Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-07-01

Fifth District, EUGENE HALE.
THE LOGLC OF OUR INVESTMENTS.
WHICH POLICY IS BEST?
The vast capabilities of this country and
the prodigious strides it has made in ma
terial development and wealth the last few
years, is most conclusively shown by the
latest and best authenticated railroad sta
tistics. Various causes are assigned why
our maratime interests have not kept pace
with England. and inconsiderate persons
unacquainted with or oblivious to the es-
sential facts bearing on the question have
INDUCED in bitter complaints against the
National Government for its measures and
policy, as though in its limited sphere of
action it really controlled those mighty ma
terial forces and opportunities with which
the supreme God has favored the land,
and that the strange tendencies of the
worlds eapital and labor outside of its
domain we've really at the command of our
Congress and Cabinet. 1t is plain that
Americaa capital and labor could not be
in two widely different places at the same
time. They could not be tunnclling the
mountains, bridging the mighty rivers,
linking together our prairies, valleys. sea-
boards and lakes with vast iron network
Of railroads, and in the same strength be
crowding our shipyards and whitening the
oceans Of the world with new American
canvass. This low rate of interest in Eng
land and the low price Of skilled labor, in
addition to the advantages which British
ship owners obtained from their Confeder
ate cruisers, for years placed the English
ship yards in condition with which the
American ship yards could not compete.
The most recently collected railroad
statistics are a full revelation as to the d.
rection large amount of American ener-
gy and capital have taken, which other
wise would have gone in some other d.
rection Of material development-more or
less of it to the building of steamers and
sail ships and the establishment of lines of
ocean steam ships. Poor's Railroad man.
ual gives the figures showing the growth
and the present proportions and profits of
the railroads in the United States. The
number. of miles now in operation are
about equal to those Of all the European
nations united.
The aggregate miles Of railroads in the
United States at the end of 1873 was &C, 096,
against 81 1923 in 1872, and Al ,6l4 in 1871. In
two year, the number of miles built was a.
1872. The aggregate cost of all the roads at
the end of 1873 was $3,761, 973, 1929, against
%, 664 ,627 ,545 for 1871, an increase in two
years of $1,O97 ,345,677. The gross earn.
ings increased 80 per cent. in the two years,
while the number Of miles was increased near
~ 60 per cent. The gross earnings were
about $400, 000, 900 in 1871, and 1926, O0O, 900
in 1878. The net earnings in 1873 were
nearly slS3, 000, 900, or 34.7 per cent. on the
nominal cost of the roads. The amount paid
in dividends was e59, 50O, 600, .or OF per cent.
on the share capital. The earnings of the
roads per head of population was $l0,22 for
1871, &ll.63 for 1879, and $3.50 for 1873.
This shows that up to q certain point railroads
are profitable, and that railroad traffic in
creases faster than population. The New
England reads have an aggregate length OF
5303 miles, with q share capital Of &l4l, O00,-
600. Their gross earnings are SOL 800, 900.
or 1876 per cent. of their cost, and their net
earnings Ole, O00, 900, or 2.92 per cent. of
their cost. They paid dividends amounting to
q, OOO, 600, or $3.50 per cent. on their capital
stock. The earnings to head of population
were &l4.30 in New England, 81 in the Mid
die States, el4.33 in the Western States, ST.
II in the Southern States, and $l7.92 in the
Pacific States. In the last Eve years 2S,39G
miles Of railroad have been built, at a cost of
1881 $4,000, and 1915 ZOO, 900 has been ex-
pended in the same time in incre asing the
facilities of existing roads.
At the same time that our railroads
have been making such stupendous adj
vance. vast sums have been invested in
establishments. giving en-
ployment to hundreds of thousands of per-
sons who would have been engaged in
other fields of labor, had not our manu-
interests been stimulated and
broadened. Whether all this railroad
building has been wise and profitable, is
not the question in this connection, though
there can be little doubt that most of it
will result to the growth and best material
interests of the country, though the stocks
and bonds may not always prove the most
to the original purchasers.
1t is undoubtedly we'll that the building OF
railroads for the present has been some
what checked by the recent panic. The
conditions in respect to maratime invest
ments are changing. The drain of labor
and capital from Great Britain to this
country to build up our manufactures and
to extend our railroads is telling ON the
price of labor and capital in England, and
it now costs SO much more to build steam
ship or sail vessel in England than it did
ten and five years since, while the cost of
the same in this country have somewhat
lessened, that the American shipyards are
no longer at the tremendous disadvantage
xhoy ,v aro In 1leS and 1sT0 Na,, which