The weekly hawk-eye. [volume] (Burlington, Iowa) 1858-1860, 1858-12-28


DU1L11eTou, xowA.
Tuesday e..e.s December 80. 1855.
4 =
Railroad Construction in Iova-The
eropoeed branch to 0skaloosa and
DeS xoines.
We commend the sober truths contained in
NE following communication from dis.ing-
sished citisen Of Burlington, TO the careful
oeasderation of our friends at Oskaloosa and
the Capitol. The facts embodied in it should
nave weight Let those concerned, count the
cost OF constructing the n. 1 II. road 100 miles
non Iowa City to the Capitol and 10 miles from
Washington to Oskaloosa, at the rate per mile
which their road, owing to ito management, is
known TO have cost, and see how far the con.
eftbutions Of Polk and Nahaska County are
likely to 90 in the construction of 1870 miles Of
RAilroads And then let them compare the cost
with that Of building the proposed branch only
ninety miles in length, upon the construction
Of which both counties can unite, and BY which
both counties will obtain the best possible Rail.
road connection, and then zee which investment
10 most likely to bring about this result in the
shortest time.
Ma. EDrfos:
All honor 10 due to our Governor for the
noble stand he has taken in refusing to call
special session Of our Legislature, notwith-
Standing the outside pressure brought to bear
upon him-And like honor 10 due to you for
your bold and determined opposition to the
measure. The Governor assigns reason enough
when hs says that no extraordinary occasion
hes occurred. The movement originated with
bankrupt towns and cities, and bankrupt rail
roads. To retrieve their follies and excuses in
speculation, the credit Of the State was to be
invoked for the benefit of a few towns and
roads and speculators in public lands. Our
noble State was to be prostituted to sustain
private credit and private enterprises; and the
credit OF our responsible citizens to be ruined
abroad BY relief lacs. passed for the beneti.
OF improvident spectators. This temporary
cloud and danger is dispelled by the Governor.
We breath free again but it is a good time
to take our reckoning, and, in the language Of
Ar. Webster, "See how far the winds and
waves have carried u.s." The solvency of oul
State and its credit in the money market OF
the world is mainly owing to the provisions
10 our old and new Constitutions, prohibiting
our State from embarking in schemes of in
ternal improvement and from creating a State
debt, above certain sum.
The recent effort to involve the State in O
debt OF millions, was . bare,aced violation oil
the constitution, and only shows to what ex-
tremes bankrupt cities, railroads and men will
60 in emergencies like the present. The ides
OF State relief to railroads, is simply absurd
The measure Of relief proposed was like dror
OF water to poor Dives, to be fought for unit
oil had died of thirst.
This idea of State aid being exploded, wha
is our condition!
There are few roads aided by grants from the
government, and many others only relying or
city and county subscriptions. The former are
bankrupt-the latter helpless. No local securi
ty OF county or city bonds is worth anything
In the market. Our railroads then are at q
stand still until they can get legitimate relief
that is, the aid of capitalists who look for q
paying road. Railroads in Iowa have been pro-
jected to subserve the purposes of towns, spec
u'ators, and private ambition. and not with ref
ercnce to the necessities of the country to be
traversed by the roads. This humbug is explo
ded, and instead OF building railroads to make
towns, we must make towns to need railroads
Railroads must be built where they will PAY for
private capital invested. No other roads will
be built in Iowa. But our present indebted
edness in county and city bonds and private
subscription, amounting to some s7,oO0,0oo, is
matter Of deep concern to our people. This
debt has been deliberately contracted, gener-
ally, by vote of the people Of the cities and
counties, and it was always understood that it
was to be invested in stock of the road which
would in the end return the principle and in
terest. The same view was entertained in the
east, but alas, there is not road east of US
where the original subscription Of counties, cit
les and individuals has not been swallowed up
by subsequent mortgages. And have no hope
that the original subscribers of stock either in
dividual, city or county, will ever receive
dime for their aid to the B. & NJ. r. Road
There is nothing in which the American people
have been so much deceived as investments in
railroads. Nearly all the railroads of America
have fallen into the hands of the mortgages,
leaving the original stock worthless. This will
be tho fate of all roads not built with cash
down.
In nothing have we been 80 much deceived
as the cost Of railroads. Our estimates have
been based upon cash, while We have made ev-
cry shift to raise money upon credit. The cred
it system has stimulated the construction of
roads beyond the bounds of prudence or the
wants of the country, and the securities given
by the people have been shamefully sacrificed,
and often for private plumber. The game of
spou.ing county and city bonds is played out;
but county and city credit is not worthless
They are still available to build roads where
their necessity is SO plain as to command the
confidence Of private capital as an original in
VestWeut, Oh Tue same IOOtluR WIN the COun~
ties and cities.
The cost of railroads in this western country
has been usually estimated at $40, 900 per mile.
The Rock Island road is thus noticed in the
Railroad Journal Of Nov. 18th:
Rock Island and Chicago Railroad.
This road is suffering severely, in common
with all western lines in loss of traffic, and, in
addition, the penalty of gross misconduct. 1t
il carrying the dead carcass of the Peoria
Branch, at the rate of Sl25,OO0 a year. We
do not believe the net earnings Of this branch
will equal one.quarter Of this sum. BY this
piece Of jobbing the directors put into their |
own pockets what the stockholders lost. In ad.
dition, the bridge over the Mississippi threatens
10 fall, involving another very heavy loss. 1t |
was q misersbly built affair, like the road, and |
MAS very likely similar jolt. Through its faulty
it will soon have to be rebuilt
In fact the net earnings of this road threaten to
be absorbed for the above purposes for long
lime to come, in the work of reconstruction
The same parties who built the Rock Island
road, and who are responsible for its nismanage.
mont have crossed the MsSissinni and ara IL,