RAILROAD PROBLEM IX THE UNITED STATES. 293 



prise, and hasten the undesirable tendency so plainly observable on all 

 sides, whereby the great houses are constantly absorbing the trade of 

 the lesser ones, and the business of the country seems passing into 

 fewer and fewer hands. 



As to the growth of subordinate railroad organizations, the quota- 

 tions of the stock-exchanges and the testimony of those interested in 

 investments not listed on the stock-exchanges prove the great lucra- 

 tiveness of express, fast-freight line, palace-car, elevating, and stock- 

 yard companies. It is a question whether these businesses can be suc- 

 cessfully carried on by railroad companies, but, if not, the corpora- 

 tions which give them birth should, if honestly managed, see to it that 

 they retain such interest as to participate in the large profits earned. 

 The chief danger attending these subsidiary organizations is, that the 

 railroad officials who take stock in them are interested in granting them 

 special privileges and good bargains. It is notorious that officers of 

 unprofitable or bankrupt roads have grown rich by interests of the 

 kind mentioned. 



The political power which the railroads can exert has repeatedly 

 attracted public attention. In New York State there are thirty 

 thousand railway employes, and the number of people indirectly in- 

 terested in the roads, and influenced by them, is perhaps equally large. 

 At the capital this voting element has opposed railway legislation, and 

 triumphantly. Parallel cases have occurred in other States, notably 

 in California and Illinois. As an example of what a railroad can do 

 in the way of controlling political action, let this quotation be given 

 from Jay Gould's testimony before the State Committee appointed in 

 18T3 to investigate the management of the Erie Railway : "I do 

 not know how much I paid toward helping friendly men. We had 

 four States to look after, and we had to suit our politics to circum- 

 stances. In a Democratic district I was a Democrat, in a Republican 

 district I was a Republican, and in doubtful districts I was doubtful ; 

 but in every district, and at all times, I have always been an Erie 

 man." Other testimony proved that millions of dollars had been ex- 

 pended from the treasury of the Erie road in nominating, electing, 

 and corrupting Senators and members of Assembly. A new danger 

 certainly threatens public liberties in the light of these and many 

 kindred revelations, a danger which, perhaps, only counter-organiza- 

 tion by the people can successfully face. It was a notable day in 

 American history when the attorney of the Pennsylvania Railroad 

 threatened the Supreme Court of the State with the displeasure of 

 his clients if a verdict unfavorable to them were granted. When 

 President Vanderbilt, of the New York Central, was told about the 

 State Commissioners who were to supervise railroad affairs, he said 

 that either the railroads would have to own the commissioners or the 

 commissioners the railroads. His later utterances with respect to pub- 

 lic criticism are tolerably familiar, and need not be here repeated. 



