New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-06-24
RAILWAY INVESTMENTS.

A coGENT STATEMENT OF THE RAILWAY sIDE or
Tai CASE WITH RESUME or TIKI slTUA-
TIo9.
To the Hditor ofrhe Tribune:
SIR: The three conspicuous works of internal
Improvement belonging to this age Of civil engineering
and cooperative effort the Erie Canal tie saez Canal
and the Pacific Railroad by the hrst named the old
trade currents Of this country changed; by tho
latter two the channels of trade between the nations
on the shores Of the Atlantic aud those the
shores OF the Indian and Pacific Oceans
have been diverted and divided. All three
OF them were regarded feats OF national skill and
genius when attempted, and all carried ont with
the aid Of the political authority OF the State. The two
latter though nided financially, constructed by
private corporations and their control and management
remain So The Eric Canal was constructed wholly by
the State, which retains control and management OF 1t
but 1t has gwen rise TO much looseness
and scandal that propositions to the con-
necticn Of the State and TO transfer the owner
ship and conduct Of purely business agency
into the Lands Of corporation tavorsby received
In fact, prblieiss dividing the question TO
whether is not best for the political power 10 renquieh
fill connection with branches Of activity which indiyd
ual or combined effort accomplish, to and
extend the function OF the Government until includes,
besides carrying nas doing banking, carrying,
inspecting, aud even manufacturing, also.
II is not often that government OF any sort yests
money in improvements that gets what il pays for at
the time aud in the specified. Whether Il be
royal palace, ship OF war fort postonce county court
house. state capitol. there Is apt 10 be irreu
larty: the estimates exceeded the appropriations
exhausted. the workmanship inferior, tie mate
rial poor; or, IN common phrase, there "a
to be a swndle somewhere" Great cor
porations themselves liable TO be cheated and
robbed; but OF them badly served or 50
much imposed the Government. Singular 10 re-
late, in each OF these three grand works the States got
" nf cla
tie stipulated time and the results whcn have followed
from their construction have surpassed AL previous
rectatons TIE Governments OF France, England, and
Egypt retain proprietary Interest In the suez Canal,
which, however, carry neither voice IN lis management
share in lie profits, but The Investment il made solely
for the authority II may confer in the contingency war
The Pacific Railroad colossal undertaking Of
original and experimental character, while the Canal Of
Lcsscps merely the reopenng OF one long closed.
The desire for steam highway across The Con
tincnt along the temperate belt had been ruling
passion with our people ever since the advent
Of the locomotive. Political and commercial conventions
urged IL repeatedly upon tho Government, but II was
not until the Union was threatened with ACKNOWLEDGMENT
that Congress authorized the credit and resources of the
nation he drawn upon for s commencement There Is
doubt that had II waited for unaded enterprise aono
IL would not have been bHt for generation yet; and
very Eile doubt that had ii been conducted by tic
Government alone 1t would not have been finished
now; While the bins would have run m into
the hundreds Of millions. by stimulating and tempt-
mg private corporations 10 undertake It, and BIS
pittlng one against the other in rivalry, the To1d
was completed in half the allotted time aud within the
limits of the original appropriation from the public troas
ury the extra expense incurred in sGcl unprecedented
speed being borne by the private coraiss The under
taking was sle % furnish good railroad through
the undeyeloped public domain By July 1873. and 10
maint1in the in operation Tor the use Of the
several departments OF tho Government re
Her; the country has the use Of IL, and the
half the country the Missouri In particular Is
UNNECESSARILY benefited thereby. ON tie o;her hand.
TIE Government Co aid these companies by division
OF the strip % Land along the route IN alternate sections
and by AN advance Of United States bonds al specified
rates PEI mile as. the work progressed. Without this
latter obvious the road could not have been but
Indeed It became apparent that II could not DO
built promptly long these advances
were made first charge on the property,
and In consequence this lien was removed
II has turned out 10 be good bargain for both parties
for nation because II has secured the OF the road
for military postal purposes, ana Ia efectns i
mense savag every year IT. previous disbur-e-
in the Far Wess for the Companies because they
we're fortunate In the time chosen for securing private
capital IN the discovery OF feasible route. IN the sue
ccsson ~ mild duriug construction, ana IN the
that by 81 large volume Of traffic
at low they successfully compete With water
lines the Pacific ports and with the suez route to
India and China.
IL estimating the value Of the Governments invest
ment IN this railway therefore, IL should not be over
looked that the returns which roapirg consist
altogether actual money paid into the Treasury, bat OF
multiplied power. eficeicy safety. convenience reu
lary order aud civilization as well ~ direct saving
in ifs annual eIpenaitdres-which Is the elriy"-
lent o. money raised b. taEation and paid out again
Every way eminent Is gamer whether the
bonds advanced should be returned to he Treasury
.lr1 NJ he "a
peratfye necessity that Congress would have beca ust
aod IA aiding H. eyon II Il had required annual appro
pra.on keep IL In operation instead OF the present re
turn OF c- which, reckoning the earned In trns
portatiDn and from net earnings, Is equal to reuriy Two
pcr cent annual the original loan OF credit
An unfortunate dispute has arisen as 10 the nature Of
the arrangement conditions on which these bonds
ycro isued 10 the companies There l. dispute as 10
tho bonds companies having earned them b. confer
rinE new value the whole tract Including the bali re
famed by the Government; the retained sections are
worth much more with the road than TIE whole wns
wi,hout It, There controversy as to the bonfs
for eeyeral years. until OF cur humorous secre-
,ar,es OF the Treasury took II into his head
10 set up new construction OF the acts
that tho companies were bound 10 repay lie
otercst ON these United States bonds each six months ~
IL became due and this the strength or rather on tho
weakness Of An opinion Of the Attorney Genera-fa
yardIs OF the papabe fact that tho Government wos
being repaid every day by ITS possession OF tho road
The Government ard the Companies were put 10 much
e.po,.e and trouble to have simple question settled
The Court OF Claims decided that they conid only be-
called uion 10 repay this interest In onehah the cci
psatou for such services as might be required 10
retbcr viii one-;won.th OF tho net earnings after COM
pat,op "a cash and this position tho Supreme Court
unanimously affirmed. Tao tower Court Sdla III Ies"iu
10 the terms OF repayment:
y,, the urc;ec ~ efnbar.Gg the United states In THIS en
trrris ov losnlng D, po'"s Isl, no. hssn