The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1855-12-07
RAILROAD STOCK AS AN INVEST
MENT.


MENT.
An article upon this subject appears in a
late number of the New York Tribune. 1t
contains wholesome suggestions as well us
prominent facts. We quote a portion be-
low:
Unquestionably it is a fact, that a large
proportion of all the miles of railroad now
in operation are destined eventually to be
fairly paying roads, when managed with the
same degree of care and economy as is prac-
tised by successful merchant in the con-
duet of his business; and il is n fact, too,
which cannot be disputed, that there is hard.
| y to be found railrOaG in the whole coun-
try which the land owners, for ten miles upon
each side, could not very well afford to pay
twenty-five thousand dollars per mile for,
rather than have the rails taken up and the
track plowed over. The enormous advance
in agricultural lands lying along the line of
a completed road is n fact Of too palpabe n
character TO need any additional corrobora-
ton. Our farmers do not build our railroads,
our railroads build our farmers But railroads
wear out just MS wooden and cotton factories
wear out, and the results of the experience
of the past twenty years show that they wear
out and need renewing in just about the same
length of time-say completely in twelve
years, about eight per cent per annum. The
great consolidation of the New York roads Of
1852 called the attention of careful thinkers
to this hitherto but little understood fact
This expense, if charged ratably each year,
as it should be, appears in the road expense
accounts, and if judiciousiy applied, is the
best expenditure that can be made for the
real interests Of stockholders.
Every road should be in as good condi-
ton al The end of each year in its average
appointments as it was at the beginning OF
the year. During the years of lS54-55, our
roads generally have well vindicated them
selves; and this, too, in the tightest season OF
agricultural production, and during the most
severe money pressure since 1887; the aggre-
gate Of earnings has been very largely in
creased, while the pro rata expense Of work
ing the various roads has been materially di-
minished. Our great lines are today crowded
with business, with better prospects for II
winter business than have ever before pre-
scented themselves and with Il few exceptions
our roads have very promptly met the in
stallments of interest due upon their bonds.
Stocks, which had during the present season
advanced from 80 to 80 per cent. from the
lowest point of depression; and as IL rule, this
advance is based upon the actual business
earnings of the roads. And the stock Of
many of our main lines will unquestionably
still warrant very decided advance from
present prices.
This is n vindcation of the railroad policy
of the country rs whole. Today man
would hardly be avoided for his supposed
connection with II railroad undertaking imam
caly, for loan upon sound railroad sccurl-
ties laid under the table of Il bank parlor.-
The railroad feature, us one of the indiSpen-
sable elements of the trade and prosperity of
the country, cannot be ignored. II judicious
railroad Investments are not to be deemed
good securities, there is nothing in the coun-
trv that is good Bonds and mortgages upon
farms are not sure to be paid, and State bonds
are not fire proof. So entirely has the rail
road system identified itself, as a matter of
necessity, with every other commercial inter
est, that this interest is just as legitimate
branch of our industry, as is the manufacture
of flour.
1t is unquestiorably sound doctrine, as
question of political economy and as a ques-
tlon Of profitable returns, that railroad un.
dertakings should be the results of the COM
mrrcial demands Of the county; but thereare
some notable exceptions to this rule.
AS n rule, our great paying roads are from
east to west, or connecting the sea board with
the valleys of the Ohio and Mississippi. THIS
is obviously the course of the trade of the
country, and doubtless will be for ages yetto
come Our cross lines operated as adJuncts
to the main lines, and where really needed
viii undoubtedly pay fair interest upon
their cost.