The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-06-29

THH VALVE or RAILWAYS The main line of
Il Philadelphia public works (canal and rail-
way sold last week at auction for the sum of
seven millions and half Ii had cost over
twenty. three millions Yet we find all opin-
ions concurring in regarding the sale ss very
good one on the part of the State. There wa
but one bid; persons who may have had ideas of
purchasing were deferred by the soidncss Of the
purchasers first offer.
At this rate, the actual value of our railways
and other public works would be to their cost as
one TO three: that which cost thirty millions would
be worth ten, that which cost ten, three and O
third. Thus the Erie and New York Central
which cost forty millions each would not be
worth over thirteen millions and q third at the
present day, which Is seventeen millions less than
the bonded debt OF the Erie, and two to three
millions less than The bonded debt of the Central
We apprehend as general rule, that the staod
ard which might be inferred from the sale Of the
Pennsylvapjn main line would b. too high for
most Of our railroads. We doubt whether, TAX
ing them altogether. they are worth over TWEEN
ty.ive TO twenty per cent Of their cost Very
many Of them would be dear AZ gift were the
gift conditional upon working them Others have
rapidly declining value, In consequence Of the
operation Of competing lines. Others have been
so hastily built that in year or two the whole
work will have to be done over again.
But the main cause Of the enormous dispro-
portion between the actual cost and the actual
value Of most of our RAILWAYS IL the fraudulept
-, r.. r..
managed. Many Of the managers Of our leading
lines had little or nothing when they assumed
their post az president and director; they have
gone up in the world while the road went down;
they are worth millions while the road is bank
rupt Sometimes the fraud has taken the shape
Of sales by these directors 10 the road of land,
supplies, or iron: there might be railroad pre-
sidcnt who could I've shown TO have made over
million by selling railway iron TO his road, during
period Of four or five years, during which time
said road had declined In market value near fifty
per cent. And there might be other railway
directors, known TO have been men Of moderate
means when they first went into the business, and
who, having done nothing since but discharge
their functions az directors are now mllionaires
or course If such thing were possible as that
q railway director, possessing the power Of
declaring or Withholding dividends, contracting
or paying of debts, damaging or elevating the
credit of the company, should speculate in the
stock Of the railway, il would be easy to account
both for the sudden and surprising fortunes Of
some of these officials and for the steady decline
of the property they administer. Can such things
be? Docs anybody doubH
A time Is now coming that will try some Of
our financial institutions 10 the utmost and per-
haps put to the test the capacity Of our laws to
deal with the frauds which the recent admirable
legslation Of England coudignly Furnishes. Ev-
cry finger in Wall street points to two well
known railway corporations which nothing but q
miracle of usury can rescue from absolute bank
ruptcy this very summer; add a whisper, gradu-
ally swelling to audible tones, indicates other
concerns rs their rapid successors IN the down