Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-03-02
From The GouerAor Of Maryland.
EXECUTIVE DEPARTMENT,
SPEECH OF j. Z. KEMBLE, ESQ,
OF PRESTON COUNTY,

SPEECH OF j. Z. KEMBLE, ESQ,
OF PRESTON COUNTY,
On the bill authorizing a loan 10 the Orange and
alexandria Rail Road Company.
In HousE OF DELEGATES FEBRUARY Is, 1858.
Reported for the Enquirer by P. Ksaa.
The question being on the passage Of the bill
Mr.. KEMBLE said: MIR. SPEAKER, must claim the
attention Of the House, while shall offer to their
consideration some reflections upon thi. sub ject,
which I conceive 10 be one OF the most important
that has engaged the attention Of the General As
sembly during the present session And before en-.
ter upon the discussion of the bill now under cOnsi
derstion must take passing notice Of systein Of
Legislation which has been introduced into this House,
and hich regard as system that is with-ring aud
bighting, aud had almost said, damning in its ef
fects. Ii ia system which has brought this old
Commonwealth TO the verge OF baukruptcyi and, sir,
is it not most humating, when We consider that
there are honorable members of this body who have
held meetings in variOus parts OF this city. in which
there were made direct propositions TO members to
know what they would take and what the least
they could take in consideration of their going for
all the appropriations for works OF Internal improve
ment now pending before this Legislature. Such
state of hngs as this should be condemned by all
high minded legislators.
would here call the attention of the House to the
system Of rail roads in operation in Europe and the
United States. The whole length Of rail roads now
In operation n Europe and the United States, for
ty-sx thousand and seventytour miles, the cost OF
which per mile is $79O00, making a total Of
33 65J ABS AIS The whole length Of rail roads in the
United States is twenty.nine thousand miles, the ave-
rage cost Of which per mile s 5000, making an
aggregate cost of 1920 100000 If the whole cos, Of
the rail roads in the United States East Of the Mssis
sippi was equally distributed, II would leave 10 every
man, woman aud child, the sum Of $30, or }l5O 10
every family. One remarkable fact connected with
this subject s that onetbird of tue whole capital is
held abroad.
wish to call the attention OF the House to ar.
gumeut presented by the majority OF the Finance
Committee in regard to our rail road system. They
say If the expectation Of those who more imme-
datsly interested in these companies shall be real
lied, most OF them, when completed, will yield the
State 4 return upon her investment, and will then
contribute directly to the relief Of the tax payers.
The treasury Of the State derives no uncomfortable
benefit from our internal improvements part from
what we may receive merely as stockholders, al III.
creased value ID impaired to the property OF the
country penetrated by these works. The recent as
ssssment shows that the value Of the real estate in
the Commonwealth, ~ assessed for taxation in 1856.
eIceeds the assessed value in 1850 by the sum Of
sos, A3 Sc.
But wish to call the attention of the House to this
important fact, that its increased value ia fictitious
or Imaginary increase that whle 1t increased the
value of the land it did not increase the ability Of the
tax payer 10 mect the demands upon him. And hence
contend that the argument submitted by the MAORI
ty of the finance committee IN their report falacy,
and is incorrect.
Having disposed OF that proposition, beg TO call
the attention of the House 10 the fret proposition, and
that ID that the railroads, when completed would be
dividend paying investment, or, in other words, that
il would be second Ophar" by which the treasury
OF the State would be replenshed, aud the tax payer
relieved from the neoessity of putting his hand into
his pocket TO pay hts taxes to the sheriff other ot
Ger as heretofore. And to meet this argument, beg
leave to submit a statement with reference to the
railroads Of the great state OF New York.
The whole length Of tine railroads in that State lie
two thousand seven hundred and thirty one miles, the
construction of which, with their equipment, amount.
ed TO $l32, lG0 34 The dividends which the State
has received from these roads are equal to four and
sight tenth5 per cent the capital stock. Exclude
tn. Central road, aud the average 10 per cent.
The capital invested in railroads in this State forme
oneenth of ths whole assessed value OF real and per
sonal estate and If it equally divided, il would
give for each inhabitan $4D or s25 to each voter.
argue therefore, that lar dollars and cents
concerned, the system Of railroads in tho State Ut
New York, has proved an utter failure.
would here call the attention OF the House to the
condition of one Of the leading lines in that State
the New York and Erie railroad-wh the city OF
New York and the grent Atlantic as one terminus,
and the great lakes the other. notwithstanding
ali lhesc advantages, that road pays no dividend.
and 80 it may be said Of all ha other roads in that
State. These facts clearly prove that the position
taken by the majority Of the committee OF finance
with reference TO railroads. namely, that they will be
dividend bearing Investments, is utterly Incorrect.
When New York railroads with all her commercial ad.
vantses fail TO pay surely cannot be expected that
Virginia railroads will pay. II is well known that 40
deeply embarrassed had the Erie road become, that
ha stock hOlders to it from the hammer had to
English capitalists largely Interested in II tor
further loan; and with SONS success, as recent ho
accounts represent In lending this aid, the English
stockholders actuaed more by dssire Of saving
what they had already invested, than any hope
of future gain from the investment, and
they yielded to the demand mere mat
ter Of necessity The bonds of the company had
deprecated to an almost hopeless Standard ana
they could only emerge from this depressed stand
ard by surplus cid 10 meet their floating DEBT as
well az the annua! interest accrung upon their bonds
To such degree had these bonds appreciated that
not long since, the ultimatum of liquidation was
deemed by no means improbable, for there eeemed
no prospect OF their revival save through al
advance from the English stockholders, which was
then regarded matter Of uncertainty With these
facts before the Hnuse and in view OF the position OF
that great line, with the city Of New York, as sald
at one end and Lake Erie, with lis immense trade at
the other besides numerous tributaries aud oonnee
tons with the richest portions of the State, would
ask when that line fails 10 pay, what prospect is there
for any line 10 Virginia This exhibit regard as
conclusive to the proposition OF the majority
of the Finance Committee. Who will say, upon
Of the commercial advantages OF the Two
York and Virginia-that our railroads
will pay when those of New York cannot Tue pre-
sumption would be absurd-the converse would be
far more consistent.
Now, with regard to the Virginia system Of rail
roads, beg leave TO call the attention Of the House
10 the following statement Of the amount of State
and individual appropriations to the rail roads OF the
State and s results az regards the nvoved
The Stats appropriations in aid Of the Alexandria
Loudoun and Hampshire Rail Road, the Blue Ridge
Tunnel Covngton and Ohio Rail Road, Fredsrcks
burg and Gortonsville, Mana.ss Gap, Norfolk and
Petersb burg, Orange and Alexandria, Richmond, Fred
ericksburg and Potomac, Richmond and Petersburg.
Richmond and Danvie, Richmond and York River
Roanoke Valley, South'de, Virginia and Iennessee
Virginia Central, amount 10 $l5,079, ,SOO the amount
of funded debt is $l2754 ,2U2 aud OF floating debt.
e. 1862 O53 54 The individual subscriptions amount
to Slu054000, making in all an aggregate OF
S45 $50 U55 "a. Add 10 these ths appropriations TO
the Seaboard and Roanoke, the City Point, the Peters
and you will have total of S4S 66l l57 ". the simple
interest upon which is 80 100000 This Is very near
ly the whole amount OF the recepts in the treasury
Of the State, estimated by the Auditor and me
Chairman Of the Committee Of Finance. The wnole
length of rail roads in the State is one thousana uye
hundred and fifty eight miles. ln 1883 mere were
but Twelve miles of rail road within the o'ate' "no
the period from that time to the present. oeius l"eh
ty Ave years, would give an aye,sss onn o' sAtyohe
miles per year which at coss OF I9 oo pel e
ed annuay In rail roads. Here Is An amount OF
nearly $50 6UO 900 expended, aud still the State has
derived no benefit in the way OF dividends. This
hing ,bs case, / desire 10 know what is
the proapect of her receiving dividends by any addi
tions outlay II wac, no doubt, confidently stated
il is now when application made for .appropra
iions in behalf of these lines which have enumers'
ted that dividends would accrue from them to the
State and that she would long since have been enrich
ed by such fruitful sources of wealth "a they would
prove 10 be. But zee how il has resulted. And ".
may we'll assume the state of facts in regard to these
correct data with reference TO the future operation
Of such works as are now presented TO notice.
In view of the+e facts, would ask gentlemen it II IL
not time this extravagsnt expenditure in1ad