MR. HOOTON ON RAILROAD ABUSES. 355 



satisfied with this increased income on their legitimate investment, 

 they issue false certificates of bank, railroad, and telegraph stocks to 

 an equal amount. They now demand, and, by skillful manipulation 

 of Congress, the Legislature, and the courts, collect ten per cent, on 

 both true and false investments. The general prosperity of the 

 country is unchanged. 



The creation of new wealth amounts to three per cent. But one- 

 half of the community receives ten per cent, on their real values, and 

 ten per cent, on a like amount of false certificates of value, making 

 their income equivalent to twenty per cent, on their real investment. 

 Under these circumstances what must be the condition of the other 

 half of the community? They have received their three per cent, 

 on the one hand, but on the other they have paid out enough to raise 

 the income of the non-producers from three per cent., and are there 

 fore losers to the amount of seventeen per cent, on their whole 

 wealth. The question naturally arises how long would it require for 

 the producers to become bankrupt, and their entire capital to be 

 transferred to the non-producers ? A little over five years would ac 

 complish this result. 



General bankruptcy of the industrial classes or repudiation must 

 follow. But these are not the only resulting evils, for, during these 

 years of rampant speculation, many new enterprises have been put on 

 foot. The money of the country is diverted from the legitimate 

 channels of trade, and invested in railroads and telegraphs through 

 uninhabited regions of country, where the investment can not be ex 

 pected to pay for many years. 



To supply this demand for ready cash, the banks have advanced 

 all the money in their vaults on false and true certificates, which in 

 time of a panic can not be realized upon; Money becomes scarce for 

 legitimate trade, and depositors attempt to withdraw their money 

 from the banks. A &quot;run&quot; begins, and the banks must fail, bringing 

 disaster to all concerned. This is but a picture of what has been 

 transacted in this country in the last few years. The non-producers 

 have so manipulated the government as to get from it vast subsidies 

 and monopolies, which have been used, not for the public good, but 

 to corrupt our Legislatures and Congress. Not being satisfied with 

 a fair income on their investments, they have watered their stock in 

 many instances to more than double the real value; they have 

 diverted the money of the country from its legitimate function ; the 



