New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1855-01-24

Of employing inexperienced and Incompetent officers
and wofkmsn in consequence Of the grss. and su idsn
demand for this species OF labor aud in some c.sss
by the abuse OF power on the part OF railroad mxna
gen IN using Their position End the works under their
charge to their personal sdvsntagean exsn mile GER
tam to BE- followed by the su6orduatss
During the plethora OF money, lines OF railroads
were protected by adventures to baneit Local inter-
Money was Prontscd by sPeculAtors on deficient
ecuruts and its expenditure intrastei 10 a,en,
with loose notions Of flgcial trusts The construc-
ton conducted by Engineers Of little expsr or
Judgment, and the managems NJ was seized uDon by
adventures and spectators who were determined hS.
every item Of expenditure should be arranged,
10 enUre TO their personal prodt
The ultimate fate Of roads 80 constructed or nj m
aged i no longer conecura. and while their stock
az securities have been swalO we'd up in the disss
tors of the tines those which hsve been juiicously
located ard are free from the most serious OF thu
above recited charges will soon regain their psce IN
the public confidence.
radical change for the better hes already taken
place in the management of most Of our railroads and
II the reforms which have DoT been commenced, are
thoroughly carried ont. the main lines will take pre-
ce6ence, as an investment, over any other securities
Of aggregated capital.
Labor ard msierias have fallen in price the speed
OF trains has been reduced, and the want Of mo-
ney hss compelled more economical use of t. while
the Suspension Of divdsuds and temporary embar-
easement have led stockholders inquire more crit
ically into TIE manage nent OF their interest.
The msforiBnes of the present time, are therefore,
quite likely 10 resul, in great permanent advantages.
At least three -ourths If the money which hiss been
expended upon railrosds in this country has been
furnished by our own citizens, and the remainder
Chiefly for bonds has been obtained from foreign
investments.
The pros porous condition of all interests for the
last years has yielded large surplus profits which
have to a considerable extent. been invested in this
class of securities, because they afforded prospect
for larger returns than any other investments.
The success Of many of the roads now built, and
the extension OF Others, which are necessary TO meet
the Iepid development OF the interior, will depend
upon the establishment Of a correct basis Tor the So
curiiy Of the stock and bOndhOiders
The rscomme ndstious which are herein made, viii,
IL believed, meet the present exgences Of the ease
So far az the stockholders are concerned, until th3
experience q Stse supervision suggests such further
guards and checks may then be found necessary.
The question of the security of Railroad Bonds
having been raised in consequence OF the frauds
which have been committed, aud, IN some csses, by
the excessive issue OF bonds in proportion to the
stock il has become Necessary 70 give further as
surarces to foreign capitalists Of the security of their
investment before they can be persuaded to make
further advances.
This must be done by legislation and the question
should be promptly and frankly met by the railroad
ner 4 in this country, by asking for such legislation
as will most eiiectualy accomplish this object with
out infictiDg burdens too onerous ON the stock
hOldeis.
The establishment by sw OF sinking fund for the
repayment of the funded debt placed beyond the
troll of the Corporation, will at once give such secur.
ty 10 the bonds Of our railroads to render them
still more fsvorite of foreign Investment.
1t should also be understood that bonds should be
issued until at least one-haf of the probable cost OF
the work has been actually paid in cash aud expended
Such guarantees would relieve present embarrassment
and secure the prosecution Of all the roadsthat the
imme date necessities OF the country require.
would respectfully suggest that Railroad Com.
mission should be established by law, consisting OF
the Controller, the State Ell gineer and Surveyor,
and person to De elected by a vote OF the stock
and bondholders of the. different Railroad Corpora
tiops in this State That the accounts Of the Cor
porations should be open 10 the inspection OF this
Commission and that they should be required to ex-
anime into the financial condition annually, and at
any other time when complaints of fraud, properly
authenticated are laid before them. That no
railroad shall be opened for public travel I'M
Ill certificate has been obtained from the Com
mission that it has been examined by them, and has
beer properly constructed and equipped, and that
the nece ssary regulations have been established TO
prevent injury to life or property That the comnls-
sion should hsye the authority 10 inquire into the
caufe of all accidents which have injured life or lmo,
AID that they ehoud submit Annual Reports to the Lee
eslaure of all their proceedings under this authority;
and also full and ample reports Of the financial con-
don of the several corporations, and OF the business
operations ard receipts ard expenses, az now pro-
ydedby law with such additional information as they
6eem necessary TO lay before the Legislature or the
tockhoiders.
JOHN T. CLARK State Engineer ard Surveyor.