The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1867-04-23
THE PR les S.
Tuesday Morning, April %, 1867.
The isichest Railroad Dividends.

The fsichest Railroad Dividends. 49,
Some people think if a Railroad does not pay
direct dividend on the original investment,
the money which CIT costs is thrown away
They lose sight Of the indirect benefits which
result from their construction. Suppose all
the railroads leading into this city to be taken
up, and blocked up so that reconstruction
could not be secured for the next twenty-five
years, and that all the money they have cost,
with interest could be refunded to those VINO
made the investment, would the city be the
gamer? Is there any citizen SO lost 10 the p"o-
&c good that he would accomplish such re-
suit if he could? Who can tell how much our
real estate would depreciate in value, how
MANY houses would become tenantess, how
MANY stores would be closed up to become
mouldy, and how many wharves would rot
down? "Ichabod"--thy glory has departed
would soon be written upon every street
wharf, public building, workshop and private
building also, and Portland would be avoided
as the arid desert is avoided except by rheu-
matte old misers who would flock here for low
rents and because the general Quiet would be
so much in eonsonance with their ease.
The st. bloomsbury Cdledoniaa relates a con-
versation with well-to-do farmer in Vermont
whose story is something like the following;
When the terminus of the Passumpsic rail-
road was at Barton, owned farm IN o'i -
county. The Importance OF haVlh? Tue ho az
continued through to the Line was deepiy lelt
by some vet it started hard L was ahAious
to have the road completed through tle eouii-
ty, and I subscribed lor sixteen sitales lpAooo)
/ owned nv farm two years after the
road was completed, and III that time l
am confident that L sold the products of my
farm for enough more than should have done
if the road bad not been bulit 10 pay ior all the
stock had trSen-not taking into account at
all the increased value of my farm which was
no small ltem .I t- .. .Ha- .
We were once brought in contact with
gentleman Of means and the owner of a good
deal of scattered real estate in Bath, who was
croa&ing about the poor investment he had
made In railroad stocks-some 81 200 we think
of the original Ken. & Port, which resulted in
paying dividend of-nothing; precisely what
the stock itself is worth. ... ..a u5
After listening to our friend awhile, and
hearing him say and repeat that the idea of
railroads improving the value of real estate
was all fallacy, we asked him this question
You say railroads have no effect upon the val
ne of real estate; now as a large real estate
owner would you be willing to have your 81 :
200, with interest compounded, refunded to
you, and by that act have the existing railroad
blotted out with no provision for its renewal?"
The question took effect. land he simply re-
piled, in good-natured vein: swell, 1 guess
should oppose taking up the roadp' 7al
We have been sorry to find disposition in
some quarters to oppose the loan asked for to
build the 2. & r. road to Alfred, not on it's
demerits but because somebody, not particular
ly enterprising, is likely to make money by the
rise in value of the present stock!l L. this OBJ
lection worthy of an intelligent man of broad
views, having the interests of the city at
heart? ...- .1it ..1.a 5l4.a.. 81
The question: it seems to us, should be sep
arated from all narrow and personal consider.
ations. 1t is not whether this man or that will
make money, but will the proposed extension
result IN benefit to the city, and would a first
mortgage of the whole line be ample security
against loss? That an extension of fourteen
miles to Alfred, tapping the very heart of Y ork
county, and giving to large section that now
gravitates towards Boston direct connection
with Portland, would largely add to our trade
and tend to increased prosperity, seems to us
plain that to doubt is to close the ewes to the
existence of the most obvious facts
That the security would be ample is proved
by the objection itself, for this assumes that
stocks now worth II or Is per cent. will at once
come up to sixty or 70 per cent. This is enough
to show that in endorsing the bonds the city
would be amply secure; while the very increase
in the value of now comparatively worthless
stock would be SO much added to the taxable
property of the city. -i-D' 40 l -'."
We often hear people talking as though
Railroad loans had increased our taxes. This is
all a fallacy Not dollar of increased taxa
ton has been imposed upon any or all the citi-
zens of Portland in consequence of the loan
OF its bonds for railroad purposes. The city is
practically, an erdorser The railroad compa.
mics have invariably paid the coupons at ma.
turity, and at the same time are providing q
sinking fund, which, when the bonds mature
will pay them also. Let no voter be alarmed
therefore; the loan, if granted, will not in.
crease his tax the hundredth of a mill