The New York herald., 1869-04-14
The Dangers OF Western Railway Specu.
lutiOn.


The Pacific Railway in the fimsiness Of its
construction and the jobbery Of its manage
ment, is only q grand type Of the evils of rail-
way building born of the speculative spirit Of
Wall street. 1t is the cap and climax Of a
Aozcn other roads which were brought into
being in the same corrupt manner.
The history Of our Western railways is a
continuous repetition of the old story Of i'm
position upon public confidence. A half dozen
stock gamblers form company, issue their
prospectus, induce the public to invest in their
bonds or stock, and with the money thus
line which is to form connecting link be-
tween the important cities Of civilization.
Then comes q pause. There is a failure to
pay dividends on the stock and an inability to
meet the interest on the bonds. The prospect
Is not so bright as it was represented. The
stock gamblers themselves are careful to
spread dissatisfaction by apparently un-
willing admissions that the road does not
pay; that they are disappointed in their
anticipations Of It, and the like. Away
goes the stock for what it will bring in the
market. The clique buy it in for next to
nothing and renew operations. The road
revives. The adjacent country becomes
richer and in its development enriches the
road. The stock is once more inflated, and 80
the process goes on, the credulous public being
Che victim all the time. Outside Of the
Generalization which this nefarious system Of
vik lictu
whose enterprise it checks and kills, 1t is a
steady robbery Of the community at large.
Latterly this species Of railway swindling
has taken new direction. In month,
perhaps within few weeks, the Pacific Rail-
way will have been completed and the iron
rail will stretch continuously across the Cont
nent. The expected termination Of this work
has been already the occasion Of o general
imitation of Western railway stocks. The
cliques werc quick to take advantage of the
public enthusiasm and desire for investment
Railway values have been forced up to unpre-
cedentedly high ngures-to figures far in
advance Of those which should correspond to
the increase of business and earnings. While
the latter has been only FIVE to fifteen per
cent the advance in stocks has been from
twenty to forty per cent. This difference
is the result Of the general cxpec7
tation that each particular line will
be more or less in direct connection with the
road to California, the Pacific and China. II
would be we'll If the public mind were prepared
for less Hattering state Of affairs when the
line is completed all the way across to San
Francisco. II is yet question whether the
Pacific Railway will be the great highway OF
commerce that is talked Of Until its tenn
porary bridges are replaced by more solid
structures; until the great kinks in Its length,
made purposely to swell the land grants are
straightened out and until its hasty and un-
substantial work Is gone over and perfected, II
will be unable to afford the commonest facili-
ties for transportation. Even in q highly
finished state II Is doubtful If 1t could compete
with shipping for the bringing Of cargoes from
San Francisco to New York. We're 1t In sue
cessfnl operation its freight after, leaving its
eastern terminus would find its way to New
York by q dozen different routes. At the
eventful moment that the first locomotive ar
rived from across the Plains thousands OF
Western railway shareholders would look
breathlessly for the effect upon their invest
ment. Did the grand enterprise prove a
failure crash would follow in such railway
stocks as has never been witnessed In Wall
street.