New-York daily tribune., 1857-10-16


gether different mus. not slo< their erpsc'sh Sns
Of profit TO be bssed upon standard 40 er'
cepuouel. But the experience Of the Past hVe year,
has altered the whole aspect OF the c'ss, and
While large proportion of the Wes6srn h1es
have become ely bankrupt, there is, with
the exception Of those in the New Erglsnd Sts,e-,
scarcely an important railway throushou the Union
that pays satisfactory dividend, or in which there Is
any confidence that such distributions as take place
are fairly made out OF prohts. Comparing the present
market value Of American aud Brtsh railwa with
their coet, il would probably be fund that me
heaviest depreciation has occurred on the American
side. The question has qaenty been ssked, can
it be posEble that railway enterprise IN Amenca mas
been injurious to the country or that the people would
have pgshed il to the extent that has been witnessed
If they had been unable 10 escuste Il would prove
remunerstivei On the contrary, i. is plain that
almos; all the wealth OF the nation has been created
by these nesps. Such, however may have been the
case, while the railways have been working 81 loss
Ii lie those who have bought up the bordering lan1s
that have che Hy promoted the various undertakings
and il is in the advance of price from VI - 70
so or 800 per acre that they have found
their dividends The investor, looking TO the rail-
road alone, has reeped nothing but disappoinfment
and il is this clsss in the Atlantic cities and in Europe
that has been impoverished waie the Western speol-
ators have realized abundant fortunes. In soma IN
the land, but it has been worked by al the parties
the line through a system of free passes, nominal
freight charges and other contrvanees IN favor OF the
local farmers and land obbers as TO shut out all pos
companies having been brought the last sage Of n
solvency, come OF these abuses hsve been checked,
and the present CT isis will perhaps lead 10 vigorous
attempt at general reform. The problem will then be
settled whether American railways, simply ral ways
can be trusted under The best circum 10
pay diviceDc commensurate 70 the general rate Cf n
ere.t ottansbe IL in that that country BY the s; em2oy
is one interchangeable Illinois Central, referred
o in the suboined communication, the pro-
prietOIs OF which are placed IN the true posi-
e Ii IL
ors Even this, however is a. discount, and if
'ba. discount is ustifabe, it must then be imposs
BILE TO escape the conclusion that there s no conceva
bic arrangement that can impart safety 10 ailYay
invesme Ut in the United States. The immediate cause
Of the existing price of the stock is said to lie in the
fact Of the Company having itjudiciously incurred
floating debt n order to avoid calls and II this be the
Gaze the fall should prove only temporary. Floating
debts have constituted the proximate cause OF the
recent break down OF all the other Companies bu. in
those there hes been an inherent unsouadness, and
also the absence Of any power OF sepreservation by
fshrg back upon subscribed capital of which only
small portion has been called up. The cost of tls
Illinois Central has been f5 700 600, third of which
is owned in Europe, the principle on which it WAS
based having seemed 10 render IT one OF the most az.
tT8ctive and of modern American investments.
Thus far nothing has trsrspired TO beget suspicion
that this view involved any erroneous assumption
but the magnitude of the English holding should
cause it to be watched with great vigilance and
among that portion of the European public who miy
be disposed TO send their money the Atlantic
ts stability or weakness will from tine to time
adveDtageously along with other Indications, to throw
light upon the point whether any faith may still be
placed in the financial conduct of public bodies in that
country
"sn: A,s holder of Ame Railway securities, have 70
thank you for the wholesome observations which appear IN
your several notices 10 which the psr the NewYofk
Stock Exchange has given rise.
Nothing show dearly the justice OF your structures
the danger Of floating eebts than the Of the Illinois
Central Company tone oihoe beat known in England which
This Company completed their 7Oi mile, of railway year
ago. a. cost, & nS expenditure to th time Of H round
this about 30 Oco raised BY their mortssse
bonds and about s7oOoOO By temporary loans, aoitns
Ai. Company well haowp holds G gran; 6o from the
yield nearly saCtO; and assuming the
res1td with The scwth Of population the value land
59;nrr .s, viii yield about s more nor S and nnsS ,ns;S
eventual, NOR than repay the whole cos. Of the rsgy a
Penced within few nor tbs past premium they .
sustained wnen the condition Of the New York money market
credit there however brings on at last the psuc which ha,
been wildly described in yoar numbers aud the Directors Of
are Compelled to msie cali Of per share At very dor no
eIh' measure add: to the Pan aud as a, 'aeh Tonsn.'
md the bonds are reduced IN price,
winch cost - oO
And holding lands worth, rth,................. 7ooOOoo
sJ27OoOos
who have allowed themselve. be placed for ths sake
ucpt ot "eAn-
obliged adopt suddenly which the effect OF lat
moentsy damaging the market value OF their shares
nd bonds to the extent OF three times that the d.
ecoTs six months taken the step they have done
nsteAd Of striving 10 postpone 70 the latest period the necessity
CALL this great inconvenience 10 all aud serious loss 70
sny would have been avoided Let those therefore, who
their In Amec projects inquire
narrowly amount Of their debts aud especially her holt
Ing debts, in these la, Is evidently point Ofdsaser
Sir, your obedient servant, - - -
a CONSTANT READER"
The quotations for American Securities in Loadon
ale as follows:
Closing