, 1872-11-08

stances to the extent Of LOO per cent, and til,
average has not been less than so per cent. ",
do not include in this the cost of actual e1ten
sions or money expended on the roads We refel
merely to the stock dividends, whereby withou
any increase of actual capital, the country hat
been skinned to pay dividends upon stock rep
resenting nothing. Dishonest andreckless man
agement, as in the case Of the Erie, under Fish
and Gould, has frequently wasted in riotous ex.
traVagance the earnings Of the road, and issued
| to the creditors and owners certificates Of in.
| debtedneEs upon which interest must be paid
But the general fact remains, that the leading
| roads have now to pay dividends upon at least
so per cent more capital than was ever invested
in them.
Another reason for the increased cost OF
transportation is the Increased cost in all the
materials used in the construction of RAILWAYS.
The prices Of iron and steel have advanced With
in the past year beyond all precedent. One
cause of this is the immense demand. Nearly
$500 miles of railway have been constructed in
the State Of illinois in 1872. The iron for the
roads has been purchased with the bonds Of the
companies. These bonds have been guaranteed
to largo extent by other railways, who have
become lessees, or otherwise the practical OWL
ers or operators Of the new lines. The same
extraordinary construction Of additional rail-
ways has prevailed not only in all parts Of
the United States. but in all parts Of Europe.
forthemost part, these railways do not pay more
than the cost Of operating them; they are,
therefore, chnrge upon th'9 trunk lines that
lndorsed their bonds, or beco me lessoes. The in
teregt on their aggregate debit is enormous, and
to pay that interest, and to pay dividends on the
capital thus invested the rat es of transportation
have been advanced
Underlying all this, howov or, and more potent
than all, is the fact that our eastward lines Of
transportation have not kept pace With the
Development and settlement of the West. We
haVe built twenty miles Of railway west and
northwest Of Lake Michigan, in the past ten
years, for every mile ct rail or water route east
OF 1t. The consequer zee is, that tho products Of
the soil have exceeded in bulk the means
Of transporting Them. Railway companies
and yesael-oWne rs, like other people,
Will always ta]ie all they can get for
their services. There is no way
to avoid this. E1e must either produce Less or
acquire new ch annels of communication with
the seaboard- 10 produce less is to check our
industry, or to. change it; and changing it is
checking it fol-: the time being, involving loss Of
capital a1read invested, loss OF time, and loss
Of acquired ski1l-losses altogether too vast to
be encountf red until all other sources Of relief
have been explored. There is one.such source,
md TINT III the st. Lawrence route to the East
and to Europe If the Welland and St. Law
'ence Canals we're enlarged to the capacity Of
7essels OF 1000 tons, their capacity would be
ully tested to-day, and they would pay hand
'ouie return on, their cost. The member Of Con-
3ress who shall take the initiative in forwarding
he suggestions Of the National Board Of Trade
n this behalf will be recognized by the people
IT the West asAone Of their greatest benefactors
General Grant~can do nothing to signalize his
second Administration more beneficial than by
living to this project his hearty and |
'ealous support. The crop of 1872 !
mainly in the West yet. Lake navigation will I
oon close. Here it must remain until spring,
II be moved By the railways. Unless there bo |
N advance in prices, that grain cannot pay the |
ost Of its own transportation. What is true Of /
872 Will be true Of 1873; and each year the mat /
or will get worse, until raising corn, even in |
Illinois,, except for domestic use, will have to be
bandcned. The present remedy is to secure.
8 soo'a as possible, the free use and cheap nayi-
ation to the sea, offered us by Canada.