The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-08-24

- , not benefited by tho constr 1ction NJ Tire two
vsDds wren one vouid have al ~eced t,e purpose.
- ause the tariff sf tolls must 10 rssed high
- naln each nay its interest All expsases-
RailwIUs should si~ays ne regarded ~ shcy really
are n CONNER cisl investments, aud shons h. bubt
With view OF making m ,ney Ia ons o. two ways,
either from q divicends on the stock ar from the
enhanced value impaired to real estate a'olg the
Inc. II TIE iutention Ia u have IL DIVIDEND osy-
ing road. then the propsr and legitimate coastruc
tors of the work .re the capitalists; bnt II tue
object in making the road Is t. enhaDce the Value
Of lands then it il manifest "a AZ the sners OF inc
lands are the proper persons to take the risk aud
incur the expense OF making t,- road II We are
correct 10 this statement Of the proper parties sao
should engage in railroad bui ding toe ciassid alton
will ger eralj exclude counties aud towns rom par
ticipstion in such speculat'ons. Toe policy of u
municipal corporation engaging in stock operations
is more than doubtful; aDd such bony rarely ever
owns real estate sufficient to justify It's going in
debt to construct roads for the i'm ,rovemen OF any
property 1t may happen to possess.
Tho greet foancial crisis of 1887 was mainly
brought about by excessive Expenditures on works
largely in works Of this character, aud raised the
motey by the sale Of their bonds tho interest &c.
cruing on which some OF them have been uE able Jet
10 pay. To prevent recurrence Of this snditlon
of affairs several Of the States amended their
situations prevent the states from borrowing
money. The States Of In1iaoa Illinois, Iowa, and
some Others, have taken this ecauuoa; but the
measure, prudent as 1t is, has been practically
-
terms. Of county and to Sn bonds. These securities
have been given by the several counties sad towns
In exchsnge for sto X. and the c'mpaaics have ped
dice u EN- OF ut nigh sd ise for iron rails; or the
counties az towns have In some instances got tue
bonds shaved and paid in cash.
Under the L. iluence # this county bJrd system,
- real public debt o. Ohio, luciana Illinois, add
Missouri has been vers materially Increased. We
have 10 means OF ascera ming the precise IN icb.e1
but il probable that the counts aua city sub
scrptiors adce I'd to tho exist ug State deb. OF Mis-
is rot far from ten millions; Illinois Gig 1tecn
millions; Indiana sixteen millions Of dollars; aad
l0Ta is following the lead OF her predecessors, and
will soon have n Ia &c debt due by counties aud
other corporations.
That these county subs liptions are unae ,essary
ard ine xpedent we believe. Whenever the wants
of The conntIy require the construction Of railroad
ii will lie buili BY private enterprise ss an invest
ment
The activity Of capital seeking profitable employ.
mep is 30 great 10 this country that private enter
p,ist is usually ahead Of the demand. The Erie
railroad, tie Central New York railroad, the va.
rous railroads along the lakes leading TO Chicago.
tie Chicago and Galeua rad, the Illinois Central,
and various otter roads, too numerous to specify
have been constructed by individual Capitalists -
investments. These are Tor will be) paying
stocks, and have been Commenced and completed
quite az early az the rea! wants of the country
the ugh which they pass required; and tere is no
thing in the history Of the past to show that other
works Of similar character viii not be begun
and completed as rapidly as the pubic necessities
There is etill another objection to this mode of
building roads with the proceeds Of county and city
honts-we allu6e to the increased expense. These
bonds are generally passed of tn contractors, who,
in fixing the price at which they take the work,
leave large margin for the discount these secu-
Iitie5 In general, If states, cities, or counties will
engage in hui ding public works, prudent economy
SUCCESS that tax should 90 laid on the whole
community to meet the instruments as they become
due.
AZ to railroads intended msiuly to enhance the
value OF lands, the United Safes, being the great
laDdhOlccr of the West, may with propriety
make grants Of land to com GAMES, az Ia the case
Of the illinois Central road, where the grant of
the United States to the State of Illinois not
only been the cause OF having one of tho longest.
most useful, and expensive roads in the Union
built, but the amount Of money which will be
pad 10 the government for par. wilt exceed
that which would have been received fJr the
whole Of the lands without the grant, and the time
in which it will be received is vefy mu b lessened.
We bopet $50 the government persist in this poll
connected with the Pacific coast by one or more
we'll constructed railroads. How much more bsne'
fetal to the cause Of progress would it be, If Con
gress in its munifccnce should make large sppro
priatiops of land to aid Ia the accom-
p!ishment Of this grand naa!onA enterprise
rather than to squander tha public domain
in gifts to those who have no claim TO
the public bounty. TIE gift and the donee will
pass away and leave little no trace for rene n
brance, but the great public structures which the
lorcsl shall have been the means Of achieving will
millions Of people yet unborn, and illustrate tho
glor, and the COVER of the nation that could
ceive and execute such gigantic ard useful works