The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1874-08-05
The Louisiana Central Railway.

loans for some important railways in|
Canada and Michigan. Mr.. Wilson
has expressed his views freely to us
and several leading citizens, as to what
must be done to secure foreign aid for
our proposed Central Railway, and to
prevent any misconception as to what
he has said, has handed us the follow
ing memorandum for publication. He
has expressed himself entirely satisfied
of the soundness of the enterprise, and
his belief that it will bear critical in
vestigation into its merits. Having al
ready made an extensive tour through
the West, he has left for New Orleans,
via Houston and Galveston, with the
view of acquainting himself, by person
al observation, with railway enterpri.
SEES, likely to come to London for a
market for their bonds, and will re-
cross the ocean. at the end of August, to
resume his business in London.
MEMORANDA.
During the two days I have been in
this city, I have been several times
questioned as to the chances of infaen-
cling British capital in aid of the con-
strnction of the Louisiana Central Rail-
way, and to prevent any misunder-
standing Of my views on that subject /
have thought it best to make brief
statement in writing. Being exclu-
sively engaged in the bushes of rail-
way finance in Canada and the United
States, / have made eighteen voyages
across the ocean-spending over TWEEN
ty-two years, and have had in many
undertakings entire success. What |
state, is therefore the result of q large
experience. 7',iia
The question of future investments
in American railways, since the panic
Eof last September, by British capital
lists and the public of the British Is
lands, has become more than at any
former tune, one of investigation and
strict inquiry into the merits of partic..
ular enterprises seeking capital. tGIt5is
hardly possible to raise money on the
bonds and mortgages of lines having
little or no local traffic ready at hand,
no odds how much land the companies
have to offer as security. Hence it has
happened that the North and South,
Pacific schemes have come to a dead
lock. Both these lines will ultimately
be carried through in instruments and
as the population flows in along the
portions already built. Such lines,
where they are of national character
Hike the Union and Central Pacific, may
we'll claim government aid. But lines
located through old settled tracts Of
country and States full OF, business
ready made and awaiting their con-
struction, will receive attention just in
proportion to the amount Of local aid
furnished by those most interested in
their construction. 81 I'D &ilV}N-
The States of Ohio, Indiana, Illinois,
Missouri in part, Iowa, Wisconsin and
portions of other Western States, and
of Michigan, have scared perfect
net work of railways, by State and
municipal credit voted in their aid.
Large portions of lines in many Of
these States have been built by dona-
tions and bonuses given to contractors
and railway fnanciers, who know how
to convert the municipal bonds into
money to grade aud supply cross-ties
in sections. This creates a basis OF
credit for the issue of the companies,
bonds, which the great iron houses take
| iu part payment of rails. This is the
process by which more than forty thou
sand miles ofrailway have been, built
in this country, and know of no other
, way of building at present.
| have been asked to examine the
Louisiana Central project, as to its fa-
ture capacity for business, and to en-
gage in the negotiation of its bonds in
Europe, where | have business connec-
tions-both in London and Frankfort
Germany. have recently arrived out
from London and have been making a
pretty extended tour through the West
; to look into the merits of various Other
proiects-some partly built, and other;
only just organized, with the view O
reporting to important railway finan'
/ ciers in Londons, So far, as | have
E been able to collect information, an
l of the opinion that there exists nc
: more promising railway enterprise II
the United States, in respect to traffic
, but / am bound to say that no capita
can be influenced in it's aid either IL
New York OF London until respecta
BILE local basis can be supplied to. thu
{ company undertaking the work. Th'
= directors are all men of experience
. character, and more or less means
a The President, Captain Ward, is q mil
t liopaire, and can carry the work GU
+ IL the terms proposed are promptly me
: by the parties locally interested. Tb
J. company should have at least tw'
iyears for the accomplishment of thei