The Portland daily press., 1890-11-01

In letter to the Kennebec journal the
Hon. J. II. Manley suggests that as means
Of developing the resources of the State the
State,in its corporate capacity should embark
in railroad building. Here is Mr. Manley's
proposition:
What better policy could the State pursue than
by general law. 10 loan its credit, for limited
sum per mile, on AL railroads to be built when the
proposed route is Pr optrly apr yed by the Rail-
road COMMISSIONS $ and the Governor and Coun-
Gil. II We could have such pc ICY as this, the
STATE would lot lose dollar would never be
be an impetus to the building of these roads and
TO the development OF the STATE. Massachusetts
great artery the Boston and Abany 1si WAY ana
never lost q emmy by II. We believe there is a
great opportunity for Maine in this direction, and
unless some broad public policy like this is pur.
sued BY the State, maine will not keep pace with
her sister sta es in their rapid strides to progress
The most obvious and conclusive existing
objection to Mr.. Manley's scheme is that it
is unconstitutional Sectien IA of the Con-
stitntion of Maine provides that "the credit
OF the State shall not be directly or Indirectly
loaned in an case" OF course this is an OBJ
lection which it is within the power of the
people to remove If they see fit. But as it
must be removed before anything can be
done In the line which Mr.. Manley suggests.
ne very properly addresses his proposition to
the general public. The building of rail
roads by public subscription is no new thing
In this State. A large number of them have
been built in this way. The Atlantic & st.
Lawrence was SO built, SO were the Portland
d Oedensburg, Portland & Rochester. Knox
& Lincoln and Bangor q Piscataouis. But
heretofore all this kind Of railroad building
has been done by the cities and towns which
were TO be directly benefited by the proposed
road. The legislature has authorized towns
and cities to loan their credit to certain
amounts to railroads, and 1t has often been
DONE The results have sometimes been
fortunate to the subscribing towns and
sometimes quite the reverse. Portland never
lost dollar by Its investment In the At
lantic IL st. Lawrence, but on the contrary
In increased trade and commerce it reaped
great benefit. But it is heavily I'M debt on
account of its loans to the Portland & Og-
densburg and Portland & Rochester, and It
can never get back directly the money 1t in
vested IN these roads. 1t may be that in
years TO come indirect benefit from them
VIII more than Offset what thew have
cost. But the people who will profit nv this |
Indirect benefit will be for the most no,, |
different people from those WIN snffarad
the loss. Much the same is the case y, rocard
to the towns that loaned their credit Go a.
Knox d. Lincoln. Eventually the nrot;ts do
rived from the road may balance the losa
which the towns have suffered in dollars ana
cents, by reason Of the inability Of the road
TO pay the interest on its cost, but the imme.
diate result is higher taxes In these towns
than would otherwise have been necessary,
and hence loss to the people who live in
them. 1t may be said generally that the re-
suits from the practice of towns and cities
Of investing In railroads have not been so bad
as to unqualifedly condemn the practice, nor
SO good as to justify the State embarkipg In
the business. Furthermore there are a num-
Der Of objections to the States loaning its cred
1t TO railroad enterprises which do not exist
or exist In much less degree in case of cities
and towns. The money loaned by cities and |
towns TO railroads comes from people who |
nave reason to expect that they will be d. |
ioo"y Denehted by the roads in which they
invest Inc road is expected to boom" the
so"n, tnus increasing the value of prop-
erty In 1t. But If the State should en,bork
iu' the business a large part of the noonov
" "0u.u ZINC from people whose benefit would
II, very remote IL they received any at all.
muse people would certainly object. and we
=. asne IL would frequently be necessary
-, them by promising them a rail.
otad . $500 inevitably would be inaugur-
ar,rao, 80 VI log rolling-one section
.ss IT, 80 ior railroad In another Soc
A0, Wv i"Fr would reciprocate-
w. ny" ~ Tue shade the log rolIina
", .na1 Drouen1 ABOUT the capital extension
The effect would be undoubtedly to cover