The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1867-03-13
PORTLAND, WEDNESDAY MORNING, MARCH is, 1867
DAILY PRESS.
ND.
Wednesday Morning, March l3, 1867.


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! Railroad Legislation.
The Legislature of Maine, at the session
lust closed, passed law in aid of railroad
companies, giving cities and towns, within
the State, permission to lend their credit to-
take stock in, or give bonus toward the
| building Of any railroad that two-thirds of the
voters present at any meeting in said cities OF
towns, called for the purpose, may consider rs
beneficial, provided such appropriation shall
not extend beyond five per cent. upon their
present taxable valuation.
The Inconvenience heretofore experienced
by the public, from the imperfect construc-
| ton of railroads and their deficiency in 1oll-
ing stock, is plainly traceable to the usual
mode adopted toward their construction.
1t has been customary upon the obtainance
of charter, to open subscription, upon
which there is seldom more than 20 or 25 per
cent. of the contemplated cost realized A con-
tract is then entered into, the company assuM-
ing the land damages, and agreeing to pay a
specific sum per mile, as the work advances,
III hohthis ihotdluCutS VI Oilc L0lTu edcn, saw
in cash. stock and bonds.
The contractor in making his proposal adds
so per cent. to his estimates, in consequence
of receiving bonds and stock in payment, and
the result proves his calculations to be nearly
correct, as be seldom realizes more from his
stock than he discounts from his bonds in
turning them into cash.
The extras, outside of tbsacontract, (for
contractors have as many extras as any other
mechanics) the land damages and the rolling
stock are to be paid for from the sale of bonds
of the Company, after the public have been
surfeited by those omitted to the contractor,
and the consequence is that the balance of the
issue is exhausted and found insufficient to
eXtinguish the demands against the company
An additional issue is required, and the
friends of the road, already overloaded, are
called upon for help, and the second issue is
partially disposed of at reduced rates, and
by the time the road is put into operation the
company is embarrassed with heavy floating
debt, portion Of which the directors are fin
ally obliged to assume, and are partially secur-
ed by the remainder Of the last issue of bonds
Thus the railroad, with cost augmented, by
debt embarrassed, credit crippled, roadway un-
finished, and rolling stock scanty, is ushered
into existence; and its earnings are about suf-
fcient to pay running expenses and Sheriff's
fees. The interest upon the bonds remaining
unpaid, the bond holders seize the railroads,
and it passes after few years of troubled ex-
istence, from the possession OF the stockhold-
ers. n5t.}
This is a true exposition of much the larg-
est portion of the railroads OF Maine, and
there is but one Of the remaining portion, the
stock of which is worth one fourth part of its
cost, and that one was built by subscriptions
alone.
The question will be asked, how are rail
roads to be built? The Legislature of Maine
has answered it; let those parties interested
furnish the means for their construction, and
it has given authority for that purpose.
Every town and city through which rail-
roadpasses is benefited, not oily in sending
its products to market and receiving back its
supplies at less expense than could other
wise be afforded, but there is saving in the
wear and tear Of highways, saving in time
and by bringing the country into freer COM
munication with the cities and with the
world.
The value Of property, in both city and
country, is increased far beyo-d the limits OF
the authorised expenditure offive per cent. by
the multiplication Of railroads.
If such is the case why should private in
dividuais be called upon to make a useless
sacrifice of their means, when railroads can
be constructed by the unity of public with pr
vate inl erests, and made profitable to all?
No one can complain that any risk will oc-
cur, as it is an established fact, that there is
not a railroad in this State, acith but one e.r-
ception, that soould not haze paid an interest
on the Investment, had it been built acith money
raised by subscription.
The Portland Saco and Portsmouth Rail-
road was thus built, and its earnings have ev-
er exceeded the interest upon the investment.
Ifthe cities of Portland, and Portsmouth and the
intervening towns had taken all the stock, ap-
propriated its earnings to the payment of the
interest upon the capital invested and made
sinking fund of the excess, they would with
in two years hence, be in possession of that
entire railroad without dollars cost to them.
The Portland and Rochester Railroad offers
a stronger inducement to cities and towns to
take stock in the company, than the Portland,
Saco and Portsmouth company at the period OF
its construction for it not only promises as well
for an investment, but it opens the entire
West for an exchange of commodities and
presents to it a harbor which is unexcelled
in its depth OF water and in its capacity, and
which is about 800 miles nearer Europe than
New York and 100 miles nearer than Boston.
Policy dictates that the city of Portland in
rendering aid to the Portland & Rochester
Railroad, should become stockholder to the
amount to be appropriated, rather than in the
way of loan, inasmuch, as the policy of the
railroad company is controlled by the stock in
the choice of directors.
Had the city OF Portland taken pro rata
amount oil stock in the Atlantic & st. Law
renee Railroad, instead of the bonds, the rail-
road would not only have been constructed at
two thirds OF its presentcost Ibutfts operations
would have been so arranged that rates both for
freight and passengers bound hence, would
have been equally favorable with those des-
tined for Boston.
The opinion is gradually gaining in the
public mind that railroad companies should
be debarred the authority of mortgaging the
railroads as security for bonds issued, and that
debts against the companies should only be
entitled to remedy through their incomes.
An Extraordinary Legislator. t.o
During the canvass in New York last fall, it
was generally conceded that the Third dis