The Real Estate Record

REAL ESTATE RECORD AND BUILDERS' GUIDE. VOL. XXYII. NEW TOEK, SATUEDAY, MAECH 5, 1881. No. 677 Published Weekly by State in the Union; and the most serious dividuals could accomplish. The railroad scandal known in the history of Congress and telegraph system of the country would C|^ %ml €stal^ Mttaxb %Bsatmixan,wa s connected with the Credit Mobilier, not exist or would be in a very imperfect TERMS. which constructed the Union and Central condition were it not for the union of effort ONE YE.4.a. in advance.. ..SIO.OO. Pacific Railroads. made possible by the combination of capital But there is another side to this matter. ists. The great consolidators of roads, such Communications should be addressed to It has been presented ably recently by Le as the Vanderbilts, Jay Goulds, Scotts, and C. W. SWEET, land Stanford, George Ticknor Curtis, and, Garretts are really public benefactors. They No. 137 BROADWAY last of all, by Jay Gould to an interviewer are unifying the railway system, of the through the columns of the Herald. One countiy and are preparing the way for claim, however, made by the corporations governmental control. It is far better to It will be curious to watch the clianges in is wholly inadmissible. They insist, through have one telegraph company than a dozen, store for Washington square and surround the medium of their lawyers and officers, for business can be done by wholesale ings during the next few years. From that railroads and telegraph lines are pri cheaper than by retail. One system of time to time we hear of some prominent vate property, and that they have a right to roads from New York to San Francisco or citizen returning with his household goods charge what they please, the same as any the City of Mexico is better than three or from the upper part of tlie city and settling other dealer in commodities. But in this four, and far less costly. The multiplica down once more along the square. The the common law and common sense of man tion of rival lines should in some way be latest addition, as will be seen by our mar kind is against them. No nation would prevented, as it is a clear waste of capital. ket report, will be Mr, C. Gr. Francklyn, ever consent to put their means of com Wiser than the American people, the French who has just purchased there a large house munication by rail or telegraph into the (lOvernment will not permit competing lines, for his own occupancy, thus joining quite a exclusive possession of a set of capitalists, which it regards as a waste of capital. It coterie of first-class families now occupying with a power to levy unlimited tolls upon protects the community against excessive the north side of the square. And yet we the community. But just here comes in an tolls by running the roads itself, or limiting doubt whether this forced exception to the opening for abuses and blackmailing prac the dividends. rule will be permanent. The entire neigh- tices, of which tho corporations can justly It is well therefore in the pending discus boorhood is more apt to become somewhat complain. Taking advantage of the privi sion to bear these facts in mind. It will not more of a business centre than a quarter leges granted by the State to corporations, do to discourage capitalists to combine for for fashionable residences, especially when swarms of legislative and legal blackmailers their own and the public benefit. Their tlie Hudson Eiver tunnel will be finished. prey upon them. Having no friends, they just rights should not be interfered with, It will be somewhere near this square that are followed up and mulcted without mercy. and public opinion should not permit legis the tunnel will bring its enormous traffic, In a case of accidenl, juries award heavy lative blackmailers to prey upon them. The which must have a marked effect upon the damages against corporations, no matter most serious calamity that could happen to character to be assumed by that section, and whether they are in the right or the wrong. the country would be to alarm the investing we rather share the belief of several prop In a recent heavy verdict against the ele class as to the security of their property. It erty owners that in the not distant future vated roads a German juryman in the case would at once put a stop to all our great in Washington square will be metamorphosed admitted that the plaintiff was not really dustrial enterprises, and set back the pro into something like Union square, and filled injured, but he was a poor devil and the gress of our civilization. " Nothing," said more with retail stores than with private corporation was rich and could afford the Wendell Phillips, "is so timid as a million residences. $10,000 ; hence the verdict. Then, the legis of dollars, except two milUon of dollars." lative blackmailer, taking advantage of the THE RIGHTS AND WRONGS OF COR prejudices against so-called monopolies, is CAPITALISTS IN CONGRESS. PORATIONS. unceasing in his demands upon the various It is a notable circumstance that the recent It needs no prophet to foresee that the re transportation companies. It may not be changes in Congress have been in the direct lations of corporations to the Government generally known, but it is nevertheless true, ion of fewer lawyers and more business men. and people are to be a subject of much dis that many of the employees of the elevated Of the seventy-six members of the new cussion for the next few years, and that in roads are forced upon the companies by the Senate, twenty-three of the number are not all probability political parties will divide politicians. Influential "boss" aldermen lawyers. This is a larger proportion than upon the question of corporation control. or members of the State Legislature are con was ever known even in pro-slavery times, Already the debate waxes warm, and the stantly demanding positions for their politi when the South was sometimes represented popular feeling against corporation monopo cal retainers. A great deal of the power of by large slave-holding planters. The privi lies is unmistakably strong. There is no the railroads in the Legislatu'^e is due to leged class in this country has heretofore doubt but what the great manipulators have their willingness to help politicians in the been the lawyers. They have had a monopoly thought of themselves more than they have way of patronage for the benefit of their of all political positions of honor and profit. of the community. They have built roads particular friends. When the elevated roads AU our executives, our judges and our legis at $25,000 a mile, and saddled them on the were laying their plans they consulted with lators, with but here and there an exception, investing public at fifty, seventy-five, and law officers and tax experts, and were solemn are members of the bar. This has resulted in the case of the New Jersey Central at ly assured that if they invested their capital in giving us more laws and poorer ones, than 1200,000 a mile. We are asked to pay large in the construction of this needed improve any other civilized country on earth. Con dividends upon $80,000,000 of telegraph ment they would not be taxed under the sciously or unconsciously, our lawyer legis stock, yet the honest cost of the plant was real estate head. But no sooner were the lators and executives have worked for the probably less than $10,000,000. Nowhere lines built than thoy were beset by legal and benefit of their profession, and the result is a does corporate management show to greater legislative harpies, and they will either have mass of confused, incoherent and litigation disadvantage than when associated with to pay a round tax or compromise with the promoting enactments on aU our statute Government help. Not only have they blackmailers. books which are a reproach to us as a com managed to overcharge the pubKc, but they Then, apart from every consideration the mercial people. have debauched legislation in nearly every corporations have done a work which no in But our rich men are now desirous of being 194 THE REAL ESTATE RECORD. Marcli 5, 1881 themselves Congressmen and Senators, in we are led to expect a large contraction of currency, made some years ago that when in tbe course of as the 5 and 6 per cent, bonds are redeemed. VVe trade, lu iliti cuuvulsions of business, in a period stead of, as heretofore, being represented in are prepared to see one-half of the $200,000,000 of panicky doubt as to the perpetuity of our in the two houses by their attorneys. Both the held aS security withdrawn from Washington, and stitutions or the honesty of our intentions, these $90,000,000 of currency surrendered, unless the Senate and House to-day fairly swarm with millions of securities should be sent home, they banks are relieved from the 1 per cent, tax on their would fall so low that they would be bought by lawyers, who represent corporations, na currency and the stockholders are relieved from the pound. Well, a large portion of them, as I tional banks and private business firms. the personal tax on their shares. Relief from these said, has returned. Where have they gone? taxes will enable the banks to sustain the present They have been taken up quietly by the people It is understood that in the new House of volume of currency on a 3% or even a 3 per cent, and_ absorbed.

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