Delaware Republican. (Wilmington, Del.) 1843-1874, 1866-01-08
For the Delaware Republican.
OrR RAILROAnS--No.N Y.

u am right 10 the position assumed IN
former letter, that the product power of tn,
country traversed by the proposed Wilmington
h Reading Railroad, aud its capacity to fur
nish remuneratiye business to the road, very
much exceeds that lying on the line OF ih'
Delaware X. r and that its chances of doin.
y paying business are therefore greater thar
were those of the latter Improvement, the in
ference resulting thence in its favor is strong
that f'venture- to ellude again to it, and Il
call attention to some objections which an-
ticipate to the argument | have been endeav
oripg to build up. say anticipate these OBJ
jections, for while must hope that the imp0r
| lance Of the subject, and our joint interest as
community of business men, will cause a
fair examination of the subject, have no wisn
that any legitimate object should be stihed
but rather desire that every point, both for
and against this improvement should be thor
oughly weighed, before any effort is made to
embark iu au undertaking of such magnitude.
| Two principal objections to the argument
from the success of the Delaware railroad,
may be made The first is, that its cost per
mile was much less than that of Il road run
| ming through broken country, and built
| with the prices OF materials aud labor at the
present high standard. The second is hat
| the Delaware Railroad was leased by another
corporation as soon as constructed, at Il per
| cent, rental, yet that its operations resulted in
| an annual loss to them and that it could not
have been operated by the company itself
without greater loss.
The first of these arguments, so far as it re-
lates to the increased cost OF material and la
Dor al the present time, is Que that applies
equally to Investments Of any kind for the
purpose of business, it would forbid as well
the construction of houses, ships, and mac hi
merry, or any other improvements, as of Rail-
roads: and may be answsred in a few words BY
saying that the income from freights is increas-
ed in a like proportion to the advance in other
things; that if the capital to build the road is
in existence aud ready to be invested, it must
be invested in something, aud it that thing is
OF solid nature, it will be difficult to ind any
article that does not synptthse 10 h greater
or less extent, with the advance iu labor, &c
The cost OF the road per mile must indeed,
exceed materially that OF the Delaware Rail
road, which passed through q level country,
has light grades and easy curves. But this
difference is no greater than would be amply
compensated for oy the difference in the pro-
ducing qualities OF the two sections of coun-
try II may be fairly assumed as true that the
Delaware Railroad would not have been built
to this day, il the line were of such nature
as TO cost heavily in building, aud this for the
reason that its projectors were aware OF the
generally poor character OF the soil, and the
want OF manufactures and mines. An addi-
tional advantage in favor OF our proposed
road, as compared with the Delaware Railroad,
lie, that its direction is at right angles TO tide
water, while the latter lies in the centre OF d
peninsula between two parallel bays with nu
merous indentations by navigable streams,
making the whole country, accessible 10 great
degree. These difference are, suppose, sum
ci.nt vverpalance in the mind of any one
who considers them, the disadvantage arising
from greater cost.
Thersi yet remaining the tact which have
mentioned, that although by the terms OF the
lease, the lessees (the r. W. & 3. r. R Co.,)
have uniformly paid G per cent. interest on the
capital Involved, yet that the operation OF it
was for several years carried on at All appat-
| rat irss' fhis Ia, | hslievs, tha fact, and At
| nfst sight would appear " initiate against the
use OF this instance OF success as al Arsu-
ment In favor OF an experiment in new di
rectiou. ln answer to This, however, 1t may
be said, that though The reports OF the lsssees
did undoubtedly for several years show q con-
siderable annual loss from The operations of
the Delaware Railroad, the actual business
derived 10 their own Road from it, probably
compensated them In fnll from near the begin
ming of the lease, for this apparent loes; and
again, that the tide has now turned, aad that
the nett earnings OF the Delaware Railroad
are considerably more THAI enough 10 pay the
rent
Bat a more sufficient answer still remains
The same course which was pursued In the
case of the Delaware Railroad, would be open
TO Us in this If it should be the policy OF The
Wilmington aud Reading Railroad Co.. 10 iol
low the example OF many other roads, and
lease ITS line TO another corporation at a fixed
annual rental, IL ID to be presumed that the
amount Of this would be regulated by the
timAted average receipts per year, Tor the
whole period OF the lease and | have both
good reason and authority for asserting that a
Railroad carefully and economically construc
ted on the proposed line, would rent for al
ma nj mat fr,n "a Iav hat
it was opened tor through trade. Carefully
compiled statistics, embracing only the trade
in coal, lime, and a few other prominent nrti.
cles, the actual production and cOnaumptio OF
which on The line Is already known, warrant
US in believing that this road can be operated
from the lrst of its opening without loss OF
interest to Its stockholders. In this opinion
am fortified by the Judgment of All eminent
engineer, one who has examined the whole
ground, aud is we'll acquainted with its capa
bility, and who is probably better informed Ia
regard 10 the past history and demands OF ihs
Anthracite coal trade OF Pennsy ylvania, than
any other man living
should the policy OF leasing the road be
adopted, the rental might either be fixed
nual sum like that of the Delaware Railroad,
or, II per centage on Tue gross receipts aud in
this case the Btockholders would have the nd"
vantage oil the inevitable increase that must
take place in the trade OF the road. Iu
any event, however, We SuOulu nave tuls hu-
vantage over the Delaware Railroad that there
would be al least two bidders perhaps more
TO compete for the lease, instead of the one
into whose hands by Its position that Railroad
was necessarily thrown.
On the whole, therefore, it appears safe to
conclude that the objections have noticed, to
the argument from the financial success OF the
Delaware Railroad, are not sufficient to inval-
idate II; II then the line OF the projected Will
miugton Reading Railroad otfers to us trade
ready to hand, relatively equal 10 that offered
by the Della are Railroad, IL may be asserted
that this also can be built, il managed on
sound financial principles, With the promise of
similar financial results. That it built At all
by the present projectors OF it. it must be
strictly on n sound aud firm financial basis,
am well assured; aud for one, | am willing
rather TO drop the project and let it die u nat
ural death, than that il should be attempted
on any other. WILMINGTON.
nA-In Baltimore, on Tuesday night, two