why he signed them, or what became of them, he seemed to I I II t iI I I I f I I II I I THE FARMER'S WAR AGAINST MONOPOLIES. 171 know less than any man in Albany. This strange and expensive hallucination lasted until about the middle of April, when Mr. Gould was happily restored to his normeal condition of a shlrewd, acute, energetic man of business; nor is it known that hie has since experienced any relapse into financial idiocy. "About the period of Mr. Gould's arrival in Albany the tide turned, Iand soon began to flow strongly in favor of Erie and ag,aiinst Vanderbilt. How much of this was due to the skilful manipulations of Gould, and how much to the rising popular feeling against the practical consolidation of competing lines, cannot be decided. The popular protests did indeed pour in by scores, but then again the Erie secret-service money poured out like water. Yet Mr. Gould's task was sufficiently difficult. After tile adverse report of the Senate committee, and the decisive defeat of the bill introduced into the Assembly, any favorable legislation seemed almost hopeless. B13oth Houses were committed. Vanderbilt had but to prevent action,-to keep things whlere they were, and the return of his opponents to New York was impracticable, unless with his consent; he appeared, in fact, to be absolute master of the situation. It seenmed almost impossible to introduce a bill in the face of his great influence, and to navigate it through the many stages of legislative action and executive approval, without somewhere giviing him an opportunity to defeat it. This was the task Gould had before him, and he accom plished it. On the 13th of April a bill, which met the approval of the Erie party, and which Judge Barnard subsequently compared not inaptly to a bill legalizing couanterfeit money, was taken up in the Senate; for some days it was warmly debated, and on the 18th was I t i i I 172 HISTORY OF THE GRANGE MOVEMENT; OR, passed by the decisive vote of seventeen to twelve. Senator Mattoon had not listened to the debate in vain. Perhaps his reason was convinced, or perhaps he had sold out new'points' and was again cheating himself or somebody else; at any rate, that thrifty Senator was found voting with the majority. The bill practically legalized the recent issues of bonds, but made it a felony to use the proceeds of the sale of these bonds except for completing, furthering, and operating the road. The guaranty of the bonds of connecting roads was authorized, all contracts for consolidation or division of receipts between the Erie and the Vanderbilt roads were forbidden, and a clumsy provision was enacted that no stockholder, director, or officer in one of the Vanderbilt roads should be an officer or director in the Erie, and vice versa. The bill was, in fact, an amended copy of the one voted down so decisively in the Assembly a few days before, and it was in this body that the tug of war was expected to come. "The lobby was now full of animation; fabulous stories were told of the amounts which the contending parties were willing to expend; never before had the market quotations of votes and influence stood so high. The wealth of Vanderbilt seemed pitted against the Erie treasury, and the vultures flocked to Albany from every part of the State. Suddenly, at the very last moment, and even while special trains were bringing up fresh contestants to take part in the fray, a rumor ran through Albany as of some great public disaster, spreading panic and terror through hotel and corridor. The observer was reminded of the dark days of the war, when tidings came of some great defeat, as that on the Chickahominy or at Fredericksburg. In a moment the lobby was I I.i Ii i i I iI t i I THE FARMER'S WAR AGAINST MONOPOLIES. smitten with despair, and the cheeks of the legislators were blanched, for it was reported that Vanderbilt had withdrawn his opposition to the bill. The report was true. Either the Commodore had counted the cost and judged it excessive, or he despaired of the result. At any rate, he had yielded in advance. In a few moments the long struggle was over, and that bill which, in an unamended form, had but a few days before been thrown out of the Assembly by a vote of eighty-three to thirtytwo, now passed it by a vote of one hundred and one to six, and was sent to the Governor for his signature. Then the wrath of the disappointed members turned on Vanderbilt. Decency was forgotten in a frenzied sense of disappointed avarice. That same night the pro rata freight bill, and a bill compelling the sale of through tickets by competing lines, were hurriedly passed, simply because they were thought hurtful to Vanderbilt; and the docket was ransacked in search of other measures, calculated to injure or annoy him. An adjournment, however, brought reflection, and subsequently, on this subject, the legislature stultified itself no more." 173 I 174 HISTORY OF TiHE GRANGE MOVEMENT; OR, CHAPTER IX. RAILROAD STOCK GAMBLING. Who own the Railroads?-The Old-fashioned Method of building a Road The Present Style-A Contrast-The IHonest Policy not suited to the Present Ideas of Railroad Men-The Art of building Railroads with other People's Money bronght to Perfection-The Era of Mortgages-The Land Grab' Sys tem-Demoralization in Railroad Finances-The Gamblers in Power-The Real Owners of the Railroads robbed by the Directors-A Rotten System and its Consequences-The Banks Involved-The Railroads demoralizing the whole Country-The New York Herald's Picture of the United States Senate-Food for Patriotic Reflection-Railroad Senators. THIE question is often asked, "Who are the real owners of a railroad?" At the outset of our railroad enterprises an answer would not have been difficult. Now, however, so entirely has the whole system been changed that no one can tell who is the actual owner of any road in the country. In former times, men proposing to build a railroad began their enterprise by subscribing certain sums of money for tile purpose of constructing and equipping the road. With the funds thus subscribed the road was actually begun, and certificates of indebtedness were issued and delivered to the subscribers. These certificates were called "stock," and represented the capital invested in the undertaking. The holders of the stock were really the owners of the road, and very properly elected its officers and managed its affairs, as it was their own property they were dealing with. If their N' i .. It I I k k I I iiI I I. f I THE FARMIER'S WAR AGAINST MONOPOLIES. 175 subscriptions were insufficient to complete the undertaking, they mortgaged the road and issued bonds representing the indebtedness they thus assumed. These various steps represented legitimate transactions. and were fair and proper. As the country grew in wealth and population, the railroad system grew with it, and, unfortunately, sundry elements of demoralization crept into the system. Men became wiser in their generation, and railroad managers were quick to improve upon the progress of the age. A new system of constructing roads was introduced. Railroad bonds had become so popular with the public that the corporations came to the conclusion that they could be put to a use never dreamed of by the originators of the earlier railroads. The new plan was to mortgage the road before it was built, and before its incorporators had subscribed a dollar towards its construction. With the proceeds of the mortgage bonds the road could be built, the public paying for it, and the incorporators being put to no expense. The holders of the bonds thus became the real owners of the road, but the actual possession was with the incorporators. The bonds being sold, and the road mortgaged, the stock was issued and divided among the incorporators. When it became valuable, that is after the road had been built at the expense of the bondholders, the incorporators could sell their shares, the entire proceeds of which were so much gain to them. This was financiering extraordinary, and it became so popular and so profitable that it entirely superseded the old-fashioned method by which the stockholders built their roads with their own money. The next step in advance was to secure the land i i I I 176 HISTORY OF THE GRANGE MOVEMENT; OR, grants, which have been wrung from the nation throu,gh the connivance of delinquent Congresses. These lands had a certain value, and were so much additional property to mortgage. They made it all the more unnecessary for the incorporators to provide money of their own, the new advance constituted a double imposition upon the public, an additional gain to the stockholders. The receipts from the sales of bonds and of lands having built the road, and the stock having acquired a definite value, the shareholders began to see that their interest lay in selling it and realizing a profit upon that which cost them nothing. Indeed, the only interest they now have in the stock of their road is to sell it at an advance, and they thus inaugurate a series of speculations which lead to corners, a watering of the stock, and a steady depreciation of the value of the property. Boards of directors in sympathy with such operations are chosen, and the processes of watering and stock gambling are carried on until the mountain of debt is piled so highfor the road, not for the stockholders that the corporation is unable to meet the interest on the original mortgage. The condition of affairs is singular. The road is in the hands of the stockholders and their directors, who have paid nothing for it. They have exclusive control of it. They constitute a solid, compact body, with a fixed and definite purpose, and are usually under the leadership of some shrewd and able mind. The real owners of the road, the bondholders, with whose money it was built, constitute a vast multitude of small capitalists, farmers, men unaccustomed to deal with financial matters, widows, orphans, and others. Sometimes large quantities of the bonds are owned in foreign coun I I iI i THE FARMER'S WAR AGAINST MONOPOLIES. 177 tries. These bondholders are at the mercy of the stock holders, who are steadily rendering the property worth less. The only redress of the bondholders is to foreclose the mortgage upon the road, but it is almost impossible to obtain concert of action among them. The stockholders meanwhile use the stock to enrich themselves. It is gambled for, flung up and pulled down, and tossed about the Exchange until no one knows what its value will be twenty-four hours ahead. It is good only for purposes of gambling, and the road is left to take care of itself, and the bondholders to get what return they can for their money. So the dividends are paid on the stock of the road, and that commodity thus kept on a respectable footing in the stock market, the speculators care very little whether the bondholders receive their interest or not. This system of constructing and managing railroads being false and unsound from the first, it is not surprising that it should lead to very grave complications in the monetary affairs of the country. Sound business men, capitalists whose large and honorable experience entitles them to a respectful hearing, have often warned the people of the Republic that this rotten system could not last, and that the efforts of the railroad managers to wring money from the people by their shameful speculations in the stock of their roads must at some time, sooner or later, result in a terrible financial disaster. Such a climax has been reached, and while these pages are passing through the press, the whole country is reeling from the effects of one of the severest convulsions of the century, brought about by the recklessness of a combination of managers of railroads and speculators in railroad stocks. 12 178 HISTORY OF THE GRANGE MOVEMENT; OR, In 1868, the Comptroller of the Currency, in his annual report, thus referred to the danger which even then threatened the country from this cause: "It is scarcely possible to avoid the inference that nearly one half of the available resources of the national banks in the city of New York are used in the operations of the stock and gold exchange; that they are loaned upon the security of stocks which are bought and sold largely on speculation, and which are manipulated by cliques and combinations, according as the bulls or bears are for the moment in the ascendency.... Taking advantage of an active demand for money to move the crops West and South, shrewd operators form their combination to depress the market by'locking up' money,' -withdrawing all they can control or borrow from the common fund; money becomes scarce, the rate of interest advances, and stocks decline. The legitimate demand for money continues; and, fearful of trenching on their reserve, the banks are strained for means. They dare not call in their demand loans, for that would compel their customers to sell securities on a falling market, which would make matters worse. Habitually lending their means to the utmost limit of prudence, and their credit much beyond that limit, to brokers and speculators, they are powerless to afford relief;-their customers by the force of circumstances become their masters. The banks cannot hold' back or withdraw from the dilemma in which their mode of doing business has placed them. They must carry the load to save their margins. A panic which should greatly reduce the price of securities would occasion serious, if'not fatal, results to the banks most extensively engaged in such i I f I i k ik I I THE FARMER'S WAR AGAINST MONOPOUES. 179 operations, and would produce a feeling of insecurity which would be very dangerous to the entire banking interest of the country." The warning thus plainly uttered was not heeded. The same unsafe manner of doing business was continued, the banks and trust companies involving themselves deeper than ever in the operations of the railroad gamblers. Numerous roads were planned, as the time passed on. Large quantities of the public lands were filched from the people with the connivance of Congress. The press of the country again and again uttered its protest against these misappropriations of the national property, but Congress, with characteristic contempt of the popular will, continued its land grants. It has been publicly declared that the corporations have so thoroughly bought up the National Legislature that the people have no chance of protection in their property when the masters of the Honorable Members demand its appropriation to their uses. The New York Herald, of September 22d, 1873, thus states the view of this question held by a very large and respectable portion of the American people, regardless of party feeling: "Instead of checking the extravagances of a popular assembly, the Senate has taken the lead of every phase of extravagant legislation. It has become the fountain of jobbery and corruption-the source of land grants and dishonest reserve proposals. The country would be amazed to know how many Senators are the paid attorneys of railway and other corporations-attorneys paid to'practise in the Supreme Court.' The country does know that the most notorious men in our 180 HISTORY OF THE GRANGE MOVEMENT; OR, public life are in the Senate, that Senators who went to Wasliington poor have become rich; and they have seen its members do spiteful and mean things, like the rejection of Mr. Hoar, one of the conspicuous men of the time, simply because he had been ill-tempered with the politicians when they came to bother him as Attorney General. After rejecting Mr. Hoar we can readily understand why it removed Mr. Sumner, the best informed man in public life on foreign affairs, from the committee, and gave the place to a gentleman who probably does not know whether the Danubian Principalities are in Europe or Asia Minor. "The Senate is no longer a compact representative body. It does not represent even the States.. In one State a Senator is chosen by the money of a railroad; in another by his own money. One Senator is known to be the agent of this interest; another as the agent of a second interest. No shrewd railroad manager will be without his Senator. We should not like to guess at the number on the books of Thomas A. Scott or T. C. Durant or Dick Franchlot. We know who represents the Bank of California; we should like to know all who were owned by Jay Cooke and the Northern Pacific. The glory of the old Senate has departed, and we have some greedy, selfish cliques. There is a small but mainly a feeble class of respect able men, like Frelinghuysen and Edmunds and Anthony. Then comes the muscular, aggressive class, with Carpenter, Morton, Chandler; the moneyed class, like Cameron, Hamilton, Sprague, and Jones, and the drift of adventurers fromn the Southern States, from Florida and Alabama and South Carolina, who presume to sit in the seats and vote themselves back pay as the iI II i I k i I i I II f I TIlE FARMER'S WAR AGAINST MONOPOLIES. 181 successors of John C. Calhoun, Felix Grundy, J. P. Benjamin, Robert Hunter, and John C. Breckinridge. We shall not needlessly write names, but the country knows well to whom we refer. It knows that there is no feature of this deplorable time more marked than the lowering of the Senate. When we consider the manner of men in the Senate, their overruling motives, their greed for money and patronage, their enmity to any measure that will limit their power, we cannot marvel that even Grant has surrendered. He could do nothing without the Senate, could not even remove an officer of his Cabinet. Of course he surrendered. He might have fought the Senate; but he saw how Johnson failed. It required more civic courage and foresight than Grant possesses to see that while Johnson wounded and assailed the country he had the country with him. "The Senate fought Johnson and ended in dividing the patronage with him. Then it fought no longer. It menaced Grant until he threw Hoar and Cox into its shambles. Then it became acquiescent. As long as Grant strove to give tone and majesty to his administration and to elevate the public service, the Senate stood in his path, like the ominous giant who threatened the pilgrim Christian on his way to the land of Beulah and the gates of the house called Beautiful. To-day it is an independent power, composed largely of audacious men, representing the lowest strata in our political life, owing allegiance to railroads and tariff combinations and monopolies-caring nothing for the people whom it does not represent, and to whom it only owes a remote and contingent responsi bility-warring upon the Executive until it was ap II I I I 182 HISTORY OF THE GRANGE MOVEMENT; OR, peased with patronage, and then sinking into complete obedience to his will. The anomaly of a body of men making laws, confirming and vetoing appointments, taking a direct part in every measure of peace and war, and holding no responsibility to the people, is a scandal to free government and the prolific source of many of the evils which now distress and wound the Republic." The Senate is not involved alone. In the popular estimation the lower house is equally guilty. But be this as it may, the evil has been working until it has at length brought forth its legitimate consequences. One result, and that which is now attracting most attention, it will be interesting to notice. As i I' f I 1 i THE FARMER'S WAR AGAINST MONOPOLIES. CHAPTER X. THE GREAT RAILROAD PANIC. A Railroad Gamblers' Plot-The New York Gold Clique make War on the Farmers-The attempt to lock up Money-Trouble in the New York Stock Market-A Railroad the first to succumb-The Money Market on the 17th of September-Scene in the Stock Exchange-The Panic begins-Failure of Jay Cooke & Co.-Effect of the Failure-The Stock Market demoralized -Run on the Union Trust Company-More Suspensions-Worthless Rail road Bonds the Cause of the TroubleSpread of the Panic throughout the Country-The United States Government offers Aid-Suspension of the Union Trust- Company-A Railroad the Cause of the Trouble-The Stock Exchange closed-An Anxious Sunday-The Railroad Gamblers demand that the United States Treasury be opened to them —Firmness of the Gov ernment-The Panic subsides-Its Lessons-A Warning to the Country. TOWARDS the last of August, or early in September, 1873, a combination of speculators in railroad stocks led, as is popularly believed, by the shrewd and un;crupulous capitalists who had so often and successfully manipulated the stock of the Erie road, undertook to inaugurate a series of movements in the stock market of New York, for the purpose of depressing -certain stocks in which they proposed to operate, and of enabling them to extort from less successful operators a heavy interest for the use of money by creating an artificial stringency in the money market. Their time was, from their point of view, well chosen. In the months of September and October there is always a real scarcity of money in New York, owing to the demands of the country banks for funds to bring the year's harvest to market. By taking advantage of this season of real 183 . II 184 HISTORY OF THE GRANGE MOVEMENT; OR, stringency, and increasing tlhe want by the artificial means at their command, the gamblers expected to reap a rich return. It mattered nothing to them that the country at large would be called upon to suffer, and that values of all kinds would be seriously endangered by the success of their infamous scheme. They looked only to their prospective gains, and cared nothing for the community. The movement was one of unusual magnitude, and the scarcity of funds in New York proved to be greater than even the conspirators had believed. Wall street early took the alarm, and for ten or twelve days a feeling of general uneasiness pervaded the community. The first sign of the coming storm manifested itself on Wednesday, the 17th of September. On that day the paper of the New York & Oswego Midland Railroad was protested. The news of this misfortune threw the stock market into a fever of excitement. The Ti'ibune, in its money article, thus describes the state of the market on the 17th: "There was a dreadful sweeping away of stock margins to-day, the depreciation covering the entire lists and showing a decline from the closing quotations of last night to the lowest points reached to-day, of fromnt i to 7 per cent., and averaging about 2] per cent.. .. There will no doubt be a general overhauling of brokers' ledgers to-night, and the mails will go out freighted with letters calling for more margins. Of course, many may be unable or unwilling to respond, in which case their stocks will be forced upon the market and sold for what they will fetch, the tendency of which will be to still further depress prices. As was foreshadowed in this column a month ago, numerous t I i} '; THE FARMER'S WAR AGAINST MONOPOLIES. causes have been operating in favor of the bears. Every failure of a moneved institution, every defalcation, every protested note of magnitude _ _ = _=_ gives additional impe-: _ = - tus to the downward... course of prices. Con- servative men stand aloof, while so much danger surrounds the.~ centres of business. The banks are hold-: ing their money fast::i for their own protec- i " tion, and next for that I;' of legitimate trade,: that the whole busi- ii J ness of the country may not be demoral -- ized for the sake of a few wildcat railroads and wildcat bankers I ""' who lend their name. or their cash by the million to companies LNEW YORK STOCK EXCHIANGE. part of oour leading capitalists and heavy security owners to avert a panic, and perhaps a crash like that of 1857. The minds of 185 ) 186 HISTORY OF THE GRANGE MOVEMENT; OR, capitalists and operators are surcharged with distrust, and the air of Wall street with rumors, started generally in the bear interest, of failures, defalcation, and of disasters dire, which renders it all the more necessary that the cool and clear heads should come to the front and take the direction of affairs. The street, already in a tremor of excitement from bygone troubles, found a new source of anxiety to-day when it became known that the New York & Oswego Midland Railway Company had come to grief, its paper having been dishonored, a more particular account of which will be found in another column. This information caused a wild and eager desire to get rid of stocks, and holders rushed their shares on to the market, bound to realize at whatever hazard of loss; contented, apparently, so long as they could see that their securities represented something in the way of value; and the result was such a tumbling in prices as we have already described. Although a better feeling and higher prices were established toward the close, as some of the shorts began to cover, yet the general inarket left off feverish and demoralized." The fears of the moneyed men were not without foundation. Thursday, the 18th, brought only fresh trouble. The market opened in a state of great excitement. The floor of the large hall of the Stock Exchange was filled to overflowing by those possessing its privileges, and the gallery was so crowded that misgivings were entertained for its safety. The stairs and lobbies of the building were full of people, and in Broad street, in front of the Exchange, a large crowd had collected, eagerly and anxiously awaiting the events of the day. ( i I I! I ? I \ THE FARMER'S WAR AGAINST MONOPOLIES. The business of the Exchange began at ten o'clock, with a rapidly-falling market. The bears had it all their own way. Men had begun to lose confidence, and stocks fell with great rapidity. The Exchange was in a whirl of excitement. Towards noon the noise and confusion, which had reached a bewildering state, were suddenly brought to a pause by the sharp raps of the gavel of the presiding officer. He advanced to the front of his platform, and instantly the hall was as still as death. His face indicated that he had evil tidings to communicate, and the most daring operator present awaited in anxious suspense the announcement he had to make. In a few short, crisp words, every one of which struck upon the ears of the listeners like the blows of a sledge-hammer, the President stated that Jay Cooke & Co. had suspended payment, and a little later it was announced that the Philadelphia and Washington houses of this great firm, and the First National Bank of Washington, which was intimately connected with them, had also suspended. These announcements completed the demoralization of the market. Stocks fell even lower, and were sacrificed with remorseless fury. The Exchange seemed like a bedlam, and outside a panic was rapidly extending through the street. Messrs. Jay Cooke & Co. were known throughout the entire country as one of the first, if not the first, banking firms in the Union. They had been identified with the great loans of the General Government during the civil war, and by their judicious and vigorous management of them had rendered the country a genuine service, and had earned what may be termed a national reputation. They were popularly regarded as among 187 I I ,, ~ \ ~ ~l~ ~ ~i; i -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I ~ \ \ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ \ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ \ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\$\\\\ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~ I I liii I Ii' - 1~~~~~~~~~~~~~~~~~~~~~~~~~0 K STOCK EXCHAN(4E ANNOUNCTNG THE $'USPENSION OF JA.Y COOKE t CO. .!Hills 1. 1; THIE FARMER'S WAR AGAINST MONOPOLIES. 189 the wealthiest bankers in the Union. Upon the inauguration of the Northern Pacific Railroad they had undertaken to dispose of its bonds, and it may be said that all the confidence entertained in that scheme by the public was due to Messrs. Cooke & Co.'s endorsement of it. The news of the suspension of this great house struck men with terror. They began to ask who was safe if the pressure was so great as to break down the foremost house in the country. The explanation of the firm that their suspension was due to their having made heavy advances to the Northern Pacific Road for bonds which they had not been able to dispose of, only increased the. panic. Other houses were known to be deeply interested in the bonds of new railroad enterprises, and it was by no means sure that Jay Cooke & Co. would be the only sufferers. A little later in the day, the failure of another house was announced, and still later it was stated officially that Richard Schell, a well-known capitalist, had failed. Mr. Schell was a director in the'Union Trust Company, a leading banking corporation of the city, and suspicion at once attached itself to the company. The Union Trust Company was also known to be involved to a considerable extent in the affairs of the Lake Shore & Michigan Southern Railroad. The stock of this road had suffered heavily during the panic, and it was feared that the credit of the Trust Company would be impaired by these losses. The result was an immediate run upon the Trust Company, which lasted until the close of the business hours of the afternoon. Large sums were paid out to the alarmed depositors, but many were left unpaid when the hour for closing the doors arrived. I i i i 190 HISTORY OF THE GRANGE MOVEMENT; OR, The morning of the 19th found matters in a most unhappy state. No remedy had yet been found tfor the trouble. The excitement was intense. The run on the Union Trust Company continued, and during the day immense sums were paid out to the depositors, who had now become alarmed in good earnest. But during the day all demands were met, and the directors of the company entertained the hope of successfully passing through their troubles. In Wall street the same feverish anxiety prevailed. There had been such a terrible sacrifice of stocks on the previous day-some of the best of these securities having fallen as mnuch as ten per cent. in value-that it was evident that the weaker houses must yield to the presure upon them and close their doors. Soon after the opening of the business of the day, the street reeled and staggered once more under as heavy a blow as had yet been struck it. The President of the Stock Exchange announced to the excited throng before him that Messrs. Fisk & Hatch had suspended payment. Now Fisk & Hatch were one of the most trusted and respected firms in the city, and their failure was second only to that of Jay Cooke & Co. It had been brought about by a similar cause-heavy advances to a railroad (the Chesapeake & Ohio road in this case) upon bonds which they had been unable to negotiate in time to meet their other obligations. The failures-of eighteen other firms of greater or less prominence followed in quick succession, and when the closing hour arrived the confidence of the boldest operator had entirely departed. Men were bewildered. They knew not whom to trust; scarcely what to do. Until this day the panic had been confined to New I I THE FARMER'S WAR AGAINST MONOPOLIES. 191 York, but it now began to involve other cities in its effects. With the exception of the houses of Jay Cooke, no firm outside of New York had suffered; but on this day the effects of the crisis began to be felt elsewhere. In Philadelphia eleven suspensions were announced. The only hopeful sign visible on Friday night was the offer of the United States Government to buy $10,000,000 of its bonds; but it was feared that this would not prove an effectual remedy. Saturday, the 20th, witnessed no improvement in affairs as the day opened. When the hour of ten o'clock A. M. struck, the doors of the Union and National Trust Companies remained closed. Both had suspended payment. The Union Trust Company had borne up bravely against the heavy pressure upon it on the previous days, but on Friday afternoon it had become evident to the directors that unless more funds could be had at once, the institution could nriot resume business on Saturday; and at the same time it was discovered that the Secretary of the company had disappeared with securities of the company in his possession amounting, it was said, to half a million of dollars. This was a terrible blow to the company, but it would not have caused its suspension in ordinary times. The chief cause of the trouble was an advance of $1,750,000 to the Lake Shore Railroad Company, to enable that corporation to pay a dividend of four per cent. in August, 1873. The total sum voted in this instance as a dividend was $2,000,000. It was stated at the time of the suspension that this dividend was unearned, and that the road had but $250,000 of the entire amount in hand, and was forced 192 HISTORY OF THE GRANGE MOVEMENT; OR, PARK BANK, NEW YORK-IITHE FINEST BANI- BUILDING I THlE UNITED STATES. to borrow the remaining $1,750,000, which it obtained of the Trust Company. Horace F. Clark, now dead, was then the President of the Lake Shore road, and also of the Union Trust Company. Hence the loan from this company. The company neglected its legiti I. I I THE FARMER'S WAR AGAINST MON-OPOLIES. mate business to aid the railroad in the matter of its dividends. When its troubles came upon it, it called upon the road to make good its loan; but the request was unheeded, and the company was forced to close its doors. During the day eleven other firms suspended payment; and the National Bank of the Commonwealth was also compelled to close its doors. Up to this tine, with the exception of the Trust Companies and the Commonwealth Bank, the panic had been confined to the stock market; but the suspension of the Union and National Trust Companies and the Bank of the Commonwealth produced a serious fear that the banks of the city migiht become generally involved. This danger was averted, however, by the refusal of the general business community to be frightened by the panic; and with the exception of a slight run upon the Fourth National Bank, none of the banks of the city were subjected to any unusual demands. On Saturday, however, with a view to preparing for the crisis, if it should extend to them, there was a meeting of the Bank Presidents, at which it was resolved to pool the assets of their respective institutions, and to assist each other to the utmost by the issuing of termporary loan certificates, which could be used in case of need. This determined action increased the confidence of the public, and did much to avert the danger which at one time seemed imminent. At noon on Saturday, so utterly unmanageable had the market become, and so general was the prospect of ruin among the dealers in stocks, thl-at the Governing Committee of the Stock Exchange decided to close the doors of that institution until calmness could be restored 1i 193 194 HISTORY OF THE GRANGE MOVEMENT; OR, to the street and some measures of relief. devised This action put an end to all transactions in stocks, and by thus protecting the dealers from greater losses aided in arresting the panic. During the day the Union Banking Company of Philadelphia and other houses in various parts of the country announced their suspension. Sunday, the 21st, was passed in feverish excitement. The President and the Secretary of the Treasury of the United States, having been summoned to New York, arrived in that city on Saturday night. On Sunday, they were waited upon by many of the capitalists of the city, and various measures for relief were urged upon them. The brokers united in a demand that the President should lend the whole or the greater part of the Treasury reserve of $44,000,000 of greenbacks to the banks, to furnish Wall street with funds for the resumption of its business and the settlement of its losses. The President promptly and properly declined to take so grave a step, as he had no warrant of law for such action; and, thanks to his firmness, the credit of the United States was not placed at the mercy of the railroad gamblers. On Sunday night it was officially at,noqunced that the Treasury would purchase any amount of five-twenty bonds that might be offered, and would also buy the issue of six per cent. bonds commonly known as'81's This included the currency sixes, the ten-foities, and the new fives. The price was to be par in gold and accrued interest. In case the Stock and Gold Exchanges were not open on Monday, the ruling price on the street was to be taken as the market price. By Monday morninig, the 22d, the panic had begun i i. I I THE FARMER'S WAR AGAINST MONOPOLIES. 195 to subside. The banks were unshaken; the Government stood ready to prevent the sacrifice of United States bonds in the hands of those who desired to sell; and the Stock Exchange remained closed during the day. By Monday night the panic was substantially at an end. The trouble was not over, and the remainder of the week witnessed the suspension of several good houses, among them the firms of Howes & Macey and Henry Clews & Co. But the worst was passed. People began to take courage, and it was evident that the wild storm that had swept the money market so ruthlessly had spent its force. I It was clearly understood from the beginning that the affair was purely and simply a railroad panic, and it was hoped that it would be confined to the dealers in the bonds and stocks of railroads; but this hope was not destined to be realized. The reckless and unsound management of the railroad enterprises of the country had paved the way for the panic, and had made it pos. sible; and the greed of the railroad gamblers had pre. cipitated it; but they were not to be the only sufferers. The whole country was to be involved in it, and busi ness of all kinds was to suffer from the effects of the great scare. It was not alone the great scarcity of money, at a time when the free circulation of the currency of the country was of vital importance, that did harm; but the public confidence in financial enterprises of all kinds was shattered, and men fortunate enough to pos sess ready money held on to it, refusing to part with it. The movement of the crops was almost entirely stopped. The farmers found it well nigh impossible to procure money for their produce, and in spite of the enormous .i 196 HISTORY OF TItE GRANGE MOVEMIENT; OR, OMAHA-EASTERN TERIMINUS OF UNION PACIFIC RAILROAD. European demand for American breadstuffs, it was with the greatest difficulty that shipments of grain could be made, so hard was it to.negotiate exchange in the uncertainty which prevailed in the money market. The keenest financial distress prevailed for weeks after the panic had subsided, and all classes were severe sufferers. Nor has it subsided yet, and while these pages are passing through the press a general feeling of uneasiness prevails throughout the country, and men are fearing that something worse than has yet happened may be in store for us. The panic revealed clearly the extent of the power of a few determined and reckless gamblers in railroad securities to mar the business of the entire country. At a period of unexampled prosperity, with a prosperous trade, a bountiful.harvest and an unequalled de y\ THE FARMER'S WAR AGAINST MONOPOLIES. mand from abroad for our products, the country was thrown into a fever of alarm, and business of all kinds dealt a severe blow by the machinations of a few gamblers in the stock market of the principal city of the United States. The panic also showed the extent to which railroad gambling had demoralized the business and people of the country. It showed that some of the strongest and most trusted houses of the country had lent themselves to the task of inducing people to invest their means in the securities of railroads, the success of which was doubtful, to say the least. It showed that the banks, tile depositories of the people's money, had to an alarming extent crippled themselves by neglecting their legitimate business and making advances on securities which proved very uncertain, if not worthless, in the hour of trial. The money needed for the legitimate business of the country had been placed at the mercy of the railroad gamblers, and had been used by them. The funds of helpless and dependent persons, of widows and orphan children, had been used to pay fictitious dividends and advance schemes in which the people had no confidence. An amount of recklessness and demoralization in the financial interests of the country was revealed that startled the most hardened; and in all of it the hand of the railroad gambler could be clearly and unmistakably traced. The lesson has been severe, but it was needed. The people of this country now see what recklessness and greed in the management of our railroad interests can do, and what they dare attempt; and the nation will richly merit all the evil that will come to it if it does not profit by the lesson. 197 i I I HISTORY OF THE GRANGE MOVEMENT; OR, CHAPTER XI. WILD CAT RAILROADS. False Assertions respecting Railroad Property-Railroad Building a profitable Work-Useless Railroads-Why they are built-Theory of Wild Cat Rail road Constructors-Forming the Company-A Specimen Enterprise-A Share of the Public Lands-How to raise Money to build a Railroad-Dis posing of the Bonds-Where the Money comes from-" Judicious Advertis ing "-Bribing the Press-The Road in Operation-What becomes of the Stock-Where the Profit lies-The Crime of the Bankers —A Confidence Game-How to stop Wild Cat Railroad Building. ONE hears a great deal now-a-days of the risk assumed by men who undertake the construction of a railway; and we are told, with a great array of figures in support of the assertion, that railway property is among the least profitable of all the investments open to capitalists. But, nevertheless, the work of building roads goes on, and it is a fact that the incorporators of these enterprises, in spite of their assertions respecting their risk and the uncertainty of their investments, make large sums out of their connection with their respective schemes. The truth is that railroad making is a very profitable undertaking to men who understand their business; and it is for this reason that so many useless roads are built. That railroads are a necessity to the community no one will deny; but it is a fact that a very large number of the roads constructed during the last four years, or at present under construction, are useless. 198 i 1. THE FARMER'S WAR AGAINST MONOPOLIES. 199 Many of them are built through sections of country which cannot yet support them, and which will be unable to do so for many years to come; and others are located in regions where in strict truth they are not wanted. These roads must of necessity languish for a considerable period, if, indeed, they are ever profitable; and yet they constitute a majority of the roads now being built. The reader will then ask why are such roads, to which the term "wild cat" has been popularly, and not inaptly, applied, ever entered upon? The reason will be apparent when we have investigated the matter. In order that the originators of a railroad scheme may make money out of it, it is not necessary that there shall be a real demand for the road by the community in which it is to be located. That is a consideration that does not enter into the scheme. A number of shrewd men, with an ample supply of "brass," and very little money often, combine for the purpose of constructing a road from a certain point in Missouri, let us say, to a certain point in Kansas. Their object is purely and simply to make money. The country through which the road is to be located is new and unsettled. There is no trade there to make the road profitable when constructed, and it is evident that many years must elapse before it will possess a population large enough, or business interests sufficient, to enable the road to do a paying business. These facts are well known to the originators of the road, but they are of no consequence. They are looking to im mediate and not to ultimate profits. The first step after locating the road is to obtain the necessary charters and a share of the public land. We 200 HISTORY OF THE GRANGE MOVEMENT; OR, SCENE ON THE TRUCKEE-ENTRAL PACIFIC RAILROAD. have seen how easy it is for the roads to manage the land grab system, and how docile the Congress of the United States can be at the bidding of a railroad director. The charters are obtained the lands are "donated," but the treasury of the road is empty. The work can. not be done without money. That must be had, and the incorporators of the scheme have no idea of advance ing their own funds for this purpose. They have no intention of building the road with their own money. Their plan is to build it at the cost of the public, or b A,l THIA FARMER'S WAR AGAINST MONOPOLIES. 201 with other people's money. In order to accomplish this, they proceed to issue mortgage bonds for an amount sufficient to pay the cost of construction, pledging the lands given to them by Congress as security: These bonds are to be sold, and the road built with the money thus received. The sale of the bonds is the only really difficult part of the undertaking, and this is managed with consummate ability. Arrangements are made with some prominent banking-house in one of the principal cities of the country for the sale of the bonds, a heavy premium being paid to said house for its services in negotiating the loan. Or it may be that the banker will advance the company a certain sum for the commencement of the work, and receive, as security, a sufficient number of the bonds, which he is to sell at the highest price, and at a large profit for himself. None of the great banking firms are able to hold the securities thus placed in their hands, nor do they take them for purposes of investment. They buy them to sell again, or sell them on commission. The persons who are expected to buy the bonds for investment are private individuals, who take them as safe investments paying a large interest; and the difficulty of the whole matter lies in persuading the public that the bonds are a safe investment, and that the interest will be promptly paid. That-is the task of the banker. The process is as follows: The bonds are advertised in the most prominent newspapers, and large sums are thus expended which must be made good out of the money paid by the unsuspecting public. The papers advertising these bonds are often induced to recommend them, or, in plainer words, to "puff" them in their edi 202 HISTORY OF THIE GRANGE MOVEMENT;/ OR, torial columns, editorial virtue being overcome by th temptation of a large advertising contract. The X ligious papers are a favorite medium for the advertie ment of wild-cat railroad bonds, and-it is a singular fa that the most enthusiastic endorsements of these sec rities have been from this source. In effect, the pre is bribed to puff the securities of the road. The ban ing-house negotiating the loan pledges its faith to t public that the bonds are a valuable commodity, and is principally upon its representations that the bon are sold. So common has this practice become, th bankers seem to lose sight of the responsibility the incur towards the public in thus recommending doubtf securities. Well, the bonds are sold. Who are the purchaser Not the great capitalists, who are shrewd enough to s through the whole transaction, but people of modera means, persons who cannot afford to take risks or lose any of their income, and who buy the bonds b cause of their confidence in the representations of t house disposing of them. With the money received for the bonds the road built, and put in operation. The stock is then issu and divided among the originators of the scheme. T people have paid the cost of the road, and also t large commissions paid to the bankers who sold t bonds, and as they hold a mortgage on the road, the are its real owners. But the stock, which represen the ownership of the property, is divided among t originators of the scheme, who are also charged with i management. It has not cost them anything, but no that the road is built and in running order, it is a val able commodity. The holders of it are shrewd me i ItM m, n,l C Ir THIE FARMER'S WAR AGAINST MONOPOLIES. 203 a =LD -, iT RAILROAD LA~-DS. WILD-CAT RAILROAD LA__DS. WILD-OAT RAILROAD LANDS. and, foreseeing that the road will not be able to pay the interest on its bonds for some time, take advantage of the eclat which attaches to all new enterprises, alad sell their stock at the earliest possible moment. The amount received is clear gain to them, for the stock has cost them nothing. Should it sell for only fifty cents on the dollar, it is fifty cents clear profit, for they paid nothing for it. The people built the road, and the stock is the reward of the originators of the scheme. Herein lies the profit of railroad building. What does the incorpo 204 HISTORY OF THE GRANGE MOVEMENT; OR, 4yI/:/:~ rator care for ~~ ~/~':/ the future of the road, so long ' ashe issafe? What does he care whe ther the interest on its bonds is paid or not? The men who advanced the money to build the road are nothing to him. He h has received and sold his stock, and has pocketed the money, and the fu ture of the road is a matter of indiffer ence to him. The case would be. very different were the road con structed at his ex pense. - He would be very careful to locate it in the most favor *<~-;;~- - pese He wol be VIEW OF THE COUNTRY TO BE OPENED BY THE SOUTrIER,N PACIFIC RAILBOAD. 11 I ., i THE FARMER'S WARl AGAINST MONOPOLIES., LN TilE TUNNEL-SIERRA NEVADA. CENTRAL PACIFIC RAILROAD. able section, and only where it is actually needed; but since it costs him nothing, and affords him the means of obtaining a large sum of money for his stock, it matters little what becomes of the road after the stock is sold. And so, year after year, the practice of building useless roads, and roads of doubtful profit, goes on. The country is flooded with worthless railroad bonds, which are advertised and puffed by bankers and newspapers, and which unwary people purchase, only to find their investment entirely the reverse of what was represented to them by the firm disposing of the bonds. The legitimate business of the country is crippled by the with 205 206 HISTORY OF THE GRANGE MOVEMENT; OR, drawal of the sums that go to purchase these wretched securities, and an element of unsoundness is introduced into the finances of the country that may yet involve us in a disaster infinitely worse than the panic from which we have just emerged. Unquestionably the people are to blame for much of the evil that is upon us, for they are free to refuse to purchase these securities when placed in the market; but they are not altogether to blame. There are always numbers of people of moderate means who are very naturally and properly seeking some simple and safe investment for their money, and they are not fitted to judge very accurately of the value of the different schemes proposed to them. They must of necessity depend upon the representations of the house offering the securities for sale, and it is but natural that when a prominent house, enjoying the confidence of the public, presents such securities, and endorses them as both safe and profitable, such securities should be eagerly taken by the class we have described. The banker who undertakes a negotiation of this kind assumes a responsibility to the purchasers of the bonds, of which no amount of "Wall street logic" can relieve him. It is a melancholy fact that one of the first banking houses in the country, men whose names have hitherto commanded the confidence of the public, has been among the foremost in flooding the market with wild-cat railroad securities. The recent panic revealed some ugly facts of this kind, and the people of the United States, it is to be hoped, will not be unmindful of them. The people owe it to themselves to put a stop to this reckless system of railroad-building, which is, simply gambling under another form. They should refuse to ii iI I THE FARMER'S WAR AGAINST MONOPOLIES. 207 countenance the securities of such roads as those which have produced our recent troubles; and, above all, should demand of Congress, and see that the demand is complied with, that there be no more subsidies of the public lands. The national domain should no longer be at the mercy of railroad gamblers. Let the landgrab system be once overturned, and we shall have more caution in the construction of new railroads. Let it be understood that the people will no longer pay for roads which are built only for the profit of the incorporators, and the era of Wild-Cat Railroads will have passed away forever. t 208 HISTORY OF THE GRANGE MOVEMENT; OR, CHAPTER XII. THE CASE OF THE NORTHERN PACIFIC RAILROAD. The Road chliartered by Congress-An Imperial Gift of Land-The Nation robbed of Fifty Millions of Acres-Route of the Road-Character of the Country through which the Road is to be constructed-A Wilderness Popular Doubts respecting the Success of the Road-The Capital of the Company-How it was to be raised-The People to pay for the Road-The Stock-Holders to receive all the Profits —The Bonds of the Northern Pacific Railroad declined in Europe-A "Popular Loan" inaugurated-Jay Cooke& Co. undertake its Negotiation-A Terrible Blunder-The Loan does not command the Public Confidence-The True Character of the Scheme-WWhat Might Have Been-The Sequel-Report of the German Commissioners-A Capitalist's View of the Scheme-The Risks too great to warrant the In vestment of German Capital-A Remarkable Statement of the Character and Prospects of the Northern Pacific Railroad. THE Northern Pacific Railroad has lately been brought very prominently before the public by the failure of the great house that went down weighted with the bonds of this road, which it could not sell. It will be well to examine its history. It will be found full of food for reflection, and overrunning with instruc tioIl. In ] 864, Congress granted a charter to the Northern Pacific Company, and by this charter and subsequent acts authorized this company to build a railroad from Lake Superior, through the State of Minnesota and the Territories of Dakota, Montana, Idaho, and Washington, to Puget Sound, by the valley of the Columbia river, through Portland, in the State of Oregon. In i II THE FARM.ER'S WAR AGAINST MONOPOLIES. 209 DULUTII-EASTERN TERMINUS OF NORTHERN PACIFIC RAILROAD. ; lI aid of this road, Congress made large grants of land, the amount now being about 50,000,000 acres. The charter was granted during the last year of the war, and matters were too unsettled then to allow the company to commence the work at once, and it was not until long after the close of the'Rebellion that the construction of the road was fairly begun. It was proposed to construct this road through the most northern portion of the United States, and from Lake Superior to the Pacific, a distance of 2000 miles. The expense of the undertaking was enormous, and the road was to be built through a section of country that was simply a wilderness. There were scarcely any settlements along its line, a great portion of which lay through the territory of hostile Indians. Much of the region through which it was to pass was barren and unfit for settlements and a large part of the proposed route lay through the sterile region of the Yel 14 I i 210 HISTORY OF THE GRANGE MOVEMENT; OR, lowstone. The entire route lay through the extreme northern portion of the Republic, a country which, it was popularly believed, would long remain unsettled, by reason of the severity of the climate and the inhospitable nature of the country. The best informed men expressed grave doubts of the practicability of the scheme. They did not believe that this region would be sufficiently settled to warrant the construction of such a railroad for many years, and they based this belief upon the fact that the region offered scarcely any inducements to settlers. Consequently people regarded, the road with doubt, and when its bonds were offered, held aloof from them. By the terms of the company's charter, a share capi. tal of $100,000,000 was authorized; but of this amount only $2,000,000 was required to be subscribed in advance, and but $200,000 to be paid in. The last-named sum perhaps covered the preliminary expenses of the, scheme, such as the cost of surveys, of legislation, and such other operations as were necessary for the com — mencement of the enterprise. The cost of building the road was to be paid by the people. Congress had given a criminally large area of land to the company, and the, proceeds of the bonds which were issued were to constitute the capital with which the road was to be built. The $200,000, subscribed and paid in by the stock-. holders, was the only contribution they seem to have expected to make to the road. " This was a slender provision, it would seem, for a road 2000 miles long, through an uninhabited country, without commerce at either terminus, and without an important town on its whole route. But the projectors intended that Congress should build the road and put them in possession of it., i I I k 0 THE FARMER'S WAR AGAINST MONOPOLIES. 211 They secured a grant of nearly 50,000,000 acres of public land, and on the security of this magnificent estate they proposed to negotiate a loan of $100,000,000. As the estimated cost of the road was only $85,00)0,000, this loan would pay for the whole workl and leave a handsome surplus for contingencies. The land is now worth, say $125,000,000, or perhaps more; the portions thus far sold have brought, on an average, over five dollars an acre. As the country becomes developed it will of course rise in value; and it was calculated that the sales would be sufficient to pay whatever of the interest on the bonds the road might fail to earn, and to pay the principal likewise at maturity. Anything that remained would be the property of the stockholders." When the. bonds were issued, they were offered in Europe, but were declined. European capitalists considered the risks assumed by the road too great to render the bonds a safe investment, and they declined to have anything to do with them. The company, thus driven back upon a home market, resolved to make the people of the United States pay for the road in another sense. They made a popular loan of their scheme. They succeeded in enlisting the house of Jay Cooke & Co. in it, and Messrs. Cooke & Co. agreed to place the loon in the market, using in its behalf much the same system that they had found so successful in their managemrent of the great war loans of the General Government. The people of the United States were somewhat surprised when they found Messrs. Cooke & Co. in charge of the Northern Pacific loan, and there were many that did not hesitate to assert their belief that HISTORY OF THE GRANGE M)OVELMEi T. the Cookes had committed a serious error in connecting themselves with the scheme. The truth is, the Cookes had committed a very serious error in undertaking the management of this loan. The Northern Pacific scheme never possessed the confidence of the people of the country, and Jay Cooke & Co. undertook too much in endeavoring to carry it through. Their judgment may have been, and doubtless was, satisfied, but the people were not so easily deceived. They. did not see the necessity for the road, in -the first place, nor could they understand how the road was to earn the money needed to pay the interest onil its loan after discharging its ordinary expenses. The loan was extensively advertised, and the more complaisant section of the newspaper press puffed it liberally. It was declared to be equal to any of the loans of the United States. The bonds were pronounced by some papers better than Five-Twenties. The advantges of the scheme, as they appeared to those in charge of it, were set forth in glowing terms, and the Cookes lent the whole force of their reputation and their great popularity to the task of popularizing the loan. But without avail. Many there were who purchased the bonds and thus placed their funds at the mercy of the road, but the loan, though it absorbed immense sums, never became popular. The mass Of the people could not forget that this loan was in behalf of a road that was twenty years in advance of the demand for it. They could not forget that the road was to -be constructed through an uninhabited region, much of which never would be fit for the dwellings of human beings; and much of which was exposed to the fury of hostile savages, who would t l II t 212 I I ! I ': 'i 11 PUCET SOUND. PROPOSED WESTERN TERMINUS OF THE NORTHI CO 214 HISTORY OF THiE GRANGE MOVEMENT; OR, resist any effort to settle the region. There was no local business to furnish the road with ready money; and the through business, it was clear to thinking men, would amount to nothing; for whatever Duluth or Puget Sound might offer in years to come in the way of inducements to commerce, their advantages at present were too insignificant to be taken into serious consideration. Messrs. Jay Cooke & Co. assumed a most serious responsibility in venturing to assure the purchasers of the bonds that the interest on them would be paid. The amount of money necessary for this purpose could be derived only from the earnings of the road, and it was clear to men of as profound knowledge and as great financial skill as the Cookes, that it would be impossible for the road, for the first years of its existence at least, to earn this amount. It is true that matters might be different; true that the country along the road migqht be settled with a rapidity that would surpass all previous western growths; true that the hostile Sioux might offer no resistance; true that there rnight spring up along the line a local and a through business that might enable the company to earn $20,000,000 a year, the amount needed for their wants; but all these things were, and still are, uncertain. They might be, but it was very improbable. There was a terrible doubt hanging over the whole matter. The road could pay its interest and other expenses only in the event of an unusually brilliant success, but the presumption was against it. The risk was too great. People shrank from the loan, and the Cookes, who had made heavy advances to the road, found themselves encumbered with a mass of bonds which they could not sell, and when the first serious disturbance ., i' at THE FARMER'S WAR AGAINST MONOPOLIES. 215 of the market arose, they were among the first to sink under the weight of their unpopular loan. The result was in accordance with the general opinion of men who knew the true nature of the scheme, and it was a blessing to the country at large, however unfortunate it may have been to a few individuals. "If the bonds had been duly negotiated according to programme," says the New York Tribune, "the case would have stood just thus: A few speculators would have subscribed $200,000 and persuaded Congress to build a railroad for them worth fifty times that amount out of the national estate. In a short time they would get back their original investment in dividends. Then they would be the absolute owners of 2000 miles of road, for which they had paid nothing, and probably they would still have also a large quantity of unsold land to divide among themselves. Whether we should have had a repetition of the Credit Mobilier BuildingRings, and a rapid absorption of the profits and estate of the company by a little coterie of inside managers, railway Congressmen, and Christian statesmen, we leave our readers to conjecture. "The bonds were offered in Europe and declined. Then the house of Jay Cooke & Co. undertook to place them among the multitude as a popular investment-in ,other words, to persuade the middle classes to advance the money which the nation was ultimately to repay with interest. "Probably it was a combination of accidents, rather than any intrinsic defect in the arrangements, which brought this scheme to grief. Similar methods have succeeded before, and, if we are not cautious will be attempted again. But what we. particularly wish to HISTORY OF THE GRANGE MOVEMENT. call attention to is the bearing of this case upon the transportation question. If the Northern Pacific Rail road were in running order to-day from Duluth to Puget Sound, the directors would undoubtedly claim the right to put their tolls high enough to yield eight or ten per cent. on the cost of the work. But the cost of the work would have been paid wholly, or almost wholly, out of the national estate. Congress has made a grant rich enough to cover the entire expense, and leave the stockholders handsomely provided for likewise. For more than twenty years the Government has given away land in reckless prodigality to aid in the construc — tion of railways. "In 1871, the total amount of the public domain thus appropriated reached the stupendous total of 217,847,375 acres. It is true that a large part of this grant will prove inoperative, as the quantity of vacant land within the designated limits will fall short of the appropriation; but probably over 100,000,000 acres has been or will be deeded to the favored companies. These concessions represent, at the very lowest computation, a money value of $300,000,000, and an area considerably greater than the whole of the British Isles, and greater than New York, New Jersey, Pennsylvania, and Illinois combined. But when it is, proposed that the roads for which the nation has done so much should be required to do something for the people, we are met with the objection,' Oh, you must not interfere with the vested rights of railroad stockholders.' " Whatever may be said of the railroad question generally, it must be evident that the land-grant roads hold a peculiar relation toward the people, and may N I I 216 i I' I ; 44 H I' IE YELLOWSTONE, ON THE ROUTE OF THE NORTHERN PACIFIC RAILROAD. 218 HISTORY OF TIlE GRANGE MOVEMENT; OR, fairly be compelled to do much more than roads built entirely by private capital.'Reasonable' profits on roads of the former class cannot be measured by a percentage on their cost, because their cost was defrayed in a great degree, if not entirely, out of the public fund. It cannot be measured by the capital, because that is largely fictitious. The limit of their right to take toll must be fixed by a general review of all the circumstances of the roads and the history of their construction; and common sense will demand that in coining to a determination on this point the share which the public took in building them shall be fully considered." When the bonds of the Northern Pacific road were offered in the European market, the German capitalists sent two commissions of experts to this country to examine into the affairs of the road, and upon receiving the reports of these commissioners, they declined to take part in the loan. One of these reports, that of Herr Haas, of Berlin, has been recently published by the New York Tribune. We give it as sustaining our view of the matter, and as a queer commentary upon the assertions and reassertions with which our press has overflowed of late years, that this was the safest and most profitable loan of the day. After describing the location of the road, Herr Haas says: "Accordingly the estimates prepared for building the Northern Pacific Railway are limited to the present project, the cost of the branch line not being included. ESTIMATES OF COST. "7. These estimates calculate the cost of construction of the main line as follows: k I i I 1 1 I I i I I t II I I II iII i I I THE FARMER'S WAR AGAINST MONOPOLIES. 219 1. Grading, masonry, bridges, rails, and entire sur face works of the line...................$6,2, 2. Sidings......................................................... 3. Sundry expenses inclusive of engineering......... 4. Telegraph lines............................................. 5. Buildings...................................................... 6. Working capital............................................. 7. Small branch line.......................................... 8. Extra expenses............................................ 9. Interest on capital during construction, minus the income derived from the working of al ready finished lengths during that time...... I \ ready finished lengths during that time........ 7,230,000 Total............................................. $85,277,000 "8. To raise this sum the Northern Pacific Railway Company intends issuing bonds to the amount of $100000,000, and pledges itself to pay interest at the rate of 7.30 per-cent. per annuin in gold out of the surplus revenue from the traffic of the linle, and to redeem the bonds within thirty years. 9. As security for the payment of interest and the redemption of the bonds, the whole of the property of the Northern Pacific Railway Company, the line and buildings, as well as the land grants, have been made over to the trustees, as representing the bondholders, by a general mortgage deed, registered July 1st, 1870, in the office of the Secretary of the Interior of the United States. "By these data the extent and aims of the Northern Pacific Railway enterprise, and the means by which it is to be accomplished, are clearly set forth. Adding to this the fact that up to August, i871, a length of line of 140 miles, extending from Duluth, Lake Superior, to twenty miles beyond the Mississippi, was already coinpleted and in working order;that 120 miles additional, as far as the border of the State of Dakota, are, save little interruptions, almost complete, and that lastly, in $60,320,000 4,200,000 5,000,000 600,000 2,312,000 3,615,000 1,200,000 800,000 220 HISTORY OF THE GRANGE MOVEMENT; OR, the Western division of the road, in the vicinity of Portland, Oregon, twenty-five miles of the line, through Washington Territory, in the direction of Puget Sound, are so far advanced that they can be opened for traffic by the end of this year, we have all that can be stated about the present condition of the Northern Pacific Railway, and we can turn to the consideration of the future. "10. The consideration of the future, in order to keep within bounds, should be limited to answering the following three questions: First: Are the means provided for the construction of the Northern Pacific Railway adequate to complete the line ready for traffic? Second: Does the finished line offer the necessary guarantee that the net profit of its income will yield the sums required for the half yearly payment of the stipulated rate of interest on the bonds? Third: Will the sums realized from the sale'of lands suffice to redeem the bonds within thirty years? " 11. Respecting the first of these questions, whether the building capital is adequate to the completion of the line, we must revert to the detailed estimates. The first item of these estimates, which provides $60,320,000 for the construction of the line, or $30,000 a mile, leaves no cause for uneasiness inasmuch as the contracts already disposed of afford proof that the lengths contracted for can not only be completed for the amount, but that savings are made so considerable that by means of them the more expensive mountainous parts can be undertaken. The chief engineer of the company is a welltried man, his honesty, experience, and capacity are beyond question, and he has positively declared that the item ill question will not be exceeded. I I II k k I i i I . THE FARMER'S WAR AGAINST MONOPOLIES. 221 {12. As little can be said against items 2, 3, 4, and 7; but 5, 6, and 9 produce serious misgivings. Item 5 of the estimate, providing $2,312,000 for buildings, includes $ 850,000 for repair-shops for machinery and cars, 134 stations at $2000 each, or $268,000; lastly ten princi pal stations at $25,000 each, or $250,000. These figures are out of all proportion low; for a length of line of 2000 miles, workshops at the collective amount of $850,000, stations the whole arrangements of which are put down at $2000 only, and principal stations at $25,000 each, cannot be looked upon as adequate to the requirements. This item, therefore, will have to be increased. The same remark applies to item 6, which provides $3,615, 000 as the working capital, and out of this are to be procured 120 locomotives, 100 first-class passenger cars, 50 second-class passenger cars, 30 smoking cars, 30 mail and baggage cars, and 1500 freight and cattle cars. This working capital is so small, and stands in such glaring contrast with the length of line, that much more will be required than has been provided by the estimates. In North Germany a line of similar length would re quire more than 25,000,000 thalers; and though it may not be quite fair to measure American expenses by a German standard-a maxim which underlies this report -still the most superficial critic must perceive that here a very considerable augmentation is needed. With regard to item 9, providing $7,230,000 for the payment of interest during construction, a similar claim will have to be put forward. Suppose the time of building to be four years-a supposition based upon exact information obtained-the works would consume a quarter of the building capital in every year during the building period. This interest will have to be paid at the end of the first 222 HISTORY OF THE GRANGE MOVEMENT; OR, year upon one-quarter; at the end of the second year upon one-half: at the end of the third year upon threequarters, and at the end of the fourth year upon the whole of the building capital. Hlence the interest during the four years will be two and a halftimes the annual interest "1 3. With an emission of bonds to the amount of $100,000,000, at a rate of interest of 7.30 gold, the interest during the building period will foot up $18,250,000 gold, and though the building fund need not be burdened with that, since the money obtained for bonds and not immediately required for building purposes may be otherwise employed with advantage, and since also the intermediate finished portions of the line will yield a revenue before the whole line is opened, nevertheless, what may be gained in this way must not be overestimated. The estimate of $3,250,000 is sufficiently high, so that $15,000,000 interest will have to be paid out of the capital. Item 9, therefore, will have to be increased in proportion. "14. If, according to these calculations, the estimates require manifold augmentations on the one hand, we must not lose sight of the fact that on the other hand the fixed building capital, $100,000, 000, is not reached by the sum total of $85,000,000 of the estimates, but exceeds these estimates by $15,000,000. In case, therefore, the bonds are not issued too much below par, the respective items may be augmented by this surplus, and this may be the more easily effected, as, according to the communications of Mr. Jay Cooke, in a conversation on the subject, that gentleman is prepared to consider the matter with a view to such augmentation. " 15. WVith regard to this last point, but only in view of the possibility of these anticipations being realized, there I k t I I I i I I I ? N I I THE FARMER'S WAR AGAINST MONOPOLIES. 223 is no cause for anxiety about the estimates, and after such augmentation no occasion for an unfavorable judgment. 16. Turning to thle second question, whether the Northern Pacific Railway, after its completion, offers the necessary guarantee that the surplus accruing out of the traffic revenue will suffice to pay the half-yearly rates of interest on the bonds, it is to be observed in the. first place that the interest at the rate of 7.30 per cent. on a capital of $100,000,000 amounts to $7,300,000. To obtain a net profit of a similar amount requires a gross income of $20,000,000 a year. It is proved by official data that the net profits of the American railways are equal to 35 per cent. of the gross income, 65 per centof the total being consumed by the working expenses PROBABLE TRAFFIC. "17. Whether the completed Northern Pacific Railway will be able to count on a traffic that will yield an income of $20,000,000 a year can only be ascertained by an inquiry into the state of the population and its' industrial and commercial relations, and it will be important to keep the actual state of these relations very carefully in view. The tract of country traversed by the Northern Pacific Railway upon which at the outset the line depends for acquiring and securing a local traffics, is situated in the States of Minnesota, Dakota, Montanla, Idaho and Oregon, and in Washington Territory These have, according to the census of 1870: Area in square miles. Minnesota.......................... 8 3,531 Dakota....................................147,490 Montana...................................143,776 Idaho.................... 90,932 Oregon..................... 95..244 Washington Territory............... 69,994 Inhabitanb. 435,511 14,181 20,594 14,998 90,922 23,901 i i HISTORY OF THE GRANGE MOVEMENT. Or an aggregate area of 630,917 square miles and an aggregate population of 598,147, while in the year 1860 they had a population of only 250,000 persons. According to this the population has increased 350,000 persons within a period of ten years, but this increase belongs for the most part to the State of Minnesota only, since the population of that State has grown fronm 172,000 to 435,500 during the period in question-an increase of 263,000 persons. There is hardly any room for doubt that 600,000 people, scattered over an area of 30,000 German square miles, even if all are taken as contributing to the success of the Northern Pacific Railway, will not be able to insure a traffic that will produce an annual income of $20,000,000. "18. The enthusiastic adherents of the undertakers of the Northern Pacific Railway will not deny the truth of this assertion, and they are only able to hold out hopes for the future by pointing to a possible rapid increase of population in the adjacent districts consequent upon the completion of the line, and a corresponding increase of the income of the company. Willing as I am to acknowledge, respecting America, the well approved fact that, contrary to what we see in Germany, where railways are the product of already cultivated and well-populated regions, the railways in America have hitherto drawn culture and population after them into uncultivated regions, and thereby drawn an income to themselves, yet the deductions from these facts must always be made with a certain reserve. We must not forget that though a growth of the population in regions newly traversed by railways is certain, it is not sufficiently rapid to cover thinly inhabited regions within a few years with numerous and densely peopled settle 224 II CAM-%P OF RAILT'OAD BUILDERS ON I'IIFlrh'I. PA('1~'I(" l,AIllfOAI). WI CA 226 Il1STORY OF THE GRANGE MOVEMENT; OR, inents of a commercially agricultural or industrial character, particularly when it is a question of filling a region of 2000 miles withli such settlemrents. GROWTII OF POPULATION. "We learn, by way of example, from a comparison of the'populattion of the United States in 1870 and 1860, that in that decennial period the population increased from 31,500,000 to 38,500,000, an increase of 7,000,000; -very considerable in itself, but not of very great inmportance compared with the proportional increase of railways, when we bear in mind that the railways in the United States increased during the same period fromn 31,286 miles to 53,400 miles. Even the most favorable rate of increase of the population during the last ten years, namely, that of Minnesota, or about 150 per cent., would, extended over the whole region of tihe Northern Paoific Rail"way, during another ten years, only result in an aggregate population of 1,500,000, or one-third of the present population of the State of NewYork. That such a population-which, by the way, would not exist at the time of the completion of the line, nor till ten years afterward-will not yield the required income to pay out of the net profits the interest on the capital invested in the enterprise, I think I am, according to my conviction, bound to maintain. " Of course an increase of population beyond the percentage mentioned is possible, in consequence of accelerated exertions and efforts to direct iTnmmigration toward the hitherto neglected States of Dakota, Idaho, and Oregon and Washington Territory; but we must not TIlE FARIIER'S WAR AGAINST MONOPOLIES. 227 ignore the fact that such exertions and efforts will always have to contend withi great difficulties. The stream of immigration has hitherto flowed notoriously and preferably in the direction of the more Southern States, its diversion northward, particularly in the States of Dakota, Idahlo, and Montana, where the Indian tribes are still hostile, will not succeed until after years of struggle and perseverance. Take, i)r instance, Minnesota, which has only just succeeded in attracting the influx of population already mentioned, tlhoug'h its emigration agents have for years traversed the length rind breadth of Europe, and though the State has for a considerable time been provided Fvith railways. To rely so confidently and strongly upon the exertions and efforts in favor of an immnigration, the results of which must be reserved for a future jay, and to deduce with certainty that they will necessarily produce a considerable local traffic for the Northern Pacific Railway from the time of the completion of thle line, I consider hazardous. TRANS-CONTINENTAL TRADE. "19. If thus, according to my conviction, the pros)pects for an advantageous local traffic on the Northern Pacific railway during, the first years of its operation do not exist, the tlhrough traffic will hardly offer any better chances. The Northern Pacific Railway, one terminus of whlich is situated at Duluth, on Lake Supeior, in Minnesota, and the other at Puget Sound, will hlardly be able to reckon on a throu,lgh traffic in the course of a series of years, so far as it relates solely to Amnerican products, since the termini do not furnish any basi;s for such a traffic. Puget Sound, favorably as it I 2_8 HISTORY OF TilE GRANGE MOVEMENT; OR, may be situated for shipping, has, for the time being, nothiing in the shape of industrial establishments except a few embryo collieries, as yet insignificant, and some important saw-mills, which procure their raw material by water, and whose selling markets are not on American soil but abroad, requiring ships to export their product, while Duluth, a town of about 4000 inhabitants, is still in embryo, so that it is hard to tell what traffic it may afford hereafter. "20. The Asiatic through trade, so far as it affects the existing Pacific lines, and the importance of which must not be too highly estimated, since it consists of two articles only, tea and silk, will only be attracted with difficulty to the Northern Pacific road, because, on the one hand, until the branch line provided for in the charter -is completed, which will reduce the distance from Puget Sound to Duluth from 2000 miles on the main line to 1775 miles on the branch line, the distance on the existing Pacific lines is about equal to that of the Northern Pacific, which offers no shortening of the journey by land, and because, on the other hand, the commercial relations between New York and Chlictago and San Francisco are so closely tied that the removal of the agency of the San Francisco houses concerned in this commerce can hardly be thought of. "21. After this exposition, though I readily acknowledge that the Northern Pacific road will come in for something at the opening-for instance, the important consignments to supply the military forts with provisions, the transport of provisions for the HIudson's Bay Company, the products of the mnines of Montana, Idaho, and Washington, insignificant at present-I must incline to the opinion that after the completion of the i I i THE FARMER'S WAR AGAINST MONOPOLIES. 229 line and the simultaneous cessation of paying interest out of the capital, a longer or shorter period of time will intervene during which the working of the road will not produce the required income to pay an interest of 7.30 per cent. on the capital invested after deducting the working expenses. As the means provided in the statutory regulations, of which I shall speak further on, by which supplies are to be raised in cases when the regular income does not suffice to pay the interest, will fail to afford a remedy, as I shall endeavor to prove, I have no hesitation in saying that the obligations undertaken by the promoters of the enterprise respecting the payment of interest cannot be fulfilled during the period immediately following the opening of the line. VALUE OF THE LAND GRANT. "22. With regard to the third question, whether the sale of land will realize the amounts by which the redemption of the entire bonded debt can be effected within the thirty years specified, I must, first of all, contradict an opinion which has been widely circulated, representing the regions traversed by the Northern Pacific Railway as unfavorable to civilization, agriculture and industry The experience I have acquired from personal inspection, as well as the most trustworthy information from official sources I have everywhere gathered on the spot, has convinced me that the region through which the Northern Pacific Railway passes is one of the most fertile on the American Continent, and is in every respect suitable for colonization. Minnesota and Dakota belong to the grain-growing region; Monre tana and Idaho are rich in minerals and pastures, and 2.30 IIISTORY OF THIE GRANGE MOVEMENT; OR, Oregon and Washington Territory belong to the region of minerals, furs, timber and agriculture. " The Government land grant to the Northern Pacific Railway Company, representing, as already mentioned, 50,000,000 acres for the main line, has an appreciable value, the money price of whlichl, at the rate at which the Illinois Central sold its land, would amount to $550,000,000; at tlhe rate at which M,innesota disposed of her school land, it would amount to $350,000,000; and at the rate at which the Kansas Pacific realized, it would amount to $165,000,000. Granted that even the last figure is put too high, we may fall b'ck on the minimum price below vwhich the United States Government has bound itself to the Northern Pacific Railway Comnpany not to sell laLnd in the alternating sections adjoining tile line. At $2.50 an acre the land (grant of the company is worth $125,000,000-an amrount still more than sufficient to redeem tie euntire $00,00)00QQ0 of bonds; even the redemption at ten per cent. above par permitted by the statutory regulations requiring $110,000,000 to redeem the bonds, would stillleave a handsome surplus. HIowever, another question is whether the land can really be disposed of by way of s.le Witlin tl? tkti ei 6x. ~ tia m of the bonds, and whether the demand for these lands will so nearly equal the supply that sales can be made at the given prices and during the specified period of time? The answer to this question is essentially dependent on the same points which have been already considered in connection with the security for the paymenit of interest on the bonds, namely, whether in this case the population of the respective regions will increase at a rate sufficiently rapid to insure tlhat after the lapse THILE FARIER'S. WAR AGAINST MONOPOLIES. *ol of thirty years the whole land of the company shlall have changed hands and been transferred to private owners. So far as human calculations can at all forecast what may be accomnplishled in periods of such duration, this question may be answered in the affirmative. The experience of the past in the United States, as well as what is seen every day, gives ample proof that, as a rule, after a number of years have passed subsequent to the opening of a line in new and uncultivated regions, and new settlements have been established in conseoquence of the railway, such land can be sold well and easier than any other land. Thus, though a period of several years following immediately upon the opening of a liie may have few sales to show, yet in the long, run all will be right, and the period of redemption is long enough to warrant a confidence, based upon experience, that within the period of redemption the area of the Northern Pacific Railway Company will have changed hands for the benefit of the company. However, that during the first few years after the opening of the line the sales will assume but small dimensions, can hardly be doubted, since, as has been already observed, the immigration turning toward the newly opened regions of the Northern Pacific Railway will not be of sufficient magnitude to create an active demand, and as, furthermore a great many immigrants who may turn in that direction to look out for new settlements will prefer to avail themselves of the facilities offered by the Homestead law, according to which every man on American soil, above twenty-one years of agcre, and declaring that he will remain, may secure on easy terms the possession of eighty acres of public land by simply paying a fee. Now, as in the regions crossed by the 232 IHISTORY OF THE GRANGE MOVEMENT; OR, Northern Pacific Railway the public land lies adjacent in alternating sections, and is consequently without any difference of quality, the immigrants will, at the outset, prefer the public land, and the railway company will only be able to effect exceptional sales. "23. To what extent public land is disposed of under the Homestead law may be gathered from the fact that during the year 1869, the Government of the United States sold for cash 2,900,000 acres, and allotted under tile Homestead law 2,737,000 acres; during the year 1870, it sold for cash 2,150,000 acres, and allotted under the Homestead law 3,700,000 acres. If thus the land sales of the railway company should be of little account for several years, one of the means already alluded to, of supplementing the fund out of which the interest oil the bonds is to be paid in years of deficiency, will simnultaneously fail. The statutory regulations stipulate that the bonds shall be successively bought up with thie proceeds of the land sales and cancelled. At the same time, however, it is permitted, in case of the treasury of the company being exhausted, and consequently without the necessary means for paying the interest on the bonds, to make up the deficiency out of tie proceeds of the land sales. Of course the company is bound to make restitution to the land fulnd of the amount taken out, by handing over the first net profits of the line. But if the land sales are only of a limited extent at first, and the proceeds correspondingly small, it will not be possible to make any substantial advances toward paying the interest, and simultaneously, as I liave previously asserted, the line will not produce the requisite amount for the payment of the interest on the l)onds; -tiid thus, in miy opinion, it is certain that a THE FARMER'S WAR AGAINST MONOPOLIES. 233 longer or shorter period will ensue, immediately upon the opening of the line, during which the bondholders will have to forego interest. INSUFFICIENT SECURITY FOR BONDHOLDERS. "24. In continuation of the foregoing, I have yet to mention in what nmanner the rights of the bondholders are to be guarded under such critical circumstances. The mortgage of July 1st, 1870, executed by the railway company to the trustees, as representatives of the bondholders on the other side-to which the bondholders have to submit-stipulates that, in case tile company should not be able to fulfil their obligations respecting the payment of interest on the bonds, and (1) the delay in the payment has lasted three months, the trustees shall have the power to sell so much land out of the area of the company as will be necessary to realize the amount required to pay the interest; (2) when the delay in the payment has lasted six months the trustees shall be empowered to take charge of the line and work it themselves, and to make all the necessary arrangements for that purpose; (3) when the delay in the payment has lasted three years, the trustees shall be empowered to sell the line, and all the possessions pertaining to it, for the benefit of the bondholders. These stipulations, however, if acted upon, would do the bondholders little good. With reference to the powers conferred upon the trustees by Article 1, it is difficult to see what advantage would be gained for the bondholders by makling use of them. If the land were saleable the company could and would sell to pay the interest on the bonds, and it will only be on account of the land not being saleable, shortly after the opening 234 HISTORY OF THE GRANGE MOVEMENT; OR, of the line, that no proceeds of the land sale will be available to supplement the interest-paying fund, and that the circumstances will arise for which the sale of land is to furnish a remedy. How the trustees can realize money by the sale of unsaleable land is not very clear. Tile same objection applies to the measures provided for in Article 2, empowering the trustees to take charge of the line and work it themselves. Whlt benefits are the bondholders likely to derive from that? The trustees will hardly be able to convert a non-paying line into a paying line, and it might even be hazardous to take the management out of the hands of people acquainted with local and other conditions, simply because a crisis had ensued which, by no exertions and foresight, could by any human possibility have been averted. Finally, the powers conferred upon the trustees by Article 3 ought to have been given, in my opinion, by Article 1. If the interest on the bonds should not be paid, the bondholders-the mortgagees of the Northlern Pacific Railway-must, according to my view of tle matter, have the power to bring the object mortgaged, in the case before us the property of the Northern Pacific Railway Company, under the hammer of the auctioneer, in order to realize out of the proceeds a pro rata dividend upon their claims, as in any other case of insolvency; but this power must not be withheld for a space of three years, and only conceded when other and questionable measures have proved fruitless. "I find in the mortgage of July 1st, 1870, which determines the rights of the bondholders, less a security for the exercise of those rights than a troublesome obh stacle to the execution of rights guaranteed to the bond THE FARMER'S WAR AGAINST MONOPOLIES. 235 holders by the general laws of the United States of Amrnerica. CONCLUSION. " 25. To sum up, I cannot deem it advisable that European capitalists should be encouraged to participate in the enterprize of the Northern Pacific Railway, as, in my opinion, after the completion of the line a period will ensue during which the company will not be able to fulfil the obligation it is under respecting the payment of interest on the bonds. It is certainly possible that this period will not ensue immediately upon the completion of the main line, inasmuch as the branch line, equally provided by the charter, will issue new mortgage bonds, out of which the interest may be paid for a while, but this will only postpone, not avert, the crisis. "That the Northern Pacific Railway may be a good and profitable enterprise after the years of its childlhood and troubles have been survived, will not be enough to commend it to the European money market; it will have to be proved that the company will be able during the early years of the enterprise to fulfil all the engagements entered into. In the fuill consciousness of the responsibility incumbent on me as a member of the European Commission of Experts, I cannot consider that this proof is forthcoming. IIAAS. "BERLIN, Nov. 3Oth, J 871." 236 HISTORY OF T[IE GRANGE MOVEMENT; OR, CIIAPTER XIII. DANGER AHEAD. vils resulting to the Country from Railroad Mismanagement-The Danger of Monopolies-Disregard of Individual and Public Rights-Efforts to cor rupt the Legislative and Judicial Powers of the Country-How the Corpora tions menace the Public Liberties-Mistakes of the People-Helplessness of the Community-Mr. Thomas Scott's Boast justified-A Railroad King Contrast between Vanderbilt and Drew-Immense Power of Commodore Vanderbilt-A Gigantic Monopoly-A Real Danger-An Unsafe Power in the Hands of an Interested Man-Danger Ahead-The Way to meet it. WE have now examined hastily some of the evils of the present system of railroad management, and have pointed out some of the troubles likely to arise therefrom. Our purpose in doing so is not to excite unnecessary or ill-advised hostility ta the railroad system of tile country, but to arouse the people to a sense of the danger with which the mismanagement of this system threatens them. That there is danger, we presume no one will deny. Looking back over what we have been considering, we find: I. That the railroad system of the United States, which was intended to give the people rapid and cheap communication and transportation, and which was designed as the servant of the people, has grown into a powerful combination of monopolies, each and all animnated by a common object. II. That the object of these monopolies is to compel the people to pay whatever rates they may see fit to 4 THE FARMER'S WAR AGAINST MONOPOLIES. 237 establish for tile service rendered them, and to keep these rates at the highest possil)le point. III. That the corporations have a decided advantage over the public in this struggle, and that they are determnined to resist, and do resist, all efforts on the part of the latter to obtain cheap transportation. IV. That they are utterly regardless of thl rights of the people, either as individuals, or as a community, and that they resent and punish to the extent of their power, any attempt on the part of an individual to dis. pute their regulations, however arbitrary and unjust the said rules may be. V. That they are practically irresponsible for their action, and resist any and all efforts to render them amenable to the law. VI. That they pursue a systematic course of plunder, robbing the nation of its property, and levying exorbitant rates upon individuals and freight, to pay " fancy dividends" upon their fictitious stock. VII. That in order to secure the success of their schemes, they do not hesitate to resort to the most corrupt practices. They have done what they could to debauch the men placed in positions of public trust by the people, bribing legislators, and taking them into their pay, literally purchasing courts of justice, and thus closing the means of obtaining justice once open to the people. VIII. That they are directly responsible for a large share of the corruption that is fist demoralizing our public service, and are seeking to render themselves the masters of the National and State governments. IX. That they have introduced an element of reck less gambling in stocks into the monetary affairs of the I Ill I 1111)111 I IIIIiIIiIIIi!I\\\\I ill I I I"",~~~~~~~~~~~~~~~~~~~~E I" I' l~~~~~~~~~~~~~~~~~~~~~~~~~Ii ~ ~ ~ ~ ~ P 'I~~~ ;4 II I I~~~~~~~~~~ ill; III Ii I~ ~ ~~~~~~~~~~~~~F III Ir~~~~~~~~IP P97, TIIE FARMER'S WAR AGAINST MONOPOLIES. country, which is utterly destructive of all sound business management, and lhave succeeded in demoralizing this portion of our financial system to such an extent that great evils must follow unless they are compelled to desist. X. That they are growing bolder and more audacious in their designs upon the people, caring for'nothing but an increase in their gains, and that the liberties, the free institutions, the property, and the national existence of the American people are seriously endangered by tl)he unlawful designs and the insolent acts of the railroad corporations. There is danger in all this, and it would be worse than folly to shut our eyes and profess not to see it. It is a danger that must be met and turned aside. The power of a railroad corporation is not an imaginaly t!Jing. The corporation employs many hundred men, and disburses large suims of money; and it does these tlhings for the avowed purpose of'" earning" as much nmoney from the people who are compelled to use the boad, as they will pay. It is carrying out a system of operations opposed to the interests of the people, and it is a compact, solid body, under the direction and control of one vigorous mind, and it possesses every chance of success against the people, who are generally divided and indisposed to assert their rights, though sensible that they are being injured. It is almost absolute master of the market of the region it supplies. It can l),nefit or injure a community l)y liberal tariffs or extortionate rates, as it pleases, anyd the mianagers are free to decide which policy slitll be pursued. It is subject to no control. It can do as it pleases. It controls hundreds of votes along its line, not one of which will be 2 00 9 HISTORY OF THE GRANGE MOVEMENT. cast against it in any contest with the public, and the lobby it maintains at the centres of government takes care that no adverse legislation shall stop its encroachilients upon the rights of the people. Relying upon its wealth and power, it insolently defies the community to protect itself, and pursues its course of extortion unchecked. Now, if this be the power of a single road, what shall we say of the vast combinations of roads which are being organized and are in operation throughout the country? Does any one for an instant imagine that these combinations, whose sole object is to enrich themselves, are careful of the rights of the public? The very essence of their system is to make charges as high as possible, and, by combining, prevent competition. They know their roads are a necessity to the public, and that persons using them must pay whatever rates they see fit to impose. They have combined for the purpose of compelling the public to submit to their extortions, and they have no intention of abandoning their design. They are masters of the situation thus far, and they know it. As for the people, they have no redress as matters are conducted at present. "With packed legislatures," says the Atlantic Moi(thlly, in a recent issue, " with paid or intimidated judges, and with a civil service consist ing of several thousand cunning clerks and able-bodie(l brakemen, conductors, and switchl-tenders, they would be in just that position most dreaded by all lovers of liberty-a powerful and enormously rich corporation, surrounded by a timid, weak, and hopeless public. While we were still engaged in singing plans over the glorious institutions of our happy country, we should 240 91 ~~~~~~~~~~~~~~~~~~~~~~~~I, organizations, but no general platforrn has yet been I)resented to the Order, The Farmers' Convention, which met in Chicago towards the last of October of the present year, made the following declaration of principles: Resolved, 1. That Congress be asked to pass a general law fixing a maximum rate for transportation between the States, and the Legislatures laws governing transportation within the States, and that no more subsidies to private corporations be given. 2. We demand the construction of railroads and the improvement of water communications between the interior and seaboard, the same to be owned and operated by the General Government, for the purpose of affording cheap and ample transportation, and to protect the people from the exactions of monopolies. 3. That people should create and patronize home manufactures in order to do away, in so far as is possible, with the necessity for transport:,tion. 4. That the people should free themselves of debt in order to be better prepared for the struggle with monopoly o wlient1vcr it coutucs. 510 HISTORY OF THlE GRANGE MOVEMENT; OR, 5. That no industry can be protected save at the expense of all other industries, and that all special legislation is wrong. 6. That the farmers should organize throughout the country to secure reform of abuses and equal justice for alL The Minnesota farmers, at their convention, at Owatonna, September 2d, 1873, adopted the following platform: Whereas, The leading issues that have hitherto divided the people of this country in political parties have ceased to exist, and it is unwise to seek to continue the old party organization now that new and momentous questions have arisen; and Whereas, The principal question now demanding consideration is that involving the privileges and powers of corporations as antagonizing with and operating in opposition to the well-being of the people; and WVhe-eas, We, the farmers, mechanics, and laborers of Minnesota, deem the triumph of the people in this contest with monopolies essential to the perpetuation -of our free institutions and the promotion of our private and national prosperity; and Whereas, In addition to this, and to the honest and economical administra, tion of the Government, we recognize no party distinctions nor political issues now before the country as worthy of more than minor consideration; be it therefore Resolved, First: That the purpose of all proper government is the promotion of the welfare of the entire people, and that therefore the conduct of any citizen, association, or copartnership, whether chartered or otherwise, which may operate to the prejudice of this general welfare, is antagonistic to the true objects of our Government, and violative of the fundamental principles upon which all correct law is based. Second: Tt/at we recognize no political party nor individual aspirant for office as worthy of our support, unless it or he will unite with us in declaring that the Government cannot alienate its sovereignty either in whole or in part to any person, association, or corporation for any purpose whatever, but such are always and must forever remain subject to the sovereign authority and control of the Government. Third: That we will not aid in elevating any man to any important public. position whatever who will either deny or object to the exercise by the Legislature of the power to reverse or annul at any time any chartered privilege or so-called vested right or any privilege claimed to be involved in any charter to any corporation, railroad, or otherwise, which experience has shown is or may be exercised by such corporation or by other similar corporations to the detriment of the public welfare; and that we will demand from -every candidate for a high executive, legislative, or judicial position to whon we accord our support that he shall pledge himself to recognize THE FARMER'S WAR AGAINST MONOPOLIES. 511 the maintenance of this right by the Government as a sacred duty essential for the preservation of the liberties of the people and the stability and pro* perity of the Commonwealth. Fourth: That taxes can only be rightfully levied for the purpose of raising revenues to defray the expenses of the Government in the discharges of its legitimate duties, supporting public institutions, and promoting the public welfare; and that the levying of imposts as inure to the benefit of a class or classes in the community, while being detrimental to other classes, is unjust and oppressive; and that tariffs levied on imported articles may be and are often so arranged as to become thus discriminative and injurious; and that it is therefore essertial that the utmost care should be taken in framing such tariff laws, in order that the objectionable features may be avoided and that they may operate for the well being of the entire community. Fifth: That it is contrary to the spirit and purpose of a Republican Government that its servants should be compensated for their public services to an extent that will make office holding attractive to human cupidity, and that in the late act of Congress, increasing the official and Congressional salaries, notwithstanding the pleas and excuses urged in its palliation, we recognize only a corrupt and reprehensible avarice and reckless disregard of the public weal, which deserves the severest censure; and we demand the repeal of the law at the earliest practicable moment, and declare every man who supported and approved, or aided and abetted in procuring its passage, or received benefit through its enactment, whether in the shape of back or future pay, as unworthy the confidence of his fellow-citizens and unfit for the further occupancy of any position of public trust. Sixth: That all participants in the Cr6dit Mobilier and the corrupt tranactions exposed by its investigation of the late Congress and by the late Treasury investigation of the State, deserve to have been punished as criminals, and that those who aided in screening'them from complete exposure and consequent punishment, should likewise become objects of public scorn and contumely. Seventh: That every public officer is amenable to the people for his conduct, and that public sentiment should demand and compel the resignation of all those who are guilty of misrepresenting their constituents, of malfeasance in office, and of neglecting to execute faithfully the duties intrusted to them. Eighth: That the fees and salaries at present allowed to county and other officials within this State are frequently excessive, and that these should never be greater than is paid by private individuals to their employe6s engaged in similar duties and bearing similar responsibilities, and that we demand that the State Legislature shall at its next session remedy this evil, and reduce such salaries and fees to what will be no more than a just and reasonable compensation, and thus, by removing the inducements for holding, lessen the desire for seeking office, and obviate to a considerable extent one of the most patent causes of local politioal corruption. Ninth: That our experience proves that persons elected by parties are subservient to the loaders and wire-pullers of the parties electing them in the 512 HISTORY OF TIlE GRANGE MOVEMENT; OR$ performance of their public duties, to the neglect partially or wholly of the opinions and wishes of the mass of the people; and that therefore we, as farmers and laborers, despair of ever having our wishes complied with or our interests subserved in the administration of public affairs until we shall take upon ourselves the discharge of the duties we owe to ourselves and to each other of choosing and electing our own candidates independently of the action of all other political organizations, and we therefore earnestly recommend to the farmers and laborers of the State that we shall do all in our power to pro cure the nomination and election of full and complete county, district, and State tickets, embracing candidates elected in the interests of the masses of the -eople for all the positions in the Executive, Legislative, and Judicial branches c' the Government to be elected this Fall, and that, to the end that this policy may generally obtain, we solicit the cooperation of the industrial masses of the ohlier States in order that the influence of the movement may be extended to the administration of our national affairs. Tenth: That we receive with satisfaction the decision of the Supreme Court of this State in the case of Blake agt. The Winona & St. Peter Railroad comrpany, in which the Court holds, in effect, that the railroads are simply improved highways, public roads, and that as such the right to prescribe a rate of tolls and charges is an attribute of the sovereignty of the people of which no legislation call divest themn, and that the thanks of all the people of this State are due to W. P. Clough, the attorney for the plaintiff, whose skill, ability, and devotion to the cause of the people secured this judicial triumph. F,leventh: That we have seen with alarm the startling revelations in reference to the condition of our State Treasury, the undoubted defalcation of our Treasurer of over $100,000, and the reported defalcation of his successor of nearly $40,000; the loan of the public funds to merchants and lumber dealers; the making of accounts with bogus certificates of deposit; the fact that nearly half a million of the school fund, the precious heritage of our children, was left unindorsed as required by law, and completely at the mercy of these dishonest officials; the perjuries of the State Treasurer before the Commission, and finally, the desperate efforts that were successfully made to hide the Ring of guilty parties who had used the State Treasurer as their tool. Z:elfth: That we claim that the law requiring these companies to fence the lines of their roads should be strictly enforced, and that the said companies should be compelled to pay for all loss and damage to stock caused by the absence of such fences. Thirteenth: That we are opposed to the monopoly of wood and coal in out. grca.t cities by the Rings,,a a shameful tax on the industry of the people. Fl74rteenth: We aP, in favor of free water communication with the ocean be means of the improvement of the Mississippi and other great rivers of the State, and the imlprovement of the great lakes; that we are in favor of an examination by ape National Government of the region between the St. Croix and Lake Superior, to ascertain whether canal communication can be made to connect the tributaries of the Mississippi with the waters of Lake Superior. FifteWh: We are in favor of such reasonable limitation of the hours of THE FARMER'S WAR AGAINST MONOPOLIES. 513 labor in the shops and factories of the State as will give the laboring people opportunity for morai and mental improvement. Sixteenth: That we demand a State law that will pay out of the public funds the costs and charges of all suits brought by individuals to enforce the laws of the State against railroad corporations. Seventeenth: That we can sympathize with all attempts for the moral improvement of the people, and that we regard the temperance societies of the land which are working by moral suasion for the advancement of the cause as deserving of the consideration of good men everywhere. Eighteenth: That the honor of our State demands that the delegation in Congress from this State call for a thorough investigation into the equitable settlement, so-called, of the transfer of the Fort Snelling property. Nineteenth: That the subserving of the present candidate for Governor an the Republican State ticket to the interest of railroads, shows him to be an enemy to the rights of farmers and laborers, and a friend of monopoly. The Farmers' Anti-Monopoly Convention, which met at Des Moines, Iowa, on the 13th of August, 1873, adopted the following platform: Whereas, Both political parties have discharged the obligations assumed at their organization, and being no longer potent as instruments for the reform of abuses which have grown up in them, we deem it inconsistent. to attempt to accomplish a political reform by acting with and in such organizations; therefore, Resolved, That we, in free Convention, do declare as a basis of our future political action, that all corporations are subject to legislative control; that those created by Congress should be restricted and controlled by Congress, and that those under State laws should be subject to the control respectively of the States creating them; that such legislative control should be an express abrogation of the theory of the inalienable nature of chartered rights, and that it should be at all times so used as to prevent moneyed corporations from becoming engines of oppression. Resolved, That the Legislature of Iowa should by law fix the maximum rates of freight to be charged by the railroads of the State, leaving them free to c.mpete below the rates. Resolved, That we demand a general revision of the present Tariff law that should give us free salt, iron, lumber, and cotton and woollen fabrics, and reduce the whole system to a revenue basis only. Resolved, That we demand the repeal of the back salary act, and the return to the United States Treasury of all money drawn therefrom by members of the last Congress, and of the members of the present Congress we demand the repeal of the law increasing salaries and the passage of a law fixing a lower and more reasonable compensation for public officers, believing that until the 33 514 HISTORY OF THE GRANGE MOYEMENT; OR, public debt is paid and the public burden lightened, the salaries of our public servants should be more in proportion to the rewards of labor in private life. Resolved, That we are opposed to all fiuture grants of land to railroad or other corporations, and believe that the public domain should be held sacred to actual settlers, and we are in favor of a law by which each honorably discharged soldier, or his heirs, may use such discharge in any Government land office in full payment for a quarter section of unappropriated public land. Resolved, That in the corrupt Tammany steal, Credit Mobilier frauds, Congress salary swindle, and official embezzlements, and the hundreds of other combination steals, frauds, and swindles by which Democratic and Republican legislators, Congressmen, and office-holders have enriched themselves, defrauded the country, and impoverished the people, we find the necessity of independent action and the importance of united efforts, and cordially invite all men, of whatever calling or trade, regardless of political views, to join us in removing the evils that so seriously affect us all. From these resolutions, embracing three of the principal agricultural States of the Union, the reader can easily gain a clear conception of the views of the members of the Order upon the topics of the day. By remaining true to itself; then; by resisting outside influences, and especially by avoiding political complications, the Grange can safely and successfully accomplish its great mnission. It is a noble work that it has taken upon itself, and its success must result in benefit to the whole country. Its objects are pure and lofty, and its success can be attained only by hig,h and ennobling means. An Order which seeks the individual elevation and material prosperity of nearly one-half of the whole nation, merits, and will receive the warm and hearty sympathy of our entire population. THE FARMER'S WAR AGAINST MONOPOLIES. CHAPTER XXXI. LEADING GRANGERS. DUDLEY W. ADAMS, Master of the National Grange. THE Master of the National Grange is the presiding officer of the Order. His duties are thus defined by the By-laws of the Organization: -It shall be the duty of the Master to preside at meetings of the National Grange; to see that all officers and members of committees properly perform their respective duties; to see that the Constitution, By-laws, and Resolutions of the National Grange and the usages of the Order are observed and obeyed; to sign all drafts drawn upon the treasury, and generally to perform all duties pertaining to such office. He is chosen by the National Grange, by ballot, and his term of office is limited to three years. HIe exercises a general supervision over the Order, and his duties are by no means as light as some persons seem to think. The position is one of very great responsibility, and calls forth the exercise of executive abilities of a very high class. The Master must be a man of great firmness and force of character, fertile in resource, possessing great tact, and, above all, must be a practical farmer and thoroughly devoted to the interests of the class for whose benefit the Order is working. These qualities are happily united in the present 515 516 HISTORY OF THE'GRANGE MOVEMENT; OR, Master of the National Grange, Dudley W. Adams, Esq., of Iowa. Like most men of his calling, Mr. Adams' life has been quiet and uneventful. "My life," he says, in a -letter which we have been permitted to use, "has been a rather uneventful one, and not such as will make a stirring narrative." " I was born, he continues, "in the pine woods of Massachusetts, in the town of Win, chendon, in the year 1831." He is consequently fortytwo years of age at present. His father was at this time "running a small saw-mill," by means of which he managed to make a modest provision for his fainily. When the subject of this sketch was four years of age the family moved to a small rocky farm, which the father had purchased, and on which the childhood and youth of Dudley Adams were spent. His was the life of the ordinary.New England farm lad-working on the farm in the milder weather, and attending the district school in the winter. tie was a bright, quick lad, and manifested a strong desire to excel in his studies, so that when but a mere youth, we find him in possession of all the erudition the district school could afford him. Then thle pupil became the teacher, and for several years the young pedagogue presided over the school in which his own education had been gained. At length the critical period in his life arrived. He was twenty-one years of age, and a free man. He was also the owner of a modest little sum that he had saved from his earnings as a teacher. He must now make a decision which would affect his whole future; he must choose the vocation of his life. New England offered few inducements to an energetic and ambitious yourng THE FARMER'S WAR AGAINST MONOPOLIES. 517 man, but the great West was a field in which the opportunities for advancement were without limit Westward his heart led him, and Westward he went. "At the age of twenty-one," he writes, "''I turned my face West, and took up a piece of wild Government land at Waukon, Iowa, of which I made a farm, and on which I still reside." The young New Englander proved no drone in the new community. He set to work with a will, and from the first was recognized as one of the most ener, getic and intelligent farmers of the county or State. His-neighbors testified their appreciation of him by electing him President of the Allamakee County Agricultural Society within a year after his settlement in the county. He was only twenty-two years of age at the time, and it was no small compliment to be chosen over the heads of older and more experienced men. He still refers to his election with pride. Under the intelligent and vigorous management of Mr. Adams the "piece of wild Government land" became one of the prettiest and most flourishing farms in the State. Its owner was a reading and a thinking man, and devoted his leisure to an intelligent and systematic course of reading and self-culture. In h.s own pursuit his attention was directed particularly to Horticulture, and he did not confine his efforts to his own farm. Recognizing the needs of the country, his labors embraced the whole Northwest. "My principal energies, he says, in a letter to the writer, "have been directed to the development of Horticulture in the Northwest, and now I have perhaps the finest orchard in that section, numbering over 4000 trees." In 1868 he was elected Secretary of the Iowa HISTORY OF THE GRANGE MOYEMENT; OR, State Horticultural Society, and has been annually reelected since then. He has during the present year relinquished the position in consequence of his time being occupied by other and more important duties. "The achievement of my life," he says, "in which I take most pride, is the little I have done to improve the horticulture of my adopted State." A very modest way of viewing a good and useful work, and one that will keep Mr. Adams' name in grateful remembrance in Iowa long after he has been gathered to his fathers. A man of Mr. Adams' mental capacity and activity could not help recognizing and investigating the evils from which the farming class has suffered, and upon the organization of the Order of Patrons of Husbandry, he at once identified himself withl it as the best means of remedying the defects complained of. He took an active part in promoting its growth, and upon the organization of the Iowa State Grange, on the 12th of January, 1871, was elected Master of that body. In December, 1871, he was reelected for a full term of two years. In January, 1872, he was chosen Master of the National Grange, and resigned his position in the Iowa State Grange. Upon the adoption of the Constitution of the Order, in January 1873, at the sixth annual session of the National Grange, Mr. Adams was reelected Master for the full term of three years. The following address, delivered by Mr. Adams before the Granges of Muscatine and Union counties, Iowa, in October, 1872, presents him in a favorable light as a speaker and thinker. We commend his vigorous and well-timed remarks to the careful consideration of the readers of these pages. He said: "When physicians meet in convention, as they often 518 THE FARMER'S WAR AGAINST MONOPOLIES. 519 do, it is customary for members of the medical profession to read papers for the entertainment and instruction of the assembled M. D.'s. "When railroad men have a convention, such persons as have had active experience in railroad business do the talking and have charge of the meeting. "Editorial conventions are attended by editors, and they, as firmly as any other class of people, are of the opinion that they are capable of managing their own business, and they are not in the habit of imploring the members of other callings to furnish tile brains to amuse or instruct them. '" Shoemakers have organized themselves into the order of St. Crispins, and consider themselves able to paddle their own canoe. "Lawyers not only feel competent to address and properly edify conventions of their own profession, but their modesty does not forbid them from rendering valuable assistance to less favored classes by a free use of their surplus talent. "But, when the tillers of the soil have met in an agricultural society of any kind, it has been usually customary to select a lawyer, doctor, editor, or poli tician to tell us what he knows about farming. The idea has very rarely occurred to the managers of such institutions that it might be possible for a farmer to have anything to say on such occasions whidh should be either appropriate, interesting, or instructive. When these professional oracles of our professional managers' selection open their mouths, we are edified with a rehash of such ideas as may be prevalent in the com munity, served up in a great variety of forms, and presented in a great many different and beautiful lights, 4.. HISTORY OF TJHE GIRANGE MOVEMENT; OR, depending for its coloring upon the business of the orator, as this is the stand-point from which we are viewed, and, of course, this view determines the nature of the picture. Lawyers and doctors in beautiful colors paint the nobleness and independence of the farmner's life. They tell us we are the most intelligent, moral, healthy, and industrious class in all the land, and all our present is calm and our future happy. Merchants tell us that no business is so sure and free from care as farming, and that in no other calling do so few men end in bankruptcy. Politicians laud in stentorian tones the'honest yeomanry,''the sinews of the land,' the'bulwarks of our nation's liberties,''the coarse blouse of homespun which covers the true and honiest heart,' and deluges more of equally fulsome and nauseating stuff. "Soft-handed agricultural editors gile long disserta tions on the necessity of saving all the spare moments, and converting them into some useful purpose. They tell us how rainy days may be laboriously used in mending old rake-handles, and winter evenings utilized by pounding oak logs into basket stuff, while our wives and daughters can nobly assist in averting bankruiptcy by weaving the baskets or ingeniously making one new lamip-wick out of the remains of three old ones. "It has never occured to these very wise instructors that farmers and farmers' families are human beings, with human feelings, human hopes and ambitions, and human desires. It will doubtless be a matter of surprise for tihemn to learn that farmers may possibly entertain some wish to enjoy life, and have some other object in life besides everlasting hard work and a~ 5S20 TIIE FARMER'S WAR AGAINST MONOPOLIES. 521 cumulating a few paltry dollars by coining them from their owl life-blood, and stamping them with the sighs of weary children and worn wives. "What we want in agriculture is a new Declaration of Independence. We must do something to dispel old prejudices, and break down these old notions. That the farmer is a mere animal, to labor from morn till eve, and into the night, is an ancient but abominable heresy. We have heard enough, ten times enough, about the'hardened hand of honest toil.' The supreme'glory of the sweating brow,' and how magnificent the suit of coarse homespun which covers a form bent with overwork, and which has incorporated in its every thlread'moments of painful labor which the over-worked wife had stolen from her needed rest. "I tell you, my brother tillers of the soil, there is something in this world worth living for besides hard work. We have heard enough of this professional blarney. Toil is not in itself necessarily glorious. To toil like a slave, raise fat steers, cultivate broad acres, pile up treasures of bonds and lands and herds, and at the same time bow and starve the godlike form, harden the hands, dwarf the immortal mind, and alienate the children from the homestead, is a damning disgrace to any man, and should stamp him as worse than a brute. "It is not honorable to sacrifice the mind and body to gain. It is not a trait of true nobility to bring up children to thankless, unrequited labor. It is not just or good or noble to wear out the wife of your bosom in the drudgery of the farm without a just return. You have no right to make agriculture so disagreeable as to HISTORY OF THE GRANGE MOVEMENT; OR, drive all young men of spirit and enterprise into other branches of business. "I will be met right here with the thousand time repeated rejoinder,'Oh, we farmers have to work hard. We can't get along as mechanics in town do with ten hours' work. We can't afford to hire help. We can't afford to have holidays. We can't get time to make a vegetable, flower, and fruit garden, and supply our wants with vegetables, flowers, and fruits. We can't get time to make a lawn and plant trees around the house.' You can't? You can't? Then what are you farming for? As men, as citizens, as fathers, as husbands, you have no right to engage in a business which will comdemn yourself and your dependents to a life of unrewarded toil. If the calling of agriculture will not enable you and'yours to escape physical degradation, and mental and social starvation; if it does not enable you to enjoy the amenities, pleasures, comforts, and necessities of life as well as other branches of business, it is your duty to abandon it at once, and not drag down in misery your dependent family. But I do not believe we need be driven to this alternative. I do believe that agriculture, followed as a business, with a reasonable regard to business principles, can be made a business success. I believe that by keeping steadily in view the primary end of life-our happiness, our comfort, our bodily health, our mental improvement and growth-they can be as well attained or better than in any other calling. Right here is the great difficulty; right here with ourselves is the remedy: We work too much and think too little. We make our hands too hard, while our brains are too soft. The day is long past when muscle ruled the world. Brain i.: 522 THE FARMER'S WAR AGAINST MONOPOLIES. 523 the great motive power of this age, and muscle but a feeble instrument. The locomotive, tearing along, jarring the earth below, outstripping the wind above, and bearing in its train the beauty, honor, and treasure of a State, represents brains.'The dusty, sweaty footman, wearily plodding along, carrying a pack on his back, symbolizes muscle. The self-raking reaper, driven with gloved and unsoiled hands, sweeping down like a fable the golden grain, represents brains. The bowed husbandman, painfully gathering handfuls of straw and cutting them with a sickle, represents muscle. The steamboat, plowing its way with ease against the strongest current of our swift and noble rivers, is brains. The dug-out, slowly creeping along the willow-margined shore, propelled by the Indian's paddle, is muscle. The sewing-machine, which stitches faster than the eye can follow and never eats or tires, is brains. The weary, pale, and worn wife, painfully toiling over the midnight task, is muscle. How futile the attempt, then, for muscle to compete against mind in the great battle of life!' A wise man once wrote, 'The wisdom of a learned man cometh with opportunity of leisure;' and in that sentence is food for reflection and thought sufficient for an entire sermon. Unless farmers devote more time to the use of the brain and the improvement of the mind, and less to wearying and exhausting muscular labor, how can they hope to successfully compete against the vigorous minds of the present age? It is not the skilful hand, the strong arm, or the watchful eye alone that will in these days bring success to the farmer. These are'needful, but a cultivated, intelligent, active brain to direct them is of ten times more importance. 524 HISTORY OF TIlE GRANGE MOVEMENT; CR, "Again I say, we work too much and think too little. A farmer rises at four o'clock, goes out and does the chores among the stoclik, chops wood for the day, mends the harness, and is very industrious. By breakfast time, he has got all ready for the day's work. All hlands then pitch into severe labor till noon. Dinner is called and dispatched in haste, and labor renewed till supper. This unavoidable but neccessary hindrance to labor is hurriedly performed, work resumed until darkness compels a cessation of labor in the field, and then the laborers return to the house. A lantern is procured, by the aid of which the milking and other chores are'done up,' and by nine or ten o'clock at night the day's work is closed, and the family, tired and stupid, retire to bed, only on the following day to repeat the same routine of slavery. And yet such men are called good, thifty, industrious farmers. It is a lie! a base slander to call such stupid slavery of body-, such starvation of mind, good or thifty, or in any wise commendable. "Go into the country, and you will find numberless cases of men with poor health, crushed energies, ruined constitutions, and stunted souls, and women the slaves of habits of excessive labor, more fatal than the pernicious and much-comdemned customs of fashionable society. You will find children prematurely old, with the bright light of happy childhood extinguished, and everywhere a lack of that life and cheerfulness which gives to life its greatest charms. Most of these evils can be traced directly to overwork. Is such work necessary or even profitable for a famer? Most certainly not. Such work is a losing business, and farmers who adopt that course of labor will find at the THE FARMER'S WAR AGAINST MONPOLIES. end of the season that themselves, their wives, and children are worn and discouraged, and have not accomplished as much as had been attempted or expected. Why? Because they have worked like oxen and not like men, and have depended on muscle alone instead of making it an auxiliary of the mind, and they treat themselves to the luxury of a good, long, hearty growl at members of all other industries for combining t( oppress the poor farmer. They growl at the shoemaker; they growl at the merchant; they growl at the railroad; they growl at the commission men; they growl at everybody and everything that lives by using its wits ill sponging, cheating, and oppressing the hardworking farmer. This horde of cormorants are growled at, whined at, and snarled at, because they filch fromn the farmer his hard-earned dollars and live ii luxury and ease thereon. Speakers at agricultural and political meetings, and writers in agricultural papers repeat these complaints, and ring the same charges over and over again, in season and out of season, until themselves and most farmers really believe that the tillers of the soil are the most industrious, moral, intelligent, hardworking, abused, persecuted lambs in the world, and everybody else are wolves, seeking whom they may devour. "Now, as one who was born on a farm, reared on a farm, has spent the flower of his days on a. farm, and still earns his bread by tilling the soil, I know my brother farmers will forgive me if I do not follow in and repeat this strain, but tell plainly the naked. disagreeable truth. Many of these complaints are true, and we ought to be ashamed of ourselves that such is the disgracefill fact. Here is a class of people exceeding any other in -- numbers and wealth, and claim 525 526 HISTORY OF THiE GRANGE MOVEMENT; OR, ing superior industry, intelligence, and morality, complaining of being oppressed. We ought to be ashamed of ourselves, and either cease our boasting or our whining. "Let us take a candid look at the situation, and see if we cannot discover what is the matter. Let us try and see if there is any good reason why the great majority should be governed and oppressed by a small minority. "In human affairs effects follow causes; results are accomplished by action, even when the actors are unseen. Look at our State and national Governments, and who are the men to whom we entrust this great responsibility? Look at our boards of trade, industrial expositions, and in fact any great project for the advancement of science, art, liberty, or industry, and you will find at its head and the moving spirit thereof a lawyer, doctor, preacher, student, merchant, or, in fact, almost anything but a farmer. These men rule the nation. They shape the laws; they make the channels of trade, and place trade in its channels. They build ships, harness steam to their wagons, make lightning carry their messages; they compel rivers to turn their saws, twirl their spindles, and throw their shuttles. They use their brains, and mind governs the world. "Just think of competing against such men by stupidly hoeing corn fifteen hours a day and selling it at twenty cents a bushel, and then laying awake nights, growling at railroad men and merchants. The dog who barks at the moon comes nearer accomplishing his purpose than such a growler. Why have not farmers taken a position of influence and power in the councils THiE FARMER'S WAR AGAINST MONOPOLIES. 527 of the nation and otherwise, in proportion to their numbers and wealth? Simply because we have not used our brains. "The world pays homage to intelligence, to intellect, and puts it in places of honor, of trust, of responsibility. The world is not partial to lawyers, ministers, and doctors, but the world wants to use brains, and accepts them wherever found, and uses them to promote its wishes; and if we farmers want to be placed in the foremost rank in the nation and in the world; if we wish to be put in positions where we can have power to aid our fellows; if we wish to have influence and make our iiiark on the institutions of the land; if we wish to stand where we can do something towards governing the price of our commodities; if we wish to weigh according to our size in the scale of public opinion; if we want to have farmers in demand for places of trust and honor and profit, and for husbands for beautiful, refined, and intelligent women; if we want to escape from our present vassalage, we must furnish some brains, sound in quality, liberal in quantity, polished with constant use, refined by study and thought. Show me such a farmer as that, and I will show you a manil whom his fellowmen will want to use in places of trust. "I speak it in sorrow; I admit it with deep and burning shame, that the farmers can furnish but comparatively few men whose minds are fitted to organize great enterprises. Look at the farmers in our Legislature. In numbers they are very small in proportion to the population of the State, and smaller yet in the influence they have upon the legislation. When they come in contact with men who are in the habit of close and logical reasoning, they, with a few exceptions, prove 528 HISTORY OF THE GRANGE MOVEMENT; OR, wanting. It may, and probably will be said that headwork will not hoe corn or feed the pigs. Granted. But prove to me that an intelligent man is disqualified from performing the duties of a farmter and you will prove to me that farming is a business which it is disgraceful to follow, and that it is grossly unjust to say aught to induce any young man of common sense to become a farmer. "It is seen that thought, intelligence, mind, brains, used in other branches of business, lead to success. It is found that men with clear heads, sharp wits, sound judgment, and business habits go straight along and compel success even under adverse circumstances. Now, is it any advantage to have and use brains? Can a man with brains get, in tilling the soil, a fair compensation for their use? Can brain work be employed on the farm and return to the owner as much of comfort, wealth, happiness, honor, and general prosperity as in other branches of business at the present time-? This is a knotty question, but it is one we have got to meet, and meet it now. There is no use in attempting to evade or ignore this great alternative. If there is anything in agriculture that necessarily dwarfs the mind and niakes it secondary to mere physical exertion, then it is a disgrace to be a farmer, and common honesty requires that we cease talking about the honorableness of the noble yeomanry. But, on the contrary, if agriculture will give scope to thought and research; if it will cause a man to think while he works and study while he has leisure; if his business is such that talent and tact will transform his soil to gold and'his house into a beautiful and happy home; if the same amount of bodily and mental labor on the farm will produce as THE FARMER'S WAR AGAINST MONOPOLIES. 529 much pleasure, wealth, and happiness as in the shops, counting-room, and mines, then we may conscientiously recommend agriculture as one of the desirable employmneits. Can this be done? "Brother Patrons of Husbandry, our Order has been formed to assist in answering this great.question in the affirmative. How shall we proceed? "I do not underrate the importance of making an effort to buy our reapers a few dollars cheaper and sell our wheat a few cents higher and get our freights a little lower. What is gained in this way is certainly added to the profits of the farm, but I very much fear that many members of the Order place too high a value upon this matter of purchase and sale. This is not what ails us. It does not reach the root of the difficulty at all. It only prunes away a few slender twigs which grow again in a single night. We can never accom_ plish what we want, and make agriculture respectable, remunerative, and desirable; farmers intelligent, con tented, and honored; farmers' wives envied and re. spected, and farmers' sons and daughters eagerly sought by the wise, good, learned, and beautiful of the land for husbands and wives; we cannot make beautiful homes fertile farms and improving flocks by saving five dollars on a plow and five cents a bushel on wheat. No! Never! When we build like that we must dig deeper, lay the foundations broader, and use brains as the chief stone of the corner. An ox excels us in strength, a horse in speed. The eagle has keener sight, the hare a quicker ear, the deer a finer sense of smell; but man excels them all in mind and rules above them all. So among men it is not the strong, the swift, the keen-sighted, the quick-eared or fine 34 530 HISTORY OF THE GRANGE MOVEMENT; OR, scented who rules the world, but the clear-headed. Human beings are like pebbles on the sea shore; by rubbing against each other they become rounded, smooth, polished, symmetrical: alone, they are rough, uncouth, repulsive. "Farmers are too much alone. We need to meet together to rub off the rough corners and polish down into symmetry. We want to exchange views, and above all we want to learn to think. A man who has performed fourteen hours of severe physical labor is in no condition to think, and we may as well decide at once that any class of men which starts out in life by working at severe labor fourteen hours of the twentyfbur, and faithfully adheres to the practice, will fill forever the position of hewers of wood and drawers of water for men who use the God-given mind, and nourish the soul with liberal and abundant mental food. "I have already tired your patience, and in closing will only say that in my opinion the coming farmer will not toil with his hands fourteen hours out of the twenty-four and compel wife and children to the same slavery. But he will give a liberal share of his time to thought, study, and recreation. He will know of what his soil is composed, in what it abounds, in what it is deficient. Hle will know what elements of earth and air are needed to plant growth, and under what conditions they can be most readily assimilated. He will understand the laws of plant and animal life, that lhe may more successfully treat them. His house will be abundantly supplied with books and papers on agricultural and matters of general interest. Pictures and abundant amusements will make his home attractive. A beautiful lawn and flower beds, a fruit and vegetable TIlE FARMER'S WAR AGAINST MONOPOLIES. 531 garden, an orchard, groves, and evergreens and deciduous trees for ornament, shelter, and use, will make his home so lovely and homelike that his daughters will not be so disgusted with farm life as to marry a village dolt, or tile son so worn, weary and dispirited as to leave the farm at the first opportunity and open a barber shop in some country village. Can this be done, and can the farms really be made the happy homes of refined, intelligent, honored men and women, instead of the abodes of overworked slaves? Yes! emphatically yes! But not by neglecting to rust the God-given mind, but by rousing it up and making it the compass, the sail, and the rudder in the voyage of life. The body is but the hulk. Then set your sails, stand by the rudder, steer by the compass, and start out boldly on the great journey, whose passage is pleasure and whose end is success." Mr. Adams is married to an excellent lady, endeared to a wide circle of friends by her many virtues. She holds the post of Ceres in the National Grange. O. H. KELLEY, Secrelary of the JVational Grange. Mr. Keiley is a native of Boston, Massachusetts, and has been for some years a clerk in the Bureau of Agriculture at Washington, D.C. He is about fortysix years of age. In appearance he is a man who would be singled out of a crowd as a thinker. His high bold forehead, large - earnest eyes, long white beard, and generally scholarly appearance, would seem to stanmp him as a philosopher rather than a man of action. He is eminently fitted for the position he holds in the Order, a position involving an infinite amount of detail, 532 HISTORY OF THE GRANGE MOYEMENT; OR, and requiring ability of a marked and special character. His services in founding the Order have already been related in these pages, and it is useless to repeat them here. COLONEL JOHN COCHRANE, Master of the WiZsconsin State Grange, Is one of the most prominent members of the Order. His views upon the questions of the day have been given at length elsewhere. He is one of the old settlers of the State, resides at Waupun, and is known throughout Wisconsin as one of the best practical farmers in the West. He has never been a politician, though he has taken a deep interest in all the political questions of the day; " and he enters into the farmers' movement at a time of life when men of his habits and pursuits generally find retirement most attractive, from a strong conviction of duty, and a desire to raise the farmers of Wisconsin out of the slough of despond into which they have been fast sinking." Colonel Cochrane's farm comprises a tract of 1000 acres, which he has brought under the highest state of cultivation. He has had a crop of wheat of 6000 bushels in a single year on this land. S. H. ELLIS, Master of the Ohio State Grange, Is a native of the State, is forty-thllree years of age, and has been a fanner all his life. His connection with the Order dates back to September, 1872,-when, with fifty of his acquaintances, he succeeded in organizing the first Grange in the State. He was elected Master of this Grange, and was subsequently appointed by the National Grange a deputy for Ohio to organize new THE FARMER'S WAR AGAINST MONOPOLIES. 5.33 Granges. By the 9th of April, 1873, there were in the State thirty Granges. In this month the State GrangeL was organized, and Mr. Ellis was chosen Master. JOHN WEIR, First Master of the Indiana Slate Grange, Is a native of East Tennessee but emigrated to the Wabash, in Indiana, in 1817, being then seventeenyears of age. A large majority of the inhabitants were Indians. The settlers were destitute of churches, schools, mills and roads. Comparing that time with the present, he has witnessed perhaps a greater change brought about by civilization than any other man. The State Grange was organized at Terre Haute, February 28th, 1872. On tile 15th of January last there were 49 organizations, since which time the number has increased nearly six-fold. F. H. DUMBAULD, First Master of the Kansas State Grange, Was born in Pennsylvania, and is now 45 years of age. With his father's family he removed at an early age into Ohio, where he remained 18 years. In 1864 he settled in Kansas. He has "made" three large farms in his life. The State Grange was organized July 30th, 1872, and Mr. Dumbauld elected Master. With the assistance of George Spurgen, the Secretary, he has organized over 400 subordinates in the last nine months. The Patrons have effected quite a revolution in Kansas, having brought dealers to supply agricultural implements and other necessaries at prices varying from 30 to 40 per cent. lower than usually charged. 534 HISTORY OF THE GRANGE MOYEMENT. T. R. ALLEN, ffaster of the Mfissouri State Grange, Is a practical and prosperous farmer. He resides about thirty miles west of St. Louis on the Missouri Pacific. Railroad. In the discharge of his official duties he has travelled through every county of the State during the past year, and under his management the Order has spread rapidly throughout that State. THE ILLINOIS STATE FARMERS' ASSOCIATION, Is often confounded with the Order of Patrons of Husbandry, but is entirely distinct from it. It is composed of both Granges and Farmers' Clubs, and has taken a very prominent part in the politics of the State. The Presi dent of this Associa tion is Mr. W. C. Flagg, of Mora,, Madi son county, and the Treasurer is Duncan M'Kay, of Mount ",~ ~Carroll, Carroll county. Stephen M. Smith, whose views and speeches DLTNCAN M'KAY, TREAS'URER OF THE we have given at ILLINOIS STATE FARMERS' ASSOCIATION. length, is the Secretary of the Association. He is also an active member of the Grange. DECLARATION OF PURPOSES OF THE ORDER OF PATRONS OF HUSBANDRY. Adopted at the Annual Session of the National Grange, at St. Louis, Mo., February 11th, 1874. PROFOUNDLY impressed with the truth that the National Grange of the United States should definitely proclaim to the world its general objects, we hereby unanimously make this Declaration of Purposes of the Patrons of Husbandry: 1. United by the strong and faithful tie of Agriculture, we mutually resolve to labor for the good of our order, our country, and mankind. 2. We heartily indorse the motto, "In essentials, unity; in non-essentials, liberty; in all things, charity." We shall endeavor to advance our cause by laboring to accomplish the following objects; To develop a better and higher manhood and womanhood amnong ourselves. To enhance the comforts and attractions of our homes, and strengthen our attachments to our pursuits. To foster mutual understanding and cooperation. To maintain inviolate our laws, and to emulate each other in labor. To hasten the good time coming. To reduce our expenses, both individual and corporate. To buy less, and produce more, in order to make our farms self-sustaining. To diversify our crops, and crop no more than we can cultivate. To 535 "I 536 HISTORY OF THlE GRANGE MOVEMENT; OR, condense the weight of our exports, selling less in the bushel, and more on hoof and in fleece. To systematize our work and calculate intelligently on probabilities. To discountenance the credit system, the mortgage sys tem, the fashion system, and every other system tend ing to prodigality and bankruptcy. We propose meeting together, talking together, work ing together, buying together, selling together, and in general acting together for our mutual protection and advancement as occasion may require.' We shall avoid litigation as much as possible by arbitration in the Grange. We shall constantly strive to secure entire harmony, good will, vital brotherhood among ourselves, and to make our order perpetual. We shall earnestly endeavor to suppress personal, local, sectional, and national prejudices, all unhealthy rivalry, all selfish ambition. Faithful adherence to these principles will insure our mental, moral, social, and material advancement. 3. For our business interests we desire to bring producers and consumers, farmers and manufacturers, into the most direct and friendly relations possible. Hence we must dispense with a surplus of middlemen; not that we are unfriendly to them, but we do not need them. Their surplus and their exactions diminish our profits. We wage no aggressive warfare against any other interests whatever. On the contrary, all our acts and all our efforts, so far as business is concerned, are not only for the benefit of the producer and consumer, but also for all other interests, and tend to bring these two parties into speedy and economical contact. Hence we hold that transportation companies of every kind are necessary to our success; that their interests are intimately connected with our interests, and harmonious THE FARMER'S WAR AGAINST MIONOPOLIES. 537 action is mutually advantageous. Keeping in view the first sentence in our declaration of principles of action, that " individual happiness depends upon general prosperity," we shall therefore advocate for every State the increase in every practicable way of all facilities for transporting cheaply to the seaboard, or between home producers and consumers, all the productions of our country. We adopt it as our fixed purpose to open out the channels in Nature's great arteries, that the lifeblood of commerce may flow freely. We are not enemnies of railroads, navigation, and irrigating canals, nor of any corporation that w'ill advance our industrial interests, nor of any laboring classes. In our noble order there is no communism no agrarianism. We are opposed to such spirit and management of any corporation or enterprise as tends to oppress the people and rob them of their just profits. We are not enemies of capital, but we oppose the tyranny of monopolies. We long to see the antagonism between capital and labor renmoved by common consent and by enlightened statesmanship worthy of the nineteenth century. We are opposed to excessive salaries, high rates of interest, and exorbitant profits in trade. They greatly increase our burdens, and do not bear a proper proportion to the profits of producers. We desire only self-protection and the protection of every interest of our land by legitimate transactions, legitiminate trade, and legitimate profits. 4. We shall advance the cause of education among ourselves and for our children by all just mneans within our power. We especially advocate for our agricultural and industrial colleges that practical agriculture, domestic science, and all the arts which adorn the home be taught in their courses of study. 538 HISTORY OF THE GRANGE MOVEMENT; OR, 5. We especially and sincerely assert the oft-repeated truth taught in our organic law, that the Grange, National, State, or subordinate, is not a political or party organization. No Grange, if true to its obligations, can discuss political or religious questions nor call political conventions, nor nominate candidates, nor even discuss their merits in its meetings. Yet the principles we teach underlie all true politics, all true statesmanship, and if properly carried out will tend to purify the whole political atmosphere of our country. For we seek the greatest good to the greatest number, but we must always bear in mind that no10one by becoming a Patron' of Hlusbandry gives up that inalienable right and duty which belongs to every American citizen, to take a proper interest in the politics of his country. On the contrary, it is right for every member to do all in his power legitimately to influence for good the action of any political party to which he belongs. It is his duty to do all he can in his own party to put down bribery, corruption and trickery; to see that none but competent, faithful and honest men, who will unflinchingly stand by our industrial interests, are nominated for all positions. It should always characterize every Patron of Husbandry that the offices should seek the man and not the man the office. We acknowledge the broad principle that difference of opinion is no crinme, and hold that progress towards truth is made by differences of opinion, while the fault lies in bitterness of controversy. We desire a proper equality, equity, and fairness, protection for the weak, restraint upon the strong; in short, justly distributed burdens and justly distributed power. These aire American ideas, the very essence of American independence, and to advocate the contrary THE FARMER'S WAR AGAINST MONOPOLIES. 539 is unworthy of the sons and daughters of an American republic. We cherish the belief that sectionalism is, and of right should be, dead and buried with tile past. Our work is for the present and the future. In our agricultural brotherhood and its purposes, we shall recognize no North, no South, no East, no West. It is reserved by every Patron, as the right of a freeman, to affiliate with any party that will best carry out his principles. 6. Ours being peculiarly a farmers' institution, we cannot admit all to our ranks. Many are excluded by the nature of our organization, not because they are professional men, or artisans, or laborers, but because they have not a sufficient direct interest in tilling or pasturing the soil, or may have somne interest in conflict with our purposes. But we appeal to all good citizens for their cordial cooperation to assist in our efforts toward reform, that we may eventually remove from our midst the last vestige of tyranny and corruption. We hail the general desire for fraternal harmony, equitable compromise, and earnest cooperation, as an omen of our future success. 7. It shall be an abiding principle with us to relieve any of our suffering brotherhood by any means at our command. Last, but not least, we proclaim it among our purposes to inculcate a proper appreciation of the abilities and sphere of woman, as is indicated by admitting her to membership and position in our Order. Imploring the continued assistance of our Divine Master to guide us in our work, we here pledge ourselves to faithful and harmonious labor for all future time to return by our united efforts to the wisdom, justice, fraternity, and political purity of our forefathers. DO YOU WANT TO MAKE MONEY? No business pays so well as an agency for popular Histories, and Illustrated Bibles and Biblical works, for they are the class of books that every intelligent person wants, and is always ready to buy. The only difficulty in the matter is to secure a Valuable ancd Popular Series of Books, and such pre-eminently are the works that we are now publishing. No series published will compare with them in real value, interest, and popularity. Being the most extensive subscription book Publishers in the United States, and having four houses, we can afford to sell books cheaper and pay Agents more liberal commissions than any other company. 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The following pages contain a Catalogue of some of our most valuable and popular Works, a specimeu copy of either of which will be sent by mail, postago paid, to any address, on receipt of price. -- 0 w TiE LIGHT IN THIE EAST. A COMPREHENSIVE RELIGIOUS WORK, EMBRACING THE LIFE OF OUR LORD AND SAVIOUR JESUS CHRIST, AND THE'LIVES OF HIS HOLY APOSTLES AND EVANGELISTS. BY REV. JOHN FLEETWOOD, D.D. Together with the LIVES of the PATRIARCHS and PROPHETS, and of the Mog Eminent Christian MARTYRS, FATHERS and REFORMERS. To which is added the HISTORY OF THE JEWS, from the Earliest Times to the Present Day, and a HISTORY OF THE RELIGIOUS DENOMINATIONS OF THE WORLD, BOTHI AN CIENT AND IMIODEIN. ILLUSTRATED WITH OVER 200 FINE ENGRAVINGS. The object of this work is to present to the reader a full, comprehensive and intelligent aec tunt of the Life, Ministry and Sufferings of our Blessed Redeemer. On all sides there is a growing demanid for some plain and forcible illustration of the Life and Teachiugs of Our Saviour ivhile on earth, which, unmarred by the errors (,)d theories of MODERN PHILOSOPHY, shall serve as an assistance to the faithful student of the Gospel story. S'ch a work is needed in every household to strengthen the faith of the aged, and to keep the feet of'the young iii the narrow way. The Lives of the Apostles and Eva7gelists are given in full, and to them are added biographies of the other New Testament characters. It will be found at great assistance to an intelligent comprehension of Christ's ministry to be thoroughly instructed in the history of those who were his intimate frien,ls and the agents of his power., The Lives of the Ptriarchres ail Prophets embrace comprehensive accounts of the m,ist noted Old Testament characters, a knowledge of whose lives is essential to a proper understandlng of that of our Saviour, who was the fulfilnent of the Old Dispensation. The work would be incomplete did it fail to trace the spread of Christianity from the days of tlhe Apostles to the modern era. This is done in a series of biographies of the E,,rly Christi,,, Aart!/rs, Fathers and Reforner-s, embracing a period from St. John to the Reformnation, and showing how the truth was established and witnessed, under God, by those noble men.'To this is added a History of the Jess fro-)m the Ear,liest Tisnes to the Pese,eit Day, which is veiry complete and comprehensive, and no more interesting narrative is to be found in the pages of history. The History of all Religious Denomninattions comprises a series of comprehensive acconttits of the various forms of truth and error which have prevailed in the world. A proper unadrstanding of this subject will do much to soften denominational asperities and to teach us that respect for the religious belief of our brethren, which should be the distinguishing mark of a Christian. The Chro,iological Table will be found especially valuable and interesting an4 will enable the reader to mark the progress of the outside world, while Israel was work ing out her destiny. One of the great merits of this work is that it comprises in one large volume that which is usually spread out through a great many books, so that it may be said it is in effect a complete library of religious literature in itself. The Editor has been extremely desirous of including in it all that it is essential for a Christian to know, and much that is pleasant t, read of. Nothing necessary to a full and intelligent understanding of the truths of revealed religion has been oumitted, and the book is perfectly free from sectarian bias, its aim being to promote the cause of the one indivisible Church. In one large octavo volume of 850 pages, enibellished and illustrated with more than 2(10 fine Engravings, by the best artists of England and America, and furnished to Subscribers, Mllgantly Bound in Fine Morocco Cloth......................................at $4.00 per copl. "In Red Roan, Full Gilt Back............................ at 4.75 " " In French Morocco, Full Gilt Panelled Sides....at 6.50.' * AGENTS WANTED. Address, NATIUNAL PUBLISHING CO,, Philadelphia, Pa.; Chicago, Ill.; or, St, Louis, Mo. THE UNDEVELOPED WEST; FIVE YEARS IN THE TERRITORIESI Being a Complete History of that Vast Region Between the Mississippi and the Pacific; its Resoutces, Climate, Inhhabitants, Natural CG;riosities, Etc. :LIFE AD ADTURE ON PRAIRIES, MOUNTAINS, AN,D THE PACIFIC COAST, WITH 240 FINE ILLUSTRATIONS, FROM OBRIGINAL SKETCHES AND PIIOTOGRAPHIC YIEWS OF THE SCENERY, LANDS, MINES, PEOPLE, AND CURIOSITIES OF TIE GREAT WEST. B3Y J. H. BEADILE, Western Correspondent of the Cincinnati Comnercial, and author of " Lfe in Utak" etc. Mr. Beadle spent five years in the Great West, for the especial purpose of exploring the country. Setting out on foot, he traversed the States of Iowa, Minnesota, Nebraska, and Kansas, as well as Dakotah and the Indian Territory; visiting in person all thlat was worth seeing; examining the lands, living- and conversing with the people. and gaining for himself a fuend of information, based upon his own observations and discoveries, more extensive than one man in a million can obtain. He visited the rich mines of Colorado, Utah, Nevada, and Idaho; spent months with the Indians, both friendly and hostile, studying their character and habits; explored the various routes of the Great Pacific Railways; passed into California and Oregon, and there enjoyed peculiar advantages for seeing and investigating the resources and curiosities of those remarkable States. He spent considerable time in New Mlexico, Arizonta, and Texas, and his account of his observations and discoveries in those strange Iaid derply interesting portions of our country will commend his book to the careful consideration of the scholar as well as to all who seek practical information or amusemen't. IHis only companions in his travels in Arizona were Indian guides, and for weeks during his explorations in that Territory he never saw the face of a white man. The book is full of information and facts of the greatest importance, such as could be obtained only by going after them, as this indefatigable explorer did. All sorts of people figure in this work: the hardy frontier farm r; the wary hunter and trapper; the reckless miner; the cruel and degraded savage; the liard(-workiig Heathen Chinee;" the "much-married" Mormon; the strange remnants of the oncepowerful Aztec race-all these figure with the naturalness of life in this remarkable book. These new States and Territories contain incomparably the grandest scenery in the world, and some of the richest resources of the American Continent. Prol)bably no other man has ever journeyed so extensively among them as Mr. Beadle-certainly no one so competent to describe what he has seen. To prospective emigrants and settlers in the "Far West," this history of that vast region will prove an invaluable assistance, supplying, as it does, a want long felt of a full,authentic and reliable guide to climate, soil, products, distances, localities, means of travel, etc. This work may be relied on, for it contains no second-hand information. A EN:ETS WANIT3ED. The great desire everywhere manifested to obtain this work. and the low price at which it is sold, combined with the very liberal commissions, make it the best opportunity for Agents to make money ever heard of in the history of books. They are meeting with unprecedented success, selling from FIFTEEN to TWENTY, and some even as high as'HIR'TY copies per day. Send for Cirxnlars, and see our Terms, and a Full Description of the Work. Address, NATIONAL PUBLISHING CO., - Philadelphia, Pa.; Chicago, Il.,; or, St. Louis, Mo. IN ONE LARGE ROYAL OCTAVO ~OLU.IE OF 823 PAGES, PRICE -R 7,. lIN CLOTIIH. O::u, .. o MThis very interesting and valuable Work will be sent to any address, postage paid, on receipt of Price. SEXUAL SCIENCE INCLUDING MANHOOD,, WOMANHOOD, AND THEIR MUTUAL INTER-RELATIONS LOVE, ITS LAWS, POWER, ETC. By Prof. O. S. Fowler. " Sexual Science" is simply that great code of natural laws by which the Almighty retiires the sexes to be governed in their mutual relations. A knowledge of these laws is of the highest importance, and it is the general ignorance of them which swells the list of disease and misery in the world, and wrecks so many lives which would otherwise be happy. THE WORK TREATS OF LOVE-MAKING AND SELECTION, showing how love affairs should be conducted, and revealing the lacas which govern male and female attraction and repulsion; what qualities make a good, and a poor, husband or wife, and what giver persons should select and reject; what forms, sizes, etc., may, and must not, intermarry. OF MARRIAGE, its sacredness and necessity, its laws and rights; of perfect and miserable unions; and of all that it is necessary to know concerning this most important relation in life. OF BEARING AND NURSING.-This portion being a complete encyclop)edia for pro. spective mothers, showing how to render confinement easy, and manage infants; every youna wife requires its instructions as affecting her embryo. OF SEXUAL RESTORA'I'ION.-This is a very important part of the work; because almost all men and women, if n(t diseased, are run down. The laws of sexual recuperation are here, for the first time, unfolded, and the whole subject thoroughly and scientifica:lly treated; giving the cause and cure of female ailments, seminal losses, sexual impo)tenTce, etc. And Tells how to promote sexual vigor, the prime duty of every man and woman. How to make a right choice of husband or wife; what persons are Buited to each other. How to judge a man or woman's sexual condition by visible signs. Hlow young husbands should treat their brides; how to increase their iove and avoid shocking them. How to avoid an improper marriage, and how to avoid female ailments. How to increase the joys of wedded life, and how to increase female passion. How to regulate intercourse between man and wile, and how to rnmc]e it healthful to both; igtnorance of this law is the cause of nearly all the woes of nariage. How to have fine and healthy children, and how to transmit imental and physical qualities to offspring. How to avoid the evils attending pregnancy, and how to make child-bearing healthful and desirable. How to prevent self-abuse among the young, and how to recognize the signs of self-abuse and cure it. How intercourse out of wedlock is injurious; a warning to young men. How to restore and perpetuate female beauty, and how to promote the growth of the female bust. How to be virtuous happy, healthful and useful, by a rigid compliance with the laws of sexual science. There is s, cely a question concerning the mos,t serious duties of life which is n-et fully and satisfa,ctor,ily answered in this book. Such a work has long'been needed, and will be found invalahbl,.to every man and woman who has arrived at years of discretion. It should be read especially by the married, and by those who have the care'of children, and it will carry happiness with it wherever it goes, by diffusing knowledge on those subjects concerning whieh it has, until now, been almost impossible to obtain reliable information. The book is pure and elevated in tone; eloquent in its denunciations of vice; and forcible in its warnings against the secret sins which are practiced with impunity even in the family circle. In one large royal octavo volume of 930 pages, embellished and illustrated with numerous Engravings, and furnished to Subscribers, Bound in Extra Fine Cloth....................................*............ at $3.75 per Copy, B13ound in Fine Ls,ather, (Library Btyle,)........................................at $4.50 " AGENTS WANTED. Address, NATIONAL PUBLISHING CO., Philadelphia, Pa.; Chicago, Ill.; or, St. Louis, Mo. I I