New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1856-03-07
5s Ifstters of flames Robb iss
ON INTERNAL IMPROVEMENTS.
NEW 0RhFaNS. February 4 4 1879.
This E'res2sney Ro5ert e, rrickit6e,

TeYleT eiISGLS of
to tile suggestions ofepediency cash
system for of credit With its contingencies which
has inflicted great injury not only upon oYr inter-
ests, but on fnose Of every Undertaking deRedY
ours Qifr Inactivity las operated az check on the
Mississippi Central, Memphis and Charleston, Eicks-
burg and Shreveport, and Tennessee and Alabama
Raifoads. II we had prospered and gone ahead, the
On the lines Of tiose Important roads
would have been stimulated to fresh sxertors IN fhs
oehaf, which. would have greatly accelerated and
promoted tseir progress. The ordinance for taga-
lon, q Il pa#sed the Council. advocated on tile
would he for credit and HAT its ratication,
supinttedin any other FORM would be hazardous
~ fs1e GeneIslon Gus was as unwse the Judgment
~ shaS contryed the scheme Of borrowing when
We might have had the money without lenders
alsons anaor voted for the tx not
s.eedg e rs amount aid effect1ally In the
4aa 81 oE roads he neither
provided Vas afsains IN no;9,.
Sas grst ss ~ the value Of his uo
would redeand ead III dtfss is ess haI
them 70 hi5 certain and nnfaIire advantae ss ~
sdesi we naesa precedent The aotle@ example of .
where in addition to liberal
ten per cent. had been voted by hal5aEs
as tax on their real estate To- assstn tIe hptIiry
of the Mobile and Ohio Road M sl'saS sSAieS
The tax ordinance being approved by The nrrHa,4.
holders, with the first nsalment postponed ni.tI Ma
1858, we had before US every prospect Of inactivSy
for neariya year, owing to the want Of means be-
from doubt, as not TO leave it some degree Of IN
certainty, until judicial decision regarding the CON
sttutional right to taxre estate to build railroads
could be had, az it was well known it would Be cen
tested by a few discontented citizens. There was
reason tobeeve that at this time any hesitation in
commencing active operations would disappOiTle pub
lie expectations was deemed wise and polite not
to allow encouragement to happen when it Bas pos
sble to- avoid tand an appeal 10 the counties and in
habitants on the line Of road III Mississippi was Ere-
sumed best calculated To- keep alive public favor and
secure considerable assistance We had already been
put back SO much by the canses assigned that no
plan which promised aid was to be overlooked or
neglected. proposed to spend year in the INTERIOR
in my capacity President and visit In person eyry
landed proprietor on the line of the road between
New Orleans and Nashville land by personal exnla-
nation Of the policy ertakng seek to enlist
their sympathy and support. fortunately, in the
beginning of my mission, which commenced with
every was arrested in its prosecu-
tion by severe Illness brought on by exposure in Mis-
sissippi, which compelled me to relinquish further
personal attention to the affairs of the Company un-
til January, 1853. subsequently, the official employ
ments of the Company, during my connection H.
intertered to prevent my renewing the effort whicsI
am now more than ever nyineed would have baen
crowned with success The directors Of the Co1,lpanv
have since engaged in various efforts to obtain the
assistance and cooperation of the country but the
means employed have failed, either from misdrected
efforts or from the Indifference which PREVAILS owing
to the progress of the road and
want Of an intelligent understanding Of its affairs
The unexpected and favorable sale by the city of
tWo lululos u dollars OF It5 D0ndS, July, iSo2l
spired confidence that credit would be as good on
every fresh occasion and the directors of the Great
Northern Railroads yielding to the current Of public
opinion and relying upon taxation as efficient basis
of credit, entered into contracts in November. 1852
for the building of eigtyseyen miles OF the road from
the city to the State line, and for supplying the iron
to the contractors in time to complete it by the 1stof
October 1858. A contract was also entered into Ia
finish twenty miles of road between Jackson and
Canton on OR before the 1st day of November 1854.
These engagements, with the cost of depot grounds,
of equipments, engineering and 'superintendance,
amounted to over two and half millions Of dollars,
two millions of which would have to besprovded by
credit, and above the actual receipts which the
Company couldthen rely as available from its own
resources inclusive of the taXinstament due in MAY
1858. .4af
This was the condition of the Company when I re-
sumed my official duties in January, 1853! It was at
once apparent that it would soon have enpapements
pressing upon it, without means of credit to meet
them !; and unfortunately for my Own interests and
tranquility Of mind undertook to meet these def
7 eieneies By large advances made in times great
! financial distrust and not without sacrifces which
| advances malignaney has made the subject Of base
but harmless nvective. The triumph or the total de-
feat OF opr internal improvement policy, nothing
more nor less than the grand issue at stake It has
had its struggles since, and has them now F.; and al
though ttmay to-day appear in a condition weak and
enfeebied it has gained form and proportions that
VIII expand N N time to GIGANTIC dimensions The
charters and liberal aid of the State since obtained
were. then only in perspective. Would any proposi-
ton have been entertained in favor of either if fall
!e had occurred before completing mile of the road
Never was question of such mighty importance to
the welfare Of State in such peril. Failure then
would have been the deatl-blow to public works in
Louisiana and not in the day generation of any
man now living, would any combinations have sprung
up to assure public confidence and root out the deep
distrlst that would have prevailed, of capacity
ever to undertake, Or carry out successfully public
/ enterprise
need large sums, the next step suggested was the ap
polnment OF commissioners to negotiate mortgage
loan, but by the time preparation could be made to
make the trial, unusual causes suddenly appeared to
disturb the money markets Of Europe, which at once
imposeda violent check upon tile operations of all
enterprises depending on the facilities of credit; and
since 1858 occurrences serious and unexpected "a E-
ropean war and deficient harvests) have contributed
to increase the difficulties.
After the return of the commissioners whose report
was unayolable to the hope of contracting foreign
loan, the Directors of the Great Northern and Ope-
ousas Companies, in view of their wants and the as
certaned insutciency of their real estate tax bonds
to realize money eitherby sale otherwise mutually
agreed to petition the Legislature to pass an act al
thorzng Communication Of the real estate tax subcrp-
ton for one to be made in behalf Of the city in its
corporate capacity payable in its bonds bearing six
Pc per cent interest and having twenty years to
This measure has proved advantageous, and in some
respects fulfilled the objects of its projectors. The
taxation to pay the interest these bonds cannot be-
regarded as very onerous to property, neither can
their issue be viewed as impairing good faith. It
brought increase of the liabilities Of property over
what it had assumed in 1852 before the negotiation
of the two millions of consolidated bonds It relieved
the railroad companies from large annual payment
of interest on their issues of real estate tax bonds
which were surrendered BY the holders for the bonds
of the city at par. made the subscription Of the
State available for larger sunni without which the
failure and prostration of both companies could not
have been avered. sss sI79S 81 aa s,
But although these aids essentially contributed to
overcome the serions embarass1nents that threatened
our undertakings, and enabled the Companies to re-
ueve in part the prestige of early confidence, they
would have been still more beneficial but for new
and unexpected scheme to build railroad from New
Orleans to Mobile which was at that time put for
ward its projectors claiming the aid of the cityin its
bonds to the extent of and half millions of dol
lars The scheme, unfortunately, received the sane
ton of the City Council and by the practice Of un-
paraeled frauds carried at the ballot-box, en-
failing upon the city loss Of credit and the loss of
at least two hundred thousand dollars of its bonds,
with the interest thereon at six per cent for thirty
years Considerable as this may appear it is in
significant in comparison with the sacrifices imposed
on the Great Northern and the Opelousas Companies,
and the forfeit at home and abroad of confidence in
our own discretion and foresight
/ Navigation between this city and Mobile is unsur-
passed-neyer interrupted by season, climate or low
Water-and it will, for all time to come, serve to sup
ply cheaper transportation than q railroad, which,
even had it been scheme of merit, it was not wise
to commence when we already had undertakings on
baJ-on