Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-01-23
rHEuAs.oEwESr OF RAILWAYS.

Among the able men of the country
who have paid much attention TO the
economical management of railways
for the benefit alike of stockholders
and the public, the Hon. Josiah Quincy,
Of Massachusetts,, is not the least dis
t1nguished. He was very properly Sc
lected as President of the American
Cheap Transportation Association, and
we have read his address before this
body at its late meeting in Washing
ton with equal pleasure and instruction.
The value of all farming lands. and of
all city and village property, depends
largely on the cost and management OF
iron roads used for purposes of travel
and transportation. The power to
make or break farmers, planters, me-
chanics, merchants, manufacturers S,
and all other landholders and business
men, is tremendous power to place in
the hands of any corporations.
Human nature is both weak and selfish,
and exceedingly prone not only to use
but abuse any advantage it may pos
sess over the mass of mankind. In
the address alluded to, Mr.. Quincy
says:
''The laws of Massachusetts, give a
greater protection to her citizens
against the despotism of monopoly
than most of her sister States. She
has the right to alter, amend, or repeal
any charter. She can purchase any road
by paying the shareholders the amount
originally paid, with interest atten per
cent from the time of payment, de-
Quoting dividends. ANY director who
votes for the issue of watered stock
may be punished by fine and indict-
ment, and the stock so issued is value
less. When new stock is issued it is
not divided among the shareholders,
but sold at auction, so as to render the
amount of stock on which dividends are
to be paid as small as possible. And
yet our citizens have felt that these Sc
curities are far from sufficient, and
many are of opinion that the time an
ticipated many years ago by Sir Robert
Peel has arrived when 1t would be ex-
pedient for the State to construct line
of road for the purpose of ascertaining
the expense of running cars, and for
studying the best modes of railroad
management
Sir Robert Peel was a sagacious and
eminent statesman; yet all will admit
that since his day the importance of
ascertaining the expense of running
cars, and for studying the best modes
of railroad management, has increased
thousand fold. If there has been a
loss of capital by mistakes in construc-
ton, by breach of trust, fraud or 9TH
erwise, how far should the public be
made TO respond IN damages for the
wrong or misfortune that has occurred?
The New York and Erie Company
built double six feet road-track, with
engines of great weight and power of
traction, to do the hauling of persons
and dead freight at twice the cost
per mile that the same work can be
done on three feet tracks, with engines,
coaches and trucks of half the expense.
Looking to the interest of all agricul-
tural production, and the cheap trans
portation of all goods, all weighty and
cheap articles, like coal, iron and iron
ore, wood, timber, hay, straw, live
stock, salt, and a thousand and one
other things of large consumption, the
question comes up for decision, whether
we viii continue forever to pay two
prices for costly work to the exclusion
Of improvements that would be
about ten times more valuable?
All such monopolies are clearly anti
progressive and at war with the best
interests OF the country. Mr.. Quincy
gives his experience in these words:
"To speak from my own experience,
in the year 1867, being impressed with
the necessity of action looking towards
such a result, l petitioned the State to
purchase the Worcester and Western
railroads, which have since been con-
soiidated into the Boston and Albany
railroad, for the estimated cost OF $751;
90 - ,~. 10 y.el 7,
roads being S1,763,7l0. The present
capital of the road, deducting $1,000
900 of watered stock, ISSUED before the
passing of the law forbidding it, is
ST., S64, 100, and the income of 1S73was
S9,79S,032. That the purchase would
have resulted beneficially to the State,
and certainly to the community, few
can dOubt-at all events the expert
ment of State management would have
been tried under the most favorable
circumstances.
1.-The presentation of this petition re-
yealed the power of railroad managers.
Before moving in the matter many of
our leading merchants agreed with me
in opinion that the time had come for
the State of Massachusetts, to claim her
reserved right of taking this great
1t was evident that the
State could borrow the money at five
per cent, the difference between that
rate and the ten per cent dividends
would enable it not only TO reduce the
charges of transportation, but would
go far grdSpaying the interest on the
State debt, 1t was clear that this pur
chase you'd relieve the citizens from
the dictation of irresponsible agents,
who compelled any party who doubted
their decisions to appeal to law, with a
certainty that if the decision was
against the roads they would carry the
case to the highest courts. But when
these merchants were asked to sign the
petition, with whose substance they as
scented, few or none were willing to do
90. They al with one consent began TO
make excuses. Some said that their
business depended ON railroad facilities,
and that the managers had the power
to put them to great inconvenience, if
not to ruin them. Some feared that |
they would offend bank directors who |
were largely interested in this species |
Of property, while others dreaded |
lest the political influence welded |
By the managers through the |
votes of their employees should be used |
against them, and l came to the con-
clusion that no one who wished for
l., oiIt41ac I,a,,Lr