The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-02-25

In our comments, few days since, upon the
proposed increase in the representation of the pr-
vate Stockholders in the Board of Directors of the
BALTIMORE and ONO RAILROAD, we urged, among
other objections to the Bill now pending for
the purpose, the great danger there would be, in
the event of any such change being made, of the
road ultimately passing into the hands and under
the control Of Northern Capitalists, who would
work it for the exclusive advantage of rival lines
or rival cities. The facility with which the thing
could be done, we think, was made perfectly
plain; the inducement TO do it, to persons " hose
attention has not been heretofore turned to the
subject, may not appear equally obvious, and may.
therefore, be worth an explanation. Give to the
private Stockholders a majority of five in the
Board of Directors, and majority of the Stock
holders-or rather of the Stock owned by them
would control the road. As less than thirty
thousand shares would give that majority, even
supposing the Stock to be at par less than
three millions of dollars would purchase the
control of the road. In point of fact much
less sum would suffice; there are few Stock
holders who would not be willing 10 sell out
at figure considerably below par. But it may
be asked what motive would Northern Capitalists
have 10 spend three millions, or two millions even
for the purpose of buying control of the BALTI-
MORE and ONO road? We answer-there are two
classes of Capitalists at the North who would
have direct interest in so doing-those who are
interested in rival lines to the West, and those
who are interested in the lines between this city
and New York
The BALTIMORE and ONO Railroad is but one
of several competing lines leading from the West
to different points on the Atlantic sea-board To
get the principal share of Western trade and travel
is of course, the object of each OF these lines,
and of the city which constitutes its terminus on
the Atlantic coast For this purpose, they have
carried on, for several years. runous competi-
tion-each seeking to under-bid the other-all
carrying through freight at less than remunerative
rates-and all keeping up. at the same time,
everywhere throughout the West, and at enor-
nous expense immense army of runners,
agents, &c. To prevent the consequences of this
competition from proving utterly destructive, va
rious combinations and arrangements between the
rival companies have been suggested and tried,
but in no one instance has the agreement been
kept any longer than until it became the interes
of one of the parties to break it. The history of
the st. Nicholas compact is illustration of this.
If however, any of the Capitalists interested in
the competing Northern lines could obtain control
of the BALTIMORE and ONO road, which is their
most formidable competitor for the trade of the
West-formidable because of its superior natural
advantages being at the shortest route to the
West, and the most easily worked, in spite of its
heavy grades, lecause of the superior abundance
and cheapness of fuel along the line of the road
then the competition could soon be closed, and the
struggle ended in favor of the Northern lines.
Two millions or three millions of dollars would
be small sum to pay for the control of the BAL
TIMoRE and ONO road-the power to throttle it,
TO paralyze it, TO work it so as to divert the
trade and travel that now comes over it
into other channels. Capitalists interested in the
Northern lines could well afford to make such an
outlay, and even to lose the interest upon it =
the increased dividends of their own roads would
more than repay the loss. 1t can not then be
said that the danger of something of the sort being
done, in case the Stakeholder representation in
the BALTIMORE and ONO road should be increased
so as to make it worth the doing is either che
merical absurd. 1t is hardly less to be dreaded
than the danger of similar attempt the part of
Capitalists interested in the railway communion
tons between this city and New York
According to the natural course of trade, the
produce of the interior, when brought to the sea
board for expectation distribution, takes to the
water. 1t does so, because water carriage is the
cheapest, and in the case of merchandise, cheap
ness of transportation is of more importance than
rapidly traveller going from Baltimore to
New York naturally prefers to travel by rail, in
stead of going round by sea. A bag of
wheat or barrel OF flour has no such preference
is in no such hurry. As railroads. however can
not live by passengers alone-iti is of the utmost
consequence to capitalists interested in the roads
which connect this city with New York that the
natural tendency of freight brought hither, over
the BALTIMORE and ONO road, for distribution or
expectation, to prefer water carriage to land car
riage, should be overcome;-that it should be
taken hence to New York by canal and rail. in
stead of going directly to Europe or round to New
York, by sea. The shortest, best, and, indeed
only practicable method of accomplishing this is to
get control of the BALTIMORE and ONO road
That done, its tariff of freights may easily be so
adjusted as to offer greater inducements to Western
shippers to send their goods all the way to New
York by land, than to send them by any other
route. If, therefore, the capitalists owning the
roads between this city and Philadelphia could
only obtain control of the BALTIMORE and Ono
road for a moderate sum, they could afford to