New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-08-10


that capital, change from year to year to very
great extent.
OF the truth Of these general observations, the
history and present position Of our Railroad enter.
prse-one Of the greatest and most widespread
undertakings Of the past twenty years-presents
striking Illustration. In what We are going to say
on that subject we must be understood as referring
not at all to railroads yet unfinished but to those
already completed aid in working order. That our
existing Railroad system has attained its present
extent only in consequence Of delusions extensively
diused smOIg our business men and capitalists, Is
now universally admitted. The cost Of the roads
was largely ubder-estimated. The projectors OF
these enterprises never considered the inevitable
effect upon the money market Of the host OF COM
petitors for railroad loans but because they had TO
offer what they considered good securty-though it
has often turned GUITAR from being sO-they expect
ed to be able to raise any amount Of money at simple
interest The terrible items of discount and extra
interest-which become leading items when road
is built, as 60 many of ours were, with borrowed
moDey-were left wholly out Of account. Above
ALL the Boards Of Directors greatly under.estimated
the cost of repairs and working expenses, and in
their anxiety to increase travel and transportation
fixed rates Of payment considerably below what
could fairly be afforded. We may add to this, in
Sufficient protection against the frauds of their own
officers, by which a number Of roads, and in some
cases the out.ide public, too, have so severely suf
fered Take all these things into consideration and
there is no to be surprised that so many san
gune expectations have been disappointed, and
that the whole Railroad enterprise is at this moment
in decidedly bad oder, both in Wal.street and out
Of it.
Not content however, with throwing aside e1.
pectatiens and opinions which facts have refuted,
and substituting the fruits of experience in the
pace Of theory there is very strong disposition
eyinced in Wall-street to throw aside one theOret
cal view only to substitute another in place of it,
Facts and details are troublesome things. Short
cuts have great attractions 1t is very easy and
convenient to settle things upon general principles
and, without going into details, to make one rule
answer for the whole. The old theory upon which
capitalists were induced to take stock and lend
their money, used to be, or at least seemed to be-
that every railroad in the necessity of the case must
pay. That theory has been proved, by rather ex.
peDsive experience, to be untenable. Instead of
substituting for it the results Of that experience, it
is now proposed to fall back upon another the0y-
to wit: that no railroad under any circumstances
can pay. We see it gravely urged day after day
in leading journal, that the whole capital invested
in these enterprises is destined to be swept away
and that the sole chance that any unfortunate holder
of railroad stock has to save himself from total
loss, is to cell out forthwith at loss perhaps of
one half or three quarters.
1t is an undOubted fact that the building of our
railroads has gone to verify the substantial truth of
the old prOverb that Fools build houses" but We
are also strongly inclined to suspect that every trans
fer Of the stock of large proportion of our finished
railroads at the present prices will go to verify the
other half of the same proverb, which asserts not
merely that fools build houses, but that wise men
live ia them. We can hardly imagine greater alb
surdty than the suggestion hatthe railroads OF this
country are destined to remain an unproductive
property Railroads have become necessity. People
can no more get along without them than they
can get along without shoes or bats, or susPenders
Some 500 600 900 are thus invested, and invested
for the purpose of rendering a service which the
public needs and must have. To suppose that the
use Of railroads is to be suspended, that steam
whistles are no longer to be heard and that stage
coaches aDd baegage-wagons' are TO reappear'
il rdculous but it is no less ridiculous to suppose
that the cars are to continue to run for the con-
venience OF the public merely, without any return
to those who own the roads There may, doubt
less. be individual roads of which the public stands
so little in need that they ought never to have
been built so they never can be made to pay at
least not the interest on their original cost. But
take our railroads as whole, aud the public needs
them. and needs them so much that there can be
no question that the owners are in position to de.
mand and to obtain fair return for the use of their
property thus invested. What is needed to place
most Of our finished railroads in paying condition
is, merely that the propretors and managers Of the
roads should profit by the experience already ac-
auired, and, instead of sticking to theoretical
systems of operation which experience has
proved not feasible, should 90 to work in
the light of that experience and correct
their own blupders. To speak Of railroads
as having proved failure ID " give i"isc i"PIe''
sion as to the source of the present difficulty. The
failure las been and is in the management of the
n ads. live have paid dear for our experience,
nevertheless We certainly have attained to az ex.
perience which is worth good deal Of money.
successful railroad system implies two things; st,
the having roads to operate upon and running stock
to operate with; and secondly, to know how to use
them. The roads We have, and the requisite knowl-
DE We are very fast Getting. Though the want
that knowledge in times past may resultin trans
err;ng the greater part Of the roads to owners