The Minnesota pioneer. [volume] (St. Paul, Minn. Territory) 1849-1855, 1853-11-17
The Pacific Railway in California.

An enthusiastic and very largely attended meeting
for the purpose of considering the construction OF
Pacific Railroad was held at San Francisco, on the
10Th of August. The papers represent that the great
speech OF the occasion was made by Hon. JAMES A.
MCDoUGALL formerly of Chicago, and now member
Of Congress from California. Mr.. McDougall stated
that railroad from ocean TO ocean Inevitable
necessity and that it would be accomplished in a few
years. After remarkng al some length upon the cost
of the work and the praccabty of its construction,
Mr.. McDougal proceeded to cali attention to the IN
terest which California had in it, He stated that the
citizens of that State taxed, per annun,, one-haf
OF their productions to pay the expense OF transit 1t
estimated that during one wear, in 1872 the
ransits from side Of the continent TO the other
amounted TO 10000. The average cost Of transit to
each one OF those 1000 persons might fairly be set
down at 5000; making tax upon the people of that
State of S22 900 GOO. Further, n majority of those
who entered the State during the period mentioned
came across the plains. The average time occupied
OH this trip FAR from 80 days. s Now - said
Mr. Med, 90 labor is capital and the loss Of labor
and consequently Of capital thus sustained, amounted
to Sl7 900, 900. Who bears the burden of this -
Any one who understands the laws Of trade, knows
that il is tax upon the people of this State their
industry and enterprise. But assume that railroad
had been built, and that the fare was fifty dollars
$4,000 900 and days of labor only would have
been lost making saving TO the capital Of the State
of $50 900 900 per annum. This was great truth.
in which the prosperity of California was concerned
build the road in few years"
g II said bv many that the railroad would
without doubt carry the passengers who had occasion
TO pass and fro, but that the heavy trade of the
Pacific could not be transported the track on ac-
count OF the cost. and would still take its course bv
clippers around the Horn. He could demonstrate
that this so, and that when the road is built
we should be bound as by law Of nature, TO COM
mand not only the passenger trade, but the heavy
trade Of the east. A railroad involves the expendi-
ture of large amount OF capital. In order to make
it productive il necessary demand heavy charges
For instance. railroad 10 California would demand
capital of $40, 900 900. In order to make this
capital productive, the charges must be such en-
interest on the entire investment And it is for
this that it has been claimed that the road
could not enter into competition With the clipper
rying trade. Now it may be a strange fact 10 many
that the actual Of transportation on a railroad
merely nominal. He spoke from authority, hav-
ing gained his information from source which every
one would admit TO be unquestionabie, viz. Hunt :
Merchants Magazine. 1t is there stated that 10.
comotve be with four passenger cars capable
Of carrying 240 persons at about thiry-hree cents
per mile, and 100 miles for 33 dollars. The actual
expense of carrying this number Of passengers to New
York, therefore would be 1890. Now f the fare
were $50 the receipts would be $12 ,OO0 while the
cost onl, 1890.
'' A locomotive could be rum with train of freight
cars capable OF carrying 100 tons, 100 miles for the
saulc price, and to New York for 1890. Now wha,
is that ton! Just $500. And what is paid for
the transportation Of freight by clippers, He under
stood ii to be from S25 $40 per ton. So that the
cost is one TO four. Now, suppose the charge by
railroad is fixed at $50 per ton; we have profit o
500 ton on the trip.
"He desired to show that the railroad would dc
the carrying trade between the entire and the
Atlantic States, One hundred DAYS would be con.
sidcfed good passage for clipper round the Horn
ten days would be very long trip by the railroad
Here alone is 80 days difference in time Now, from
the time that the merchandise is laden on board a
ship till the time the vessel arrives her port Of des
tinaton, the capital invested in that merchandise is
dead-the interest is lost. In California, capital, as
is known, commands three per cent. per month bot
! If we charge against the merchandise two per cent
per month only, for three months, have six per
cent loss. And merchandise is charged by the
ton, If we that the value Of goods reighted
amounts to 1900 ton, find we have loss of s
on every ton shipped, which is twice as much as
would pay the entire expense of shipping the goods
across by railroad"