BRITISH AND FOREIGN RAILWAYS CONTRASTED.

New Zealander, Volume 8, Issue 638, 26 May 1852, Page 4

BRITISH AND FOREIGN RAILWAYS CONTRASTED.

[Condensed fj i»n the " 'J uni-s."] In regard to the financial condition of American Railways, it is probable that in the aggregate the average profits on the total amount oi capital invested in the American Railways does not exceed if it indeed equal, the average profits obtained on the capital invested in English Railways, which we have in a former article shown to produce little more than 3 per cent. The extraordinary extent of rottway constructed at so early a period in the United States has been by some ascribed to the absence of a sufficient extent of communication by common roads. Although this cause has operated to some extent in certain districts, it is by no means so general as has been supposed. In the yenr 1838 the United States' mails circulated over a length of way amounting on the whole to 186,218 miles, of which two-thirds were land irnnspoii, including railways as well as common roads. Of the latter there must have been about 80,000 miles in operation, of which, however, a considerable portion was bridle-roads. The price of transport in the stage coaches was, upon an average 0"25 d. per passenger per mile, the average price by railway being about 1.47 d per mile. Of the entire extent of railway constructed in the United States, by far the greater portion, as has been already explained, consists of single lines, constructed in a light and cheap manner, which in England would be regarded as merely serving temporary purposes : wiiile, on the contrary, the entire extent of the English system consists not only of double lines, but of railways constructed in the most solid, permanent, and expenbive manner, adapted to the purposes of an immense traffic. If a comparison were to be instituted at all between the two &3 r stems, its basis ought to be the capital expended, and the traffic served by them, in which case the result would be somewhat different from that obtained by the mere consideration of the length of the lines. It is not, however, the same in reference to the canals, in which, it must be admitted, America far exceeds all other countries in proportion to her population. The American railways have been generally constructed by joint stock companies, which, however, the State controls much more stringently than in England. In some ccses a major limit to the dividends is imposed by the statute of incorporation, in some the dividends are al lowed to augment, but when they exceed a certain limit the surplus is divided with the State ; in some the privilege granted to the Companies is only for a limited period, in some a sort of periodical revision and restriction of the tariff is reserved to the State. Nothing can be more simple, expeditious, or cheap then the means of obtaining an Act for the establishment of a Railway Company in America. A public meeting is held at which the project is discussed and adopted, a deputation is appointed to apply to the Legislature, which grants the Act without expense, delay, or official difficulty. The principle of competition is not brought into play as in France, nor is there any investigation as to the expediency of the project with reference to future profit or loss as in England. No other guarantee of security is required from the Company than the payment by the shareholder:) of a certain amount, constituting the first call. In some Stales the non-payment of a call is followed by the confiscation of the previous payments ; in others a fine is imposed on the bhareholdeis ; in others the share is sold, and if the produce be less than the price at which it was delivered the surplus can be recovered from the shareholder by process of law. In all cases the Acts creating the Companies fix a time within which the works must be completed under pain of forfeiture. The traffic in shares before the definite constitution of the Company is prohibited. Although the State itself has rarely undertaken the execution of railways, it holds out, in most cases, inducements in different forms to the enterprise of Companies. In some c-ses the State takes a great number of shares, which is generally accompanied by a loan made to the Company, consisting in State Stock delivered at par, which the Company negotiate at its own risk. This loan is often converted into a subvention. The great extent of railway communication in America in proportion to its population must necessarily excite much admiration. If we take the present population of the United States at 24,000,000, and the railways in operation at 10,000 miles, it will follow that in round numbers there is one mile of railway for every 2400 inhabitants. Now, in the United Kingdom, there are at present in operation G5OO miles of railway, and if we take the population at £0,000,000, it will appear that there is a mile of railway for every 4615 inhabitants. It appears, therefore, that in proportion to the population the length of railways in the United States is greater than in the United Kingdom in the ratio of 46 to 24. On the American railways passengers are not differently classed or received at different rates of fare as on those of Europe. There is but one class and one fare. The only distinction observable arises froin»eolour. The coloured population, whether emancipated or not, are generally excluded from the vehicles provided for whites. Such travellers are but few, and are usually accommodated either in the luggage van or in the carriage with the guard or conductor. But little merchandise is transported, the cost of transport being greater than goods in general are capable of paying ; nevertheless, a tariff regulated by weight alone, without distinction of classes, is fixed for merchandise.