The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-02-08

Every well informed man is aware Of the re-
suit Of competition between railroads and ca
nails in Europe. After the Darlington and
Stockton Railway was completed in 1925, and
the Liverpool and Manchester line begun, Bri-
fish canal stock fell; and though as usually hap.
pens in such cases. the decline was exaggerat-
ed and a reaction followed, it never since
gained the relative value it had before the in
PRODUCTION of railways. For the forty years
previous to the establishment of rival railway.
the dividends paid to the stockholders in the
Grand Junction Canal averaged SO 10s. Cd. per
cent; when competition was set on foot, they
fell to e6 per cent, and are now. we believe,
much below that figure Other canals, which
formerly paid from Is to rs per cent, are now
unable to pay the expense of their working.
McCulloch-whose prejudice against railways
during the first few years of their existence is
well known confesses that the great schemes
of canalisation whce we're on foot in France
when railroads began to be introduced were i'm
mediately abandoned to make way for these SUI
perior means OF intercommunication. So in
Belgium and Holland. Even the magnificent
propositions and the low tells on the Amster-
dam and NieuGiep Canal have not saved it from
the ruinous consequences OF competition with
railways. On every side the same picture
meets the eye. Canal property, which used to
be among the most remunerative Of invest
ments. now ranks below real estate, houses
stocks-at the very bottom of the list Canals
are abandoned not only by passengers, but by
every species of goods liable to deterioration
from decay, or whose price Auctustes in the
market.
The reason is Of course obvious. The distin-
gushing characteristic Of commercial inter-
course in the present day is rapidity of move
ment. We buy, sell, ship, carry, exchange in
1.-THE of the time occupied by our fathers. Time
has become one Of the chief elements of value
and profit. In an article worth 500 1000 the
gain or the loss of n day may make difference
of $4,000. Hence the canals which were
profitable enterprises, when vehicles drawn by
horses were their only competitors, drop out of
sight altogether when rival springs up with
powers of speed four times greater than theirs
This is the history ofall canals as true of ours
as OF those of foreign nations. Our system Of
canals begun under the auspices of De Witt Clin-
ton some thirty-seven years ago, has done won
ders for this State and this country. 1t opened
up magnificent tract ofland peopled it, and en-.
dowed it with vast wealth. 1t set the example
OF systems of internal improvements to the
other States and stimulated similar works in
our own. 1t had no small effect in building up
the city Of New York. For these benefits its
founders and promoters deserve our gratitude
But, in process Of time, as in all other couu-
tries, new means of REORGANIZATION, far
superior to the canals was set up. Railroads
built by private enterprise offered far greater
facilities to the mercantile community; and
though an attempt was made by the Legislature
to avert impending ruin from the canals by in
terdcting the carriage of freight on the rail
ways, this fictitious support soon gave way, and
things took their natural course. First the
Central, then the Erie, and finally the Northern
Railroad obtained permission to carry produce
and merchandise, with what effect upon the
canals the following table will show -
RI cal years Railroad Fyeishs. Crna, Tolls
1850. ...,....,..,.,. 81 122 ASP S3,4s6,17s
1901. ..t....,.ss.,., Z,lu1,40S o,tlA,loo
1852. ....*.....,..., J,366,zsO 3,Il94s
1853, ....,,.....-.... 4,bO0, 00O 5tlbSo4p
This shows the result Of four years competi-
ton between individual and State enterprise;
and ;ndna tsq rrattu CLEARLY tho rate al nrooross