New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-02

security of this magnificent estate they
proposed to negotiate q loan OF sfO00OO,OOO.
As the estimated cost Of the road was only
$s5, 900, this loan would pay for the whole
work and leave handsome surplus for con-
tingencies The land is now worth, say
s1e5. 900 900. or perhaps more; the portions
thus far sold have brought on an average
over So an acre. AS the country becomes
developed it will of course rise In value; ana
it was calculated that the GALES would DO
sufficient to pay whatever OF the interest on
the bonds the road might fail to earn, and to
pay the principal likewise at maturity. Any
thing that remained would be the property OF
the stockholders. ....-.
If the bonds had been duly negotiated ac-
cording to programme the case would have
stood just thus: few spectators would
have subscribed 100000 and persuaded Con-
gress TO build a railroad for them worth fifty
times that amount out of the national estate
In a short time they would get back their
original investment in dividends. Then they
would be the absolute owners OF 1000 miles OF
road for which they had paid nothing, anu
probably they would still have also large
quantity of unsold land to divide among
themselves. Whether we should have had a
rendition of the Credit MObilier Building
Rings. and a rapid absorption of the profits
and estate of tho Company by little coterie
of inside managers railway congressman, and
Christian statesmen we leave our readers TO
conjecture. The bonds were offered in Europe
and declined. Then the house OF Jay Cooke
g. Co. undertook to place them among the
| IL popuIar invpS tmeDt.-In other
words, TO persuade the middle classes to adj
vance the money which the nation was uiti-
mately to repay with interest.
Probably it was combination OF accidents,
rather than any intrinsic defect in the
arrangements, which brought this scheme to
grief. Similar methods have succeeded be-
FORE and, if we are not cautious, viii De
attempted again. But what we particularly
wish to call attention to is the bearing or
this case upon the transportation question. III
the Northern Pacific Railroad were in running
order to-day from Duluth to Puget Sound,
the directors would undoubtedly claim the
right to put their tolls high enough to yield
eight or ten per cent on the cost OF the
work. But the cost Of the work would have
been paid wholly or almost wholly, out OF
the udIiOlldl CSlhlO' SVhbiN'o HNs' HA''NN ~
grant rich enough to cover the entire ex-
pense, and leave the stockholders handsomely
provided for likewise. For more than twenty
years the Government has given away land in
reckless prodigality to aid in the construction
of railways. In 1871 the total amount OF the
public domain thus appropriated reached the
stupendous total of 217,Si7315 acres. 1t is
true that large part of this grant will prove
imperative, as the quantity of vacant land
within the designated limits will fall short
of the appropriation; but probably over lOO,-
100000 acres has been or will be decided to the
favored companies These concessions repre-
sent at the very lowest computation, money
value of $1,000 900, and an area considerably
greater than the whole of the British Isles,
and greater than New-YOrk, New-Jersey.
Pennsylvania, and Illinois combined. But
when it is proposed that the roads for which
the nation has done so much should be re-
ouired to do something for the people, we are
met with the objection, "Oh, you must not
"interfere with the vested rights OF stock
"hOldersp
Whatever may be said of the railroad ques-
ton generally, it must be evident that the land
grant roads held peculiar relation toward
the people and may fairly be compelled to do
much more than roads built entirely by pri-
vate capital. Reasonable" profits on roads
of the former class cannot be measured by a
percentage on their cost because their cost
was betrayed in a great degree, if not
entirely, out of the public fund. 1t can
not be measured by the capital, because
that is largely fictitious. The limit of their
right to take toll must be fixed by general
review of all the circumstances of the roads
and the history Of their construction; and
common sense will demand that in coming to
determination on this point the share which
the public took in building them shall be
fully considered.