Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1868-02-18
- OI III6 DPOOuttUOI' J = II
SUBSCRIPTION TO THE
COvingtOn & Ohio Railroad.

instant, writer, signing himself "A Farmer,
controverts some of the arguments | offered in
behalf of the subscription, in an address to the
people of Augusta. | shall notice his commu-
nication in'the same spirit of courtesy and kind
ness which characterlzes his paper.
While he exhibits nothing of the unfairness
OF the ordinary disputant, he evidently labors
under the influence of previously expressed,
and, as think, of hastily formed opposition !;
and seems called on as perhaps is very natural,
to try to sustain his original position; but |
submit it to his candor and intelligence, wheth-
er his talent and ingenuity as writer, ought to
be eXerted to weaken the force of any fair con-
siderations, presented in favor Of measure,
the success Of which is regarded as so essential
to the future prosperity OF our state, and which
will be imperilled if the county of Augusta.
under the particular circumstances, should with
hold her assistance.
could not deceive, if | would, the intelli-
gent people Of your county, by any argument,
however specious, if unsubstanial, and | ask
him and them to look at the subject free from
any prejudice, ordinarily excited by the bare
suggestion of taxation, which, in this case, L
malntaln is merely nominal
He says, Il wish to call the attention of the
people to the fact that payment at Some time
or other generally follows the execution of a
bond This is certainly true of bonds gener-
ally, but where bond is issued by a corpora
ton whose solvency, like that of the county of
Augusta, is not only undoubted but becoming
more stable every day, bearing an interest as
much as 8 per cent, as in this case, and taken
by capitalists as an investment, 1t might serl-
ously be questioned whether paymenI ever
would be demanded jas no more profitable invest
ment could probably be found. A creditor who
holds bond as an investment, giving him a
md
it's payment at maturity, if he has confidence
in the solvency of the debtor because he would
have to make another and possibly not so good
an investment, the payment might, therefore,
never he demanded, and would not be made
unless insisted on by the County. did not,
however, assume that position: But that the
County would get valuable consideration for
its bonds: viz: Stock in the Chesapeake u
Ohio Railroad Company, on which per cent
dividends annually are guaranteed, alter the
completion of the road to the Oho which Is
the same as the rate of interest on the bonds !;
and / further say, that supposlng the court
would make the bonds payable as late as 20 or
80 years from their date, there is hardly rea
sonable doubt but, by that time, the stock
would be worth as much in the market as the
stock of the Baltimore x Ohio Road is now,*
and might be sold for more than enough to
pay OH iuS UUUuS, anu, tHCICiOiSt lhAC ttO
di eaded taxation is not real but only nominal.
The opinion express of the future value of
the stock OF the Chesapeake Il Ohio Road, is
sustained by. men OF the soundest Judgment
In period of 80 years, the stock with It's dlvl-
dends will be worth more than the bonds and
interest on them.
IT man buys tract Of land and gives his
bonds for it, payable in ten years, and gets an
annual rent sufficient to pay the interest, and at
the end Of the ten years can sell it for more
than he gave, could you say that by such a
transaction he was mourning a burdensome
debt?
"A Farmer commits great error IN suppo-
sing that the productions OF the w est and the
Northwest 60 to Baltimore and New York, be-
cause there are large populations IN those cities
to consume them Railroads and canals We're
not built merely to supply the people OF those
cities with food, but to carry the surplus grain,
pork, beef, tobacco, &C., &c, for shipment, to
supply the wants, and interchange for the pro-
duets of other regions. Referring to his illus
tration, if more potatoes are carried to Rlch-
mond and Norfolk than the population can
consume "A Farmer" need not fear that
they will ''le there and rot, as he says they
may, but will be exported to some place where
they are wanted.
There are certain laws of trade, and practica
experiences as to the effects OF Railroads. which
cannot be successfully controverted, wherever
the productions OF IA country, which are wanted
for export, can be conveniently, certainly, ano
cheaply concentrated at any good Shipping por'
which has advantages for foreign trade, there,
capital will sooner or later make Its appearance.
Capital is light and movable. 1t can go to the
heavy products with more facility than they car
be moved to the capital. Capital will not there
fore continue for any great length OF time tt
pay the unnecessary tax OF transportation. Lei
the Covington 4 Ohio Railroad be built, and
capital will be sure to meet the trade at Rich
mond and Norfolk
Large cities already built up, do not construc
railroads and canals to supply them with the
necessaries of life, and accommodate their ec
istiag trade, thus placing the effect before the
cause, putting the cart before the horse. bu
railroads and canals accumulate products a
small cities, attract capital and make tnen
large cities If Baltimore had waited until Il
become a large commercial city before II under
took to extend its railroad to the west, the
Raltimore & Ohio road would never have beer
built
In the next place. a little reflection will shov
that he is mistaken in doubling the beneh
which anticipate from the coal OF west Vlr
Virginia being brought to Augusta, tt
meet the iron ore which exists ther
in such abundance. He says my illus
trations prove that the o-e ,rH go to tn
coal, because the iron ore OF Missouri goes Z
Pittsburg, and that from Waynesboro goes t.
Richmond THIS increment of the ore did no
occur. bv reason of the coat only, posSessln'
the power of attraction, but because In these ca
ses when the ore was drought to the-coal' l
was on it's way to market; 1t would have beer
very unwise thing to transport coal iron
Richmond to the Waynesbnro ore banks t
manufacture iron to go back to Richmond
thus having double freight; but to transpor
the ore to Richmond to meet the coal, being 81
far Oh its way to market, was a judlclous arrange
ment and hope will turn out to be proh a
Bile one. When the question arises Whethe
the Augusta iron ore is to go West, to meet tn
coal of Fayette and Nicholas, and have t
come back over the same road ,5on It's way t
market. think we will have strong assuranc
that for two most substantial reasons, 1t Will b
the coal that will move to the ore; being til
| lighter article, and having but one transporta
| ton and that on the way to market
| "a Farmer does think the construction
the short track between Charlottesville ant
| Richmond will follow as a necessary conse
| ouence of the Covington and Ohio Road beln
| built. | believe it would as a matter OF neces
| sitv but he has overlooked the fdct, that tn
civ of Richmond has made at a condition, tina
/ the Chesapeake and Ohio Company, before de
1 manding payment of her subscription, is to en-
fer into bonds to construct that road 6y the tim
the main line reaches the Ohio The compan
cannot dispense with the So, ,000, 900 subscrlbe
by Richmond, and thus its construction is mad
certain. and my opinion is, that 1t will be tn
interest of the Company to build the shor
1 hoo, tIs,f