Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-10-19
From the New York Herald, Oct. 70.
Tha RnH-naA Ss-n-uVa


% Saturday last, we sll know, the Illinois
Central went to protest on its floating debt The
imndedIate of the suspension sppears TO have
been the impossiblity Of disposing of sterling ex-
change drawn by the company against the install
ments paid into the London agency of the road:
but il is quite obvious that had not this occasion of
tailnre presented ITSELF another would and that the
present panic has only pr, cipitated an utterly I'M
aVoldsoie consummstion. The day before. the Erie
hShroao company likewise went TO protest, Oh like
scceptances for floating debt; and at the same time
the Michigan Central Company met With the same
dlshonor having no funds to meet the paper that
WIS maturing.
These three roads, thus united in common cat
asrophe, have bad very little in common but Their
endorsements The New York and Erie Kali
road Company has been practically insolvent for
years, and hat for an extraordinary coincidence of
financial skill and good fortune, would have passed
out of the bands of the stockholders a few months
after the SCHUYLER crisis. No person of good
judgment has believed in it since then; and attery
its embarrassments have been notorious that its
failure will take one by surprise.
Very different has been the character of the Mi
chigan Central Company. Until within few
months, It's character, well in an industrial as
financial point OF view stood very high indeed. IL
was understood 20 be chiefly owned and controlled
by solid men 10 Boston Ond the West to whom the
idea OF stock specustions never could present it.
SELF Ii was said to be managed not only with SCI
ence, and economy, but also with integrity; railway
to measure doubtful concerns. These merits were
reflected in its financial returns it paid ten per
cent dividends regularly, and its stock-which was
scarce-sOld but trihe under par in markets
and those OF Europe. Ruin, Overtakng such
concern this, and in so frightfullY sudden man
ner, will stagger the most resolute minds and may
well warrant the boldest see pticsm in a reference
to railway values.
The Illinois Central Company was the original
and the exemplar of another class of railways-the
and mt nTTa rFaN1aa GnwNu 3
obtained from Congress 2, 500, 900 acres Of land
In great part selected y the company-in the State
of Illinois. With the deeds of this land in their
pocket the company's agents went out to England,
and raised IN round figures twenty mions-in
rious shapes and various tmes-fOr the construc-
tiOn of 700 miles of road from Cairo the southern
extremity OF the State of Illinois to Chicago in the
North. The road was built Part of the land was
sold.
Three years ago it appeared almost certain that
that the sales of the land would in a very short
time pay the whole cost Of the road leaving to the
stockholders free of cost first the finest railway in
the country; secondly, a balance of many hundreds
OF thousands of acres Of land. Assuredly this was
an enterprise which might command confidence;
the stock might well sell at a premium ranging
from 20 to 40, and be regarded as security equal
in character to the best State stocks in which the
widow and the orphan might safely invest their
little patrimony. For all this, it has failed. The
receipts from the sales of land have proved so in
kTnOSt OF the lands being sold cred
It, at absurdly low rates of intereEt) be of no
account in balancing the loss on a long unprofta-
bic railway, running through inhabited section
OF country. Complaints of the absence Of water
and wood on the cOmpany's land have been gener.
ally circulated and is said that settlers who have
lived on it for three years have found it cheaper to
abandon their improvements and move over into
Iowa, than to complete the wOrkthey had begun.
Meanwhile, the loss on the running of the road
and the cost OF never-ending additions and repairs
have required the company TO carry a large float
ing debt, which has sunkthem at last.
1t Is quite certain that this beginning of suspen.
sions among the railways will be followed by other
catastrophes OF like nature the crisis continues
Many other great railways throughout the country
will probably fail this fell.
Setting aside the sympathy which one NAV feel
for individual stockholders who have been duped
into investing their savings in this way, it cannot
be disguised that the failure Of these principal rail
ways will be- both Immediately and ultimately,
gain to the country at large. IL is supposed that
the failures OF railways which have already
ed Will Hibernate; in the course of the next thirty
daye fu twelve millions Of money, heretofore used
IN ehaVing railway PuP1T, 90 I've ~ ten pei cent,
per month, and which will now be turned to good
account for the relief Of the merchants. Il is real
blessing to get rid of such needy and such enor
nous borrowers as these railway corporations have
been.
And furthermore, when the Erie Railroad, or
any other great enterprise of the like kind, is
brought to the hammer and sold out, or loreclosed
upon by bondhoders, il will not command price
much exceeding one-ourth or one-third of its com.
monty reputed cost.
The Erie will probably be taken, for instance, al
something like twelve to fourteensmillions Of dol-
lars, Instead OF forty; the New York Central at the
same rate; and the other great roads in proportion
AT these prices, under a sound management, we
should consider railways about as good invest.
ments as any in the country. They would then be
enabled to devote their whole energies to their pro-
per business OF carrying passengers and lreigst,
and there Is DO reason why they should not do as
good business as the steamers, the ships, or the
express companies.