The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-07-24

TO sell out at less tnan cost. inquire IN wall
street.
The Central Railroad Monopoly-Next Cover
nor and Legislature.
If the people of this State do not awaken in
time to knowledge Of the policy OF the Central
Railroad, New York will soon be known as the
Kingdom OF Corning, as New jersey is known IS
the Kingdom Of Camden and Amboy Measures
have been already SO taken tina. whichever party
wins the November election, the railroad interest
will control the Legislature. For covetous men,
it has bribes for place hunters it has Offices; for
operators, it has stock privileges. By some
means or other it is ready to buy them all; and
no one who witnessed the last session of our
Legislature can doubt but it can. Among the
democracy, the monopoly is particularly opposed to
Fernando Wood as nett Governor, because he is iade-
pendent and popular among the peope-but especially
in favor of E. Corning and others like him,
because they will be under its influence and
power.
Nor is there in point of fact any wonder in the
pursuance of this policy by the railroad com
pany. 1t now stands with long road-or
to Buffalo, on the credit side of its ledger, and
forty millions of dollars in round numbers on the
debit side. Those forty millions being nearly
two-thirds stock to one-third bonds, it is less
burthened with interest than most roads-the
Erie, for instance-but it requires larger sum to
pay dividends We're it managed with strict in
tegrity-that is to say were the market value of
the stock disregarded by the managers, and their
whole mind given to making the most Of the
road-this popularity would be an advantage;
for where such road as the Erie is bound to pay
seven, the Central could content itself with pay
ing four, If no more were earned. But
as, far from this, the managers of the
Central-like those of nine-tenths of our rail-
roads-haye always kept close eye upon, and
taken lively concern in the market rates Of the
stock being themselves always interested in stock
operations therein, they have felt themselves
bound to pay dividends exceeding in amount the
current rate of interest. The Central has for inc
stance, regularly paid per cent per annum on
something like twenty-five millions of stock. We
venture to say that no respectable person, versed
in railroads. can assert honestly that this sum has
been really earned. We all know that it has not
been earned, and that financial tricks have been
resorted to in order to pay it, 80 as to keep up
the price OF the stock.
Now, how long can this 60 on 2 Not long, OBJ
viousy. The day IL even now impending for the
Central when the public shall call for receivers
as they did twelve months since for the Erie-and
the very existence of the company shall become
a problem. What then Is TO be done OBJ
viously nothing but what the managers are doing
to obtain the control Of the Legislature, with
view first TO obtain some peculiar grant or privi-
lege, which may give them fresh lift, and Sc
condly to scheme for the future acquisition Of
the New York canals.
No doubt, if a consolidation Of the Central and
are in a bad way, the wise men Of Wall street
would conclude that the product would be good
The first consolidation buoyed up the stock at
l25, since when it has only fallen about thirty
three dollars, on the strength of regular half
yearly dividends Of four per cent second
operation Of like nature would no doubt add
ten per cent to the present value.
But the canals are the great aim Of the man
ayers of the Central. Unfinished as the canals
are, the road has already felt their competition
When the enlargement has been thoroughly car
ried out along the line II will hardly be possible
for the Central to compete at all in the freight
business. II win not pay its expenses, and the
stockholders, rather than lose the forty millions
they have already invested, will be prepared to
pay further round sum SO as to effect third
consolidation, and unite the canals and railway
a. has been done in New Jersey.
That that consummation would be injurious TO
New York we need not be at the trouble to
show. No one who has ever seen our neighbors,
the Jerseys, can be at loss to know the conse-
quences Of allowing State to fall into the hands
Of a aRpncyed corporation. The people of that
State Ware not call their souls their own their
Legislature is farce, which only serves to record
the DEGREES Of the monopoly; their freedom Of
action and even Of speech is a mere delusion
New Jersey is the railway, and the railway is one
Of the worst managed and most expensive and
most dangerous to travellers in the country. If
the Central Railway Company be allowed to
pursue their scheme Of securing the control Of
our Legislature, we shall soon be in the same po-
sition. If they be allowed to put up such man
ar Mr.. u. Corning for Governor, and put their
foot down upon every independent democrat such
as Fernando Wood, then we may expect to emu
late New Jersey in our meanness and want Of
pluck. Our great lines Of internal communica-
ton will be in the hands Of monopolists, so will
our Legislature, 80 our Governor; we might as