The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-01-24

ave ysaxs an ar nual in their cost Of from two
70 ave cent ,.sn.g rer y their
th expenses Of from twenty 70 forty per cent per an
nNn.
owing m part the advasciag rates Of labor and mate
rails increased Of speed the high rates of int
@ the debts ~
system, and finally to the extravagant management
which has grown up among the general Characteristics
porous cor dton Of the railroads. the facility for borrow
ing money the necessity of employing mex perienced
and incompetent GERS and workmen in consequence Of
the great and sudden demand for this species OF
and by the abuse of pc the part Of
railroad managers in using their position and the works
ample certain to se followed by the subordinases.
During the plethora Of moaey lines Of railroad we're
projected BY adventures to eenedt lcs interests mo
ney promised by Spectators deficient securities
and its expenditure entrusted TO agents with loose
notions of beneficial trusts The construction
Quoted by engineers Of little experience Judgment and
the manage nent was seized upon by adventurers and
speculsors, who determined that every item Of
expenditure should be arranged so as TO nurs to their
The ultimate fate Of roads constructed or managed
Is longer conjectura and while their stock and
times those which have been iudciousy located aud
free from the most serious of the abo recited
charges win regain their place In the public conf
dence.
A radical charge for the better has already taken
place the of most OF railroads, and
If the reforms which have been commenced, aud
thoroughly carried out the main lines viii precs-
dence investment over any other securities Of ag
grepsted capital
trains has been reduced, and the want of money has
compelled economical oft, while the suspen
led stockholders TO- inquire critically into the
nagemen of their interests
The msfortunes of the present time are therefore,
quite likely oresalt in great permanent advantages
least three fourths of the money which has been
pended upon railroads this country furnished
by our own citizens and the remainder (chieay for
houdsl has pen oh inv tine
The prosperous condition OF all interests for the last
ten years has yielded large surplus profits which have,
to considerable extent been invested in this class OF
securities because they afforded prospect for larger
returns than any other investments.
The of many Of the roads built, and the
extension of Others which are necessary to meet the
pid DE- veopement Of the interior will depend upon the
Of correct basis for the security OF the
The recommendations which herein made will it is
believed meet the present exigencies of the case,
far as the stockholders are concerned until the expe-
rence OF State supervision suggest such further guards
and checks as may then DO found necessary.
The question of the security Of railroad bonds having
been raised in consequence Of the frauds which havs
been committed, and in by the excessive issue
Of bonds in proportion to the Stock 1t has become
sary give further to oregn capitalists OF
the security of their investment before they be
suadcd to make further advances.
This must be done by legislation, and the question
should be promptly and frankly met by the railroad in
erests in this country by asking for such legislation
will most enectually accomplish this object without in
fictng burthens too onerous on the stockholders
The establishment by law VI sinking fund for the re-
OF the funded debt placed beyond the control
Of the corporation will At give such security to the
bonds of railroads. to render the sl more favo
rite sources Of foreign investment.
II should also be understood that bond should be
issued until least half the probable cost Of the
work has been actually paid in cash aud expended.
Such guarantees would relieve present
and the Of all Of the roads that the
immediate necessities OF the country require
would respectfully suggest that Railroad Com
mission should be established by law, consisting OF the
Comptroller, the State Engineer and Surveyor, and
person to be elected by vote Of the stock and bood
holders of the different railroad corporations In this
State.
That the accounts of the corporations should be open
to the inspection of this Commission, and that they
should be required to examine into the financial coaei
ton annually and at any other time when complaints
OF fraud properly authenticated, laid before them
That road should be opened Tor public travel I'll
it has been examined by them, and has been properly
constructed add equipped and that the necessary
latons have been established to prevent injury to life
property.
That the Commission should have the authority to in
quire into the of all accidents which have in
ured life linn, and that they should submit annual
ports to the Legislature OF all OF their proceedings
this author ty and aso full and ample reports OF
the financial condition of the several corporations aud
Of the business operations and receipts and expenses,
now provided by law, with such additional informa-
ton they deem necessary TO lay before the Legisl
ture the stockhe lders. JOHN T. CLARK
State Engineer and Surveyor.