The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-09-22

| From miscellaneous sources ............ 3,4s8 10
From Customs. I455,a!s 90
Repnyments account OF the navy....... l3,00S 50
! The severity with which we have been compelled
from time to time to speak Of the majority Of rail
roads, and the general railroad management of the
country has doubtless induced the belief in the minds
of many that we were so thoroughly imbued with q
spirit Of detracton to make it utterly impossible
to speak well of any company, no matter how much
merit might possess. We have, unfortunately in our
experience, 30 few to praise and many to
denim, that such an impression in the public mind
would not in the least astonish U.S. The fault Is not
with us, but with the people themselves those
who blindly invest their capital in projects they
really know nothing about and then leave the man.
agement to q set of specializing inanciers who use
the power placed in their hands to fill their own
pockets, 10 the injury ruin Of those who have so
fooiishiy trusted them. The fact il the public do
not look sharp enough after their servants. Thep
place in positions Of great trust and seldom or
never look after their stewardship. Just such
statements and reports as the officials may be com.
PEELED to render, to disguise their frauds and extra
| vagance, or cover up the gross mistakes of misma.
nagement, accepted, and for the time all il well
With such criminal carelessness and neglect on the
part of those whose business it Is to closely watch
and patiently guard the interests entrusted to them
is not al all strange that should so often have oc-
cason TO expose the rottenness of corporations and
feel it our duty to those who may have escaped
against the snares and wiles of stock spectators
We have frequently regretted the necessity of pre-
sentng such evidences of gross dishonesty and de-
ception as have within the past ten years been prac-
Used in this community. Nothing has been further
from our desire than to exhibit the condition Of the
railroad interest in any but the most favorable light
We should be pleased TO see the whole world grow
rich, individually and collectively. We should be
pleased to every railroad in the land all that its
managers and friends claim for it; but unfortunate
ly we have not had the pleasure Of recording many
favorable results in the operations Of our present
system Of constructing and managing these impor.
tant works. While truth has compelled MS to de-
nounce and expose such miserable affairs as the Erie
Hudson River, Harlem, New Haven, Cleveland and
Toledo and dozens Of others Of the same character
we have with equal readiness and far greater salts.
faction, acknowledged the merits of such roads M
the Gaena and Chicago, the Chicago and Rock
Island and perhaps two three others 1t Is source
of satisfaction to us to know that there are such
roads, and conceive II to be duty TO place them
so prominently before the public that attention will
be sufficiently attracted to draw capital from doubt
full and dangerous investments, for investment where
it will be beyond the innumerable contingencies
which surround and may any day oyerwbelm othe
railroad stocks. It is fortunate circumstance, so
long as railroad investments are popular with large
class of people, that there are roads In which the
widows and the orphans mite may be safely and
proitably invested In preventing its investment
in the stocks Of the condemned companies named
above, our duty is but half performed. We must
point out securities into which it may be placed
where even the most remote possibility of loss, de-
linquency in dividends, temporary deprecia-
ton in market value does not exist. From the
earliest Development Of present railroad system,
we have earnestly endeavored TO do justice TO all
interests. Without fear or favor have condemned
the dishonest and given credit where it was due.
We have frequently shown by the strongest array Of
facts and figures that railroad companies were in
solvent long before they ceased paying dividends.
We have shown by official reports that dividend
after dividend has been carried into construction
account until it became unwieldly that further
disguise was impossible and last, but not least we
have the fact every day presented that thousands
have been, by structures and our Investigations
preserved from all the horrors Of poverty and want
that helpless age that widows and their innocent
little ones, have been rescued from the hands of
graspng spectators, and been able to preserve the
competency life Of toll or the promptings of
affection provided for them. With such convictions
the insinuations Of stock spectators pass by us as
the idle wind. To show that we are not alone
in our views relative to the policy pursued by rail-
road companies generally, and that they are in ac
cordance with those entertained by one of our most
cautious aud shrewdest fnancers. we give from the
last report OF the Chicago and Rock Island Railroad
Company the remarks Of A. @. Fagg, Esq its trea-
surer, on this subject
Although our road has commenced under very favor
able auspices 10 the extent and producveuess
business the prices at which railroad securities generally
sold in the market ought to lead 10 inquire and
ascertain whether the present depressed condition %
these securities II not owing TO wide departure from
the wholesome rules before referred TO- Than from the
verify ~ the money pressure, the nfdcty Of
two prominent persons whom the public confidence
bad Tong rested Ia relation 10 all arrangements connected
| with railroads.
The great financial error In the railroad system gen
orally be that the construction per-
mted 10 with The road whereas, when the road l.
completed and in operation, the construction account
should be stopped
Another IL In creating stock which Ia repre-
senied by the actually expended In the construction
Of the road In it, equipment II the money obtained
account OF the bonds stock issued II faithfully ap
Piled 10 the construction OF railway the 81 the
stock and bond would In most cases. have q easonabe
guarantee for just remuneration the advanced.