New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-04-18
RAILROAD BREAKDOWNS IN ENGLAND.


Many years ago, under the famous railroad king,
Hudson, all Britain went crazy on these con-
structions, and then went to everlasting smash,
sinking untold sums of capital. Within the past
few years there has been a general rush into
Joint stock companies for every conceivable
purpose These operations have eliminated,
during the last season, in one of the severest
financial crises that has been known in England
for a quarter of century.
On the heel of this disaster, there now comes
two more vast railroad explosions The Lon
dom Dover, and Chatham Railroad Company,
after expanding some S4O,000,0OO in construc-
ton, has gone to grief on its bonds. And what Is
worse, some of the holders OF its debentures,
finding stray portions Ofitsproperty lying around
loose, to the amount of million or more,
seized upon it in satisfaction of their claims.
The case was carried to court, and the late at
tOrney of the Rebels in the Alexandra case,
now Lord Justice Cairns, gave legal decision
which may be of Importance on both sides OF
the Atlantic. 1t was to the effect that the
bonds of a railroad company do not run against
the property of the company, but only against
its edrninQs The bOndh0lders were thus
turned out of court, and the property they
seized reverted to the possession of the COM
pany.
The second case of disaster is that of the
Atlantic and Great Western Railway, which,
theoretically at least, extends from New-fork
to st. Louis Large portions of this road were
built during the war, and many compliments
have been lavished upon the magnificence of
the enterprise and the magnifcence of the
Ittr NUIl TO
member the visit of Sir Morton PetO, Mr.. James
McHenry, and other gentlemen to this country
a few years ago, and the comet-llke trail they
left behind them which visit and cOrruscatI0n
was in the interest of the Atlantic and Great
Western Railroad aforesaid. A dinner OF in
conceivable dimensions and cost was given 10y
these gentlemen, at DelmOnicOs, to large
number of American magnates where many
flattering things were said, and many patr0nH-
ing promises made of the determination of
British capitalists to set railroad things straight
on this continent. Having made this display,
and gwen this banquet to a company OF some
go gentlemen, at cost of $4,000 or S2JO,OO
we do not precisely remember which-Slr
Morton and his friends returned home.
Now the whole concern has exploded,
after the manner in which such tremen-
dous things generally do explode. Among
other things done at the time of this tri
umphal visit was the execution of most won
derful mortgage by this Company, which paid
the most wonderful and unheard OF stamp tax
ever known on this continent exceeding, we
believe, the sum which George the Hid aimed
to collect from the American Colonies IN the
way of stamp tax, and which brought on the
American Revolution. So that, on the whole,
there has never been anything in the railroad
world of the United States like unto the stu
pendous career and end of the promoters and
managers of the Atlantic and Great Western
Railway Company, from its inception to It's final
failure to pay the interest of the thirty millions
of debentures secured by the splendid mortgage
aforesaid, which at the last advices had Oc-
Cured.
1t is n striking fact that rash, and enterpris-
ing. and reckless as the Americans are alleged
to be by our relations across the water, we
have never vet wasted our money in the great
enterprises of the last quarter of century as
the conservative and close fisted English capt.
talists have done. Three immense Railroad
Companics--the Grand Trunk of Canada, the
London, Dover, and Chatham (finding its ter
minus in the very heart of LondOn), the At
lantic and Great Western-each rivalingin the
magnitude of their cost our greatest works,
have one by one gone down into the gull OF
bankruptcy The Grand Trunk, on an eXpend-
iture of some S500O0,000, is now fancy stock
on the London market at 20 cents on the dol
lar. The London, Dover, and Chatham, on a
cost of $4,000 900 or S4OOO0,OOO, is specialized
in at the same figure, while the Atlantic
and Great Western, with one mortgage
debt of s3O,OOO0O0, n large amount of other
obligations, and very considerable amount OF
paid-up capital stock beside, cannot find pur-
chasers at any price. There is nothing IN all
the experience of American Railroads that Is TO
be compared to the gigantic breakdown OF these
three companies. Nothing which exhibits such
reckless spirit of expenditure. Nothing which
exhibits so much of financiering on a desper-
ate basis. 1t is to the credit of American skill,
and enterprise, and good Judgment that. after
all the filings of English writers at the hazard
ous nature of American investments, we are
able to challenge such contrast as this.
But while we pause to feicitate ourselves
that il i. not speculative America but cautious
John Bull who exhibits these gigantic tman-
cial ruins; we wonder how much of insolvency,
and bankruptcy, and hottenness, there is to be
disclosed among us when the huge vail of
paper money shall he lifted from our boosted
fabric of national prosperity. Are some of our
brilliant fortunes, which so suddenly bazed
out upon the financial sky during .the dark
night of our eival war, and whose splendors
still illuminate its close, to grow dim and dis
appear in the day of reckoning, which must
follow at no distant period. How is our edifice
to look, when the upholstery that now adOrns
and hides it, shall be torn DOWN. Shall we
ha haraafter as we'll able tO challenge the com