The daily gazette., 1877-01-03
First Biennial Message of.
Gov. Cochran.
IC0NCLUDED.l |
STATE AID,


Among the causes which have contrib
uted to the financial embarrassment both
public and private throughoutthe country
may be included the unwlse outlay of
capital upon uncertain railway enterDris-
eS. The misgovernmenJ which has pros
trated the people and paralyzed the in
dustries of the Southern States, and de-
stroyed the natural market which they
furnished for the manufactures and other
products of the North, has had other far
reaching and deplorable consequences
The capital, which might otherwise
have sought safe and legitimate invest
ment in developing the industries and
encouraging the enterprise of the South
ern people, and in restoring them to
prosperous and profitable relations to the
North, was driven to seek investments
elsewhere. The plethora of money occa-
stoned by the unwise Introduction of an
irredeemable currency and aggravated
by The virtual exclusion from Southern
investment have mentioned, was COM
PEELED to seek employment in enterprises
of some kind. Owing to the love of specu-
latlon which always accompanies the in
fation caused by an artificial measure
of values, and owing also to the impro-
vidence and public cdemoraliZation which
ever follow in the wake of war, much of
this superabundant currency was absorb
ed in unwise railway enterprises which,
in many cases, have brought nothing but
bankruptcy and ruin to those connected
with them.
The history of railroads in this country,
especially i'll some of the distant States
has been pregnant with solemn warning
to those who would seek large and rapid
gains in violation of sound business laws,
and by methods other than that patient
industry and careful economy whereby
trne and enduring success can alone be
attained. But the failure of illigitimate
railway enterprises, Notwithstanding the
private distress AID public calamities
they have brought upon the American
people since the memorable panic of 1873
have not been unattended by compensat-
ing benefits. Out of painful experience
the country has learned LESSONS which
must be productive of much good and
preventive of much ill in the future-les-
sons which have taught that the laws of
political economy cannot be defied, nor
true business principles violated with i'm
punity by either commonwealths or indi-
vidualS. 1t has been satisfactorily de-
monstrated that railroads should not be
constructed in advance of legitimate
demand for them, nor where they have
no reasonable prospect of n supporting
patronage, and that the law of supply and
demand, here as elsewhere; will command
observance or impose its penalties. Un-
employed capital is always eager and
vigilant for safe and profitable invest
ment and the undertaking upon which it
hesitates or refuses to venture may be @
fair and just object of suspicion. So with
projected railroad. If capital shun it.,
there is adequate reason to distrust its
success. And when the projectors of a
railroad are forced to resort to govern
ment for the means of its construction, it
may be fairly presumed that capital has
been withheld from the project, that it is
not demanded by the needs of legitimate
traffic, and that the probable result must
be the bankruptcy of the railroad and an
ultimate loss to the State to be paid by
the people out of the taxation of their
property and industries.
am aware it has been argued that it is
the duty of government to construct those
so-called internal improvements which
are of such general advantage as to bene-
fit its entire people and thus bear the
character of great public work. On
this question, however, the public opin-
ion of the country has been irreconcilably
divided from an early peroid in our his
tory. But clearly this very eXceptionim-
plies the condemnation of government
aid to all those projects which would
benefit one locality, or one portion of the
If one corporation, or one locality, may
receive special government aid, then
every other other may, with equal justice
demand the same favor, until such con
cessions end in crushing public debt,
ruinous taxation, and final bankruptcy OF
the State in both credit and charac-
ter.
GOVERNMENT RAILROADS.
1t has been urged that, in some peculiar
cases, it is the duty of the State TO aid in
the construction of main trunk zine OF
travel and traffic which shall traverse its
territory and furnish to its people the
means of connection and communication
with the great avenues and centres OF
trade throughout the country. But sure
ly it cannot be maintained that it is the
duty of the State to virtually construct
the short branch or lateral lines necessary
to give the people of surrounding locali-
ties access to such main line. Nor. for
much stronger reasons, can it be conced-
ed that it is the duty OF the State to con-
struct thoroughfares of trade and travel
within its borders to compete with an es-
tablished through line which its oppon-
entS may complain of as monopoly
The logical and ultimate consequences OF
such doctrine would impose upon the
State the projection, construction, main
tenance and operation Of every railroad
or canal within its jurisdiction. 1t would
impose enormous burdens of debt and
taxation upon the industries of the peo-
pie, imperil, the public credit, and tend
to unbridled corruption and jobbery, sur
passing even the Credit Mobilier and
other scandals which have tarnished the
reputation of the country throughout the
world. 1t would be anti-American and
contrary to our theory lf-government
and introduce the paternal and imperial
plan in our land. 1t would be inimical
to our theory and doctrine that it is the
right and duty of tho people to manage
their own local affairs and internal con-
Germs; would create the habit of relying
upon governmental all cases, and destroy
the spirit of independence and self-reli-
ance which has always characterized our
people, and would paralyze the individu-
al energy and enterprise which have been
the glory of our race, and which have
reclaimed ahd civilized our broad do
mains, and made possible and successful
the recent Centennial Exhibition of our
marvellous progress and achievements.
Again, if the doctrine shall become es-
tablished in practice that government in
this country, whether State or Federal,
shall have the possession and manage
ment of railroads, canals, telegraphs, and