The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-01-24
RAILROADS OF NV YORK.
INTERESTING REPORT Or the STATE ENGINEER


ALBANY, Jan. ~, 1000
within few years past the railway interest has be-
sssme one OF the important in this country, not
only on account of the large pecuniary Investments
which have been made therein but also account OF
tAe effect which its development has had in increasing
the value and changing the relations Of property trade
commerce and in modifying the social conditions Of our
people
These varied interests and the new circar stances
which have called into existence by the vast and
sspid expansion Of the railway SYSTEM have required
additional legal enacments from time to tme but the
supervision and restraints of law which are con-
sisred necessary to guard and protect other public
terests, have not been imposed upon this
tent commensurate with it's increasing Importance.
Almost the entire passenger travel Of the country and
Me mail service performed by railroads, while
~ the same time the advantages which they afford for
he conveyance Of classes of freight, exclusively
and Of others In part have rendered them of the
NEST important elements la social progress and
have made il still more important to in their
strucion and management all of the advantages to
which the public entitled by the surrender Of
ION Of their primary rights
The railroad corporations in which there is larger
investment than in the banks which the law
sses supervision permitted to control immense
amount of capital and interests of the greatest magn
tude with no other check than afforded by annual
many cases made systematically, for the purpose Of
eoncealpg the stockholders and the public ,la-
tiops Of law and want of ielity to their trusts.
The present appears to be the most fitting time to in
the Of the past and to suggest remedies
against their recurrence for in the general depreciation
Of this interest, and in the doubt which exists in
many minds regard to their success, admontens and
suggestions will be considered which would have been
wholly disregarded IN more prosperous times.
The existing laws have devOved upon other depart
Of the government except this one, any duty
nected with railroads, AMI, therefore, may be par
eoned for extending my remarks and Investigations to
the subjects which Go not strictly belong to profess
sion.
One of the guarantees the faithful performance
Of duty that be given to the public and the stock
holders by railroad managers to render at frequent
intervals full staene of the results Of
the operations of the works. and of the in which
these officers have discharged their trusts
II Ia not difficult to demonstrate that the publication
Of such ample statements in the long run does not
jure the interests OF corporaton and that it is the
NEST certain security against maversation in the adm
nstration of its affairs.
Under tho General Railroad act OF 1885, each Of these
corporations is required to annual report to
State Engineer and Surveyor in the form prescribed
showing its financial condition and cost its length, and
other the business done during the year.
and the expense Thereof statement of the receipts and
payments, and list OF the accidents which have
surred involving injury to life limb; and the officer is
required to .pge the information thus furnished aud
submit 1t, together ith the reports, to the Legs-
Iture.
qurng these reports be submitted to the state Eng
neer, that he should give them such examination ss
would enable him not only to determine whether they
had been made in conformity with law but also to fur
nsh the Legislature with such deductions theref-om
he was BLEED TO make FIR IN his more intimate aud
fessioDal acquaintance with the subj set.
Ny have all planned Of the evident and
well known inaccuracies which tlese reports from ths
railroad corporations contain, and in submitting the
present reports take this opportunity express ms
conviction, derived from an examination of them, OF
those which have been heretofore submitted OF the
ports OF railroads in other States, and from
perience that reliance whatever be placed upoa
any general conclusions as to the cost or profit Of rail
road transportation exhibited by these reports while
many Of them contain errors which cannot be attributed
even to carelessness,
In the following pages shall have occasion to point
cut some oil these errors.
While the State thus left this class OF corporat)ns
free from the supervision and restraints which she ha,
Imposed upon interests and has only
from Them annual statements Of certain portions OF their
AFFAIRS prepared by their officers it will DO
that this simple duty frequently omitted
iuctanty and mperecy perormei, and has oftea been
used by those officers to conceal nstead OF exhibiting
the true state of affairs.
In the last annual report from this department it was
stated that several OF the corporations had not made
the annual reports required by law among them were
two upon which the most stupendous frauds have been
recently discovered II the State Engineer, some
other pubic nicer, had been authorized by law 10
pei the Of these reports, and had also been
authorized stgate their accuracy, 1t Is very
tain that the frauds would have been DIS covered ut
earlier day and Is not improbable that the mere exist
Of such authority would have limited tile extent Of
these fraud while its exercise would have prevented
ther commission wholly in part and have thus saved
the innocent stockholders from immense loss and ths
monetary confidence Of the community from . severe
shock.
Much discussion has been had the classfc alton of
expenditures between the accounts for operating and
constructing ralIoads and 1t has been ques toned whe
her current expenses contain sufficient allowance Tor
the renewal Of the depreciation Of the works.
tnue TO deveope OF business from year to
year for considerable period after 1t has beeu opened
which will require increased outlay for additional
side tracks, depot buildings, and equipment
The cost of these items legitimate charge against
Il has also been found that an annual expenditure is
required for several years after road has been
opened for the purpose of restoring the slopes OF the
cuttings, embankmens and drains, and Of pe'fec.ing
the works.
Un.il the cuts have been made, the embankments
built and the water opened Tor Soma considerable
all be determined and hence during their construc
ton they usually made Of the least dimensions, and
must subsequently be enlarged mo and protected
1t has been questioned whether the expense of these
Mems proper charge to construction or to the cost
II would be observed that the items Of cost above
mentioned have been spoken OF az arising from inco
pete construction and OF annual for only
limited period say for three four years AMI that
they differ materially from expenses which for
" similar objects, but which dependent upon the
use Of the works. which arise from the natural decay
and also from those which Of annual occur: snce
without limit az to time.
The latter all evidently charges which belong to
the cost OF operating while the former may with strict
propriety be charged as capital and in estimating the
dends both Of these classes OF items must be provided
for
IL may be remarked in this connection, that these
charges against arise mainly rail
roads opened for before they properly
stru ;ted.
II will be observed, that of the returns of the
railroad corporations OF this State comply with the law
IN stating the amount Of depreciation OF the works and
rolling stock. The returns Of railroads Of Massachu.
setts In most show o small allowance made for
depreciation of the iron rails, engines and cars
It is concluded by many slful managers that IL the
works and rolling stock kept in thorough repair,
that they In good condition at the end OF each
year they we're at the end Of the preceding year. aud
therefore that there be depreciation.
The difficulty lies In determining the fact whether the
repairs have been kept up in this thorough manner
The expenses for repairs OF iron rails, after ao wing
for the value Of the old material Is equal 20 the cost
entire renewal In fourteen years. that for
ties 70 Q renewal in eight years for wooden
thirty years. This deterioration may be represented 10
another form by stating equal to from two to four
per cent ann ually the whole cost Of the road