The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-04-22

While we have Io gunboats to send to China,
and propose to send zone, We trust that Mr.. Reed
will not Lose sight Of the necessity of obtaining
on fair terms Q share Of the trade to be secured
to the maritime nations. Aug expense 10 be
borne will probably fall on the Chinese but
should a payment Of money be necessary to
secure our participation in Q future free trade
between China and San Francisco our surplus
| could not be better invested.
| Railroad systems and Railroad BIsnaxe-
ment.
Recent events are attracting general attention
to the subject Of the railway system and railway
management In the United States The facts on
which all parties are agreed are few and clear
We have built, in this country, Ia round num-
bers, twenty-six thousand miles OF railway, at q
| cost of twelve hundred millions of dollars dis.
| tributed between stock and bonds with or with
out especial security in the shape of mortgage or
sinking fund. A large portion Of this stock and
these bonds is held BY cities aud municipalities,
and was taken--uot asan investment for 81 cplus
money the cities and sauuicipaltieshav iag none
to invest but as encouragement 70 projected
roads, and a. means Of Fastening their compile
tion in view Of the indirect benefits to be derived
thesehom. The balance is chiefly held by per-
sons owning land or property OF various kinds
along the line Of the roads A small portion of
the stock-and much smaller portion of the
bonds-is in the hands Of capitalists and speed
lators in Wall street.
That the investment of even 80 large q sum
as twelve hundred millions dollars in this class
Of enterprises was eminently judicious, must be
obvious to every careful observer. Rail
roads have been, under Providence, the
very greatest of all instruments for the
advancement and development of this vast
country. Without railroads, We should
have had nothing worth notice west of the Mis-
sissippi; the great States of Ohio, Indiana aud
Illinois would have contained few settlers only
on the lake and river shores; New York would
have still been three fOurths DESERT the popu.
lation, and the trade, and the production, aud
the greatness Of this country would not have
been, q quarter Of . century hence, what they
are now. 1t is to railroads.&c. the facilities
they afford for cheap, rapid aud regular transit
that the United States owe the prodigious rate
of progress which has distinguished them during
the past fifteen years. 1t Is not possible to esti-
mate In dollars the benefit they have been to the
country. But were we to LOOK only to the en-
HANGED value which they have given to real
estate, twice their oost-twice twelve hundred
millions-would bear very small proportion to
the gain we have derived from them.
The misfortune-what rose is without its
thorns-of our railroad system Is that we have
attempted two incompatible things simulta-
neously-to build railroads for the development
Of the country, and also to make money out of
them ~ industrial enterprises. We have wanted
to get two profits out Of the same money. We
have resembled the avarioious hero in the play
who wanted to lend his money 30 as to get in
terest for it, but could not bear the thought of
And the consequence is that now that the error
of our calculations is becoming apparent, the
discovery is leading to some disappointment aud
hesr.burning, and we fear to . great deal of
fraud.
Common seose might have told every one that
III
ject of opening up the couutry-that is to say,
with cheap rails enc track, hasty structures, and
q low tariff Of charges-as all our railways are
built they could not be expected to attain the &C.
condATy object Of making money as common
carriers. Avarioe suggested that they might;
and from the first 1t was q tacit instruction to
the managers Of almoet all the roads in the coun-
try to manage their enterprises ss they pleased,
ba on no consideration 70 fail 10 poy drrdenis.
This instruction has beeu pretty uniformly obey
ed. There have been perhaps few cases in
which owing 10 peculiar circumstances, it was
possible to do 50 honestly No doubt there are
roads In tho West which, in the absence Of com.
peting lines running through table country,
and levying high rates Of toll, have earned a
profit for two or three years together. But as
general rule, |. was quite apparent from the
start, and has become more 80 every year since
In proportion TO the multiplication Of rival lines
that, under the present railroad system, no raa-
road in tie U,aed States can pay inte-es upon as
cost.
Driven 10 this conviction aud placed In a
dilemma between defeating the purpose of
their constituents the stockholders, or embarkins
in course sure to be ultimately fatal to the Gu
terprises placed in their charge, the managers of
the ailroads of Tire United States have, almos.
without exception, taken council Of their private
interest and adopted the latter alternative.
Largely interested Themselves ia the maiute-
nance Of the market price Of the stock, they
have Rrati6ed their constituents and ruined their
property, by pursuing systematic course Of
borrowing money, st ruinous rates Of interest, to