Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-08-25

In every State the Bourbons arc making
vigorous war on the Greeley men, and set
ting up the standard Of the ancient de-
mocracy, under which they mean to
make their fight for the next Presidency
They don't intend to enter into any more
"unholy alliances" nor fellowship any
more organs that can not play to the music
of '9S, and they have DO thought Of dying
as long as corporal's guard * left.
RAILROAD BEILDING 4%N H0ND-
INC.
The New-liaven Palladium IL an article
on the modern style Of forming railroad com
panies and constructing railroads IN ton
necticut contrasts the Old method, which was
based upon sound business principles OF OBJ
tanning most of the means of construction
from cash subscriptions, and then bending the
road for not more than one-third the actual
cost. with the method now in vogue in that
State of depending almost entirely upon the
issue of bonds, and having but a small amount
of bona fidc stock subscriptions. One great
of interest must lac paid on these issues before
the road is completed or ran earn 4 dollar.
The Palladium says
! A forcible illustration OF the truth Of this Is
found in the history Of almost every railroad
in Connecticut constructed or commenced
within the last six or eight years. All have
commenced with very small stock subscrp-
tions, compared with the estimated cost of
their roads and in some cases even these
small stock subscriptions have been decop-
tive The main reliance has been in the issue
of first mortgage bonds. First mortgage
bonds in Connecticut railroads had in former
years, as a general rule, proved safe and
| favorite investments. Farmers, mechanics,
and others who had money to invest, were
strongly prejudiced in their favor, and for
good cause. For before the days of modern
decentralization in railroad building, a first
mortgage bond was seldom issued to an
amount which could not have been paid off in
full, if necessary, by the sale of the iron,
lands and rolling stock of the company.
Speculative railroad corporations have taken
advantage of this mania of the public for first
mortgage bonds, and, as a result, this State
has been flooded with the first mortgage bonds
of uncompleted railroads, and, in many cases,
| the first mortgage has exceeded in amount the
entire value Of the road when completed.
| The result of this state of things has been,
that not a solitary railroad in Connecticut
commenced within the last five years has
realized sufficient actual net earnings to pay
the interest on one half the amount OF its bonds
and debt. To say nothing in regard to the
financial condition of the Boston, Hartford
and Erie Railroad, which has foisted more
than $22 100000 of bonds upon the public,
which are now ruling at about "a cents on the
| a. pI ia foil ripu IN ba
diton in the aggregate of the other new roads
in Connecticut which are either wholly or
partly completed and in operation, viz: Ag-
gregate amount of bonded and floating deb,
of these companies about 81 900, 900; aggre-
gate amount of the net earnings of the same
companies over and above operating expense.
for this year ending Sept. 30, 1872, abou
$4,000. In other words, the new railroad
in Connecticut, built under the modern de
moraliZed plan, are not earning an average O
, two per cent upon the amount of their indebt
d edness. 1t would seem that it was about tim
r for men of ordinary Judgment, before the
:. invest their money in the bonds of a new rail
It road to stop long enough to ascertain wha
Il proportion the amount of bonds to be issue
d bears to the amount OF cash actually paid i
d by subscribers to the stock, and invested i
It good faith in the construction and equi pmen
s of the road. No new railroad in process 0
I construction, or in contemplation, in tn
, State Of Connecticnt. can safely issue NOR,
, than 81 600 of bonds for every g.. 900 of casl
paid in on the stock and actually expende,
on the road. 1t is safe to assert that any mar
, who purchases the bonds of any railroad in
this State about to be built, which do not hav,
as basis two dollars of cash paid in on the
stock to eyery dollar of bonds issued. will
soon regret his purchase, and wait in vair
for the promised interest
OF the manner in which railroads are hull
in that State the Palladium saws:
Most of the railroads now are started b,
contractors and spectators. A moderate sub
scripton of the capital stock is made by thos
within the ring, with an understanding tina
only email installment will be called in
that bonds enough will be put on the marke
and sold to complete the road and then stool