Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1845-05-24
i NATIONAL INTELLIGENCER.
THE RAILROAD MANIA IN ENGLAND.

THE RAILROAD MANIA IN ENGLAND.
In using this heading to the few remarks we hay.
to make on this subject, our readers may thinl
we put harsh construction on the facts we arr
about to present to them: but as the facts speal
for themselves, trust to them to acquit us of The
imputation.
The history Of railroads in England, briefly
sketched, is as follows:
The Darlington and Stockton Railroad was the
first which was completed in England: il was open.
ed 9th September, 1925; carriages moved thereon
by horsepower, one horse drawing twenty six
passengers, ten miles an hour The Liverpool and
Manchester Railroad, the first on which locomotive
steam-power was used, was opened 18th Septem-
Der, 1880. Since the completion of the first rail-
road, and between the years 1925 and $780, twenty
five acts of Parliament for railroads were passed ;
1880 TO 1885, twenty-six acts. In 1886 twenty
nine and in 1897 fifteen. In ls43 twenty-four
acts were passed, and in 1874 about thirty. Lord
BRoUGHAM stated in the House of Lords, on the
18th of April last, that there were at that time one
hundred and forty railroads in existence in England
The capital invested in the railroads in Great Britain
ut the commencement Of 1874 was esq, 267, 229 !;
and atthe commencement the present year, accord
ing to the estimate Of the English Railroad Times,
twas from so to 9lO0 900 ,O0O or from four to five
hundred millions of dollars. In addition to the one
hundred and forty existing railroads, Lord BRoueHAM
said that two hundred and fortyfour more were then
nnder consideration, and added, in view of this rapid
increase, /" an area Of eight square miles Uithom
railroad through it wiH soon be rural rarity"
He asserted, on the authority of returns made to
Parliament, 1.-THE returns moved for in the speech
from which we have already made an extract, for
which see our paper of the 18th instantly i" that on
sixteen millions of the capital invested in existing
railroads, the interest paid to the stockholders is
less than five per cent. Six millions pays less than
three per cent, millions pays less than two per
: cent On twelve railroads the dividend has been |
little more than one and half per cent, and on
twelve others there has been no dividend at al''
a. If continued Lord b. the Government and the |
Legislature would take more extensive and sys-
tematic view of these railroad speculations would
have the effect of checking some of them, of pre-
venting the completion of others, and it might be-
stopping some which had been previously adopted.
He should not grieve at this, because he was fully
persuaded that they went too far, and that before
many months were over their heads, reaction
would take place, and that more or less ravagng
: and sweeping effects would occur to the CONNER
cial and monetary interests Of this country. He
held II to be his duty and that of the public press
to give timely and effectua warning to the CON-
munty, and, above all, to protect the safety of ndi-
: viduals from the phrensy Depreciation which was
driving men to destruction" This rage for specu-
lation, accompanied with necessary periodical
explosion of bubbles, has not been limited to the
present century, or to Great Britain. very
curious as well as very useful and instructive
book might be written on the subject of the knavery
of projectors, and the gullibility of the public.
We have letter from an influential and
very intelligent English country gentleman, resi-
dent in one of the eastern counties of England, in
which he says: g What is to be the end of this
railroad mania no one clearly see. II is very
: questionable whether any of the older lines are
really paying. 1t is true dividends are made, but
the manufacture Of new shares and debentures, on
the pretence OF extension and amendment bills
affords a fine opportunity for juggling me lines
: now making will not probably cost a third of
]. what some of the first lines did for construction
but then the traffic Of the districts through which
they are to pass is perhaps in much the same pro-
portion. If the two hundred and forty new rail-
roads which proposed average twenty miles |
IN length, and require capital of 100000 mile
: for their construction and locomotive department,
s. the execution Of them and bringing them into
!. bushes operation would amount TO 996, 1000 900 !
/. Lord BRoUGHAM, on the authority Of a London
: Broker, states that the cost would be 4l3O,000-
/. OO0. A very pretty sum to be withdrawn from
: the ordinary objects Of speculation, and from the
: usual commercial employments of the country!
But, reduce this to even fourth of this amount
as many of the proposed lines of road are con-
fcting ones, which no Legislature would sanction
in duplicate, and even then the amount is some-
thing terrific. The bubble, think, must burst
before long ! should rejoice if thought this
could take place without ruinous injury to the
stockholders and the public"
According 10 these highly respectable authorities,
if only one-fourth Of the plans now proposed are
sanctioned by Parliament, the cost OF their con-
struction, added TO the previous outlay, will raise
the amount of capital invested in railroads to be-
tween one hundred and four and one hundred and
thirty-two millions sterling, an average amount be-
ing about hundred and twenty millions sterling,
or six hundred millions of dollars prodigious
amount to be withdrawn from other sources of en-
ployment, even in Great Britain. To paw five per
cent interest 10 the stockholders there must be
six million pounds raised annually by railroad traf-
fic, besides paying for all expenses Of management
and repairs. Is II possible that this can be done
Another rather important view of the subject is
the quantity of land which these railroads abstract
from other purposes; and it must be remembered
that railroad lines generally fertile valleys
and occupy the most productive lands The " Rail
way Times" calculates that each mile of railroad
covers ten acres Of land and, supposng the length
OF railroads constructed, constructing, and those