, 1869-06-10
THE RAILROAD CONSOLIDATION

The progress of rnilwny consolidation
continues The arrangements for conbin-
ing the railways between Boston and Alba
ny, thence westward to oswego, New York,
undes one company md management, ase
said 10 be nearly complete. The consolida-
ton Of railways north and west Of Chicago,
under the one corporation Of the Chicago
i Northwestern Railway Company, hss
been most extensive. It is now stntcd that
Alr. Cornelius Vanderbilt has matured his
esase~A4 for the consolidation, in one COM
l'any and under une management, Of con-
tinuous line Of railway from Nov York to
Omnhn. This line is to be obtained by tho
union Of the Hudson River, the New York
Central, the Buffalo / Erie, tho Lake Shore
and Cleveland l. Toledo, the Michigan
Southern, and the Chicago l. Northwestern
Railways. This consolidated company will
contto jo,is0 miles Of equipped railway,
vasued $4,000, ,ooo But this grand
consolidated through railway from Now
York 10 the Missouri River will, fo1tu-
aascly, @ot be the only one. The Fennsyl-
yania Railway Company has secured a
similar consolidation. Its through md
continuous route will be obtAinrd by the
consolidation Of the New Jersey Central, the
Pennsylvania, the Pittsburgh, Font Wayne l.
Chics q, tnd the Rock Island RaiIwaya
Ills line will give continuous rail from
Jersey City To Omaha, 1854 miles long,
and one hundred miles shorter than the
other 1oule; it will also have the nd~an-
tAse Of m additional eastern terminus ut
Philadelphia. The combined valne Of these
roads il put down at 21e., no 600.
The consolidation Of these connecting rail-
WAYS uught to have tho effect Of reducing
the expenses Of running aud managing the
ruads, md the cost Of transportation. Tht
stock of these several companies, and their
outstanding debts, represent large amount
OF tactiious capital. The cash capital origin
nlIyinvcstedwas small, and the stocks OF the
several companies have, from time to time,
been extensively wntered The union o!
the companies viii, therefore, be on The
basix, not Of THAR actual cost Ct value, bui
upon tie nominal vnlae Of their vatered
stock. The public suffers FROM this arrxnge
ment, becaune, when tho earnings Of tht
roads Justify reduction Of fares and tolls
the company, instead Of making such re
ductioo, water the stock, and employ tht
excess Of earnings to pay high dividends OF
the WATER
The New York Post, in discussing this sub
iect, points cut that the construction Of AZ
entirely new railway would be better in
vestment E-cn at this time, 6rst-clas
railway from New York to Omaha could b,
bcilt for s75, ,ooo, 900, being eonsiderabl,
less than the amount of the present wa&ese;
capital Of either Of these proposed consoG
dahons. It could b nAde much khorte
than either of tie other rocsea. The 7sus
earnings of ths Peoaylrau:a consolidate,
lass year -.7s -, ,1f,0, ,oo0, md of the Van
1eSbih hce -, 1890 Groa earning
Il 1890, ,ffn Pez Annun would net
txcdzoc. Income " the builders of the nev
liz That sch reE line will be built then
ia Go Go7A- The necessities OF the interim
oonnezre of the county will demand it with
in ftw ysasA- A dooble-1ack, 6.eel-1ailed
ACKNOWLEDGEMENTS railway. II now In op
Grafton between Chicago and New York
would have al the through freight it eoul
move Even If it neve. ron paHsengt
tzain, it would, il properly managed an
kept wei provided with rolling stoc]
have freight each way equal to its full csp<
city. Such road, conducted as CONNIE
cial interest, and purely as transportaio
Eae. and not Ms q stock gambling coneen
<xr111 1,a Ab1A II, rst3u N tha 1z%nn NJ ftas1 ~