The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1866-12-18

Total cost OF road ............. SIS, S96, S04 OF
The New York Central railroad extends
from Albany to Buffalo, distance of 29s
miles, but owns side lines and branches,
making, together with its main line, in all
$50 miles.
Thirteen years ago, when the several
roads that now compose the Central were
consolidated, and passed under one man.
agement, the stocks Of these companies
commanded large premium in the money
market of The country.
The Utica and Schenectady road was
fifty per cent. above par the Syracuse
and Utica, thireS-seven per cent. the
Rochester and Auburn about thirty. The
average premium of the roads consolidated
was about thirty per cent. After the con-
ISOLATION the stock of the Central touched
hundred and twenty-seven per cent, but
1t has generally been below par, and at
one time ran down to fifty-three. At
present the stock is worth about par. The
Central has been paying dividend gene
rally Of six per cent, but according to the
statement of its officers made before the
Legislature, it has not really earned this
amount, but has only paid it by loans, in
order TO keep up the value of its stock.
Certainly this grand example of "con-
solidation" is not encouraging to the
friends ofthat system Of working railroads.
The question arises, How does it happen
that roads whose separate existence was
so prosperous, should, when combined un-
der one government, yield such discou-
raging, such poor aggregate results? The
consolidated management is not so good as
the separate that's clear, if We take the
profits as an index, and we believe the world
considers that as the best test of success
full railroad management. But there is
another reason why the consolidated sys-
TEN in this country works badly for the
proprietary interests of railroads. That
system organizes powerful and arbitrary
railroad government, composed OF men
who are subjected to temptations fully
equal to the power placed in their hands.
If the truth could be known, we should
find that the directors Of these CONSOLE
dated lines had accumulated millions by
the system Of management under them, as
well as by specializing in the stocks of the
lines they control. 1t is well understood
at the North that on these great routes the
directors have lines of transportation
moved and operated for their own benefit.
An aggregate price is paid for them, and the
directors receive pay by the package fora all
freight transported by them. Suppose, for
instance, that the directors line should be
the cred line" that is, the favored line,
and "has dispatch" everywhere. Its very
speed facilitates the accumulation of pro-
fits in the directors pockets.
But there are other means of working
such a powerful corporation to the ad-
vantage of the directory. Have we not
seen a New York millionaire, one OF the
directors of the Erie road, depressing the
value of the stock in that road by circu-
latiug, through agents, rumors affecting the
credit of the company-such as rumors OF
a spurious issue of stock, &c.-and In that
way diminishing the value of the stock
most seriously, and securing the opportu-
nifty of immense purchases of it at low
prices; after which, the rumors diee out,
the credit of the company revived, and this
Mr.. DREW flor that is his name) pocketed
perhaps many hundreds of thousands. For
this Mr.. DREW was considered clever
financier, and continued to enjoy his place
at the directors board of the Erie railroad.
The consolidation gives too much power
to directors, and places too great tempta-
tions in their way. 1t is one of the great
means of corruption and depravity OF the
present age, and men may well be fearful
of its consequences. We cannot see why
in this country the English system of sepa-
rate organization and united operation may
not be pursued-a system which really
gives freedom to trade by giving all routes
and all places equality of privileges and OF
rates. While that does not organize a
great serpent of Through line," which
takes everything "through whether or
no. it enables all freight to take what
course the demands of commerce may di-
rect, without let or hindrance, and receiv-
ing freight at any point in the kingdom, de-
livers it at any other whatever desired by its
owner. Separate control and mutual and
harmonious cooperation is the best railroad
system. That is the system which will
preserve public rights, and indeed public
liberty while the consolidated system is
dangerous to the public interests as well as
20 the freedom of communities. Railroads
are, truly, great engines, having immense
power in. the social, commercial, and po-
ljtical affairs of the world. If men do not
believe now that they may be the means
of constructing liberty, they VIII learn II
before long. 1t is, beyond all question,
safer to society that the separate character
and control of corporations should DO con-
tinued. than that the power and corrup-
tons Of this great engine should be en-
larged by consolidation THAT WORD OF
fearful import
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