The Express.
London, England, 1866-11-12 00:00:00

BRITANNIA.

THIS Eritsinci, WHAT N I I "Dancing Mail" Bryce:
Miss K. titrt.,,ne ; l'aul ; Master George Periut—THE
iLD eIIEKRN Mrs. lAne.—Concluding with DAILY
LIVINtiSTUN E.

num WATER AT LONDON BRIDOI.
TUB DAY —sl,,rning, th.Sra Afternoon. SA. bf!nt.
TO-MORROW—Morutuit, bh. 9m Afternoon. bh. 2int,

LONDON, MONDAY, NOVEMBER 12,

THE position of the Rtilway interest is becoming
more and more unsatisfactory every day. Hardly
a week passes by without the revelation of some
new scandal, and the holders of what have
hitherto been considered among the best es-
tablished and most substantial stocks begin to
doubt the validity of their securities. It is not
that railways are deemed worthless in themselves—
there is the property, and it cannot be made away
with—but the reality of the title is impugned.
It is no consolation to the purchaser of a deben-
ture that has been issued ultra rifts to be told
that at all events the lino by which it purports to
be secured is good and well built, with an in-
crossing traffic, and likely to become at no very
distant date a first-class and remunerative invest-
ment. This may be all very true, but still there
is the danger that fictitious debentures may have
been issued on its security, that an unknown
amount of Lloyd's bonds have been placed in circu-
lation, that preference stock has been fraudulently
created, and that the half-yearly accounts are
systematically cooked for the avowed purpose
of deceiving the ordinary proprietors. A fresh
example of mismanagement or misrepresentation
occurs almost every morning, either on the part
of directors, chairmen, contractors, or managers.
It is no wonder that there should be so complete
a loss of faith in those who have hitherto re-
ceived the most confidence. It would be most
unfair to conclude that the directors and managers
of our great railways are no better than some
recent examples. The difficulty of the public is
how to discriminate.

The question is really serious. But a few
weeks more will elapse before the close of the
year, when an amount of railway debentures,
reckoned by millions, will fall due. To renew
them will be a matter of vital importance, and
each sumaisive instance of malpractice makes the
task more difficult. Hitherto, the chief investors

in railway debentures have been insurance com-
panies, trustees, banks, and the like. It will be
readily understood that this is a class which cares
less for high interest than good security. The
speculative investors who strive for their 7, 10, or
15 per cent. would of course not touch a bond that
yielded from 4 to 5. Hence the difficulty becomes
greatly magnified. The enterprising individuals
who risk their funds in doubtful stocks like
Mexican, Venezuelan, or even Turkish, are ready
to take their chance of an occasional default, since
they find their compensation in the high rate of
interest they enjoy. In the case of railway
debentures the position is reversed. The
holders take little more interest than is
offered by Consols, but in return they insist upon
absolute immunity from risk. At present they
are placed in a double disadvantage ; first, they
get only 4to 5 per cent.; and second, they have
the disagreeable doubt as to the legal validity of
their securities at all. It thus happens that, in-