The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-11-25

Russian Railroads and French Finance.
Our latest accounts from Europe contain the
news of the conclusion of the treaty between
the government of Russia and the Credit Mobi-
her OF Paris, for the construction of four great
lines Of railroad in Russia. These lines are to
reach an aggregate Of about $500 miles, and are
TO cost not more than S2l0,0000 900, pretty libe-
raj allowance, considering the nature Of the
ground through which most Of the lines will
pass. The contract STIMULATES for the conclusion
Of the work within period Of ten years. One
third OF the stock is reserved for Russia and the
government OF the Emperor guarantees a divi-
dend of at least five per cent per annum on the
stock.
This is the latest trick of the financiers on the
Paris Bourse. TO say that the $500 miles of
road win not be built by the Credit Mobiler
within ten years and that the Russian govern
ment will not export its surplus funds in paying
five per cent to the stockholders is merely to an
ticipate the utterance of every sensible examiner
Of the contract. In this country, where business
capacity is certainly not deficient, and men of
able minds and active habits are constantly en-
gagged in railroad enterprises, no one concern
would undertake such scheme as these Russian
railways. In the economy Of the world there is
law immutablc and clear, that man shall live
by the sweat Of bis brow and it is a corollary
from this law that when individuals under
take that which they cannot manage, they
never succeed They cannot live save by the
sweat of their brow. Hence, enterprises like
these Russian railways, Of a magnitude far eN-
ceedng the capacity Of any individual or harIoo-
Nous set of individuals, are perfectly certain to
result in loss to those engaged, and in probable
ruin to the enterprises themselves Nor is it
less certain that the Russian government can
not afford to guarantee five per cent on the
capital disbursed. The Province of Canada
has, indeed, lately guaranteed still larger
dividend to the railway companies lately i'm
ported into that Province from England; but
this was not done without grave suspicious Of
fraud (the transaction was in the time of Mr..
Hincks Premiership; and now the best minds in
the Province are satisfied that the operation was
a swindle, and that the government viii ultimate
ly be glad to take the roads of the hands Of the
company, and work them for the public profit.
In Russia, judging from analogy, railroads will
not pay three per cent per annum on an average
for the first fifteen years, and after that, proba-
bly, nothing, in consequence Of competing lines
and cost ofrepairs
There il reason to suppose that this bargain
has resulted from two causes-frst a desire Of the
entouoge Of the Emperor Of the French to con-
ciliatc Russia: and secondly the necessity on the
part Of the Credit Mobiler to do something to save
itself from imminent ruin. II is to be noted in
connection with this latter point, that the bargain
STIMULATES that the shares are not to be speculated
in upon the Bourse. This tells the story. or
course it is not in the power either Of the EN-
peror Of Russia or OF the Credit Mobilier to pre-
vent the owners of Russian railway scrip from
selling ii whore they please. AS the Bourse l.
the best place TO find customer, seller would
60 there necessarily TO sell, and all the stipula-
tons in the world could not hinder him from
doing so. This provision is inserted into the
contract merely in order to blind the unwary,
and to make them believe that the Credit Mobilier
has suddenly amended its way and intends to
speculate no more-wllile in fact, ii is to the
monty TO be obtained from this Russian scrip
that it looks for extrication from its present
difficulties.
The part played by the French officers Of State
in the transaction is less satisfactory. II is in
deed an ominous circumstance that every rcvo-
luton in France has been preceded by war or a
coolntss with England. and sort Of friendly
raJprocLcmeHt with Russia II was so in 1ssS it
was so previous to 1880; the world all noticed
the fact before tho days of February, lsis.
Friends Of France may hope that the axiom is not
going to hold good again. But the concession of
The Russian railways to these French SPECTATORS
ought to suggest grave misgiving&