The Kansas herald of freedom., 1859-06-11
RAILROAD Building.

Railroad Building.
Frperience is the best of teachers,
.bough often the most costly. The ex-
..rsiye schemes for railroad construc-
zion 50 current in past years. have proven
ANYTHING but satisfactory to the original
.,ookkolders. They have found large
,mon nj Of the first subscriptions Of stock
used up by preliminary surveys, and in
.bs navments of the salaries OF the officers
,,1 financial agents. 1t is fashionable to
;,.rs construction bonds, as security for
,be payment of money loaned by capital
1T. forth building of the road. The re-
,plt very generally is, that the road, by
foreclosure of mortgage or voluntary as
comment, is transferred to the bond
holders. The Toledo and Wabash Rail-
road, in Indiana, passed into the hands
,fthe bondholders soon after it was I'm
i.bed. The New Albany and Salem
Railroad, which is long line of road,
mart of which is through sparsely settled
sections Of country, has been assigned to
the bondholders, who issued new stock
to the old stockholders, in the ratio of ten
per cent. on the amount they had, and it
i; questionable whether this will prove
source of profit. These roads suffered
, from a superabundance of well-paid off,
Gals, and lack of economy in their man
asemeat. The opposite plan Of having
the stock owned by persons on the line of
the road, and building it just so fast and
far as prospects Of business would justify,
has been tested and found to work well.
The Galena and Chicago Union Rail-
road was built by subscriptions raised
along the line of the road, and letting out
short portions of the road at a time. l.
was not forced through ahead ofthe de-
mand for its construction, but grew steadi-
ly-keeping pace with the business ofthc
country. It has been one oe the best pay
ing roads in the country, and though suf-
fcriDg now from the commercial reyul-
sion in the North west, has fallen less in
the amount of its business, comparing
April, 1859, with April, 1858, than othel
frs. class roads. Its construction and
early management were marked by pru
dence and economy.
Another illustration is to be found il
the history of the Terre Haute aud Rich
mOnd Railroad, running from Terre Haute
Ind, to Indianapolis, distance of Z:
miles 1t was projected ten years ago
and completed four years after No larg
contracts for construction were made, bu
the road was let in sections of one to fiv
miles, and the strictest economy practiced
The result has been, that it is one of tn
best constructed, equipped and payini
rOadsin the country.
1t has been in operation only six year:
yet has paid its stockholders ninety. tire
dollars on every hundred they paid in to
wards its construction. 1t has no super
numerarics; pays its employees prompt
ly, and makes its stockholders dividen
twelve per cent year. This is du
to the foresight and financial skill of ii
President, Mr.. L. S. Peck.
flour Kansas roads can secure practice
men, who are neither designing politician
or visionary enthusiasts, to conduct the
railroad enterprises, they may hope /
see healthy system of railroads inaugr
rated here. But from the insane idea {
pushing railroads into sparsely settle
sections of the country, with the expects
ton that they will produce business f
themselves by bringing in emigratio
nothing else can be expected than Il
production of such class of railways
the Wabash Valley, and New Albany ar
Salem Railroads. 1t is better to be slo
and sure and safe, than to gridiron Il
Territory with unfinished or bankru
railways.