The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-01-28

The Great State Schemes.
We surrender our own editorial space
to-day to a very clear paper upon the suo'
;ect Of the great State projects for com
ulet;nr the connections between the VIZ
r;n;a sea.shore and the Mississippi valley
The initials affixed to this paper indicate
a. xe,,.informed and able author. 1t II
chiefly devoted to the financial and consti'
tutionsl points involved In these schemes
and is particularly worthy of consideration
eThe financial point Is briefly and cisais
presented, and the constitutional q"e', W..
Il argued with ingenuity and force. ~
believe there is no great d'ineu"'
the most of the leading members Oh .,ie
Legislature upon this point. both the oe.
nate and House Committees on Roads and
Internal Navigation are satisfied that there
Is no constitutional difficulty in the way OF
the pending projects. They only regard
the question of erpediency as one now TO be
considered. But to the paper:
THE PROPOSED TRANSFER OF STATE
TAIN RAILROADS, IN CONSIDERATION
OF THE MILL TAX ON TONNAGE AND
TRAyEI-THE FINANCIAL EXPEDl
ENCY AND THE CoSsTITUTIoNALlTY
OF THE MEASURE.
Bills are pending before the General As
sembiy proposing 10 transfer the States in
ter.st in certain railroads TO certain joint
companies, which are TO be composed OF two
alteration: first. OF these joint companies
com n,e,inr certain through lines within Ger
tain periods and, second, that the companies
receiving these interests Of the State shall pay
a perpetual tax Of one mill per ton and one
mill per passenger per mile upon their tonnage
and travel.
These transfers cannot be justified unless II
can be shown in each case: first, that the
State will be fully compensated pecuniarily
for the values thus transferred; and, second,
that they are free from constitutional oblec
ton. Let us examine each Of these branche:
Of the subject in turn.
The Financial Erpediency Of the Measure.
In ascertaining the value Of the considera
ton received by the State, each case mus
stand upon its own merits. Let us consider q
present the example of the line of roads ex
tending from Norfolk to Cumberland Gap
The par value of the States interest in tn
companies composing that line Is, in round
numbers, IS, 700, 900, exclusive of the cancelled
debt of 81, 900, 900 claimed against the Nirgini'
and Tennessee railroad. Its real value If solt
in market ut present prices would be less than
sl,5oo, 900. This is the interest proposed to b
transferred in consideration of the completion
OF the line to Cumberland Gap, and OF the
payment of the mill tax on the tonnage aho
travel passing over the whoie ihe WHICH q
Just 500 miles in length.
On this length Of road the mill tax VIII pay
inst 600 mills, or fifty cents, upon every through
ton and every through passenger anu tue
eouivalent rate on way tonnage and travel
The inquiry on this head, therefore, sihpy
reso,ye. itself into an estimate of the number
Of tons and passengers that VIII propaDiS
move on this line. We have no data for this
estimate other or better than are furnished by
the actual operations of through lines ALREADY
completed north OF us. The inference Iha'
this line will carry tonnage and travel ap-
proximating that moving on northern lines
will be safe because this line presents shorter
distances TO the seaboard from the western cen
tres Of trade, fewer impediments in the form
of high grades, and fewer and briefer inter-
ruptions from ice snow, and the casualties
incident TO the severe weather Of winter.
These advantages are very great and decided
and they are opposed only by the greater
power of the northern lines derived from their
superior capital But nature is stronger even
than wealth and If we have the natural ele-
ments working in our favor, energy and per
severance will bear OFF the victory. We stui-
tify ourselves if, with every natural advantage
on our side, we yield the victory in advance
and insist that we shall fail to secure results
commensurate with those achieved by more
northern railroads.
What. then, is the tonnage Of those lines,
euuated to through tennagef What the traVei
similarly equatedr Official reports for the New
York Central and Pennsylvania Central roads
give the data from which the following equated
quantities and numbers are deduced, showing
the tonnage and travel in 1866 on those two
great lines equated to equivalent through ton
mage and travel. The Baltimore and Ohio
Railroad Company alleges that for reasons
which need no explanation s." it gives no return
or analysis Of the tonnage, with its mileage,
hauled on its road and we are thus deprived
of the valuable assistance which the statistics
of that road would afford in this investiga-
ton. We only know that its trade is not infe-
rior TO that Of more northern lines. The fol.
lowing are the figures of the two roads
named New York Central-l, o2l 900 tons ;
$4,000 passengers. Pennsylvania-l,l 1870
tons 40, 900 passengers.
1t is certainly fair to assume in view of the
foregoing figures, that shorter route from
the western trade centres TO the seaboard, and
superior one even If New York be the Ill
terror destination, will command tonnage
equivalent to $50, 600 through tons, and travel
equivalent TO 100000 through passengers. If
So what would be the tax paid by this line to
the State on such business? Fifty cents
ton would pay $S75,oOo on the freights, and
nifty cents n passenger would pay $4,000 on
the travel, making a total revenue Of $500, O0o
This would be nine per cent. per annum on
the States investment in the line of S. .O0, 900,
estimated at par value 1t would be thirty.
three per cent. IL estimated on u, 500, 900, the
present value Of the investment A freight of
900, 900 TONS and travel of $50, 900 passengers,
would pay six per cent on the par value of the
investment. freight Of only 2O0,c 600 tons, and
travel Of only 100000 passengers, would pay
ten per cent. on 81 500 900, which is the present
actual market value Of the proposed invest
ment. II is thus apparent that the State could
well afford 70 make the proposed transfer OF
property TO this Norfolk and Cumberland Gap
line Of roads. ar4 - 1.
The policy of the States retiring from her
present partnership in railroads is very oo-
vious For twelve years she has held her pre-
sent investments in them without receiving
dividends, and the prospect Of receiving them
is worse than ever. 1t IL proposed that she
shall dispose OF stocks that have never and
will never pay any income, in such q manner
as cannot fail to return aremunerative annu-
ity 10 the treasury.