Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-10-24
RAILROADS AND THE PANIC.

The opposition to railroads organized III
tho West doubtless formed an important
element in the money panic. Public con-
sdence in them was already shaken before
the manic began. Stockholders and bond
holders were considering whether such
property were desirable under the eondi-
lions to which it was subject. a secret
organization controlling legislatures and
courts was threatening them. Popular
excitement ran high against them, SO that
in some instances they were attacked by
mobs, and in others passengers refused to
pay their fare, claiming that the pubic
was entitled tie free passage. The hrst
crash of the panic found them in this state
The fall of confidence in the Northern Ia
cific enlarged the distrust which had com.
menced in regard to western railroads
and this widened and deepened the panic
which the failure of Jay Cooke & Co
started.
That the railroads of the West have been
mismanaged. have been too graspins OIL
selfish, may be true. but after all they are
public necessity and benefit, and what
ever Injuries them, retarding their growth
or impairing their efficiency is to be dep
recated The railroads may be in fault
themselves, provoking just resentment,
but no matter how war upon them
comes, it is not well that confidence in
them should be destroyed, for the public as
we'll as the stockholders feel the evil Ell
fects of the shock. Capital" says an eH-
change, lis timid. 1t will not seek rail-
road investments, unless tempted by the
prospect of ample returns and oil perfect
legal protection. Both arc directly threat
cned by the popular excitement against
railroad property, in the grain producing
States. New railroad enterprises are out
Of the question in that large portion OF the
country, and old ones can hardly be kept
in an efficient state of equipment and re-
pair while suffering under the popular
vengeance, which does not discriminate
between legitimate roads, fairly built and
well managed. and those that were built
under false pretences, and arc managed
for speculative purposes.
Hardly any part of the world is so de-
pendent upon railroad communication as
the western portion of the Union. Much
more than half the value of improved lands
depends upon the facilities of communica-
ton. And of this very necessity has
grown, in a great degree, the abuses that
have brought down the retribution which
falls, as the rain, on the just and the UNI
Just alike. The scandals of the Pacific
road, the watered stocks, the selfish man
agement, the combinations. intrigues and
corruptions by which men have obtained
the control of great lines of communica.
ton. and have managed them solely tol
the benefit, not of the communities which
they connect and the trade which they ac-
commodate, not even for the benefit OF the
stockholders. but for operations, which, on
large scale, are called speculation, and
on small scale gambling, are primarily
TcSpOuoIulc lOI u otatC VI PuDiic ASSAih .
which nothing can justify against the rail-
roads. This feeling will react, for the
people who depend upon railroad commu-
nication, will demand that it be maintained
and extended, and will submit to all the
conditions to these ends. But capital will
shrink from the investment. and it will
not be easy TO induce Congress to give
lands TO railroads which are to be built on
bonds and managed by spectators.
The effect which this will have on i'm
migration remains to be proved. 1t will
certainly retard the extension of the 'front.'
Ter Of civilization. This of itself may not
be an evil for we have been pushing our
settlements faster and farther than was
warranted by a just and stable progress
and 1t may be well to pause, to strengthen
and compact our civilization. and to make
it the surer base of operations for further
advancement. But the immediate effect
must be disastrous, especially to the west
The blame belongs to the great spccula
tors and gamblers who have aroused the
public fury by bad management, and to
the demagogues who have endeavored tc
turn that fury TO political ends"
Inc Massachusetts papers are inform
ing their readers that political campaign
Ia going on in that State IN e.. -.