Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-04-12
RAILWAY MAGNATES.
THE DUKE or MARLBOROUGH ON THE
AMERICAN ALWAYS.
c.nsiio Critioism-He Marvels That the
People Allow Them No Much Power
An Aristoorscy That Absorbs.

In the current No. Of the Fortat7ht(y Re-
,i,, the Duke of Marlborough has an arti-
clio upon the Virginia Mines and Ameri-
can Rails" in which he expresses his opin-
son OF the American railway system in
language that cannot DO mistaken, He
,svievs the several systems and their
General workings and then proceeds as fol.
lows:
There Is no limit 10 the power Of q small
,ne in the United States who have sue
caedcd in obtaining control Of one OF the
bs through systems of communication,
=, tho control once obtained 70 Is simple
h-sstiop OF time when they will be ablo 10
.wsljow up everything within their reach.
Tbcse. then. are the stocks that the English
,,,hl,c 60 on gambling In, and though they
w. Numbered time after time they go on
.-,,risting and simply abuse the dis
p,rostv az railway management in Anne
ga while the fact IA they have only them
,.lvrs 90 blame.
H. reople who are really to be won
4...8 nj however, are the citizens OF the
T-.re5 States, who continue TO permit
,.,t gigantic political abuse a. this
,r,c-.can railway monopoly 10 grow up as
e.. doing in the hands Of q group OF Gil
-..,,r capitalists in New York and other
L-..t towns Of America Two facts. how
g. arc worthy Of notice IN this respect.
H. No first place with oil the abuses OF
.-.r-,sl management the average rate per
80, rer mile in tho United States for goods
e crerg sort is under one farthing, while
~ our favored land 10 is over three far
.E.,-s with no greater speed in transit.
~ may take il as o rough statement
cf general average that railway
ID,its aud fares for goods and pas
sarsers in the United States. notwith-
s,arlng that wages are more than double
=, Arerica. " is one third of what IL is in
r-cst Rritian. The next fact is that whore
.Sro has anything like decent local traf-
60 implement its through hAulage any
..r,r,- In North American can and would
...9f nor cent. on its constructive capital.
H. amt of the scandalous abuses in rail
~ monopoly is not in the United States
--fs which are above repToach as we APP
go IN the Supreme Judicature. nor Is the
t-.t In the business ability of the people,
f-.fe,r ability and energy are far above
ordinary ability in Europe. The fault Is in
Undressing apathy and inefficiency of
S.rr-.ss and the indifference of the public
90 large.
RAILWAY STOCK is SECURE.
I,couired Of one railway president why
b.
',sr meetings O determined stand was not
-'s4e against these financial cliques. and
H. answer was "Oh. no American investor
,r.rld bother himself 10 60 and attend a
...rs-8l meeting to protect the public in
,s-c.f or hrs own. II his holding is small
b. s,rrplv dumps his stock in the market
,rl cuts his loss" II should be clearly
,rjersfo0d that under this nefarious sys-
I'm the great strategical lines and trade
ten heinz, OH
J.. responsible persons, and that though
a.. mine of the shares may be not worth
,t,.-paper to-day, owing tot the state of le-
r-9,lon on railway matters, some day that
,.rer may be valued at over par. The real
,,t-usic value of railway stock will be as
i.,t and as secure in the long run as any
Jrm az real estate in the States itself.
What the eventual earning-power will be
n .uch "A system as one of the great
s--,ems have mentioned, be II the Louis
Via and Nashville or the Chesapeake and
OHIO or the Baltimore and Ohio,
q, Ia impossible TO estimate. These
line, In their strategical importance are as
valuable property as our London and
Nr-,bwestern or Great Northern, &c. 1t
3. simply q question of their management,
AMI the value of their shares to-day is not
the slightest criterion of the real value
.I.y Should and would possess under
n n efficient and far-reRchlng control OF
On course it is impossible TO say the
amount of harm and indebtedness that
NAV DO created by q group who obtain pos
session OF ono of these magnificent mo-
r.-..lios. as we know from the old histories
m the Erie and the coal lands held by the
Reading system. Mortgages once made
lave 10 be paid of. and this has always TO
he taken In account, but IL must also be
lrrne m mind that II is becoming less
worth tho while of great financiers now TO
reckon the value Of railway property as it
was when the shares we're only bought and
s7li for the turn that could be made on
rrem in Wall street. The hard fact is that
spcb properties should he got hold of at all,
Ind II is strange TO consider the class of
mon that are growing up in America in
consequence, who in their way are greater
da.rots and WELD greater power than any
great medieval baron Of Norman times.
vcutured to make this suggestion to q
very BIG man in the railway world, whose
Californian interests In railways amount TO
Great many tens Of millions Of dollars.
lie was. he told me, aslmple man and had
no wish TO high social aspirations; 1t was
true he had obtained great power and
wealth. but he thought that on the whole
4, wa, distinct benefit to his country that
be- had succeeded as he had, and that his
internal form of administration of issuing
hs ukases from his quiet offices III New
York. though it might not always suit
VAL street, was of distinct advantage TO
the public. 80.
~ course, he really believed this. and so
would have the Norman Baron when be
exercised his various rights Of seignieur IN
0den times. The only marvellous thing
10 the matter, besides the millions my
d d IL leo hHnfnnfnn that
consisted Of nothing. was that the Amerl-
can public, which prides itself on its demo-
cratic institutions. should have allowed
this eristOcracy 90 grow up IN America,
which Is daily becoming Infinitely more
powerful aud infinitely more dangerous
than an the feudal missionaries OF Europe
put together.
u was easy to get rid Of the European
difficulty as tho French did with the gull
lo'ine without tearing up the foundations
% al social life IN the country ITSELF IN
America this financial and railway arls-
,..-aav is slowly building itself into the
very bone and siEew of the people, and 1t
vil Lsa very difficult twentleth-century
problem 10 know how Congress u going to
a4. with the matter. Before / conclude
tli, portion of my subject, which deals
exclusively with the strategical rela-
tons Of the great railway systems
%. the states to one anOJner anu tuo
financial and political bearings. OF the
subject IN America itself want
g. point out some highly impor-
tHt consequences that interest our large
Investing English public. Various causes,
su.h as The steady growth Of population
i1i wealth in its realized forms, and the
Consolidation OF conflicting interests IN
railway properties, and the growth OF 6
l.fe conservative commercial spirit, were
tending TO bring about the building up OF
large and powerful railway systems IN
America very similar to our large railway
corporations at home. IL is true IN Anne
IA these systems are being largely, con-
soldated by the operation OF SPECTATORS
va9 have practically cornered the markets
3 The abuse Of powers which have grown
gl' faulty legislation and the apathy OF
O,oFress with regard to these great mo-
topvAes Of transit.
IHEY CONTROL THE SITUATION.
The existence of all this worthless share
capital, except for its voting value and ITS
rambling character, has largely enabled
I-' railway interests 10 fall prey 70
ma! group Of rich operators who to-day |
~uuol the entire situation. The general
..1eyis Of these persons are, however,
SStIga different form TO what WAS tine case |