Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1845-07-18
0WB PRBSS
From the Albany Argus.
r AILR DADS.
The 1nves mcnt Of the surplus Capital Of our
COuntry-Sociai Influence Of Railroads.

lily command the direction Of capital Thus for &C.
RES OF years. bank stocks were the favorte invest
lnens In many cases, five and six times the whole
amount OF capital was subscribed by persons DESTROYS
Of permanently investing their funds but capital now
seems seeking other directions
II Is manifest from the industrious character OF our
people, that capital irW accumulate. II is difficult 10
estimate the exact per centage OF increase throughout
the Uni'ed Safes but tina! nccunulates is manifest
from the erection of new buildings and larger manu-
factories in all sections of the country When asked
the cause of the improvements now going on IN every
section, The reply is readily made Capital Is plenty
and it IS seeking good investment Yet large real
estate holders will bear evidence that 81 to per Ct
is as much retirn (fter deductng taxes, insurance,
and assessments) they generally receive from what
10 called improred productive property. STEPHEN
GiRAep, tie great Philadelphia merchant. made the
remark from his .ong experience that three per cent
was much as could be expected from improved real
estate. Though the return is apparently SO small,
yet we capital year after year constantly seeking
that direction II is evidently favore form for in
vesiment OF the surplus capital Of our country
Manufactures are also largely taking hold Of the
attention Of moneyed men but there is just and rea-
sonable ground for belief that the capital already in
vested or investing in manufactures Except in
the iron and sugar irade) will supply nearly all the
fabrics our nation needs AT least If we have not ar
rived at that exact stnge of adequate production ii is
clear that before the lapse of many years. all the cap
ital will I've embarked therein thai profits will Justify
The important question then arises, whether there
may not be some great outlet for the surplus capital
of our country alike beneficial 10 him who invests and
10 tHOse WHO may lncluenldny ENJOY us UiNS. III
10 from looking at the present condition Of
the understanding the peculiar passion ofour COM
mercal people of making travelling their first enjoy
Inent whom they have dollar Of surplus means, that
RAILROADS must be the great channel for American
capital, in which millions upon millions of dollars
may be invested, yielding a fair return 10 capital,
while it may confer priceless blessings upon the ;oun-
When we look at the map of the United States, il,
il clear that the number Of ieddng lines Of railroads
will form an aggregate Of thousands of miles Five
thousand miles of railway are now completed IN our
country, and vet the great line be- Portland and
Neio Orleans is not half completed. Even the short
but important route between Ne,r York aud Albany
dracs along That 81. Louis will vet be connected
by railway with Boston and New York, few doubt
who have kept their eye the steady progress OF the
Western chain. II is also more than probable that
extension of the Baltimore and Ohio ralroad from
Wheelin. TO C1lunbuslnd perhaps indianapolis, will
nterseCt the great chain which is to lutte The far West
with the remote East.
We allude now only to the main trunks Of Rail
Roads-the branches will sprout ont in all directions
Experience has shown in New England that these
branch roads, which may appear of nsgnti ant i'm
por,ance TO the capitalist, the best dividend pay
ing roads. They are rarely built with 50 much ex-
trnvaeance as the main lines, and therefore more
adapted to the present rather Than the prospective bu'
einess Of their vicinity.
As we previously remarked, 3! or per cent. 10 as
much as can be steadily expected from real estate. II
is generally considered that the ample security of real
estate than counierbalances this low rate of in
terest. Let the matter be riqidly examined and We
believe It will be found that Railroads offer security
fully as ample. 1t is not personal property, (howev
er the law may regard ~ and therefore cannot he run
away with, any more than houses stores Second
ly il is not so liable houses stores to destruction
by fire. Its bridges and deputs may be burnt but
these may be insured, like al other rea estate. But
Its grading and rails constitute the main investment OF
railways; yet these certainly cannot be burnt 1t may
be liable to damages from food, but the same or per
haps tar greater the hazards Of mills other
uiactores or warehouses on or near water-cours SEES
We think that in every aspect that may be viewed
Railroads, when properly constructed, offer security
nearly as ample Ms real estate Their repairs are uu
doubleday large this in great measure arises
from the miserable cheap manner in which they orig
inally were constructed. Some of them are no
hall built. When houses are built in the same careless
and detective way, their repairs are likewise heavy.
We have some strong facts 10 sustain our position
In England the best built railroads divide the best be
cause repairs do not (ns here,) eat up all their profits
The Great Western between Bristol and London o
only 22l miles in length. cost $4,000 00c, or $780,
600 per mile, and that road now divides per cent.
The Liverpool and Manchester railroad, only 32mles
in length, has cost seven millions of dollars las much
as the original cost CT Erie canal, 3s5 miles in
length) or about S220,000 per mile. That road d.
heavy to justify such an outlay, but let us suppose
that the original capital had not been sufficient tc
build first rate road even with very heavy receipts
the repairs might have been so large for number o
years after its construction to prevent dividends
and thus make capitalists think that it was pool
route for railway. The truth is and it great er
ror, very few American railroads commence with
capital sufficient TO- finish their road, and therefore NJ
they are compelled to borrow money, and Likewise
use all their receipts fer repairs constructions year
must of necessity elapse before any dividends are Of
can be paid. Yet It is manifest such results brin.
the rail road system into d srepue with capitalists
who are peculiar in one respect, They do not de
mand high rate of interest but they must have som
return epery yeor, else they will begin to regard tn
investment as radically defective, Look at the rail
roads in this S,a,e-even those which are now IN tn
most dscredit would have divided or 3 per cent.
they had started Alright but they have had borrow
expend nearly all their receipts consequently L
this day, they are non-dvidend paying roads,
We make these remarks because there is manifest
Iy railroad feeling rising in all sections Of the
try this is rightly directed, it may he proluciv
oil the hnppieSt and nobesi results. II is much wis
to begin with the expect atOn of small per centag @,
than upon authorizations Of large profits. This disaI
pointment is what has caused the too prevalent Opir
ion that railroads desirable improvements, b,
they. cannot be made profitable investments. Ne
England capitalists have found them different, lnd,
right beginning and sound management and Their
fore they take up railway stock desirable nves
meni and they are now reaping rich harvest due
such honorable sagacity.
The recent invention Of Coieman's railroad attac
ment. which enables locomotives to ascend and d
scend steep grade without stationary engine, is r
garded OF considerable moment. II is thought that
Will obvia'e the necessity OF deep cutting throus
hills and therefore materially reduce the expense
construction. II is obvious at once that if goo
Toad can be built AT one.half Of the present cost tn
VIII DC constIucuu on many routes whele the pre-
ent travel would not justify $4,000 per mile. II
well known that during the last ten years the cost
every article of manufacture has been reduced ev
while il has been improved. But as yet there h
been no material Improvement in the construction
railways A better article of cars and locomotives
furnished at less expense, but the railroad is aho
IS expensive as ever. II is thought that this invc
ton Of Coemans may effect a saving in the consrr
ton Of the oad-bed, more material than any thi
yet discovered.
The influence Of Railways, both as political and 1
cal engines, is assuming its Just importance in the
timation of every thinking mind. They accord
well with the advancing and enlightened spirit of
Age, that every feeling of the mind at once sa
"Press onward" We also regard them not only
ties OF Union among the States, but as invaluable
TO travelling and so'al intercourse among the poo
classes which neither stages or canals can supp
The principle Of lou fares is rapidly gaining grou
among the railroad companies, as conducive not ,
ly 10 the interests of the public but of the sockho
ers. There is also rapidI,y and certainty OF ira,
ling nv railroad which enables the laborer 10 a,
himself of a few hours of relaxation, which is no
important consideration to the industrious, who oc
sonally have day but never a week of spare iii
In this view, Railways will be regarded with phil
thropic eye by every one who Is anxious 10 see ct
forts widely difused among the masses OF the PEG
This is an interesting SUI iect and particularly
at this time, as there is Railway spirit growing
all sections OF the Union, which, without rushing
wild speculation, will give steady and permar
direction 10 the capital of the nation.