The Express.
London, England, 1848-10-25 00:00:00

upon their capitals. The others are Met stments, from
all of which • cei lain amount ut interest, more or less

-.
according to circumstances, will be derived. But it
may be taken as a general rule that the
rate of this return, on any such additions
to capital, will not equal that which the business on
the main trunks would of itself produce; and on this
account the later extensions of the system mast tend,
for some years at least, to lower the standard of pro-
fits an the whole capital, independently of the dead
. weight thrown upon it by the unproductive expense
above mentioned. It thus, appears that what the
railway body, as a whole, has been doing far the last
five years, whether voluntarily in erroneous expecta-
tions of pin, or compelled by the external muses
which were stated in a former article, amounts
to a wider spread of capital on a series of works
abundantly useful to the nation at large, bat far from
being as favourable in its pet centage of gain to the
'investors as the original works were. And this effect
has been further strengthened by the reduced tariffs
now imposed or introduced on all the chief lines ; u
also by the increased efforts made by their managers
in the article of speed, &c., all of which redound to
the public convenience, but do cot bring in any ade-
quate profit—often, indeed, are a positive cause of
lose—to those who afford it. Such are the tendencies

that seem likely to reduce the return on railway capi-
tal permanently to a general standard lower than that
which tempted so many in past years to rash into new
undertakings. And the circumstance of this induce-
ment being greatly diminished, will so far produce a
contrary effect hereafter, that, as we have said, it must
be seen that, if only for the interest of the state in the
progress of the system, it would have been, and still
is, desirab!si to encourage rather than to depress the
profits which invite to such enterprises.
But the main foundations of this business, however
its grans may be reduced from their first tempting
scale, are still sound; and with due caution, pru-
dence, end economy—by the adoption of a
less ambitious, and less magnificent modes of proceed-
ing than have marked the pa.t, courses of direstore—
it may still rank among the meet solid investments
that our social condition allows of. Nothing, indeed,
can dangerously affect its sources of income which
shall not at the same time overturn all that condones
to profit or prosperity from any other employment of
money ; nothing can prevent its receipts, if carefully
husbanded, from being reasonably productive, bat
some forcible interference with the property
from without, on a principle which would strike
at the root of all secure and healthy enterprise
whatever. The business, we say, is not only
based on realities, but is perhaps on the
whole less exposed than any other to serious
decay ; es it ministers to wants that can never cease
to exist so long as society continues ; while, in a na-
tion that doubles its population in less than half a
century, it must be evident that nothing can bring
about a falling off of customers that shall not
have first thrown the whole country into a con-
dition in which no other class of business could be
active or thriving, and no other kind of property could
retain its value. This being seen, there is surely no
reason for railway owners to despond. They must be
prepared, indeed, for something less brilliant than may
have been expected from investments four years sae; bat
they may be sure of fair profits if they manage theme
concerns as they ought ; and they will act
very unwisely who, not being compelled
by actual necessity, will now throw up their
share in them in a fit of temporary alarm
or disappointment—instead of using the means in
their power to bring their affairs into order, and so
regulate them as to extract all the benefit which they
will certainly still yield, if prudently managed.
This brings:us to the discussion of what directors
ought now to do in order to the restoration of con-
fidence and the removal of alarm. We have
already said that, in this respect, information of their
plans for the future may be of great service, pro-
vided those measures are founded on a just view of
the actual condition of affairs, and lead to the course
which circumstances now retder expedient. A main
immediate cause of the pressure on the share market
is the burden of calls, which the holders cannot meet
without effort, and also are the less willing to make an
effort to meet, because they have lost much of their
hope of ultimate profit from the outlay. These it is
clearly a matter of prudence just now to restrict as
mach as possible, even with respect to works already
in progress; while it would be unwise, indeed, to
enter upon any new expenditure that cars be presently
avoided in such a troubled state of the public feel-
ing. In order to make cheerful confidence succeed to
apprehension, the heads of the railway world should
strenuously turn their minds to a thorough removal
of those causes of decay to which we have traced it,
so far as these are in their power; and much it cer-
tainly is in their power to do. Let them resolve, and
make the resolution known, to act as prudent I
and considerate men do in any other kind
of business which has run itself into difficul-
ties by running too fast. Let them combine
where they have hitherto contended, and use their
several powers for the promotion of peace and the
harmonious consolidation and working of the system,
which rivalries and jealousies have hitherto been
leading into ruinous projects and desperate expenses.
The pressure on all is now severe enough to command
this pacific resolution ; and the effect of this alone
wadi be to raise at once the public hopes in regard
is future railway profits. Let it also be clearly stated
what projects are to be prosecuted, and what either
wholly abandoned or at least suspended for a definite
period, after a due and searching examination of
the whole scheme of each company's powers and en-
gsgements the aim of which should be not,
es heretofore, to get on as fast as possible,
but to use in ell cases where progress is not
likely to be speedily remunerative—as in the cue of
works near their completion. Let it be further
known that in place of the magnificent proceedings of
put years the cardinal object of the directors will be
hereafter to study economy in every respect that is
I consistent with the efficient working of the business,
and with the continuance of those inducements that
promote traffic. Hitherto it has been the general
rule to spare no cost, in order to render the service,
works, builnings, Sre., not only complete, but even
sumptuous. This mut wholly give place to a firm
restriction of all expenditure to the necessary and
useful only. Everything, in short, must now be done
to limit outlay, and to husband receipts ; and if what
is needful be done, the current of railway affairs will
soon begin to resume their natural direction, which is
towards prosperity,—and confidence, its legitimate

offspring:
The adoption of these prudential views at head-
quarters, and the express public intimation that
they will be promptly and zealously carried out,
would be apt, above all things, to revive the drooping
aspect of railway affairs. While their state is such as
to make the study of pacific, economical, and wary
courses a general and pressing duty, it is also so far
from being desperate, or even deeply tainted, that
the mero certainty of a careful and moderate system
being (ally embraced would at once quicken the
hopes of all concerned; and the instant this point is
attained, a large amount of money now lying
idle, which has been withheld from railwa7
purchases of late, because of the doubts on this
chapter, would at once come in to strengthen the
property. Here, then, lies the essential object, which
it is the business of all to promote who have an in-
terest in this vast series of undertakings; and all have
an interest, whether as owners of the works, or as in-
habitants of a country which they have enriched, and
which has the strongest reasons to desire that they
should continue to prosper.
It is true that this progress cannot now be expected
to advance with the rapidity which might have been
given to it, had the results of the expenditure of the
past four years been more encouraging than they
have proved to be. It will be some time yet
before any one will again look at the prospectus
of a new line, however inviting may be its
intrinsic merits, or however abundant the flow d
money in the City. The confusion must first be
thoroughly cleared away from past enterprimes ; capi-
tal accounts closed ; and something effectual done to
make them—as they may be made by judicious arm
nagement—reasonably productive, before any further ,
steps will be made in a field that—es far u the Mts .
est of the nation is concerned—ls by no mine yet
sufficiently occupied. It may thus be seen mos more
how the public are concerned, not in trying, with the
Times, to undo railway proprietors, or in rejoicing over
their losses, but rather in giving them every fair
security for each profits as may enccusge others to
follow their example, and in desiring that works
which have so greatly benefited the nation may
equally benefit their promoters.
From what has now been said it will appear that
although there have been real causes for disappoint-
ment in the latest results of railway investment, there