New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-04-13
THE DUKE ON OUR RAILROADS
MARLBOROUGH WRITES ABOUT BUSINESS
Ihe Duke ~ MarhnrnuCh I'm rha Enrinlnhtly ReYieM.

MARLBOROUGH WRITES ABOUT BUSINESS.
The Duke Ct Marlborough IN The Fortnlghty Review.
With all the abuses OF financial management the
average rate per mile in the United states Tor
goods Is under farthing while In favored land
II Is over three iathlngs with no greater speed IN
eral average that railway cghts and fares for good
passengers In the United States Notwithstanding that
wages than double In America is one-third
OF what IL is In Great Britain. The fact is, that
where line has any thing like a decent local
traffic to supplement It's through haulage, any railway
In North America can, and would earn . per cent
on Its constructive capital.
OF course 1t is impossible to say the amount of harm
and Indebtedness that may be created by group VINO
lies, know from the old histories Of the Erie
asd the coal lands held by the Reading system. Mort
cages once made have " be paid of and this has al
ways TO be taken into account but II must also be
borne In mind that 1t IS becoming less worth the whe
property it was when the shares were only bought
and sold for the that could be made them In
wall street The hard fact that such properties should
be got hold Of at ALL and 1t is strange to consider the
class Of men that are growing up In America in con,
sequence who In their way are greater despotS ana
WELD greater power than any great medaeyal baron
of Norman times venured to make this suggestion
fornian interests in railways amounts to great many
tens of millions Of dollars. He was he told me,
simple man, and had no high social aspirations
it was true he had obtained great power and wealth
but he thought that on the whole 1t wa Gsb hS
and that his paternal form OF administration OF ISSUING
his ukases from his quiet Office In Newl ork tougn
vastage to the public OF course he really believed
this as did the Norman Baron when he exercised his
various rights of segnleury In 0den times. Inc ONLY
marvellous thing in the matter besides the millions my
friend could realize from beginning that consisted OF
Itself on its democratic Institutions should have allowed
this arstocracy TO grow up in their midst waich Is
more dangerous than all the feuda arstocrAcies OF
Europe put together 1t was easy TO get ria P OF 1S
did. without tearing up the foundations OF all SOCIAL
life in the country Itself In America this nan ,Hd
and railway arstOcracy Is slowly building Itself into
the very bone and sinew of the people and IL will be
very difficult twentieth century problem to know now
Various causes, sach the steady growth of pOgu-
n 5aSOn the anu consolidation %SSlt of conacns interest
more conservative commercial spirit, are tend
Ing to bring about the building up OF large ana power
fui railway systems in America very similar 10 our
large railway corporations at home. 1t is true, IN
America these systems being largely consoldated
by the operation Of spectators who have practically
cornered the markets by the abuse OF powers when
of Congress with regard to these great monopoles OF
A sound, well-managed system of railway, with
good coast communications and lying well
as regards the great quadElateral have mentioned,
can earn a certain profit Notwithstanding the
water and the burdens that former NEUTRALITY-SUSPICIOUS.
has placed the property. 1t must be remembered
also that reconstruction schemes nave IN many c tS
lightened the load, and whoever watches closeY tne
policy that is being pursued on all hands cannot li
to be struck with the fact that an immense mOyemeht
OF steady financial development Is going forward wt
in the great railway basin Of Central North America.
will go in future article to point to some OF inc
w in the south and the vast promise that lles in this
quarter The fact which want to make clear mere
IS the immense value there is in railway properly IN
the States, far greater than we are wont TO reze we
have seen so much ruinOus speculation In american
railways in England, and there have been so many
failures, many receiverships ana properties nyo
been up and down in the markets with such astonShi
ing differences, that the English public has lost Iath
IN American railways and has gone IN ior 0V W
American and other enterprises In preference tet
NEXT to TeS Cas noSa f tSe MOST valuable Of ali
| forms of wealth I'm America. Any railway deeenly
managed cam and should pay dividend on ts Snare ec
1t is matter Of certainty that every year VIII oo
this form of property gradually rise in value as argo
and well-consldcred schemes OF consonaaooh .h uno
shape. These properties VIII not c9nsohuo ON 90
selves in day and the abuses that have gone on SO
long will not at once but when we look at inc
control Il is not difficult to realize that the wants OF
sixty millions of people, rnhabtng one OF the most ir
| railway industry that hardly any past mlshanase
ment can permanently prevent from becoming most
! valuable form of investment. 49,,
What is wanted to make the influence OF foreign
capital IN American RAILWAYS tb RPoper Scattered
cure dis,o,nfed interests of English investors,
and to consolidate these blocks Of securities In te
hands Of n powerful and well administered corporation
HAT makes il It's sole business to uphold the voting
value of these stocks in America am aWsre i,s d
various trust companies have OF s teeH Is more
directed to paving large dividends on founders snar
than to organizing strong front OF EngS 90 eR hayo
suggested devoted itself to obtaining controlling IN
in certain groups OF RAILWAYS notber solid power
igbf he bniIt Hp and English investors would not DC
shaken out of their holdings ana S age f s NO fault in
the courts of the United states provided you oS
afford the time and and the t money large 20 private
interests have been built up has been Gy
the method here described .oma %ethod BY ieg
mate means as the markets suited thelr OpeIa.o 20
IN eoT d Tho laws Of different States differ in many
respects it is impossible 10 expect tal rs1
by Congress can be kept as III hu ns pr,iIwavs The
increment Of value behind these properties Is eIo
nous but it is impossible TO- predict mo be system
in America Of letting these things take care OF te,
selves carried to such lengths t ina ne sg English the
only way to guard interests Is by cohS2 ht
our forces otherwise am free to adS sr SSS rail
t Secnrities altogether for II is much the same at
present as if the public was to PIT s ho Inast idea
whether or not the owner intended to pull the ANNA antSS
and make his money that way rather ta a oy bee h
Nmerca can fail to be struck with the yaSmeS OF he
railway interest OF at coGn pHd dt tGd same time
Is thc predominant factor In preserving potlcai G ~,
Of interests between states separated oS nntaIns
The management we'll as thr mlsnansg LII oat
these vast systems IS one Of the maTveT l said 10
mo- tho otbcr d9v when were returning tosetner
me VIC 9t.TI ocoo, steamer having been with
s"timn with nv SON. and travelled over NOR unai
1900 miles Of railway all over tie con' co1necon
we ncTcr "@ tie iourney, II IS not fatterng
thing perhaps to our National pride, but II tine run
| is told orr English railways are TOW systems, ara Vn
oling stock are toy freight carriers compared 70 inc
| trains that arc run all America Inc lmprnH ,
baniace Of Ameican lines done on single pairs on rs
~ n,arvoIIous and those systems must contlnue 70
rror 10 meet the wants Of increasing population ara
The large centres OF permanent industry ana mH
f,ctr-e that exist everywhere. II must ~ noItu'
however that the great main arteIcS OF these sE
! tonls ara now permanentlv marked OUT ~ VIII ~
practically Impossible TO make new main routes eN r
NJ fabulous cost with approaches to the coast. Inc
stratcdcal positions seized and occupied ana wo
oyor can poSecsS himself today Of control'ng IN
tcret IN main through route ard allied feeders across
Tho reaf central basin NJ the Northern states cannO
| no dopr'vc' ~ gigantic monopoly in the present