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MERCF ANTS’ MAGAZINE
AND

CO’ MERCIAL REVIEW

KDITKD BT

IV I.L L I i M B,. DANA

rU B l.I RH K D

M ONTHLY

tl'U ilW B W :mmnna'HUiqnr

Vol. 57

AUGUST, 1867

?Jo 2

•NEW Y O R K : W IL L IA M B. D A N A , P U B L IS H E R A N D P R O P R IE T O R

Nos. 60 W illiam St., Chronicle Buildings

THE MERCANTILE

Mutual Insurance Company,
O F F IC E ,

N °.

W ALL

N E W

A s s e t s ,

ja n .

i ,

STREET,

Y O R K .

1867

O R G A N I Z E D ,

A P R I L ,

1 1 261 349
,

1 844.

During the past year this Company lias paid to its Policy-holders
IN

C A S H ,

a rebatement on premiums in lieu o f scrip, equivalent in value to an average
scrip lvidend of

TWENTY

PER

CENT.

Instead o f issuing a scrip dividend to dealers, based on the principle nat all
classes o f risks are equally profitable, this Company makes such Cash
abatement or discount from the current rates, when premiums are paid, as
the general experience o f underwriters will warrant, and the nett profits
remaining, at the close o f the year, will be divided to the stockholders.
This Company continues to make insurance on Marine and Inland Navigation
and Transportation Risks, on the most favorable terms, including Risks on
Merchandise o f all kinds, Hulls, and Freight.
Policies issued making loss payable in Gold or Currency, at the Office in New
York, or in Sterling, at the Office o f Rathbone, Bros. Ok Co., in Liverpool.

t r u s t e e s .
James Freeland.
Samuel Willets,
Robert L. Taylor,
William T. Frost,
William Watt,
Henry Eyre,
Cornelius Grinnell,
Joseph SI agg,
Jas. D. Fish,

Geo. W . Hennings,
Francis Hathaway,
Aaron L. Reid,
Ellwood Walter,
D. Colden Murray.
E. Haydock White,
N. L. McCready,
Daniel T. Willets,

L. Edgerton,
Henry R. Kunhardt,
John S. Williams.
William Nelson, j r.,
Charles Dirnon,
A. W illiam Heye,
Harold Dollner,
Paul N. Soofford.

E L L W O O D W A L T E R . President.
C H A S . N E W C O M B , Vice-President
C. J. D E 3 P A R D , Secretary.

MERCHANTS’ MAGAZINE
AND

COMMERCIAL

A U G U S T ,

REVIEW.

1867.

RAILWAY EXTENSION AND ITS RESULTS.
BY E. DUDLEY BAXTER, M .A .*

(Continued from page 63, V ol. 67.)

VII.— C ost and R esults

French R ailways .

The French system o f railway organization is worthy o f attentire study.
It is in many points novel to an Englishman; it is often characterized by
remarkable talent; and some of its regulations are very instructive and
worthy of imitation.
In extent the French lines are far inferior to the English, whether
judged by the area or population o f the two countries.
COMPARISON BY AREA.

Country.

Area in
Square Miles.

United Kingdom ............................... 120,927
France................................................... 211,852

Railway Mileage. Sqnare Miles per
1865.
Mile of Railway.

18,289
8,134

* Read before the Statistical Society o f London November, 1S65

YOL. LVII— NO. n .

9
26

RAILW A Y EXTENSION AND ITS RESULTS.

[ August,

COMPARISON BT POPULATION.

Country.

Population, 1861.

Railway Mileage. Population per
1865.
Mile of Railway.

United Kingdom..........................29,321,000
France............................................ 37,382,000

13,289
8,134

2,206
4,595

Henee, measured by area, France has only one-third o f the railway ac
commodation, and measured by population only one-half of the railway
accommodation of the United Kingdom.
The capital authorized and expended to the 81st December, 1865, was
as follows:
CAPITAL AUTHORISED.

Ancien Reseau, or old lin e s .............................................. £151,000,000
.Nouveau “
or extension lines...................................... 209,000,000— £360,000,000
Including 64,000,000 subventions.
CAPITAL EXPENDED, 1 8 6 6 .

Debentures ........................................................................... £178,700,000
Shares...................................................................................
54,800,000
Subventions...........................................................................
27,500,000— £261,000,000

So that the French companies borrow more than three times the amount
o f their share capital; reversing the English rule, o f borrowing only onethird of the share capital. But if we consider preference capital as a
second mortgage, the English practice is to borrow an amount equal to
the ordinary share capital. This, however, is still a long way from the
French regulations.
The capital not paid up is nearly £100,000,000. Of this nearly onehalf will be required in the next three years for lines approaching com
pletion.
The cost per mile of French railways is as follows:
Ancien Reseau ...................................................................................................... $30,650
Nouveau “ ................. ......................................................................................... 27,350

As the nouveau reseau is almost entirely composed of single lines, this
does not show very great cheapness of construction. W e are making our
country lines much cheaper, particularly in Ireland and Scotland.
The effect of railway competition with canals was the same as in Eng
land. The canal rates were reduced to one-third of (heir former amount,
and the canal traffic has increased instead of diminishing. The average
railway fares and rates are stated by M. Flachat, in his work on railways,
to be 6 to *7 centimes for each passenger, and sou per kilometre, being Id.
to lyVth per mile; as compared with l|d. per mile, the average on Eng
lish railways.
The increase of traffic since 1850 is stated in the official returns as fol
lows :
INCREASE OF TRAFFIC.

Year.

Total Receipts.

1850.

£ 3,824,400 .

1855.

10.358.000 j

Average
Annual Increase.

Average
Annual Increase for
Fifteen Years.

£1,307,0001

1.217.000 JI 8 6 0 .,

16.443.000 j

1865

22.400.000 >

1.192.000 j

£1,238,400

1867]

R A ILW A Y EXTENSION AND ITS RESULTS.

Thus the increase has been more equable than in England, but smaller
in amount, showing an average of £1,238,400, against £1,423,000 in
England. But I see it stated in the railway papers that the first nine
months of 1866 show much more than the usual increase.
M. Flachat gives a calculation of the saving to the nation by railway
conveyance, which he makes a minimum of £40,000,000 a year. But it
is based on the supposition that all the new trade would have been car
ried by road, which is obviously untenable. Probably £25,000,000 to
£30,000,000 is a safer estimate. A writer in the “ Dictionnaire du Com
merce” goes into elaborate calculations of the money-saving arising out
of the greater rapidity of railways, and values it at £8,000,000, on the
basis that the time of a French citizen is worth 5d. an hour. I give the
passage entire:
“ In France, the number o f kilometres travelled by passengers in 1856 was
2.200.000. 000. In traveling this distance they would have spent 290,000,000 hours,
while they have only been 50,000,000 hours on the railway. The saving in time of
travelling by railway has therefore been 240,000,000 hours, which, at the moderate
price of 5d. per hour, represent an economy of 120,000,000 frs. Besides this, the
time lost in stoppages at small inns (auberges) used to exceed that spent in travel
ling, and hence on this head alone we may calculate on a saving of more than
100.000.
000 frs. But even if we should reduce this valuation to 80,000,000, or still
lower to 60,000,000 frs,, there cannot be any doubt that the saving to the traveller in
the matter o f time alone exceeds 200,000,000 frs. (£8,000,000).”— Vol. i.,p . 638.

Passing from individuals to commerce, the effect o f railways has been
very marked, and is warmly acknowledged by the principal French
writers. The following table shows the progress o f French trade :
INCREASE OF EXPORTS AND IMPORTS.

Total Exports
and Imports.

Year.

1840 ........................................ £ 82,520,000
1845 ........................................
91,080.000
1850 ........................................ 102,204,000
1855 ........................................ 173,076,000
1860..........................................
282,192,000
1865 ........................................... 293,144,000

Increase per Cent.

Increase per Cent
per Annum.

—
15.
5.
50.
S4.
26.25

—
3.
1.
10.
6.8
5.26

The revolution of 1848 accounts for the small increase between 1845
and 1850, but it is plain that the great increase in French commerce was
between 1850 and I860, contemporaneously with the great development
of railways. W hen travelling in France I have always heard railways
assigned as the cause of their present commercial prosperity.
The proportion which the exports and imports bore to the means of
communication is shown in the following table :
PROPORTION OF EXPORTS AND IMPORTS TO RA IL W A Y S AND NAVIGATION.

Navigations.
(T,TOOmiles),
and Railways.

Year.

1S40
1845
1850
1855
1860
1865

.......................................... 8,264
.......................................... 8,547
.......................................... 9,507
........................................... 11,015
........................................„ 1 3 ,2 8 6
........................................ . 15,830

Exports and Imports.

£ 82,520,01)0
97,080,000
102,204,000
173,076,000
282,192,000
293,144,000

Exports and Imports
per
Mile Open.

£ 9,985
11,358
10,750
15,712
17,476
18,518

r a il -w a y e x t e n sio n a n d its resu lts .

[August,

Here there is a steady rise in the amount per mile, checked only by the
revolution of 1848. But the principle that there is a distinct correspond
ence between means of communication and the exports and imports is
already shown.
The effect of railways on the condition of the working classes has also
been very beneficial. The extreme lowness o f fares enables them to
travel cheaply, and the opportunity is largely used. The number of third
class passengers in France is 75 per cent or the total passengers, against
only 58 per cent in England (M. Flachat, p. 60). The result of these
facilities of motion has been an equalization of wages throughout the
country, to the great benefit o f the rural populations. M. Flachat says :
“ Railways found in France great inequality in the wages of laborers ; but they
are constantly remedying it. Wherever they were constructed in a district of low
wages, employment was eagerly sought. The working classes rapidly learnt to de
serve high wages by the greater quantity o f work done. Agriculture had been un
able to draw out the capabilities of its workmen, and was for the moment paralyzed
by want of hands ; but industry developed fresh resources. The total amount of
work done was considerably increased all over the country. The difficulties of agri
culture were removed by obtaining in return for higher wages a larger amount of
work than before, and also because machines began to be used in cultivation. Every
where it was evident that increased energy accompanied increased remuneration.
Thisi s the point in which railways have most powerfully increased the wealth of
France. The moral result o f this improvement in the means of existence o f the
working class has been to diminish the distance which separates the man who works
only for himself from the man who labors for a master. In the education o f the
workman’s children, in his clothing, in his domestic life, and even in his amusements,
there is now an improvement which raises him nearer to his master.”—pp. IS aDd 79.

I am sure we shall all rejoice at this evidence o f the benefits conferred
by railways upon the working classes of that great neighboring nation.
I wish there was time to give you additional extracts, showing the im
mense services of railways to the industry o f France, showing that France
was kept back by the difficulty o f communication, by the immense dis
tances to be traversed and the impossibility o f conveying cheaply and
rapidly the raw materials of manufactures. Railways have supplied this
want, and have given a new impetus to production and new outlets for
the produce.
Turning to the shareholders, there are some curious facts which sur
prised me not a little. The popular notion is, that in France railway
traffic bears a much higher proportion to capital expended than in Eng
land. The phrase “ They manage these things better in France” is for
ever on the lips of the British shareholder when he talks of his own paltry
4£ per cent dividend, or of the 8^ per cent gross receipts. The world in
general believe that a 10 or 12 per cent French line, like the Orleans of
France, really has a traffic o f at least that amount. But this is an entire
mistake. The gross traffic receipts of France are now 9.6 per cent on the
share and debenture capital or 1 per cent more than in England. And
the net receipts, after deduction o f 45 per cent working expenses, are now
5.28 per cent on the total share and debenture capital, being .82 or about
four-fifths per cent higher than in England. Yet the French companies
pay an average dividend of 10 per cent, while the English pay only the

1867}

R A ILW A Y EXTENSION AND ITS RESULTS.

natural dividend of 4 } .
tical:

Here are the figures, for the benefit o f the seep]

AVERAGE RECEIPTS AND DIVIDENDS P E R CENT.

Name of Company.
Gross receipts ......................................................
Net profits.........................................
Dividends o f Great Companies :
N o r d . .. .......................................
Orleans........................................
M id i........................... 1..............
Ouest.......................................... .
E s t..............................................
Mediterrannee.............................
Average................. ...

1S59.

. V. . . . . . . .

1861.
11.0
6.2

1865.
9.6
5.28

16.5
20.
10.
8.5
8.
15.

17.87
11.2
8j
7.5
6.6
12.

IS.

10.53

Compare these figures with those for the English lines given above.
You will see the remarkable correspondence between the gross and net
receipts and the very remarkable dissimilarity in the dividends. How is
this accounted for ?
Look at the table of capital expended. Disregarding the £27,500,000
subventions, as corresponding to the dixieme tax paid by the companies,
there is £233,000,000 share and debenture capital, out o f which a por
tion of the debentures are charged to capital under the conventions for
the extension lines. Being for new railways, they have not yet been
transferred to the revenue account. Hence the interest-bearing capital
reduced and the interest itself increased.
The large amount of debentures now comes into play, on which there
is paid from 5 to 5 } per cent, leaving an overplus to accumulate for the
shares, so raising the interest on shares to nearly 7 per cent.
But this is not enough. In 1863 the State bound itself to contribute
to certain lines annual subventions, which in 1865 came to £551,000, and
the State also paid during the same year in respect of their guarantees of
the debentures in the nouveau reseau £1,320,000, making a total subven
tion in 1865 of £1,871,000, an amount sufficient to pay more than 3 per
cent on the share capital of £54,800,000. The guarantee of £1,220,000
on the nouveau reseau, however, is not an absolute subvention, as it will
be repayable gradually by the companies when their income exceeds a
fixed amount. It is therefore a loan by the State, repayable on the occur
rence of a contingency and at an uncertain date.
Thus the original interest of 5.28 per cent on the share and debenture
capital becomes 10 per cent to the shareholder. It is a wonderfully clever
arrangement and would be exceedingly palatable to Great Eastern or even
Great Northern shareholders.
But consider the difference which this shows in the ideas of the two
countries. In England it would never be borne for an instant that six
great companies, say the London and North Western, Great Western,
Midland and others, should receive 10 per cent dividend and yet obtain
from the State annual subventions and guarantees amounting to £1,800,000. No ministry dare propose such a job. The reform agitation would
be nothing to the clamor with which it would be greeted; and yet in
France it is the most natural thing possible. Nobody says a word against

R A ILW A Y EXTENSION AND ITS RESULTS.

[ August,

it. Nay, the feeling of the French companies and the popular opinion is
that these poor 10 per cent shareholders have been badly used and that
their legitimate 12 or 15 per cent from the trunk lines ought not to have
been lessened.
One characteristic o f the French system is the absence o f competition,
and this is opposed to all our ideas o f freedom o f communication. The
Northern Company monopolizes the whole traffic between Calais and
Paris. The Mediterranean Company monopolizes the whole traffic be
tween Paris and Marseilles, a traffic of extraordinary importance and
value. An attempt made two years ago by another company to obtain
an extension to Marseilles and to establish an alternative route was re
jected by a Government commission after a very long inquiry. The con
sequence o f this system is a great concentration of traffic in a small num
ber of trains, to the profit o f the companies and to the inconvenience o f
the traveller. There are in England, between places like Liverpool and
London, about three times as many trains as there are in France between
Marseilles and Paris. And besides this, goods are sent less rapidly in
France and delivered with less punctuality.
But there is a great deal to be said iu defence o f the French system.
It avoids the duplicate lines necessary for competition, which France could
not well afford. It keeps the companies prosperous and able to aid the
Government in railway extension. It is not an irresponsible monopoly,
able to charge high prices to its customers, but a strictly regulated mo
nopoly, with its tariff fixed by Government at the lowest prices that will
be remunerative. It is like the system of our own Metropolitan Gas and
Water Companies, which enjoy a monopoly within defined districts on
terms settled by the law and revised from time to time in the interest of
the public. The French Government appoints commissioners of inquiry
to examine into any defect or to consider improvements, and they report
to the minister o f public works, who has the power of making regula
tions which are binding on the companies. The last commission is a
good instance. In February, 1864, the minister o f public works issued to
the companies a circular suggesting several points which required improve
ment and the commission was appointed to consider their answers. The
points discussed were:
1.
— The adoption o f a means of communication between the guard
and engine-driver. This was made obligatory on the companies.
2.
— A means o f communication between passengers and the guard.
This was accepted by the companies.
3.
— The consumption by locomotives of their own smoke. This was
ordered to be carried out within two years.
4.
— The addition of second and third class carriages to express trains.
The recommendation o f the commission was accepted by the companies.
5. — Separate carriages for unprotected females.
G.— The commission demanded that on the great lines the speed o f
goods trains should be increased from 60 miles to 120 miles, without any
increase of tariff. This very important question was referred to a sub
committee for further examination and for hearing objections.
From these details it is evident that the interests of the public are well
looked after.
I should add that there is a continuous audit of the accounts o f the

1867]

RAILW A Y EXTENSION AND IT8 RESULTS.

companies by Government accountants, who attend from week to week at
the companies’ offices for that purpose.
I will at present mention only one other point in French railway law—
that the Government has the power o f purchasing any line o f railway
after fifteen years from its first concession. The price is to be fixed by
taking the amount of the net profits o f the seven preceding years, de
ducting the two lowest years and striking the average o f the remaining
five years. The Government is then to pay to the company for the re
mainder of the concession an annual rent-charge or annuity equal to the
average so determined, but not less than the profits o f the last of the
seven years. This mode of purchase appears preferable to the English
law, since it does not require the creation of any new rentes or consols;
and I commend it to the notice o f Mr. Galt.
I have mentioned these prominent features of the French law, in the
hope that they may be useful in suggesting improvements in the English
system.
W h y should we not vest in the President o f the Board o f Trade a
power of making and enforcing regulations for the public safety and con
venience ? W h y should we not introduce more frequent railway com
missions to consider important questions and recommend to the President
o f the Board of Trade or to Parliament ? W h y should we not have a
modified system of audit and a registration o f shares and debentures ?
V III. —

a il w a y s

B e l g iu m

and

olland.

Belgium is one of the most striking instances of the benefit of railways.
In 1830 she separated from Holland, a country which possessed a much
larger commerce and superior means o f communication with other na
tions by sea and by canals. Five years later the total exports and im
ports of Belgium were only £10,800,000, while those of Holland were
double that amount. But in 1833 the Belgian Government resolved to
adopt the railway system, and employed George Stephenson to plan rail
ways between all the large towns. The law authorizing their construction
at the expense o f the State passed in 1834, and no time was lost in car
rying it out. Trade at once received a new impetus, and its progress
since that time has been more rapid than in any other country in Europe.
The following table shows the activity with which the lines were con
structed. W e must remember that Belgium contains only one-tenth o f
the area of the United Kingdom, and that to make a fair comparison with
our own progress we must multiply the table by ten.
MILKS CONSTEUCTED.

Year.

Miles Open.

1839 . . . .

185 .

1845 ..............................................

335 J

1853 ........................................

120 f

Increase per annum
Miles.

25
48
1860 ..........

1,037 ]

1864

1,350 >

[August,

RAILW A Y EXTENSION AND ITS RESULTS.

Hence, tie progress for a state of the size of the United Kingdom
would have been—
1859
1845
1853
1860

to
to
to
to

'
Miles a Year.
1845................................................................................................. 250
1 8 5 3 -............................................................................................... 480
1860................................................................................................. 450
1864................................................................................................. 750

a rate o f increase which is as great or greater than our own.
The results on commerce are shown in the following table:
INCREASE OF EXPORTS AND IMPORTS.

Year.
1835..............

Exports and Imports.
i

Increase
per Cent.

Increase per Cent
per Annum.

45.72

11.43

71.4

11.9

1839...............
1845...............
77.41

9.67

61.

7.3

35.S8

1853................
1860................

t
1
i

1864................

I need scarcely point out the extraordinary character o f this increase,
which is enormous in the first ten years, and far beyond ‘either England
or France, and is not inferior to us in the later period. In the thirty
years from 1835 to 1864 Belgium increased her exports and imports
nearly tenfold, while England increased hers only [fivefold. If we had
increased our commerce in the same ratio, the English exports and im
ports would now be a thousand million pounds sterling.
The proportion between exports and imports and means of communi
cation is shown in the following table, which differs from those o f Eng
land and France in the rapid increase per m ile;
PROPORTION OF EXPORTS AND IMPORTS TO RAILW AY S AND NAVIGATIONS.

Canals (910 Miles)
Exports and Imports
Year.
and Railways Open. Exports and Imports, per Mile Open.
1839.............................................. 1,055
£15,680,000
£14,862
1845.............................................. 1,205
26,920,000
22,340
47,760,000
30,037
1853.............................................. 1,590
1860.............................................. 1,907
72,120,000
37,818
1864...................................
2,220
97,280,000
42,919

This enormous increase of Belgian commerce must be ascribed to her
wise system of railway development, and it is not difficult to see how it
arises. Before railways, Belgium was shut out from the continent o f
Europe by the expensive rates o f land carriage and her want o f water
communication. She had no colonies and but little shipping. Railways
gave her direct and rapid access to Germany, Austria and France, and
made Ostend and Antwerp great continental ports. One of her chief
manufactures is that of wool, of which she imports 21,000 tons, valued at
£2,250,000, from Saxony, Prussia, Silesia, Poland, Bohemia, Hungary,
Moravia and the southern Provinces of Russia; and returns a large por

1867]

R A ILW A Y EXTENSION AND ITS RESULTS.

tion in a manufactured state. She is rapidly becoming the principal
workshop of the continent, and every development o f railways in Europe
must increase her means of access and add to her trade.
Now look at Holland, which in 1835 was so much her superior. H ol
land was possessed o f immense advantages in the perfection o f her canals,
which are the finest and most numerous in the world ; in the large ton
nage of her shipping; in her access by the Rhine to the heart o f Ger
many ; and in the command o f the German trade, which was brought to
her ships at Amsterdam and Rotterdam. The Dutch relied on these ad
vantages and neglected railways. The consequence was that by 1850
they found themselves rapidly losing the German trade, which was being
diverted to Ostend and Antwerp. The Dutch Rhenish railway was con
structed to remedy this loss, and was partly opened in 1853, but not fully
till 1856. It succeeded in regaining part of the former connection. But
now observe the result. In 1839 the Dutch exports and imports were
£28,500,000, nearly double those o f Belgium. In 1802 they were £59,000,000, when those of Belgium were £78,000,000. Thus while H ol
land had doubled her commerce, Belgium had increased fivefold and had
completely passed her in the race.
Before leaving Belgium I ought to mention the cheapness of fares on
her railways, which have always been much below those on English lines ;
a further reduction has lately been made, and I see by a Drench paper
that the results has been to increase the passenger receipts on the State
lines for the month o f April from 76,936 frs. in 1865, to 198,345 frs. in
1866 ; o f which 168,725 frs. was from third and fourth class passengers ;
a fact which is in favor of the plan of Mr. Galt.
But it must be remem
bered that Belgium is the most densely populated country in the world,
having 432 inhabitants to the square mile, while the United Kingdom has
only 253, and England and Wales 347. A system which will pay admir
ably between large cities at short distances from each other, and on lines
which cost little to construct, might break down completely on lines of
expensive construction in more thinly inhabited districts. Mr. Galt takes
his instances from railways in dense populations, and applies the rules thus
obtained to railways which are under totally different conditions, and I fear
that this vitiates in a great degree the soundness of his conclusions.
IX . ---- RAILWAYS IN THE UNITED STATES.
In any paper on foreign railways it is impossible to omit the United
States, a country where they have attained such gigantic proportions. The
increase of United States lines is as follows :
Year.
1830.....................

Total Inc. per anmileage. num. Miles

MILES CONSTRUCTED.

1840.....................
{•

465

590

1845.....................
1850.....................
[

1,984

t
28,771 1

2,274

1855........ ............
1860.....................
1864.....................

___

R AILW AY EXTENSION AND ITS RESULTS.

The mileage here shown is something enormous : four times that of
France, two and a half times that of England, and nearly as large as
the total mileage of the United Kingdom and Europe, which is about
42,000 miles.
In so young a country inland traffic gives these lines the greater part
of their employment, and there are no masses of expensive manufactured
goods as in England or Belgium to swell the total value of foreign trade.
Foreign commerce is still in its infancy, but an infancy of herculean pro
portions, as the following table shows:
INCREASE OF EXPORTS AND IMPORTS.

Year.
1830..................

Total exports
and imports.

Increase Inc. per ct.
per cent. p e r a n n u m .
4 7 .6 0

3 .4 0

5 0 .0 0

8 .3 3

[•

62 .60

12 .52

4 2 .0 0

8 .4 0

[•
1844.................
1850................
1855..................
I8 6 0 ................

The advance in the annual increase is very striking, being from 31- per
cent, per annum in the infancy of railways to 8 and 12 per cent, when
their extension was proceeding rapidly. Before the introduction of rail
ways America possessed a very extensive system of canals, which amounts
to nearly 6,000 miles. A t the present time both canals and railways are
crowded with traffic. The following table shows the relation between the
growth o f trade and the increase of means o f communication :
PROPORTION OF EXPORTS AND IMPORTS TO R A IL W A Y S AND CANALS.

Year.
1880......................................................................
1844......................................................................
1850......................................................................
1855.....................................................................
1860......................................................................

Canals (6,000
miles) and
railways
open.
6,040
10,310
13,475
23,398
34,770

Total exports
aud imports.
£31,000,000
45,759,000
68,758,000
111,797,000
158,810,000

Exports
and imports per
mile.
5,180
4,437
5,102
4,778
4,567

Thus, in the United States, as well as in England, France and Belgium,
the exports and imports bear a distinct relation to the miles of communi
cation open, but lower in amount than in the European countries, as was
only likely from the thinner population.
Vast as is the mileage of the American railways, it is by no means near
its highest point. The lines in construction, but not yet completed,
are stated to be more than 15,000 miles in length, a larger number
than the whole mileage of the United Kingdom, completed and uncom
pleted.
The manner in which these lines are made is very remarkable. The
United States are very thinly populated, not containing on an average
more than 32 persons per square mile in the Northern States, and 11 in
the Southern. Even the most populous Northern States have only 90 per-

R A ILW A Y EXTENSION AND ITS RESULTS.

sons per square mile, while England and Wales have 347 per square mile.
A less expensive railway, o f smaller gauge, was therefore necessary, and
the lines are almost invariably “ single tracks.”
Their first cost have av
eraged from £7,000 up to £15,000 per mile, or about one-third of the ex
penditure in England. O f course they are very inferior in weight o f rails
and in sleepers, ballasting, stations, and efficiency. Even this expense
was difficult to provide for where the inhabitants are so widely scattered.
But in America the greatest encouragement is given to railroads, and every
facility is afforded for their extension, as they are considered the most im
portant sources of wealth and prosperity. Shares are taken largely by the
inhabitants of the district traversed, land is often voted by the State, and
the cities and towns find part o f the capital by giving security on their
municipal bonds.
I must not omit to mention the great Pacific railways, one of which is
now being constructed from the State o f Missouri for a distance of 2,400
miles across Kansas, Nebraska, Utah, and Nevada, to San Francisco, in
California. It receives from the general government subsidies of £3,300,
£6,600, or £9,900 per mile, according to the difficulty o f the ground, be
sides enormous grants of land on each side o f the line. When this rail
way is completed, the journey from Hong Kong to England will be made
in thirty three days instead o f the present time o f six weeks, and it
is anticipated that a large portion o f our Chinese traffic will pass by this
route.
No one can study the United States without being struck by the great
railwray future which lies before them, when their immense territories are
more thickly peopled, and their mineral resources and manufactures have
been developed. The distances to be traversed are so vast, and the traffic
to be carried will be so enormous that the railways o f the United States
will far exceed in extent, and in the trade which will pass over them, any
thing that has hitherto been known in the history of the world.
X . ---- RAILWAYS

AND FREE TRADE.

In the preceding sections I have endeavored to describe the progress of
railway extension in England, France, Belgium and the United States, the
four countries where it has received the greatest development, and I have
pointed out the very great increase of commerce and national prosperity
which has been its result. But in the case of England, I am bound to
meet a very probable objection. I shall be asked, why do you attribute
this increase of commerce mainly to railways ? Was it not caused by free
trade ?
The general opinion undoubtedly is, that free trade is the principal
cause of the immense increase since 1842 of English commerce. W e see
this opinion expressed every day in newspapers and reviews, in speeches
and parliamentary papers. I hold in my hand a very able memorandum,
lately issued by the Board o f Trade, respecting the progress of British com
merce before and since the adoption o f free trade, in which the same view
is taken, and in which the statistics of the exports and imports since 1842
are given as mainly the result of free trade. It is true that there is a re
servation, acknowledging “ that the increase of productive power and other
causes have materially operated in effecting this vast development.” But

100

[August,

R AILW A Y EXTENSION AND ITS RESULTS.

in the newspaper quotations and reviews this reservation was left out of
sight, and the striking results recorded in the memorandum were entirely
ascribed to free trade.
While acknowledging to the full the great benefits and the enlightened
principles o f free trade, I have no hesitation in saying that this popular
view is a popular exaggeration, which it is the duty o f staticians to cor
rect . and I think that my reasons will be considered satisfactory by this
Society. In the first place, the development of English commerce began
in 1834, before the free trade, but simultaneously with railways ; and be
tween 1833 and 1842 the exports and imports increased from a stationary
position at £85,500,000, to £112,000,000, or 31 per cent. In the next
place, from 1842 till 1860, England was the only country which adopted
free trade. If England had also been the only country that made such
enormous progress, we might safely conclude that free trade was the chief
cause of so great a fact. But this is not the case.
England is only one
o f several countries which made an equal advance during the same period,
and none of those countries except England had adopted free trade. The
total increase o f exports and imports from 1842 to 1860 in the three first
countries described in this paper, and from 1844 to 1860 in the United
States, was as follows :
IncrGflBQ
Country.

1842.

England....................................................
France.......................................................
Belgium....................................................

£112,000,000
86,280,000
19,400,000

United States..........................................

45,757,000

1860.

per cent.

£315,000,000
232,200,000
72,120,000

234
169
272

158,810,000

305

1844.

Thus, the English rate of increase is only third in order, and is exceeded
both by Belgium and the United States. If the latter country is objected
to on account of its rapid growth in population by immigration, still Bel
gium remains, exceeding the English rate of increase by 36 per cent. Look
at the argument by induction. Here are four countries under the same
condition of civilization, and having access to the same mechanical powers
and inventions, which far outstrip contemporary nations. It is a probable
conclusion that the same great cause was the foundation of their success.
W hat was that common cause ? It could not be free trade; for only one
o f the countries had adopted a free trade policy. But there was a com
mon cause which each and all o f those four countries had pre-eminently
developed— the power o f steam— steam machinery, steam navigation and
steam railways. I say then that steam was the main cause of this prodigi
ous progress of England, as well as o f the other three countries.
But I will go a step farther. Steam machinery had existed for very
many years before 1830, and before the great expansion o f commerce
Steam navigation had also existed for many years before 1830, and before
the great expansion of commerce, and steam navigation was unable to cope
with the obstacle which before 1830 was so insuperable, viz.: the slowness
and expense, and limited capacity o f land carriage.
I come then to this further conclusion, that the railways which removed
this gigantic obstacle, and gave to land carriage such extraordinary rapid
ity and cheapness, and such unlimited capacity, must have been the main
agent, the active and immediate cause of this sudden commercial develop
ment.

1867]

R A ILW A Y EXTENSION AND ITS RESULTS.

101

This conclusion appears to become a certainty when 1 find, from the
investigation through which we have traveled, that in every one of these
four great examples, the rapid development of commerce has synchronised
with an equal rapid development of railways— nay, that the development
of commerce has been singularly in proportion to the increased mileage o f
railways— so that each expansion of the railway system has been imme
diately followed, as if by its shadow, by a great expansion of exports and
imports.
But I will not leave the case even here. Consider what are the burdens
which press upon trade and manufactures. If our merchants could be
presented with that wondrous carpet of the Genii of the “ Arabian Nights,”
which transported whatever was placed upon it in one instant through air
to its farthest destination, overleaping mountains and seas and custom
houses, without expense or delay, we should have the most perfect and
unburdened intercourse. But see what barriers and burdens there are in
actual fact, when we trace the journey of the raw material, such as
cotton or wool, to the British manufacturer, and its export as a manufac
tured article.
BURDENS UPON IMPORTS AND EXPORTS.

Raw Material—
1. Inland carriage to the sea.
2. Voyage to England.
3. Import duty.
4. Inland carriage of the manufacturer.
Manufactured Article—
5. Inland carriage to the sea.
6. Voyage to foreign country.
Import duty.
Inland carriage to the customer.

Here are eight distinct burdens or charges increasing the price o f our
manufactures to the foreign customer. Out o f these—
Four are inland carriage,
Two are navigation, and only
Two are custom house duties.
Now, except in the case of prohibitory duties, it was undoubtedly the
case that, before the introduction o f railways, inland carriage was the most
expensive of these burdens. In countries unprovided with canals, a very
few miles of road transport was an absolute prohibition. It is so in many
parts of India, Spain and Turkey at the present day. In countries provi
ded with canals, rates were high, and transport slow, and always coming
to a dead lock. Hence the relief afforded by railways, both in cheapness
and saving of time, was far beyond any relief by free trade in taking off
moderate duties.
In a vast number of cases railways did more than cheapen trade, they
rendered it possible. Railways are the nearest approach that human in
genuity has yet devised to that magic carpet o f the “ Arabian Nights,” for
which I ventured to express a wish.
For all these reasons I maintain that we ought to give railways their
due credit and praise, as the chief of those mighty agents which, within
the last thirty years, have changed the face of civilization.

102

RAILW AY EXTENSION AND ITS RESULTS.

XI. ---- RAILWAYS

[August,

AND NATIONAL DEBTS.

In one important point the nations o f Latin race have stolen a clear
march upon the nations of Teutonic origin, o f England, Germany and the
United States, by their appreciation and adoption for railways of the prin
ciple of a sinking fund. The idea owes its origin to the semi-Latin, semiTeutonic intellect of Belgium. When the Belgian Government, in 1834,
projected a system o f State railways, to be constructed with money borrowed
by the State, they provided for the extinction o f the loans in fifty years by
an annual sinking fund. The amount borrowed was nearly £8,000,000
sterling, and the whole will be paid off in 1884, after which date the
whole profits of the State lines, 352 miles in length, will become part of
the revenue of the nation. But so good an investment are these lines that
their present net income is £525,000 a year, and is increasing at a rate
which promises in 1884 a net revenue of £960,000, a sum which will be
sufficient to pay the interest on the whole national debt, now £26,000,000.
Besides this, the conceded lines, 1,000 miles in length, will become amor
tized and become State property in 90 years from the beginning o f their
concessions, and the profits on a capital o f more than 13,000,000 will then
be available toward the State revenue.
This system was copied by France, and imitated from her by the other
Latin nations, Spain, Portugal and Italy, as well as by the non-Latin States
o f Austria and Holland. All these countries, at the end of various terms
of 99, 90 and 85 years will practically pay off a large portion of their national
debt. Improvident Spain will pay off about £40,000,000 out of her debt
o f £164,000,000. Heavily burdened Austria will practically abrogate
something like £65,000,000 out o f her debt o f £250,000,000. Italy will
wipe out a large portion of her debt of £1*76,000,000.
But the most remarkable example is France; and I will endeavor to
explain as briefly as possible the working of the French system. In France
the railways are conceded for 99 years, but it is one of the conditions of
the grant that all the capital whether in shares or debentures, shall be paid
off within that term by an annual amortissement, or sinking fund. The
small amount of this annual payment is very extraordinary. The French
rate of interest is 5 per cent., and the annual sinking fund necessary to pay
off 100 francs in 99 years is as nearly as possible '04. Put into the Eng
lish form, for the sake o f clearness, this means that the annual sinking fund
necessary at 5 per cent, to redeem £100 in 99 years is only Is. per annum
As debentures are issued in France for less than 99 years when part of the
concession is run out, the amount of the sinking fund varies, but it is usu
ally said to amount on the average to one-eighth per cent. As the whole
expended capital o f French railways represented by shares and debentures,
is £233,000,000, it follows that the total annual sinking fund paid by the
French companies lor the redemption of that sum is less than £300,000.
The result is marvellous, that for £300,000 the French nation will acquire,
iu less than 99 years, an unencumbered property of £233,000,000 sterling.
But this is not all. The railways represented by that £233,000,000 ster
ling produced in 1865 a net revenue o f about £12,500,000. Before 1872
further railwyas will have been completed, which will be amortized at the
same date as their parent lines, and will produce before many years a net
income of £4,000,000, making a total net income of the French railways

1867]

R A IL W A Y EXTENSION AND ITS RESULTS.

103

16,500,000. But the total charge of the French national debt in 1865
was only £16,000,000. So that France has now a system in operation
which, in less than 90 years from the present time, will relieve the country
from the whole burden of her national debt of nearly £500,000,000.
Is it allowable in me to ask, why are we doing nothing of the sort ?
When so many other nations are paying off by means o f their railways a
portion, or the whole of their national debts, why are we, with all our
wealth and resources, to do nothing f
A scheme o f amortization
suited to the habits of the English people, is perfectly possible, and the
peculiar position of railway companies at the present moment renders it
easy to carry out. I will say nothing about debentures, because a plan is
now before the Government dealing with them. But, I say, respecting
Share Capital, that it would be perfectly practicable for the State to be
come the possessor o f a large proportion o f this stock in a comparatively
short time, and at no great expense. An annual sinking fund o f 5s. per
cent will pay off £100 in seventy-two years, reckoning only 4 per cent,
interest. Hence, in seventy-two years, an annual sinking fund of £500,000 a year, will pay off £200,000,000. The government duty on rail
ways amounts to £450,000 a year, and will soon reach £500,000. My
proposal would be to make this a sinking fund towards purchasing £200,000,000 of preference and other stock, and let it be invested annually by
the Board o f Trade, or by commissioners appointed for the purpose, like
those appointed for the national debt. Instead of cancelling each share as
it is purchased, let it be held in trust for the nation, and the dividends
applied every year in augmentation o f the sinking fund. In this manner,
at the-end of about seventy-two years £200,000,000 o f preference and
ordinary share capital would become the property of the nation, and its
dividends become applicable to the interest of the national debt.
As
railway dividends average 4 to 4]- per cent., the dividends on the redeemed
capital would pay the interest on more than £250,000,000 consols, and
be equivalent to the redemption o f that amount o f our national debt.
I believe that this is a practical scheme. In a slightly different form it
is now being carried out in France, Belgium and other continental states.
1 trust that before long we shall cease to be almost the only nation in
Europe which does not act on the principle “ that railways are the true
sinking fund for the payment of the national debt.
The advantages o f such a sinking fund over a sinking fund invested in
consols, are threefold:
1. It would be invested annually in railway capital at a higher interest,
and thus accumulate more rapidly.
2.
— It would have a different primary object, viz., the purchase o f a
State interest in railways, and would therefore be more likely to enlist
popular feeling in favor o f its maintenance.
3.
— It would be distinct and separate from the national debt, and not
under the same control, and would therefore be less liable to be diverted
to the financial necessities o f the hour.
Perhaps it will be said that a railway sinking fund is unsuited to the
character and habits of the English people. But surely it is our charac
ter to be prudent and to pay off encumbrances, and to adopt the best
means of accomplishing that object. Surely it is not right in a great and
wealthy and enlightened nation like England to incur the reproach of
being spendthrift of her resources and reckless o f her debts.

104

R AILW A Y EXTENSION AND ITS RESULTS.

[ Augilit,

X II.— F urther R ailway E xtension.
England is undoubtedly the country in the world best provided with
railways. The statistical comparison stood thus at the end o f 1865 :
RAILW AY S COMPARED W IT H AREA AND POPULATION.

Country.
England and W a le s .......................

Railway Miles Square Miles Population per
Open.
per Railway Mile. Railway Mile.

1. B elgium ..........................................
2. United K ingdom ...........................

1,350
13,289
778
3. Switzerland.....................................
4. Prussia and Germany (except Austria). S,589
5. Northern United States (Except Kansas,
Nebraska and Oregon. ....................... 24.8S3
8,134
6. Prance..............................................
372
7. Holland............................................
2,389
8. Italy..................................................
8,735
9. A u stria............................................
2,721
10. Spain................................................
419
11. Portugal..........................................
10,300
12. Southern United States.................
2,539
13. Canada ............................................
8,186
14. In d ia ................................................

Total o f the 14 countries.. .

82,495

8
9
19
20

3,625
2,206
3,257
3,525

25
26
29
41
63
67
87
92
136
287

801
4,607
9,066
9,084
9,375
5,991
8,555
1,025
9S7
42,572

••••

....

But England has a much greater proportion o f double lines and a
larger number o f trains on each line; while, on the other hand, Belgium
and other continental nations have lower fares and give greater accom
modation to third and fourth class passengers. Both parties have some
thing to learn— they to admit the principle of competition and increase
the number of railways; we to provide cheap conveyance for the masses,
without the clumsy device o f excursion trains.
But now comes the question— do England and Belgium need further
railways, or are they already sufficiently provided ? It may partly be an
swered by the fact that in England there are about 3,500 miles authorized
by Parliament which have not yet been made, and that in Belgium there
are 450 miles (equal to 4,500 in England) conceded but not constructed.
And we may also point to the circumstance that in England and Wales
there were, in 1865, 6,081 miles o f double line against 3,170 miles of
single, showing that there is a want of cheap lines through rural districts.
A glance at the railway map will confirm this inference. The lines run
in the direction of the metropolis or some great town, and there are few
cross-country lines. The distance between the lines supports this con
clusion. Deducting the manufacturing districts, which are crowded with
a railway network, the remainder of the country gives an average of
about fifteen miles between each mile o f railway. The average ought not
to be more than eight or ten miles.
The advantage o f a railway to agriculture may be estimated by the
following facts. A new line would, on an average, give fresh accommoda
tion to three and a-half miles on each side, being a total of seven square
miles, or 4,560 acres for each mile of railway. It would be a very mode
rate estimate to suppose that cartage would be saved on one ton o f pro-

186V ]

R A IL W A Y EXTENSION AND ITS RESULTS.

105

dnce, manure, or other articles for each acre, and that the saving per ton
would be five miles at 8d. per mile. Hence the total annual saving
would he £768 per mile o f railway, which is 5 per cent interest on £15,000. Thus it is almost impossible to construct a railway through a new
district o f fair agricultural capabilities without saving to the landowner
and farmer alone the whole cost o f the line. Besides this, there is the
benefit to the laborers of cheap coals and better access to the market.
There is also the benefit to the small towns of being put into railway com
munication with larger towns and wholesale producers. And there is the
possibility of opening up sources of mineral wealth.
Somebody ought to make these agricultural lines, even though they
may not pay a dividend to the shareholder. But who is that somebody
to be? The great companies will not take the main burden lest they
should lower their own dividends. The general public will not subscribe,
for they know the uncertainty of the investment turning out profitable.
And notwithstanding the able letters signed “ H ” in the Times some
months ago, I cannot advocate the necessarily wasteful system o f con
tractors’ lines, or believe in the principle “ Never mind who is the loser,
so that the public is benefitted.” Railway extension is not promoted in
the long run by wasteful financing and ruinous projects. On the con
trary, such lines injure railway extension, by m iking railways a bye-word
and depreciating railway property, and they render it impossible to find
supporters for sound and beneficial schemes.
The proper parties to pay for country lines are the proprietors and in
habitants of the districts through which they pass. They are benefitted
even if the line does not pay a dividend. They have every motive for
economical construction and management, and can make a line pay where
no one else can. But they will not subscribe any large portion of the
capital as individuals. Very few will make a poor investment o f any
magnitude for the public good, though all might be ready to take their
part in a general rate. Almost every country but our own has recognized
the fact, and legislated on this basis, by empowering the inhabitants o f a
district which would be benefitted to tax themselves for the construction
of a railway. I have shown that in France either the department or the
commune may vote a subvention out of their public funds, and that in the
United States the municipalities vote subsidies of municipal bonds. In
Spain the provinces and the municipalities have the power to take shares
or debentures, or if they prefer it, to vote subventions or a guarantee of
interest. In Italy the municipalities do the same thing. W h y should not
England follow their example, and authorize the inhabitants o f parishes
and boroughs to rate themselves for a railway which will improve their
property, or empower them to raise loans on the security of the rates, to
be paid off in a certain number o f years by a sinking fund, as is done for
sanitary improvements ? I see no other way of raising the nucleus of
funds for carrying out many rural lines which would be most beneficial
to the country.
I can give a remarkable instance of the benefits caused by an unremunerative railway. In 1834 the inhabitants of Whitby projected a line
from Whitby along the valley o f the Esk to Pickering, half way to York.
The line was engineered by George Stephenson, and was originally
worked by horse power and carriages on the model o f the four-horse
VOL, lvii.— so . II.
2

106

RAILW A Y EXTENSION AND ITS RESULTS.

[Augm t,

coaches. But though considered at that time one o f the wonders of the
world, the line was utterly unprofitable, and the W hitby people looked
upon it as a bad speculation, much as the shareholders of the London,
Chatham and Dover look on their present property. The railway was
ultimately sold to the North Eastern Company; but though the share
holders got no advantage, somebody else did. Farmers and laborers
came to market in W hitby, and got coals and other necessaries at reduced
rates, while they sold their produce better. Very soon rents began to
rise, and I find the total rise since the construction o f the railway has
been from an average of 15s. per acre up to 22s., or nearly 50 per cent.
But far greater consequences resulted. The cliffs at W hitby were known
to contain nodules of ironstone, which were picked up and sent to iron
works on the Tyne. Soon after the opening of the railways, George
Stephenson and a number o f Whitby gentlemen formed a company, called
the Whitby Stone Company, for working stone quarries and ironstone
mines at Grosmont, about six miles up the railway. A t first the ironstone
was very badly received by the iron founders, and it was only after long
and patient perseverance that the company got a sale for what they raised.
It was not till 1844 and 1846 that the merits o f the Cleveland ironstone
were fully acknowledged and large contracts entered into for its working
throughout the district. Thus the unprofitable W hitby and Pickering
Railway opened up the Cleveland iron district and caused the establish
ment of a very large number o f foundries and the employment o f thou
sands of workmen, and has added veiy materially to the wealth of Eng
land.
XIII.— C onclusion.
From the facts wlreh have been brought forward I draw the following
conclusions:
1.
— Railways have been a most powerful agent in the progress of com
merce, in improving the condition o f the working classes and in develop
ing the agricultural and mineral resources of the country.
2.
— England has a more complete and efficient system o f railways than
any other country, but is not so far ahead that she can afford to relax her
railway progress and to let her competitors pass her in the race.
3.
— England ought to improve the internal organization of her railways,
both as to finance and traffic, and to constitute some central authority
with power to investigate and regulate.
4.
— A Sinking Fund should be instituted to purchase for the State a
portion o f the railway capital, and so to lighten the charge o f the national
debt.
5.
— Power should be given to parishes and boroughs to rate themselves
in aid of local railways, in order to facilitate the construction o f country
lines.
6.
— England, as a manufacturing and commercial country, is benefited
by every extension o f the railway system in foreign countries, since every
new line opens up fresh markets and diminishes the cost o f transporting
her manufactures.
I cannot eoncTufe without saving a word on the future o f railways.
The progress of the last thirty-six years has been wonderful, since that
period has witnessed the construction of about 85,000 miles of railway.

1867]

DEBTS AND TAXATION OF OUR LARGE CITIES.

107

The next thirty-six years are likely to witness a still greater development
and the construction o f far more than 85,000 miles. W e may look for
ward to England possessing, at no distant date, more than 20,000 miles,
France an equal number and the other nations of the continent increasing
their mileage until it will bear the proportion of 1 railway mile to every
10 square miles o f area, instead of the very much less satisfactory propor
tions stated in the comparative table. W e may expect the period when
the immense continent o f North America will boast of 100,000 miles of
line, clustered in the thickly-populated Eastern States and spreading plen
tifully through the Western to the base o f the Rocky Mountains and over
to California and the Pacific. W e may anticipate the time when Russia
will bend her energies to consolidating her vast empire by an equally vast
railway network. W e may predict the day when a continuous railroad
will run from Dover to the Bosphorus, from the Bosphorus down the Euphrates, across Persia and Beloochistan to India, and from India to China.
W e may look for the age when China, with her 350,000,000 o f inhabit
ants, will turn her intelligence and industry to railroad communication.
But who shall estimate the consequences that will follow, the prodigious
increase of commerce, the activity o f national intercourse, the spread o f
civilization, and that advance of human intelligence foretold thousands of
years ago by the prophet upon the lonely plains o f Palestine, “ when
many shall run to and fro upon the earth, and knowledge shall be in
creased ?”
N ote.— Since reading this paper before the Society, my attention has
been called to an article on French railways in the Revue des deux Mondes
of 1st January, 1866, by M. Lavollee, which, written many months pre
viously, confirms most strikingly my conclusions, especially those which
relate to the effect of railways on French commerce and on the welfare of
the working classes. It adds many eloquent reflections on railways in re
lation to civilization and progress, which are well worth perusal.
In the discussion which followed the reading o f my paper* the President
expressed a wish that I should add information respecting fares and rates
and other points connected with railway working. But I find the subject
too extensive for a cursory notice, and the forthcoming Evidence and Re
port o f the Royal Commission on Railways will afford opportunity and
material for a more complete survey, which, I trust, will be undertaken by
some member of the Society connected with railways.

DEBTS AND TAXATION OF OUR LARGE CITIES.
W e have been at considerable pains to procure statistics throwing light
upon the changes in the fiscal condition of our large cities within the Fast
six years. Owing to the incompleteness of returns, our material for this
purpose is much less comprehensive than we could have desired. The
figures obtained, however, have been derived from official sources and
will at least afford data for general estimates approximating accuracy.
W e are enabled to present complete details of population, valuation and

108

DEBTS AND TAXATION OF OUR LARGE CITIES.

[AuffUSt,

indebtedness from fourteen o f the principal cities, and the rule found to
obtain in these cases may perhaps be assumed to apply to our cities
generally. The valuation given is in each case that made for the purpose
of local assessments, and although the best attainable, is well known to fall
much below the real' value of the property— a fact for which due allow
ance must be made in estimates. On the other hand, the figures repre
senting the indebtedness of the cities may lead to exaggerated estimates
in those cases where the corporations hold assets in the shape o f securities,
productive real estate or sinking funds. Our chief purpose, however,
being to ascertain the changes in the amount o f the city debts, as it may
be assumed that no important fluctuations have occurred in the list of
assets, the omission of this data is not material to the result sought. The
following table shows the population, valuation and debt of fourteen prin
cipal cities in 1860 and 1866 respectively:
.—Population
,—Valuation.—,
Cities.
1880.
1806.
1860.
1866.
$
$
New Tork...2V. Y . ..................... 813.680 900,0C0 516,631,107 73T,9S9,90S
*
*
Philadelphia. .Penn...................... 563,529 622,082
Brooklyn....... N. Y.................... 266,661 300,000 105,174,507 123,427,840
Baltimore........ Md..................... 212,418 239,070 119,401,715 139,001,008
Boston.......... Mass.................... 177,810 192,324 276.801,000 371,892,775
Cincinnati___ Ohio..................... 161,014 193.253 91,901,315 130,745,993
St. Louis..........Mo................... 100,173 204 327 102,40S,230 126,811,200
Chicago............ Ill..................... 109,260 200,418 31,053,512 85,953,250
Buffalo....... N. Y . ...................... 81,129 91.502
....
....
Newark........ N •/...................... 11,914 81,413 30,045,289
....
Louisville.... K y .................... 68,033 100,000 27,873,003 43,10-,569
Albany....... N. Y . ...................... 63,367 62,613 24,958,808
....
SanFrancisco.. Cal..... ................ 68,802 SO,030 35,809,639 15,972 470
Providence ....R . 1....................... 50,666 54,595 61,118,300
....

.—Indebtedness.—.
I860.
1S66.
$
S
23,403,644 41,701,176
21,029,735 35,165,721
1,643,809 10,023,419
17,903,85521,928,656
9,392,799 12,845,376
3,752,000 3,203.000
5.006,700 5,644,000
2,095,000 5,307,464
579,000 654,000
316.000 833,000
3,001,000 4,118.000
1.570,850 2,483,500
2,992,519 4,947,298
1,400,000 1,400,000

A glance at the column of valuation will show that the increase has not
kept pace with the actual increase o f the value o f property. In nearly all
the large cities real estate is now worth nearly double its value in 1860 ;
yet the increase in the official figures shown above does not average over
30 per cent. Perhaps it may be safely assumed that the assessment valua
tion, considering what it omits as well as what it underestimates, does
not represent more than half the real value o f property in the several
cities.
The aggregate indebtedness of the above cities has been increased dur
ing the six years from about $103,600,000 to about $149,500,000. This
gives an average increase of about 45 per cent. In the case of the W est
ern cities the increase has been comparatively light.
Cincinnati has
reduced its debt $500,000, while St. Louis has added only $640,000 to
its indebtedness. In the case of Chicago there is a very decided increase,
but chiefly owing to the construction of extensive public works. The
increase is in the largest ratio in the cities of New York, Phila
delphia, Boston, Brooklyn and Baltimore, where heavy debts have been
incurred for military purposes. In order to estimate the relation of the
valuation and debts of the cities to their respective populations, it is ne
cessary to divide each item by the total populations; by which process we

* No proper valuation stated in reports.

1867]

DEBTS AND TAXATION OF OUR LARGE CITIES.

109

obtain the following result, showing the valuation and the debt per head
of the population of each c ity :
Cities .

,— Valuation.— ,
Per capita Pop.
I860.
1866.
.. $ 109
$ 820

New Y o r k ...., ....... N . 7 . ........
Philadelphia..,
Brooklyn... ......... N . 7 . . . .
Baltimore.......
Boston.............
.
Cincinnati. . . . ........Ohi't..........
8t. Louis......... ............ M o ........
Chicago...........
Buffalo............. ...J V . Y . .......
Newark,......... ........N . J . ........
Louisville........
Albany.............
8an Francisco. . . . . Cat.........
Providence___ ....... B . I . ........ ............... . .

394
56-2
1,557
380

411
581
1,934
430
621
429

409

431

630
1,208

949

.-------------- Indebtedness.Per cent of Vat.
Per capita.
1866.
I860.
1866,
&.65
$16.33
$28.87
56.52
42.49
S.li
28.68
33.41
7.27
14.98
15.77
84.29
91.73
3.45
3.39
52.81
66.89
2.45
4.08
23.29
16.57
4.45
4.89
31.14
27.62
6.29
5.65
39.1S
26.93
7.13
i.05
4.39
9.53
9.55
10.76
41.11
41.18
6.29
24.79
8.26
6.5
i
52.69
61,81
2.29
27.83

Here, again we must caution our readers against a too strict use o f the
column of valuations. The usage in the different cities in making this
assessment varies so widely that the differences in the amount o f estate per
Lead shown above must be accepted with very broad allowances. The fact,
for instance, that the valuation per capita, in Boston is $1,934, and in Hew
York only $820, is to be chiefly accounted for by the circumstance that
in the former city the official valuation runs closely upon the real value,
while in the latter it falls very far below. The column showing the increase
of debt per head o f the population is of special interest. Upon this basis
of comparison, which is the true one, the Western cities, except Chicago,
indicate a falling off in the ratio o f indebtedness.
In the Eastern and
Middle States the increase is very large. In Hew York city the ratio has
risen within the six years from $28.87 per head to $46.33 ; in Philadelphia,
from $42.49 to $56.52 ; in Baltimore, from $84.29 to $91.73; and in
Boston from $52.81 to $66.80 ; while in San Francisco, which has been
supposed to have felt the pressure o f the times lightly, the change has
been from $52.69 to $31.84. In explanation o f the high figures assigned
to Baltimore, it should be stated that the city bolds valuable interest-bear
ing assets, which would reduce its net debt to very moderate dimensions.
The same fact is also true, only to a less extent, of some o f the other
cities.
Tills additional indebtedness, however, affords an imperfect criterion o f
the real augmentation of the burthens of our city population. Hot only
has the interest account been increased to an extent corresponding with
the above shown increase of dobts, but the local expenditures also have
been largely, not to say extravagantly augmented. W e must, therefore,
look to the tax list for evidence o f the weight of our present burthens
compared with those o f 1860. For this purpose we select the only six
cities from which we are in possession of complete returns. The following
is a statement of the amount of taxes assessed in the cities named for city
and county purposes for the years 1860 and 1866, and their relation to
population :
New York.......

Philadelphia...
Boston.............

Cincinnati___
Chicago..........
ban Francisco

*----------- Anlount----- ----- v r~Hat’ p. capi-~.
1866.
186U.
1860.
1866.
$15,606,896 $9:40 $17:34
$7,049,873
5,084,539
8:17
2,334,252
4:13
4,224,202 12:90
21:98
2,294,533
2,010,322
10:39
1.298,621
8:06
373,315
1,719,064
3:42
8:57
1,496,657 14:03
796,666
18:71

110

DEBTS ANB TAXATION OF OCR LARGE CITIES.

[Augwst>

The increase in the city and county taxation shown in these figures is
astounding. In New York city these taxes now amount to $17.34 per
head, against $9.40 in 1860 in Boston the increase is $9.©8 per head;
in Philadelphia $4.04; in Cincinnati $2 .3 3 ; in Chicago $5.15, and in
San Francisco $4.68. In order, however, to ascertain the whole amount of
taxation to which our city populations are subject, it is necessary to add
to the foregoing the share per capita of taxes levied for State purposes,
and also of federal imposts. The amount o f State taxes levied in these
States, and the proportion per capita, compare as follows :
-Amount of taxes.----- ,

1860.
$1,376,167
2,368,907
.901,010
3,504,713
1,825,792
1,131,063

New York
Pennsylvania .
Massachusetts
O hio.................
Illinois.............
California.......

1S(16.
$17,369,043
4,060.148
3,137,631
3,667,167
2,514,023
2,233,492

Tax pm- capita-

1S60.
$1 13
0 SI
0 73
1 50
1 07
2 99

1886.
$1 84
127
249150
116
4 97

The following is a statement o f the population, taxation, customs and
debt of the United States in 1860 and 1866, and their relation to popula.
io n :
1860.
1866.
I860. 1866,
Population.........
31,500,000
35,000,000
Interna! revenue.
Customs___. . . . .
National deist...

The whole taxation per head of the populations o f the respective
cities may be thus summarized :

New Y o r k ....
Philadelphia..
Boston...........
Cincinnati....
Chicago...........
San Francisco.

■—City & Co—i
1860. 1866.
. $9 40 $17 34
4 13 8 17
. 12 90 21 98
8 06 10 39
3 42 8 57
14 03 18 71

,— State.— ,

,— Federal,— ,

,------Total.------,

I860. 1866. 1860. 1866.
186a
1866.
$1 13 $184 $1 69 $13 95 $12 12 $3313
0 81 127 1 69 33 95
6 63 2339
0 73 2 49 1 69 13 95 15 32 8842
1 50 1 60 1 £9
13 95 11 25 25 84
1 07 117 1 69 13 95
6 18 2369
2 99 4 96 1 69 13 95 18 71
3762

It will appear from a comparison o f these figures that the total taxation
o f our city population, so far as may be judged from the cities here
instanced, has increased from about $12 per head in 1860 to $30 per
head in 1866. There is considerable diversity in the proportions between
the different cities, and the ratio o f increase also varies materially at the
several places; but this may be taken as the average augmentation o f our
burthens since the year antecedent to the war. Allowing five persons to
each family, it would follow that the amount of taxation paid directly
and indirectly by our city population is $150 per famify, against $60 in
I860, showing an average increase of $90 per family. This immense addi
tion to our burthens must materially affect the social and political future
of the country, and calls loudly upon the State and federal legislatures
to retrench in every possible way the expenditures under their control

186V ]

111

THE INSURANCE BUSINESS FOR 1 8 6 6 .

THE INSURANCE BUSINESS FOR 1866.
P roof sheets o f the Report o f the Superintendent o f the Insurance
Department o f the State o f New York for 1866, dated A pril 1st, 1867,
have been sent us b y the Superintendent the past week, and although the
late date at which the report is presented to the public, like our State
report on Railroads, takes away from it the value and interest which
belong to new facts, it is still very interesting, not only as a part o f the
financial history o f the past year, but also as affording useful lessons for
the future.
It is unfortunate that these State reports can not be issued
at a period earlier than six months after the official statements o f the
companies contained in them are made. The information which is now
published in July or August would be doubly valuable to all parties
interested i f published in January or February.
The year 1866, which witnessed the remarkable panic following the
failure o f Overend, Gurney & Co., in England, and the universal de
pression in business in the United States, was also a year o f the severest
losses insurance companies ever experienced. The Superintendent begins
his report with the statement that no new joint stock fire insurance com
pany was organized during the calendar year 1866. This is the only
year since the passage o f the general Insurance A ct o f 1849 (chap. 308)
which has not witnessed the incorporation o f at least one stock fire in
surance company. This fact is a good indication o f the unprofitable
nature o f the insurance business during that period.
From several tables, giving in detail the changes which took place
in the companies o f this State in the year, it appears that two companies
were changed from mutual to stock companies; one casualty was changed
to a fire com pany; five companies had their charter extended 30 years,
pursuant to the general a ct; two companies increased their capital
(three others have increased since January, 1867); requisisitions have
been made on the stockholders o f seven companies to make up im
paired capital, three o f which were not responded t o ; five companies have
reduced their capital since Jan. 1, 1867 ; thirty-three companies showed
an impairment o f capital Dec. 31, 1866, varying from 81.74 per cent,
to 0.21 per cent.; ten companies which showed an impaired capital
Jan. 1, 1866. repaired their capitals during that year; seventy-one com
panies show capitals intact, with surpluses varying between $271,3S7
and $15 and six companies discontinued business, and are closing up
their affaire.
The present standing o f the companies o f this State we give in the
Insurance Department o f the C hronicle, but the table following, com
piled from the report, shows the operations o f these companies for the
seven years 1860-66, inclusive; fire business being separately stated:
M ARINE AND INLAND BUSINESS.

Risks
written.
1860 ..................................
1861 ....................................
1862 ....................................
1863 ....................................
1864 ....................................
1865 ....................................
1866 ..................................

$S0,379,S92
80,351,602
110,949,672
175,942,397
253,714,936
271,588,107
378,830,003

Premiums
received.
$551,1:3
666,22S
875,835
1,193,714
2,292,820
2,657,131
4,335,305

Agg&av.............-.1,351,806,609 12,572,218

P’ eentage Perct’ A m 'tof Av.ratv
oflo s’s oflos’ s risks
of
Losses to pre- to risks writ, to pre’ m
paia. miums. writ. $lloss. risks.
$405,507
437.073
452,166
839,727
1,542,328
2,020,C54
3,800,702

73.57
. 5045 198.22 .6S75
74.64
. 6186 .161.65 . 8291
51.64
.4075 245.37 . 7343
70.35
. 4773 209.52 . 5695
67.87
.6079 164.50 .9037
76.05
.7440 134.41 .97S4
87.67 1.0031
99.69 1.1442

9,558,160 76.03

.7071 141.43

.9300

112

[AuffUSt,

THE INSURANCE BUSINESS FOR 1 8 6 6 ,
F IR E

1560 ...........................
1861 ...........................
1862 ...........................
1863 ...........................
1864 ...........................
1865 ................
1866 ..........................

1,019,551,594
1,027,112,596
1,200,721,130
1,560,637,139
2,342,666,111
2,510,595,187
2,753,493,107

Agg & av.................... 12,444.826,864

BUSINESS.

$6,110,412
6,161,507
6,866.355
8,987,315
13,325,783
17,052,086
20,786,S47

$3,578,934
3,274,115
4,227,157
3,349,945
7,195,271
12,046,793
15,312,751

53.33
63.14
61.56
37.27
54.00
10.65
73.67

79,890,309

48,9S4,963

61.32

.3410
.3183
3521
.2146
.3071
.4799
.5561
. 3936

293.26
313.71
284 05
465.68
325.58
208.40
179.82

.6392
.5999
.5738
.5805
.5688
.6792
.7549

251.05

. 6420

It appears from the above that the losses have increased to an alarm
ing extent within the past two years. Indeed, without the figures the
fact is too well known to the public. The remedy to be applied to save
insurance companies from total annihilation has been discussed in these
eolumns. M r. Barne’s evidently inclines to the plan o f not insuring
property to its full value as the surest safeguard against incendiary
fires. His argument is forcible and is especially worthy o f consideration
from the fact that it is based upon the simplest principles o f common
sense, and not upon the assumption that a large proportion o f insurers
are scoundrels. H e remarks as follow s:
In all insurance economics, the relations of underwriter and policy holder should
be so contrived, that in no contingency could the latter gain by a lots on his policy ;
the pecuniary interest o f the insured should never conflict with his duty to prevent, >y
all possible means, any loss under his policy.
In fire insurance, the downward tendencies o f a declining market and the nervous
apprehensions o f an approaching financial crisis have, especially on mercantile
risks, often made it for the pecuniary interest of the insured that a destructive fire
should happen. Thus, with low or diminUhingnetpremiums, the moral hazards have
been woefully increased, and the sad results are now historic, in the years 1865
and 1866, two consecutive years of excessive and unprecedented loss.
To the extent that fire insurance relaxes the vigilant care and natural guardianship
o f the owner over his own property, and prevents the construction of fire proof build
ings and the discovery of rapid means o f extinguishing conflagarations, the political
and social economist and statesmen cannot hesitate emphatically to denounce and
condemn it. The natural guardian o f property should never lose an interst in its
preservation. No care o f children can, as a general rule, equal parental care, and no
watchman is so continuously vigilant as the owner. When property is fully insured
and the premium paid, how can an underwriter reasonably expect that, with all the
harrassing cares and solicitudes o f modern business life, the owner will watch and
guard and protect it against hazards, for the happening o f which he has already
paid a strong and wealthy corporation ? When companies ask and expect this soli
citude and surveillance on the part of a policy-holder fully insured, they violate the
plainest axioms of business and common sense. This, wheu dealing with men of good
principles and thorough honesty ; and no mathematics can compute how much these
hazards are increased when dealing with elements o f fraud, chicane and land piracy.

Could the plan o f partial insurance be carried out without seriously
impeding the movements o f commerce, and frequently resulting in
losses to parties who are both careful and honorable, we should be in
clined immediately to advocate its adoption as the surest means o f
protectisn to insurers. But we do not think it could b e ; the result o f
such a rule would leave innocent parties, particularly agents who have
made advances, or others having only a partial or temporary interest in
property, without any adequate safeguard against losses. In default o f
any suggestion which seems to meet all the difficulties o f the case more
satisfactorily we must adhere to the opinions previously expressed in

113

COMMERCIAL L A W .

1867]

these columns, that the most effective, i f not the only remedy that
the case admits o f is to he found in a thorough examination into the
causes o f all fires, and also in the non-payment of the amount insured
until it is at least established that the loss is not o f incendiary origin.
A committee or board should be organized, the members to be chosen
by all the companies, whose duty it should be to make the examination.
If this were done the insurance business could be reduced to a proper
basis, and no insurer would be called upon to pay for his neighbor’s
dishonesty or for his neighbor’s greater risk. A t present, no sooner
does a company hear o f a loss than it hurries to the insured with a check
in hand to liquidate it, thus making a bid for future business. This is
clearly wrong. O f course, no unnecessary impediment should be put
in the way o f prompt payment, but it is due alike to the company and
its patrons that there should first be a proper investigation.
Jn conclusion M r. Barnes says, and in this we believe all the most
prudent writers will agree with him, that the remedy for weakness is
increased strength ; this must be reached either b y means o f new addi
tional capital, or by a reserve o f premiums paid for b y the public but
retained by the companies in some form as a Safety Fund, for the pay
ment o f extraordinary losses and contingencies. W hether the owner
ship o f this fund is vested in the policy holders and represented by scrip,
or in the stockholders and held as a “ reserve fund,” or in both and
represented in any form, is o f less consequence to the public than the
practical initiation, on a broad and general basis, o f some system o f forti
fication besides capital, which is often strained beyond endurance, and
besides the ordinary re-insurance reserve o f fifty percent to pay losses,
which last year have actually taken over seventy-seven per cent, o f
premiums.

C O M M E R C I A L

L A W .-N o .

35.

OF LIFE INSURANCE.
(Continued from page 41, vol. 57.)
OP THE PURPOiE AND METHOD OP LIFE INSURANCE.

If A insures B a certain sum, payable at B ’s death to B’s representa*
tives, we have only the insurer and insured, as in other cases of insurance.
But if A insures B a sum payable to B or bis representatives on the death
of C, although C is often said to be insured, this is not quite accurate;
more properly, B is the insured party and C is the life-insured.
Life insurance is usually effected in this country in a way quite similar
to that of fire insurance by our mutual companies. That is, an applica
tion must be first made by the insured; and to this application queries
are anuexed by the insurers, which relate, with great minuteness and de
tail, to every topic which can affect the probability of life. These must
be answered fully ; and if the insurer be other than the life-insured, there

114

COMMERCIAL LA W .

[August,

are usually questions for each o f them.
There are also, in some cases,
questions which should be an answered by the physician of the life-insured,
and others by his friends or relatives ; or other means are provided to have
the evidence o f the physician and friends.
These questions are not, perhaps, precisely the same, in the forms given
out by any two companies, and we do not speak of them in detail here.
The rules as to the obligation o f answering them, and as to the sufficiency
of the answers, must be the same in life insurance that we have already
stated in the chapters on Fire and Marine Insurance; or rather must rest
upon the same principles. And the same rules and principles of construc
tion therein set forth would doubtless be applied to the question whether
a contract had been made, or at what time it went into effect.
OP THE PREMIUM.

If the insurance be for oue year or less, the premium is usually paid in
money, or by a note, at once. If for more than a year, it is usually pay
able annually. But it is common to provide or agree that the annual
payment may be made quarterly, with interest from the day when the
whole is due. oSTetes are usually given, but, if not, tbe whole amount would
be considered due. I f A , whose premium of §100 is payable for 1856 on
the 1st day of January, then pays $25, and is to pay the rest quarterly,
but dies on the 1st o f February, the $75 due, with interest from the 1st
o f January, would be deducted from the sum insured.
Provision is sometimes made that a part of the premium shall be paid
in money, and a part in notes, which are not called in unless needed to
pay losses. Tbe greater the accommodation thus allowed, tbe more con
venient it is obviously to the insured, but the less certain will lie be o f the
ultimate payment of the policy, because, in the same degree, the fund for
the payment consists only of such notes, and not o f payments actually
made and invested. There is a great diversity among the life insurance
companies in this respect. But even the strictest, or those which require
that all the premiums shall be paid in money, usually provide also that
an amount may remain overdue, without prejudice, which does not exceed
a certain proportion—say one-half or one-third— of the money actually
paid in on the policy. This is considered, under ail ordinary circumstances,
safe for the company, because every policy is worth as much as this to the
company. Or, in other words, it would always be profitable for the com
pany to obtain a discharge of its obligation on a policy, by repaying the
insured so small a proportion ot what has been received from him.
OF THE RESTRICTIONS AND EXCEPTIONS IN

LIFE POLICIES.

Our policies usually contain certain restrictions or limitations as to place;
the life-insured (he whose life is insured for his own or another’s benefit)
not being permitted to go beyond certain limits, or to certain places. But
there is nothing to prevent a bargain permitting the life-insured to pass
beyond these bounds, either in consideration of new and further payments,
or of the common premium.
So certain trades or occupations, as o f persons engaged in making gun
powder, or of engineers or firemen about steam-engines, are consid

1867]

COMMERCIAL L A W .

115

ered extra-hazardous, and as, therefore, prohibited, or requiring an extra
premium.
The exception, however, which has created much discussion, is that
which makes death by suicide an avoidance o f the policy. The clause
respecting duelling is plain enough; and no one can die in a duel without
his own fault.
But it is otherwise with regard to self-inflicted death.
This may be voluntary and wrongful, or the result o f insanity and disease
for which the suffering party should not be held responsible. If a policy
is accepted, which expressly declares that the sum insured shall not be pay
able if the life-insured die by his own hands, whether wilfully, knowingly
or intentionally, or otherwise, there is no doubt that this clause would have
its full and literal effect. But it might then be very difficult to limit its
application. If, for example, a nurse gave a sick man a fatal dose by mis
take, and he took the glass in bis hand, and put it to his lips, drank, and
died, it might fall within the language o f such a provision, but could hard
ly come within any principle that wrould be recognized. Most persons die
by their own act, in this sense; because most owe their death to some act
or acts of indiscretion or exposure. The insurers may except any kind of
death, as they may except death by a certain disease, or by a certain
cause or in a certain place. The difficult question is, what is the construc
tion and operation of law, where the clause is only “ death by his own
bands,” or some equivalent phrase ?
Although strong authorities favor that construction of any clause of
this kind which wrould avoid the policy if death were actually self-inflicted,
although in a state o f insanity, the opposite view is also well sustained.
And we are o f opinion that the general principles o f law o f contracts, and
o f the law of contracts, and of the law of insurance particularly, would lead
to the conclusion that “ death by his own hands,” but without the concur
rence of a responsible will or mind, would not discharge the insurers,
without a positive provision to that effect.
W e should put such a death
on the same footing with one resulting from a mere accident, brought
about by the agency, but without the intent, of the life-insured. As if, in
a case like that above supposed, poison were sent to him by mistake for
medicine, and he swallowed it under the same mistake.
It was once made a question, upon which high authorities differed,
whether death by the hands of justice discharged the insurers when the
policy made no express provision for this. Perhaps the weight of author
ity is in the affirmative. But the question has now but little practical im
portance, as our policies always express this exception.
Although a policy express that it shall not take effect until the pre
mium is paid, this payment may be waived by the company.
Taking a
note would certainly be a waiver, if not a payment. The premiums, after
the first, must be paid on the days on which they fall due. If no hour ba
mentioned, then it is believed that the insured would have the whole day,
even to midnight. It is possible, however, that he might be restricted to
the usual hours of business, and perhaps even to those in which the office
of the insurers is open for business. In some policies a certain number o f
days is allowed for the payment of the premium. Then, if the loss happen
after the premium is due and unpaid, and during this number of days and be
fore they have expired, but after the loss, the premium is paid, the insurers
should be bound by this subsequent payment of the premium by the insured

116

COMMERCIAL LA W .

[August,

or his representatives, within the designated period. But if a certain time
were allowed— say fifteen days— and the language of the policy be such as
indicates the intention o f the parties that the payment of the premium dur
ing the fifteen days is to be made by the life-insured personally, or during
his life, then if he dies, and the premium is paid by his executors during
the fifteen days, it has been held that the sum insured cannot be recovered
of the company. And it has also been held, that where the printed pro
posals allow a certain time within which the premium may be paid, after
it becomes due, and they are not referred to in the policy so as to be
come a part c f the contract, if the life-insured dies after the premium be
comes due, the executors cannot, by a tender thereof within the time al
lowed by the proposals, recover on the policy.
Where this time had elapsed, and the insurers, under their rules, had
charged their agent with the amount— not hearing of the default from
him, o f which it was the agent’s duty to notify them immediately—
and the insured some clays afterwards, paid the premium, which was
received by the agent, it was held that this was not sufficient to re
new the policy. This seems to he a harsh and extreme case; for if
the insurers had themselves received and accepted the money from the
insured, there seems no reason for doubting that this would have
bound them. Practically, the utmost care is requisite on the part of
the assured, to pay his premium as soon as it is d u e ; and it is a wise
precaution to pay it a little before.
This is the only proper and safe course. But we believe it to be not
unusual for the insurers to accept the premium if offered them a few days
after, and continue the policy as if it were paid in season, provided no
change in the risk has occurred in the mean time.
The time o f the death is sometimes very important. If the policy be for
a definite period, it must be shown that the death occurs within it. If
there were an insurance on a man’s fife for a year, and some short time
before the expiration o f the time he received a mortal wound, ,of which
he died one day after the year, the insurer would not be liable. And the
terms of the policy may possibly make it necessary to determine which o f
two persons lived longest; as if a sum were insured on the joint lives of
two persons, to be paid to tbe representatives o f the survivor. In the cases
in which a question of this kind has been raised, there has been some dis
position to establish certain presumptions of the law ; as that the older
survived the younger, or the reverse ; or that the man survived the wo
man. "We apprehend, however, that there is not, and cannot be, any other
presumption of law on the subject than that, after a certain period of
of absence silence, there is a presumption of death; and seven years has
been mentioned in England and in this country as this period, and even
sanctioned by legislation in New York. But all questions of this kind we
regard as pure questions of fact. Whichever party rests Iris case upon
death or life, at a certain time, must satisfy tbe jury upon this point, by
such evidence as may be admissible, and sufficient. If the presumption of
death in seven years is relied upon, it has been supposed that this strongly
imports life during the whole of that period, and dsath only at the end,
unless there be evidence o f some particular peril at some definite tim e;
but this may well be doubted. It is held iu England, that where a person
has not been heard o f for seven years, there may be a presumption that he

1867]

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117

is dead, but no presumption as to the time o f his death, and the fact that
he died at the expiration of seven years, or at any other time within the
seven years, must be proved by the party relying on it.
OF THE INTEREST OF THE INSURED.

Every one insured in any way must have an interest in the subject-mat
ter of the insurance. Any one may insure his own life ; but if the insured
and the life insured are not the same, that is, if the insured be insured on
some other life than his own, interest must be shown. The English stat
utes have been supposed to require this ; and although we have no precise
legislation on the subject, it must be true in this country, then an insur
ance of any kind without interest is a mere wager, and a void contract.
The general rule is, that any substantial pecuniary interest is sufficient,
although not strictly legal or definite. This lias been held in the case o f
a sister, dependent on a brother for support ; and the rule would be held
to apply not only to all relations, but where there was no relationship, if
there were a positive and real dependence. That is, any one may insure a
sum on the life of any person on whom he or she really depends for sup
port or for comfort.
So an existing debt gives the creditor an insurable interest in the life of
a debtor. But if the debt be not founded on a legal consideration, it does
not sustain the policy. And if the debt be paid before the death of the
debtor, the insurers are discharged. So it was thought they were, on the
general principles o f insurance, if the debt were paid after the death o f the
debtor, and before the insurance is paid, or if on any ground, or by any
means, the whole risk o f the insured is terminated, and he cannot suffer
any loss by the death o f the life-insured. But recent adjudication in Eng
land has unsettled the former rule in regard to this question, and now it
seems probable that the insurers would be required to pay under such cir
cumstances. The leading case in England on this subject had a peculiar
interest, from the celebrity of the life-insured, as well as from the severe
examination to which it has recently been subjected. The plaintiffs were
creditors of the Et. Hon. William Pitt, and on November 29, 1803, ob
tained from the Pelican Life Insurance Company an insurance on his life
for seven years, renewable from year to year for seven years, at an annual
premium, which wa3 duly paid, and the policy renewed, until his death,
on January 23, 1805. The debt of Mr. Pitt, at the time the policy was
effected, and during the rest of his life, was equal to the sum of £500, and
at his decease amounted to £1,108 11s. 6d., which sum, he dyipg insol
vent, was paid to the plaintiffs by his executors, the Earl of Chatham and
the Lord Bishop of Lincoln, out o f the money granted by Parliament for
that purpose. The insurance company, against which this suit was brought
on the poKcy, resisted payment, on the ground that the contract of life
insurance was one of indemnity, and the plaintiffs having been fully paid
had been fully indemnified. This defence was sustained. But in recent
cases this case is said to have been wrongly decided, and that both the
law and usage in England are otherwise; and now, it seems that the in
surers would be held there, although the whole debt were paid. W e
think it would be so here; but in this country, life insurance companies
sometimes avoid the question by making it a part o f the contract, that the

118

COMMERCIAL LA W .

[August,

insured creditor shall transfer to the company an amount o f his debt equal
to that for which he is insured ; and then if the debt is paid it must be
•paid to them.
A difficult question arises, when the insurers on the death of a debtor
pay the sum they insured to the creditor, and the representatives o f the
debtor, or a surety or guarantor o f the debt, defend themselves against the
creditor on the ground that the debt is paid and fully discharged by the
payment under the policy. The cases may not settle this question ; nor
does the practice, so far as we are aware o f it. The general principles of
all insurance would lead to the conclusion that by such payment the debt
is paid, so far as the creditor is concerned ; but that the insurers have by
substitution the rights o f the insured, and may prosecute, in his name, but
for their own benefit, any action against the estate or representatives of
the debtor which the creditor might prosecute himself. Recent adjudica
tion, to which we alluded in the last paragraph, would, however, lead to a
different conclusion, and deny the insurers any benefit from the debt, and
oblige representatives o f the debtor to pay it to the creditor, to whom it
hacCbeen also paid by the insurers.
OF THE ASSIGNMENT OB A LIFE POLICY.

Life policies are assignable at law, and are very frequently assigned in
practice. A large proportion of the policies which are effected, are made
for the purpose of assignment; that is, for the purpose of enabling the in
sured to give this additional security to his creditor. If the rules o f the
company or the terras o f the policy reler to an assignment o f it, they are
binding on the parties. On the one hand, an assignment would operate
as a discharge o f the insurers, provided a rule or expressed provision gave
this effect to the assignment. And, on the other, if the agreement were
that the policy continue in favor o f the assignee, even after an act which
discharged it to tlia insured himself, as, for example, his suicide, the in
surers would be bound by it.
It is an important question, what constitutes an assignment. The gen
eral answer must be, any act distinctly importing an assignment, And,
therefore, a delivery and deposit o f the policy, for the purpose of assign
ment, will operate as such, without a formal written assignment. So will
any transaction which gives to a creditor of the insured a right to payment
out of the insurance.
It seems, however that delivery is necessary. And where an assignment
was indorsed on the policy, and notice given to the insurer, but the policy
remained in the possession o f the insured, it was held that there was no
assignment. Where, however, the assignment was by a separate deed,
which was duly executed and delivered, this is an assignment of the policy,
without actual delivery o f the policy itself. And a mere verbal promise to
assign, a valuable consideration being received for the promise, lias been
held good as gainst the insured ; and, peihaps, after proper notice, against
his assignee in bankruptcy.
This subject of assignment is frequently regulated by the by-laws o f the
insurers, or by the terms of the policy. Where it is not, we see no reason
for saying that the right to know and choose the party assured does not
apply, as in other kinds of insurance; and consequently the insurers are

COMMERCIAL LAW.

1861]

119

discharged if there be an assignment without their knowledge and con
sent. The cases, however, do not settle this question, and there opinions
that life insurance is in this respect distinguished from other insurance.
OF WARRANTY, REPRESENTATION AND CONCEALMENT.

The general principles on this subject are the same which we have
already stated iu reference to other modes o f insurance. In life policies,
however, the questions which must be answered are so minute, and cover
so much ground, that no difficulty often arises except in relation to the
answers. One advisable precaution is for the answerer to discriminate
carefully between what he knows and what he believes. I f be says simply
“ yes” or “ no,” or gives an equivalent answer, this is in most cases a strict
warranty, and avoids the policy if there be any material mistake in the
reply. Hut where the answerer adds the words “ to the best of my knowl
edge and belief,” lie ■
warrants only the facts of his belief, or, in other words,
nothing but bis own entire honesty.
The cases which turn upon the answers to the questions are very nu
merous, but they necessarily rest upon the especial facts of each case and
hardly permit that general rules should be drawn from them. Some,
however, may be stated.
The first is, that perfect good faith should be observed. The want of
it taints a policy at once, and the presence o f it goes far to protect one.
Thus, where the life-insured was beginning to be insane, but was wholly
unconscious of it, the policy was not vitiated by the concealment, although
two doctors in attendance upon him knew how the case stood.
There is a warranty, or statement, usually making a part of nearly all
life policies; it is that the life-insured is in good health. But this does
not mean perfect health, or freedom from all symptoms or seeds of dis
ease. It means reasonably good health ; and loose as this definition or
rule may be, it would ba difficult to give any other. And if a jury on
the whole are satisfied that the constitution o f one warranted to be “ in
good health” is radically impaired and the life made unusually precarious^
there is a breach o f the warranty, although no specific disease is shown
which must have that effect. Ou the other hand, this watranty is not
broken by the presence (if a disease, if that be one which does not usually
tend to shorten life (in one English case dyspepsia was said to be such a
disease), unless it were organic, or had increased to that extreme degree
as to be of itself dangerous.
Consumption is the disease which is most feared in this country as well
as in England. And the questions which relate to the symptoms o f it,
as spitting o f blood, cough and the like, are exceedingly minute. But
here also there must be a reasonable construction of the answers. Thus,
if spitting o f blood be positively denied, there is no falsification in fact,
though literally speaking the life-insured may have spit blood many times,
as when a tooth was drawn, or from some accident. If there be an action
on the policy, and the insurers rest their defence on any falsification of
this kind, the question usually put to the jury is, W as the party affected
by any of these or similar symptoms, in such wise that they indicated a
disorder tending to shorten life • And any symptom o f this kind, how
ever slight— as a drop or two of blood having ever flowed from inflamed

120

NEW YORK CITY GOVERNMENTS AND FINANCES.

[AuffUit,

or congested lungs— should be stated. In a case in Massachusetts, an ap
plicant for life insurance answered an interrogatory whether he had ever
been afflicted with a pulmonary disease in the negative, and in answer to
an interrogatory whether he was then afflicted with any disease or dis
order, and what, stated that he could not say whether he was afflicted with
any disease or disorder, hut that he was troubled with a general debility
o f the system ; and it was proved that the applicant was then in a con
sumption, the symptoms o f which had begun to develop themselves five
months before and were known to him, but were not disclosed to the in
surers, although sufficient to induce a reasonable belief on the part o f the
applicant that he had such a disease. It was held that, whether these
statements amounted to a warranty or not, they were so materially un
true as to avoid the policy, although the insured, at the time of his appli
cation, did not believe that he had any pulmonary disease, and the state
ment made by him was not intentionally false, but, according to his be
lief, true.
The insurers always ask who is the physician o f the life-insured, that
they may make inquiries of him if they see fit. And. this question must
be answered fully and accurately. It is not enough to give the name o f
the usual attendant, but every physician really consulted should be named
and every one consulted as a physician, although he is an irregular prac
titioner or quack.
I f the warranty be that the life-insured is a person of sober and tem
perate habits, it has been held, in an action on such a policy, that the
jury are not to inquire whether his habits o f drinking are such as might
injure his health ; for if he has any “ habits of drinking,” this would dis
charge the insurers, because they have a perfect right to say that they
will insure only those who are temperate. But it might be answered, that
although the insurers have this right, and there may be good reasons why
this should be the general practice, yet unless they use tne word “ absti
nence,” or sometiiing equivalent, they have no right to say that any one
is not “ temperate” who does not drink enough to affect his health; for
certainly all “ intemperance” does this.

SEW YORK CITY GOVERNMENT AND FINANCES.
The statement submitted to the Board o f Supervisors b y the Comp
troller, giving the financial condition o f the City o f New York, and the
aggregate taxation required for the maintenance o f the Government, is
well calculated to excite a lively apprehension, showing, as the figures
do, a steady increase o f expenditure, far disproportionate with that o f
wealth and population. The Comptroller, therefore, appeals to the Con
stitutional Convention now in session at Albany, to devise some more
economical method o f maintaining the city and county governments, and
declares that there can be rip just cause for such an increase o f taxation.
H e also very properly urges the Board o f Supervisors, and through them
all Boards and Commissioners authorised to disburse the public
moneys, to exercise the greatest prudence and economy in all expendi
tures with which they are charged.

1867]

NEW YORK CITY GOVERNMENT AND FINANCES.

121

The management o f public affairs in the City o f New York has long
been a prolific theme for criticism and wordy declamation.
This is no
recent thing; for we remember that in 1849 the Democratic City Con
vention put forth an address in favor o f Myndert Van Schaick for
Mayor, in which censures were freely bestowed upon the administration
o f affairs, very similar to those which are current at the present time.
The remedy then proposed and afterward applied was the revision o f the
charter o f the city, b y which the executive and administrative branches
o f the government shall be separated from the legislative, and devolved
upon departments. The result proves that the experiment was not a
successful one. The expenses were increased more rapidly than ever,
as the following table will show :
Year.
Valuation.
Total tax.
1S25...............................$101,160,046 $387,448 85
125,288,518
509,178 44
1830...........................
1835............................. 218,723,703
965,602 94
1810............................
252,233,515 1,354,835 29
1845...........................
239,995,517 2,096,191 18
1849
............
256,197,143 3,005,762 52
1850 ............................. 286,061 816 3,230,085 02

Year,
Valuation,
1851
............... 320,110,857
1852 ............................. 351,768,426
1853 ............................. 413,631,382
18s4 ............................. 462,021,734
1S55 ............................. 486,998,278
1856 ............................. 511,740,491

Total tax.
2,924,455 94
3,380,511 90
5,066,698 74
4,845,386 07
5,843,822 89
7,075,425 72

A later mode of decreasing the expenditures has been by means o f
commissions appointed at Albany.
Under this system in 1857 the
Legislature enacted the Metropolitan Police Bill, which removed the
police from the control o f the municipal authorities, and devolved them
upon a Board o f Commissioners appointed by the Governor and Senate.
This department o f the government has been for many years growing
into a costly body. The following table shows the increase under the
last years o f the two municipal systems and the first years o f the metro
politans :
1851
................................................$492,000 11856.............................................................. $819,000
1852
................................................ 510,000 1857............................................................. 828,000
1853 ............................................................ 540,000 | 1858............................................................ 888,588
1854............................................................. 615,000 I 1859.............................................................1,211,992
1855 .............................................................. 872,000 |1860........................................................... 1,325,560

In 1860 the Legislature made another change by enacting that the
Board o f Supervisors should annually cause to be raised by tax the
amount o f money required from the city for the total expenses o f the
police district, since which time the police items do not appear in the tax
levies enacted annually at Albany. The amounts since appropriated by
the Board o f Supervisors have been as follows :
1862
1861.........................................
1864.................................

$1,683,650 I 1865 .......................................................... $2,211,556
1,743,920 1866
2,166,684
2,062,720 | 1867 ......................................................... 2,531,247

These figures certainly do not indicate that the change o f systems
worked any decrease in the expenses of the police.
The statistics o f the Governors o f the Alm s House show also a similar
tendency to increase, as may be seen in the following table:
1850
...................
$400,000 I 1856.............................................. $613,450
1851
................................... 330,000 |1857............................................. 925,000
1852.............................................. 390,000 I1858..........
843,800
1854............................................... 385,000 1859
605,000
1855...................................... 427,000 11800................................................... 780,250
On the last night of the session o f 1866 the Legislature abolished this
VOL. LVII---- NO. II.

NEW YOKE CITY GOVERNMENT AND FINANCES.

122

[A u g u s t,

Board and created the Department o f Public Charities. In 1865 their
expenditures amounted to $988,450. They have not materially in
creased.
The public schools also constitute an item continually on the increase.
The following is a table o f the expenses from 1850 to 1859 :
1850 ........................................................
1851 .
1852 .........................................................
1853 ........................................................
1854 ........................................................

$267,968
447,487
502,315
604,000
668,814

1855
...........................................
1856
...........................................
1857 ........................................................
1858
...........................................
1S59 ........................................................

$956,000
1,023,354
1,100,410
1,226,013
1,216,000

In 1865 the amount appropriated was $2,298,508 5 8 ; and several
hundred thousand dollars have been since added. The Comptroller
states it at $2,939,348. The other Boards and Departments have a
similar record to show. These figures indicate the tendency o f mat
ters both before the adoption o f the expedient o f governing by com
missioners, and the tendency since that time, to have been the running
year by year into prodigality and extravagant expenditure. In fact,
this large increase would appear to have taken its rise on the first divi
sion o f the Government into irresponsible departments.
W e have
given above the total yearly aggregate and taxation from 1825 to 1856 ;
we now add the figures for each year since the passage o f the M etro
politan Police A c t :
.

Year.
Valuation. Aggreg’ etax
1857
$521,175,252 $*<,111,798 09
1858
.............. 53 *.,194,290
8,621,091 31
1859 ........................... 551,923,122
9,860,926 09
1860 ........................... 577,230,956
9,758,507 86
1861
.............. 581,579,971 11,627,632 28

Year.
Valuation.
1862 ......................... $571,967,345
1863 ........................... 594,196,813
1864 ........................... 634,615,890
1865 ....................... 608,784,355
1866 ........................... 737,989,908

Aggreg’etax
$9,906,271 10
12,091,905 14
13,705,092 86
18,202,857 56
16,950,767 83

The amount o f revenue required for 1867 is put down by the Comp
troller at $21,889,655 98. The Board o f Supervisors will somewhat
modify this aggregation, hut the rate of taxation cannot vary greatly
from three per cent.
H ow these rapidly increasing expenses can be stopped is o f course a
vital question.
Much is expected from the deliberations o f the Con
stitutional Convention, and we trust that their first effort in the way
o f solving the problem will be to give us a homogenous efficient muni
cipal government. W ith this change, it strikes us that many o f the
difficulties in the way o f initiating reform would he removed. The
plurality o f the functions, and the division o f them into departments
virtually independent o f each other, totally overthrows responsibility,
and tolerates the introduction o f abuses which are hard to redress.
A
complete deliveranoe from this incongruous mediy o f state, county and
city departments is then ot the first importance.
Many other changes
have been proposed. The most important perhaps is that suggested
by, we believe, the Citizens’ Association, to the effect that one branch o f
the Common Council be composed o f members elected only by tax
payers, and that body to originate all bills for the appropriation o f
money. This would certainly give promise o f a more responsible body
o f men than our present city fathers, and has, besides, much else to re
commend it. But, as the first and most important change, we desire
an efficient, responsible government in the place o f the many-headed
makeshift we are now afflicted with. W hen that change is accomp
lished we shall be r ;ady to look further.

PROJECTED RAILROAD FROM OSWEOO TO NIAGARA RIVER.

123

PROJECTED RAILROAD FROM OSWEGO TO NIAGARA RIVER.
The Board of Trade o f Oswego some time since appointed Messrs.
E. Talcott, Charles Rhodes, A . P. Grant and John McNair a committee
to examine the subject of a Lake Shore road between Oswego and Ni
agara river and to report to the Board the result of such investigation.
As a connecting link in the communication between the West and the
cities of New York, Boston and Portland upon the Atlantic seaboard this
question has become one of great importance to the whole country. At
a meeting of the Board of Trade, July 15, Hon. Cheney Ames in the
chair, the following report of the committee was made, read and accepted :
REPORT.

The projected railroad from Oswego to the Niagara river has hereto
fore been the subject of much and careful consideration, not by those
locally interested in its success, but by both eastern and western gentle
men of very great intelligence and practical experience in railroad and
commercial matters, and its importance has been uniformly conceded as
affording a much needed additional avenue for the transit o f western
trade. The volume of this trade is constantly and rapidly increasing,
and with the steady growth of the western States in wealth and produc
tive population and the completion of the Pacific railway, now progress
ing with astonishing rapidity, its prospective increase is beyond the reach
of present computation. A t an early day, and in the judgment o f you?
committee at a day as early as the completion of the Pacific railway, with.
which the proposed Lake Ontario Shore road will be brought into direct
communication, the latter will cease to be regarded as a competitor of
existing railway lines; but the strife will rather be a combined one on
the part of the several lines leading to the eastern seaboard, to furnish the
required facilities for transportation between the East and the West.
Hitherto the principal objection to building this road has been the want
of suitable railroad connections from Oswego eastward to tide water. The
two roads from Oswego to Syracuse and to Rome both connect at those
points with the New York Central alone, and as that road has imposed
upon freight to and from Oswego extra rates, as way freight, sometimes
making the cost of transportation by railroad from New York to Oswego
as great as to Buffalo— 135 miles further west— a movement in favor of
a load from the Niagara river to Oswego has involved the necessity of
providing at the same time for a line hence to the Hudson, independent
of the New York Central. This difficulty, so far as trade with New York
city is concerned, now no longer exists. By a contract recently perfected,
between the Oswego and Syracuse, the Syracuse and Binghampton, and
the New York and Erie roads (and which is to continue in force as long
as the charters of those roads or any renewals of them shall survive), the
former road is to make its guage, by a third rail, the same as the other
two ; the two former to connect at Syracuse by a tunnel under the Cem
tral, and the New York and Erie is to transport through freight from
Binghampton to New York at the same rates per mile which it shall at
the time charge on through freight from its western termini at Buffalo or
Dunkirk to New York. The work under this contract is now in active:

124

PROJECTED RAILROAD FROM OSWEGO TO NIAGARA RIVER.

[ A u g u st,

progress and tlie whole is to be completed and the arrangement go into
full operation the coming fall.
This important and harmonious combination o f interests which have
hitherto, to some extent, been conflicting will restore the city of Oswego
to her true geographical position— that of the nearert point on the great
lakes to tide water— and open to the large commerce from Canada and
the western States, already centered at Oswego, as well as its future in
crease, a reliable outlet by rail to New York and Philadelphia at current
railroad rates.
The Atlantic ports, besides New York, are preparing to make a vigor
ous struggle for a participation in the western trade, which has been well
styled the great commercial prize of this continent.
The State of Massachusetts, in order to lower the grade and shorten
the distance between the Hudson and its chief commercial city, is per
forating the Hoosic mountains by a tunnel, second in extent only to that
now being cut through Mount Cenis, in Italy, and likely to equal that
work in cost. That State, however, appears to be undaunted by the
growing estimates of the cost of her great work, as it progresses, and
will expend on this
miles of tunnel a sum sufficient to construct at
least three such roads as the one proposed from Oswego to the Niagara,
and her controlling motive is, through that tunnel, to seize upon and draw
to Boston a portion of the trade of the west, the shortest and most
feasible route for which will then be over the road now under discussion.
The city of Portland, also, in view o f her excellent commercial posi
tion and unequalled harbor, demands hor share of the western trade, and
is moving actively to secure it. There is now in operation a connected
chain of railroads from Oswego direct to Montpelier, Vermont. A com
mittee, composed of prominent gentlemen o f high character and repre
senting large railroad and commercial interests in northern New England,
recently visited Oswego for the purpose of securing a connected railway
line from Portland to Oswego, and hence by the most direct feasible route
to Chicago. After a consultation with your Board of Trade and other
citizens, those gentlemen assured you that a road should be speedily
built from Portland to Montpelier, thus furnishing a connected line from
Portland to Oswego; and they ask of us and the Lake Ontario shore
country, that by the proposed road to the Niagara we supply the only
link wanting between Portland and Chicago.
The completion of the Southern Central road will add another impor
tant connection to a Lake Shore road. This road, which starts from Fairhaven, at the head of Little Sodus bay, on Lake Ontario, fourteen miles
west of Oswego, will extend southerly along a remarkable easy grade to
the Pennsylvania State line, and then connect with roads running into
the coal fields and oil regions of that State and to Philadelphia. This
road is already graded nearly its whole length, and it is now under con
tract for completion ready for use in the fall o f 1808. The proposed
road would cross the Southern Central at or near Fairhaven, and the two
roads be obviously of great mutual benefit.
The Eastern and Southern lines of road to which we have referred will
all find their most desirable and direct connections for the west with the
projected road at or near Oswego, and with the advantages afforded by
these connections, none of which have ever before been' presented, an en
tirely new aspect is given to the proposed enterprise.

1267]

PROJECTED RAILROAD FROM OSWEGO TO NIAGARA RIVER.

125

A t the western extremity of the State not only are the same connec
tions open to this road which are now enjoyed by the Central, to aid the
lake shore roads and the lake steamers at Buffalo and the Great Western
railroad at Suspension Bridge, but a connection with the Great Western
or with a new and more direct line across the peninsula south of the
Great Western at Lewiston, would be preferable to either of the others
or to all of them combined.
By crossing the Niagara at Lewiston, there will be a very considerable
saving, both in distance and grade, as this route presents the shortest line
to Detroit and Sarnia, and also avoids an ascent of about 330 feet from
the level of Lewiston to Suspension Bridge, and an equal descent on the
west side of the river before reaching St. Catherines and Hamilton, between
which last city and Detroit the elevation of Lake Erie above lake Ontario
is overcome by well distributed grades.
THE ROUTE FROM LEWISTON TO OSWEGO.

From Lewiston to Oswego, a line by way of Rochester has been surveyed
by competent engineers, and in respect to grade, cheapness o f construction,
beauty of natural scenery, and the productiveness of the country, it is for
an equal length of rail, without a parallel in the State. The grade is gen
erally level or descending gently to the East, and nowhere on the whole
line, after leaving Lewiston, does it exceed twenty-six feet to the mile.
The distance from Lewiston to Oswego is 141 miles.
From Lewiston to
Rochester the survey was made in 1857, by Messrs. Parkinson <fc Smith,
C. E., whose maps, profiles, estimates and report are now in the possession
of your Board o f Trade.
In their report of this survey these gentlemen make the following state
ments :
“ W e may safely say that never have we, in all our engineering experi
ence during the past twelve years, and in almost all parts of the United
States, found a district o f country seventy-three miles in length that pre
sents so many favorable features for the construction of a first-class railroad.
In the opinion of theciost eminent geologists, the country through which
our line passes, on the north of the ridge, is the shelving beach o f an
ancient lake, of which the ridge itself was the margin, and our line, run
ning very nearly in the direction of the water line, could not of course be
very undulating. The country is so remarkably uniform and level that no
grade occurs on the entire route, after leaving Lewiston, over 26 feet per
mile. There are 16^ miles of grades under five feet per mile, and nearly
17 miles of the lines are level. Sumning, we find that there are sixtyeight and one-fourth miles out of 73 2-10 miles— the entire length of the
line, with grades under 20 feet per mile. Your road compares very favor
ably with the New York Central, not only in point of grades and align
ment, but pos-esses an advantage in distance not unworthy of notice. The
soil of the entire district passed over is of most excellent quality, and the
division of the country into so many small farms causes it to resemble a
a continuous village.
“ This estimate of cost for a single track, with station houses, depots,
fencing and rolling stocks, with a rail weighing 70 pounds to the yard, ex
clusive of the cost of right of way is, $15,550 per mile” (made on prices of
labor ana materials in 1857).

126

PROJECTED RAILROAD FROM OSWEGO TO NIAGARA RIVER.

[A u g u st,

From Rochester to Oswego the survey was made in 1865, by Mr. John
McNair, C. E. The distance between the places is 69 48-100 miles, for
about one half of which the line runs along the same “ shelving beach ” as
before described, and presenting the same features in soil, grade, and even
ness of surface. From this point to Oswego, Mr. McNair made his survey
with great care, and states that the grade will nowhere on this line, exceed
the maximum west of Rochester, of 26 feet to the mile. These surveys
from Lewiston to Oswego, present a line in the highest degree inviting as
a railroad route and it would certainly seem most, surprising that
such a line, offering such unusual advantages in the way o f local
business, and cheapness of construction and connecting directly with
roads running to Chicago and the far West, should have so long re
mained unoccupied— were it not for the want heretofore felt of proper
outlets, eastward from Oswego to the seaboard. But with the entire re
moval of this difficulty by the completion of the three several con
necting lines of railway to the East and South, before referred to, all of which
must become outlets and feeders for the road in question, the undersigned
do not hesitate to express their conviction that no line for a railroad of equal
length can be found in this country having as many marked advan
tages, and promising so large a return upon the capital required for its
construction, as the one from Oswego to the Niagara River. It will form
part of a route from Detroit to New York city, for both freight and travel,
at least equal to any other, and so far as all of Northern New York and
New England are concerned, a route with which no other can successfully
compete.
In estimating the future demands of trade upon the means of transpor
tation, we may accept the fact as already demonstrated by the history of
the internal commerce of the country during the last fifteen years that rail
roads are to do the great bulk of the carrying trade.
Among the great canals of this country constructed for the transporta
tion of produce, the Erie canal is the only one which has not already prov
ed a failure. Pennsylvania has sold her great canal to a railroad company.
Ohio has tried without success to sell hers, and the Wabash canal o f In
diana is wholly without value to the State, more than one-half o f it being
left without repair and utterly useless for commerce.
The railroads have
virtually superseded them all. Even our Erie canal has its lesson in the
same direction, though strenuous efforts have been made to retain its trade
by reducing tolls, and increasing its capacity for large size boats.
In 1830 the tolls on the Erie canal between Albany and Buffalo were,
on up freights $10 22 per ton and on down freights $5 11. In 1858 they
had been reduced to $1 46 per ton each way, and they have for many
years been adjusted on many articles with a view to meeting railroad com
petition. In 1830 the capacity o f the largest boats on the canal was 70
tons. Since the enlargement their capacity is increased to 224 tons. In
1853 Erie canal tolls were removed from our railroads, and until that
time they were comparatively but little used in this State for freight. In
that year the freight carried on the New York Central was 360,000 tons,
and on the New York and Erie 631,039 tons, total 991,039 tons. Freight
carried by the Erie canal the same year, 4,247,853 tons. In 1859 the
freight carried on the Erie canal was 3,781,684 tons, while the two rail
roads above named carried 1,703,391 tons. In 1866 the deliveries of

1867]

NORTH CHINA TRADE.

227

freight by canal at tide water was 1,107,537 tons. The total freight car
ried on all the State canals in that year was 5,775,220 tons; while that
carried on the railroads of the State was 9,210,476 tons. The revolution
indicated by these statements, and which has been wrought in the last
13 years in the use o f railroads for freight, speaks unmistakably for the
future. The tendency o f trade has been and is towards greatfer rapidity
in its transit between the western and eastern markets. The telegraph in
a few moments of time announces to the western merchant the state of
the eastern markets both at home and in Europe. Short commercial
papers required by banks and the commercial requirement for trade now
is celerity of movement with the lowest attainable point in cost. In view
of the facts and suggestions which we have presented, your committee
are of the opinion that the proposed railroad from Oswego to the Niagara
river should be built, and we recommend an early organization o f a com
pany for that purpose and vigorous prosecution o f the work to a speedy
completion.

NORTH C n iM T R A D E *
At present the northern ports are supplied with goods from Shanghae
and Hongkong, where the native dealers go and purchase the greater part
o f the manufactures that are sold in these markets; and until the ports of
Chefoo and Tientsin are brought into direct communication with the
British manufacturer, and goods are sent out from England direct to them,
these ports can hardly be said to be opened to British commerce, nor will
British trade in these ports and the whole north of China be satisfactorily
developed. The laying down price o f goods at the northern ports, if re
ceived direct from England, would be necessarily less than what goods
bought at Shanghae, with the addition of freight, insurance, etc., now cost
at Chefoo and Tientsin before they can be offered to native dealers ; and
the difference in cost in favor of the direct shipments would materially
increase the consumption of British manufactures if they took place.
The trade of Tientsin is now so linked with that of Chefoo that the one
cannot be considered separate from the other in this point of direct trade
with England, and ships coming out might bring cargoes for both places,
as they are only separated by a sea journey of twenty-four hours. O f the
three treaty ports in the Gulf of Pacheli, the one best adapted for direct
trade with England would certainly be Chefoo. It is the only one of the
three ports which is not closed by ice during the winter. The navigation
is easy; the anchorage is safe at all seasons of the yea r; and it is
already a large central market for the Gulf trade, and even now is a dis
tributing depot for the whole of the North o f China.
It is very difficult to slate what will be the probable future capability
of Chefoo and the North of China in regard to British manufactures.
The statistics of the last five years offer no criterion for a decisive judg
ment in this matter.
The lamented civil war in the United States o f America, by reducing
* Extracts from a report on the North China Trade by one of the British Consols in that
section.

128

NORTH CHINA TRADE.

[August,

the quantity of cotton available for England and the consequent advance
in the price of goods, has kept the China trade in an abnormal state since
1862. Still there is sufficient in the records of the trade to warrant some
deductions as to the future. In 1861, when cotton goods were less than
two-thirds of their present cost, there were upwards of 1,000,000 pieces
of English cotton goods purchased at the ports of Chefoo and Tientsin.
In 1863, when cotton goods cost as much again as in 1861, the consump
tion was still over 1,000,000 pieces of goods at the two ports. In 1861
the peace of the north o f China was endangered by rebels who ravaged all
the province of Sbangtung, and the consumption of that year can hardly
be considered as an average; for in 1865, when the northern provinces
were tranquil, the consumption was as large, although the goods cost *50
percent more than before; and at Chefoo during that year (1865) the
natives bought more than 250,000 pieces of cotton goods at these high
rates, which shows that notwithstanding the shipments to other northern
ports, Chefoo is gradually resuming its former importance. It should be
bo.ne in mind also that previously to 1862 the importation of raw cotton
to the port of Chefoo was 50,000 bales a year and about 80,000 bales at
Tientsin ; whereas in 1864 there were 60,000 bales exported from Chefoo
alone. The north o f China, besides the 1,000,000 pieces of cotton goods
that it consumed in 1861, purchased about 17,000,000 pounds of cotton
or a quantity sufficient to make 2,000,000 pieces of cotton g ood s; thus
making in 1861, when the foreign trade had only begun and times were
unfavorable, owing to rebels, a purchase by the north o f China o f cotton
goods and cotton stuffs to the equivalent of 3,000,000 pieces of English
cotton goods in one year. At the same time very large quantities of cot
ton cloths, woven at Shanghae and the Middle Provinces of the Empire,
were imported to Chefoo and Tientsin to supply the wants of the natives,
so that this must be added to the actual total consumption of cotton
cloths in the north of China. Since then the northern Chinese have not
only produced the cotton sufficient to clothe themselves, but for export in
considerable quantities; but if the inducement of high prices ceases to
excite the northern Chinese to produce cotton for export, they will again
be purchasers of cotton and cotton goods to the extent already indicated.
The vast capability of the north of China to purchase cotton goods may
be gathered from the fact that the bulk of the natives are seldom seen
wearing cloths made from English cottons. They appear to be clad in
native woven materials, and as soon as British merchants can supply the
north o f China direct from England with goods at such a moderate cost
as to be within reach of the masses of the people, the increase of con
sumption will probably be immense.
Even supposing that the bulk of the people should continue to prefer
the native woven cloth, still when the prices are so low as not to excite its
production, they will prefer importing it from Shanghae to at least the
quantity used before the export began; and British trade could even then
find a very great opening, hitherto untried, of offering to the northern
Chinese weavers English spun cotton yarn to the extent of at least 15,000,000 pounds a year— that being the equivalent of the cottOn yearly
imported for spinning and weaving purposes. Indeed, could cotton yarn
be again imported at former low prices from England direct to the north
of China, the consumption of this article would form a larger trade than
that of cotton goods.

1867]

NORTH CAINA TRADE.

129

During the last three years it lias become impossible to draw the atten
tion of natives to buying yarn, owing to ifs high price; but there is evi
dence to show that could it be offered to them at a moderate cost, they
would prefer using it to their own unevenly spun webs. In the Province
of Shangtung, which is specially dependent on Chefoo for its trade, there
are more than 10,000,000 pounds of cotton goods woven by the natives
each year, and consequently the opening for a trade in yarn at this port is
prodigious.
Although the trade in metals has not yet assumed any great importance,
moderate quantities of English iron and lead have found their way to
Chefoo. The consumption uf lead up to the present time is about 800
tons a year, and it is chiefly used in making minium or red lead, with
which the natives color the paper employed in ceremonies, and for special
correspondence and for placards. About 600 tons of English iron are
now imported a year to Chefoo. The native iron competes with it in
price for certain sorts, but eventually, when iron is sent out direct from
England, so as to lay down here at cheaper rates than what it now costs
to bring it from Hong Kong and Shanghae, after it has been shipped to
those ports from England, there will doubtless be much larger consump
tion of every description. There is a large trade for needles and it is on
the increase. This branch o f trade is supplied from Germany. The
growing taste for all European articles of utility is extending itself to
other articles o f hardware which might be developed if a direct trade with
England took place.
There is not much request for woolen cloths, though moderate sales of
cotton and woolen mixtures are made here. The use of wadded clothing
and sheep skins for woolen garments, which are thus cheaply obtained,
will always be a bar to a large consumption o f English woolen goods.
Russian woolen cloths are in limited use, and the cheap German light
woolen fabrics find some favor with the better classes as medium clothing
in the spring and autumn.
English coals have been in good demand since the extension of steamer
trade to the north o f China, and during the year 1865 the consumption
exceeded 2,000 tons. As Chefoo is the coaling station for nearly all the
mercantile steamers going to Tientsin and Newohwang, and as the Eng
lish and French navies have coal depots in this port for the use of vessels
of war, this branch of trade would greatly increase if coals were sent out
direct from England. At present the cost is high, owing to the great
expense incurred in transhipping the coal from Shanghae, whence the
principal supply comes. It would be an advantage to the British Gov
ernment if the Royal Navy steamers could get coal here direct from home.
There is good coal to be had in Shangtung, in which province Chefoo is
situated. A sample o f this coal was submitted to Admiral Hope in 1862,
and the officers appointed to test it reported favorably on its serviceable
quality for steamers. How far the coal mines are from Chefoo has not
been ascertained. The mineral resources of Shangtung are reported to be
large. There are sulphur and mineral springs about thirty miles distant
from this port, renowned for their healing qualities, and if a proper geo
logical survey were made o f the country much might be discovered that
would add to the commerce of Chefoo.
Amongst the articles that can be exported from Chefoo there is brown

130

NORTH CHINA TRADE.

[August,

silk, produced from the wild silkworms that swarm in the mountain for
ests ; and the quantity o f this article that could be brought into the
market if prices suited may be computed at not less than 12,000 bales
a year. This silk is of different qualities, according to the process and
care adopted in reeling it from the cocoons, and some o f it is well adapted
for manufactures. The natives weave plain silk goods from it, called
pongees, and about 100,000 pieces o f these stuffs could be bought annu
ally. There is also a considerable quantity of fine yellow silk produced
in the province. In 1861 and 1862 nearly 1,000 bales were exported,
but since then very little has been offered for sale. The cause of this
silk not making its appearance at Chefoo is partly owing to its being
worked up by the native looms to supply the local demand for silk piece
goods. Formerly the greatest portion o f silk goods used in the north was
brought from Foochow and other southern manufacturing towns; but
since the rebels devastated those countries this has ceased to be the case,
though at present Chefoo imports a moderate quantity of Chinese woven
silks, as well as many other branches of commerce. The value of these
silk goods imported in the year 1865 was about £45,000 sterling. The
silk trade of Chefoo will only be developed and rightly ascertained when
by direct importations of English manufactures it will attract to itself all
the produce that the natives have to exchange for European commodities.
The capability of Chefoo and the neighboring port of Tientsin for
shipping cotton direct from England seems most strangely to have been
overlooked or neglected. During the whole of the years 1863 and 1864
more than 20,000,000 pounds of cotton were shipped away from the two
ports for Shanghae and Hong Kong, the greater part of which was thence
transhipped to England. If the cotton had been shipped either at Chefoo
or at Taku (the seaport of Tientsin), the extra cost of freight, the expense
of transhipment, of fire and marine insurance, and other incidental
charges, as well as a difference in price, in all amounting to at least 2d. a
pound, would all have been saved and a great impulse to British trade in
the north of China would have been the resnlt. In case of cotton being
again required from the far East for the Lancashire looms, Chefoo and
Tientsin are likely to export large quantities direct to England.
Besides these matters, which directly interest British commerce, Chefoo
has commercial relations with Japan, where there is a large market for the
medicinal roots and herbs o f the north of China, and whence the supplies
of isinglass and earthenware are received in return.
A trade in seaweed and peas is also springing up with the Russian
ports to the north of the Corea, and the former article is distributed all
over the north of China, from Chefoo. There is every probability of a
large increase in this business, and that Chefoo will become the centre of
the northern trade with those countries and with the Corea, since the trade
has already fallen into this channel.

RAILROAD EARNINGS FOR JUNE AND SECOND QUARTER.

131

RAILROAD EARNINGS FOR JUNE AND SECOND QUARTER.
The gross earnings for the under-specified railroads for the month of
June, 1866 and 1867, and the difference (increase or decrease) between
the two periods, are exhibited in the subjoined statement:
Railroads.
1866.
1867.
Increase. Decr’ se
Atlantic and Great Western.................................. .......... $474,441 $380,796
$94,645
Chicago and Alton ............................................................
371,543
343,671
27,872
Chicago and Great Eastern...............................................
118,783
87,783
31,0(10
24,434
Chicago and Northwestern .............................................
922,891
898,357
Chicago, Rock Island and Pacific ............... .................
350,920
261,480
89,440
Cleveland and Toledo.
(Not received in time
124,905
E rie....................................................................................... 1,243,636
118,731
71,063
Illinois Central ..................................................................
567,679
496,616
Marietta and Cincinnati.....................................................
106,315
9,780
96,535
50,105
Michigan Central................................................................
335,082
284,977
88,408
Michigan Southern............................................................
392,640
304,232
147,593
Milwaukee and Prarie du Chien......................................
262,172
114,579
Milwaukee and St. Paul....................................................
244,376
22,686
221,(90
13,789
Ohio and Mississippi . . .................................................
253,924
240,135
127,081
Pittsburg, Fort Wayne andChicago................................
633,667
5- 6,586
20,881
Toledo, Wabash and Western..........................................
325,69
304.810
42,127
Western Union...................................................................
102,686
60.559
Total in June.............................................................. $6,706,446 $5,721,537
Total in May.................................................................. 6,613,070 6,088,3*25
Total in April............................................................... 5,696,240 6,030,678

$. . ,

$984,909
524,745

334,438

The gross earnings per mile of road operated for the same month o f
the years, respectively, are shown in the following table :
-Length in miles—,
Railroads.
1866. 1867.
Atlantic & Great Western......................... ..
507
Chicago and Alton.............................................
280
Chicago and Great Eastern.............................
224
Chicago and Northwestern.............................................
1,032 1,145
Chicago, Rock Island & Pacific......................
410
Cleveland and Toledo......................................
Erie........................................................................
775
Illinois Central .................................................
708
Marietta and Cincinnati....................................
251
Michigan Central...................... . .....................
285
Michigan Southern...........................................
524
Milwauaee & Prairie du Chien.......................
234
Milwaukee and St. Paul....................................
275
Ohio and Mississippi......................................
340
340
Pittsburg, Ft. Wayne and Chicago..................
468
468
Toledo, Wabash and Western........................
521
521
Western Union...................................................
177
177
Total in May.
..

7,207

7,124
7,297
7,297

Earnings—,
1866. 1867. Incr.
$936 $751
1,327 1,227
314
424
894
7S4
856
633
1^570
802
423
1,176
749
1,116
881
747
1.354
625
580
$953
917
790

127
101
39
176
168
627
75
35
272
40
288

1^443
701
3S4
1,000
5S1
489
806
712
1,082
585
342
$803
834
826

Dec.
$1^5
100
110
110
218

$150
83
36

The results of railroad operations for June are given above i and from
these it will be seen that all the roads from which reports have been received
have decreased their earnings. In June, 1866, the earnings on 7,034 miles
were $6,706,446, and in June, 1867, on 7,124 miles, $5,721,537, the
Aggregate decrease being $984,909, or at the rate, as shown in the second
table, of $150 per mile o f road operated. This is certainly very large.
The decrease from the month of May last, however, is only $31 per mile
of road. The exhaustion of the old crops appears to be the scapegoat
for this condtion of railroad matters.
The results of the second quarter of the current year compared with

[August,

DEBT OF NEW JERSEY.

132

those of the corresponding quarter of 1866 are shown in the statement
which follows:
Railroads.
Atlantic and Gt. Western......................
Chicago and Alton ................................ ............
Chicago an4 Gt. Eastern....................................
Chicago and Northwestern.................. .............
Chic., Rack Island and Pacific............. .............
Erie............................................................
Illinois Central......................................
Marietta and Cincinnati. . .. ...........
M.chigan Central................................... .............
Michigan Southern................................. .............
Milwaukee and P du Chien.................
Milwaukee and S t Paul
......... ....... .............
Ohio and Mississippi.............................
Pi ttsbu rg, F r. Way rie and Chic............. .............
St. Louis. Alton and T. Haute............. .............
Toledo, Wabash and Weste n .......... .............
Western Union....... ............................

Gross earnings.—n
1S65
1867.
$1,2S3,105
970,643
966,313
341,256
280,286
2,275,944
2,406,744
925,400
793,679
3,458,014
1,394.230
259.829
1,044,014
981,712
1,051,996
1,228,560
321,193
611 507
644,785
807,803
1,660,115
1,915,983
503.099
515,963
912,424
950,910
159,121

Total 2d quarter................................. ............. 19,123.376
Total 1st quarter................................. ............. 16,-31,753

17.84',468
16,071,818

/—Earn's p. m.-^
1S66.
1867. Inc. Dec.
$■3,604
*2,631
73
3,461
3,466
16
1,219
1,001
218
2,205
2,102
302
2,257
811
1,936
4,384
4,462 78
2,187
1,970
217
1,134
1,035
99
3,663
3,445
218
2,344
2.007
337
2,724
1,372
. 1.3 5 2
2,223
2199
24
2,3 *5
2,376
19
4.094
3.547
547
2,395
2,459 64
1,829 78
1,751
1,316
899
417
2,639
2,241

2.432
2,192

207

The total length of the above railroads having been in 1S86 7,244, and
in 1867 7,334 miles.
W ith regard to the quarterly summary, the result is a decrease in
earnings, as compared with the 2d quarter of 1866, to the extent of $207
per mile of road operated, and since January 1 the decrease has been
$250 per mile. This is about 5 per cent, on the aggregate.
These results are better than were anticipated, and the loss has
probably been balanced by reduced expenditures. If this has been the
case, the net earnings will not be injured, while the coming half year is
full of promise and may, from increased business, fully make up the gross
totals of the railroad year 1866.

DEBT OF NEW JERSEY.
W e have lately received the published reports of New Jersey for the
past year. From them it appears that the debt of the State at the
close of the fiscal year, November 30, 1866, amounted to the sum of
$3,395,200, evidenced by certain bonds authorized by law, as follows:
By act of May 10, 1861, the Governor and Treasurer, for war purposes,
were directed to borrow, on the issue of 6 per cent, bonds (exempt from
taxation), none of which were to be made pavable at a later date than
January 1, 1885, not exceeding $2,000,000. Under this act the following
issues were made and were outstanding at the date mentioned :
Due Jan. 1.
1867..................
1868..................
1869 ..............
1870..................
1871..................
1872................

Amount.
........

99,500

....... 100,000
....... iro, no
....... 99,900

Due Jan. 1.
Amount.
1873.................. ....... $100,000
1*74..................
1875 ................. ........ 100,000
1876.................. . . . 100,000
1877..................
1878..................

Due Jan. 1.
Amount.
1879..................
1880.................. ....... 100,000
1881.................. ....... 100,000
1882..................
18S3 ................
1884.................. ____ 100,000

— total outstanding $1,798,900.
By a supplementrry act, approved March 24, 1863, the same officials
were authorized to borrow, for like purposes, on similar bonds, none of
which were to be made payable later than January 1, 1896, an amount

DEBT OF NEW JERSEY.

186V]

not exceeding $ 1,000,000.
are payable as follows :
Due Jan. 1.
1886 ...........
1887.............
1S88............
1889.............

Amount.
. $ 100,000
100,000
. 100,000
. 100,000
.

133

The issues under this act outstanding at date
Dne Jan. 1.
Am ount.Due Jan. 1.
Amount.
1890
.....................
..§100,000
1894........................... $100,000
1891
.....................
.. 100,000
1895
77,000
1892
.....................
.. 62,600
1890........................... 67,000
1893 ...........
.. 96,300

— total outstanding $1,002,900.
By a further act approved April 14, 1864, the same officials were
authorized to borrow for like purposes such sums of money which,
with the moneys borrowed under preceding acts, should not exceed
$4,000,000, and to issue bonds therefor at 6 per cent., none o f which
should have a longer time to run than to January 1, 1902. This issue of
bonds, however, was not exempted from taxation, and none of them
were sold prior to the passage o f an act approved April 4, 1866. This
latter act stated in its preamble that $4,000,000 had been heretofore
appropriated for paying the expenses incident to the suppression of the
rebellion ; but that not more than $3,000,000 had been borrowed, leaving
authority to borrow $1,000,000 more; and since the State was indebted
more than $600,000 for expenses incident to said suppression, this act
provided that the Governor and Treasurer might borrow the sum of
$1,000,000. The outstanding issues under these two laws at the close o f
the fiscal year were as follows:
Due Jan. 1,
Amount. |Due Jan. 1,
Amount.
1897..................................
$199,400 H-99............................................................... $123,000
1698 ........................................................... 200,000 11902 ...........................................................
71,000

— total outstanding $593,400.
Thus of the $4,000,000 authorized only $3,395,200 have been issued.
The first law passed upon this subject (that of 1861), provided that not
more than $100,000 thereof of principal money, should he made payable
in any one year. The same provision was found in the supplementary
act of 1863, except that in the latter it is enacted that no part of the
principal should be paid before 1886, and the further supplement of 1864
declares that not more than $200,000 of the principal authorized by its pro
visions should be made payable in any one year, and no part thereofbefore
189V. It follows therefore that these bonds, which compose the evidences
of the State debt, are payable in instalments, and at different times between
the year 1865 and the year 1902. The payment of interest and principal
as they become due is made the duty of the Commissioners o f the Sinking
Fund from the moneys o f the Fund furnished them by the Treasurer,
whose duty it is to pay over to them all moneys raised by law, and received
by him for the purpose of liquidating the principal and iuterest o f this bond
debt.
The three first instalments o f the principal (those o f Jan. 1,
1865-66 a n d ’6V) have been already paid from the Sinking Fund, the
chief resource of which is the proceeds of a general tax of $280,000 a
year on the property within the State.
The population of New Jersey, by the census taken in 1865, was VV3,V00,
being an increase in five years of 101,6V1, the popolation in 1860 having
been 6V2,029. Taking the debt as it stood on the 30th November, 1S66,
at $3,395,200, the distributive share to each inhabitant appears to be about
$4.39 per capita.

134

CLEVELAND, COLUMBUS AND CINCINNATI RAILROAD.

By an act approved March 21, 1866, the counties, cities, towns, town
ships and other municipal corporations of the State were directed to prepare
and forward to the Comptroller a succinct statement, properly certified, of
all moneys expended by them for the purposes o f the late war. Circulars
were, in accordance with this act, transmitted under date of March 30,
1806, to all such corporations, requesting returns on the subject before
May 1. With few exceptions the required reports were made, and, ex
cluding those not reporting, the aggregate amount of bounties paid, or
indebtedness incurred on account thereof, was found to be $23,447,988 77,
as follows:
Counties.
Population. Amount. Per capita.
Atlantic.................................................................................
11,344
$135,188 00
11:93
Bergen. . . .....................................................................................
24,636
146,661 81
38:42
Burlington......................................................................................
60,719
1,43',968 34
28:29
Camden........................................................................................
38,464
802,439 46
20:86
Cape May..................................................................
7,625
162,931 33
21:37
Cumberland..................
26,233
650,755 78
21:81
Essex................................................................
124,441
3,749,258 50
30:13
Gloucester.......................................................................................
20,134
608,290 00
30:11
Hudson............................................................................................
87,819
3,40! ,468 11
38:73
Hunterdon.....................................................................................
40,758
1,099,791 68
26:98
Mercer............................................................................................
41,478
1,658,852 04
39:99
Middlesex........................................................................................
35,916
1,403,808 52
39:08
Monmouth......................................................................................
42,868
1,067,286 86
24:89
Morris..............................................................................................
36,513
652,176 26
17:S6
Ocean........................................................................................
14,262
167,533 50
11:74
Passaic............................................................................................
34,856
896,198 69
25:71
Salem...............................................................................................
23,162
878,898 25
37:94
Somerset.........................................................................................
21,610
781,7:18 00
36:17
Sussex ...........................................................................................
2.3,929
644,915 80
26:95
Union.................................................................................. ...........
35 410
1,551,945 68
43:S2
Warren............................................................................................
31,523
752,880 16
23:68
Total......................................................................................

773,700 $23,447,988 77

$30:31

This total represents the moneys absolutely contributed by the towns,
counties,&c., for the purposes of war,which added to the State debt, $3,395200, shows the entire contributions of New Jersey for the purposes men
tioned. This is $34 70 percapita, varying in each locality ; or reckoning
five persons to a family, as the average, would make 173.50 to each head
of a family. The interest on this amount at 6 per cent, is $1,610,591TW
a year, or $2,08 per capita. By an additional dollar per head annually,
successively placed at compound interest as a sinking fund, the principal
amount may be liquidated in thirty-four years.
The total valuation of the State is $467,918,324. The State debt in re
lation to this valuation, is as $0:72 to every $100 and the local debt as
$5:01 to every $100, or together $5:73 to every $100. This is by no
means burdensome to a wealthy and industrious people.

CLEVELAND, COLUMBUS AND CINCINNATI RAILROAD.
The Cleveland, Columbus and Cincinnati Railroad forms, in connection
with the Little Miami and Columbus and Xenia Railroads, the direct line
between Cleveland on Lake Erie and Cincinnati on the Ohio, a distance
of 255 miles. A t Cleveland it connects with the Lake Shore line to
Buffalo, and through that with the New York Central, which together form
the great through line from New York to Cincinnati. The Bellefontaine
Line leaves the road at Gabon, 80 miles distant from Cleveland, and the

1867]

CLEVELAND, COLUMBUS AND CINCINNATI RAILROAD.

135

Columbus and Indianapolis Railroad leaves it at Columbus, both extend
ing westward via Indianapolis,in the direction of St. Louis: and in its
course it is crossed by the Sandusky, Mansfield and Newark Railroad (at
Shelby), and by the Pittsburg, Fort Wayne and Chicago Railroad (at Crest
line). At Delaware it gives off the Springfield Branch which connecting
with the Little Miami forms a second route to Cincinnati.
The Cleveland Columbus and Cincinnati Railroad Company were incor
porated in 1846; and the road, commenced in 1848 and opened by sec
tions, was completed in February, 1851. The curves at Delaware con
necting the line with the Springfield, Mount Vernon and Pittsburg Rail
road (now the Springfield Branch) were constructed in 1853.
This
branch was purchased by the Company in January, 1861 :
The constituents of the railroad as at present existing are as follows:
Main Line, Cleveland toColnmhns..................................................................................... 13L39 miles.
Delaware Curves, at Delaware..... ......................................................................................... 5.77 “
Springiield Branch, Delaware to Springfield..................................................................... 49.80 “

— making a total of 160.96 miles. The length of second track (all on
the main line) is 55.8 miles, and there are also about 35 miles of sidings.
In the following statement is contained a review of the operations of
the company for the six years ending December 31, 1866, and its financial
condition at the close of each annual period.
The amount o f rolling stock in use in the stated years was as follows:
1861. 1862. 1863. 1861. 1S65. I860
Locomotives................................................................
42
46
47
44
44
43
Passenger Cars..................................................................................... 31
32
26
27
28
24
Mail and baggage cars......................................................................... 8
8
9
9
10
10
Freight cars, nouse..............................................................................335 394 511 483 473 468
“
“
stock.............................................................................. 112 123 107 121 122. 109
“
“
platform....................................................................... 81 109 169 181 179 160

The miles run by locomotives with trains in each year, are stated in the
following summary:
1861.
Passenger service............................. 231,489
Freight service................................. 347,057
Fuel service........................................ 24,470
Repair service..................................... 20,489
Switching service............................... 83,655
Total...................... ..................... 707,100

1862.
262,298
472,261
35,299
41,965
114,805
926,628

1863.
280,071
491,323
40,140
48,891
151,702
1,012,130

1864.
310,731
415,745
35,616
76,049
164,227
1,032,368

1865.
318,753
403,272
47,023
35,358
161,414
1,967,820

1866.
361,787
458,683
50,908
18,823
175,391
1,055,592

The number of passengers and tons o f freight carried, and the mileage
thereof, is shown in the following statement:
1861.
1862.
1863.
1864.
1865.
Passengers carried............................................ 180,490 280,054 395,850 532,142 559,384
Miles (1,OOOde) travelled......... ......................................................
25,597 33,662 35,499
Tonnage carried........
416,756 571,087 607,063 562,758 459,703
Miles (l,000ds) of carriage................................. 39,455
57,083 58,358 52,779 42,238

1866.
398,561
22,343
517,199
45,153

The earnings and expenses yearly for the same years, and the distri
bution of the profits from operations, were as follows :
1861.
1862.
1863.
1864.
1865.
1866.
Passengers..................................................... $370,019 $444,945 $617,552 $808,424 $974,220 $628,230
Freight......................................................... 737.413 1,133,262 1,244,091 1,394,683 1,120,452 1,072,325
Express.........................................................
22.944
25,119
35,984
37,984
55,276 43,009
Mails..............................................................
29,100
31,154
31,243
31,243
31,243
31,243
R ents............................................................
84,127
82,363
84,086
84,808
81,837
75.715
Berea Branch................................................................................................
2,227
2,883
7,759
Mileage of cars............ '.............................
14,863
........
18,114
7,210
10,973
10,604
L. M. & C. & X . RRCo’s .............................................................................................
37,740
10,867
Other sources.............................................................
472
1,049
6,585
3,604
2,677
Dividends and interest.................... * . . . .
5,782
7,602 119,824
46,184
67,905
45,270
Total earnings.................................. $1,263,253 1,724,917 2,151,943 2,499,348 2,336,132 1,933,700

136

[August,

CLEVELAND, COLUMBUS AND CINCINNATI RAILROAD.

From which must be deducted operating expenses, as follows:
Transportation.................... ......... $200,845
19,541
General expen's.................. .........
Repairs of track..................
41,172
Rcpaiis engines.................. .........
“
cars......................... .........
42,388
“
build’gs.................. ......... i
“
bridges.................. ......... }- 24,036
“
fences..................... .........
Fuel.......................................
Damages & gratuities___ .........
7,547
Oil and waste................ ..
Use of cars...........................
5,132
Telegraph expenses........... . .. .

$251,229
20.394
l.)5,045
57,546
39,194

Operating expenses........... ......... $535,005

$634,170

$306,656
24,969
223,098
70,924
55,184
,i
18,718
21,778 1
5.961
1
3,929
j
66,384
109,385
14,354
9,516
8,636
12,066
1,581
3,459
2,868

Profits from operations___ ......... $728,248

$402,374
34,397
375.493
90,132
89,681
33,428
8,931
3,609
146,600
56,702
17,931

$428,779
27,624
491,827
133,178
109,306
94,234
34,523
8,S22
157,064
38,344
19 588

$435,911
27,045
349,110
104,869
79,901
20,224
17,945
13,453
147,455
2s,042
21,298

4,906

7,334

8,764

$898,703 $1,264,185 $1,550,622 i$1,254,017

$1,090,747 $1,303,240 $1,235,163

$835,510

$079,633

$172,305

$187,577
20,200
479.74S
42,158

These profits were disposed o f ion the following ;accounts:
Taxes, State and national
Roads & depots..................
....
Interest balances.............
Dividends <n stock.............. ........
Old accounts settled.........
Surplus to credit.................. ...........

$34,245
22,35*1
474,62 J
207,846

22.855
974,050
32,017
27,570

1$86,983

$166,013
167,875

549,667

899,204

26,507
599,635

666,590

2,040

37,063

The amount of materials used in track repairs in each year was as fol
lows :
1861.
1862.
1863.
1864.
1866.
1865.
600
New iron m ils.................................... tons.
250
451
800
164
New steel rails..................
27
Re-rolled rails....................
2,307
2,591
2,75)
3,924
4,428
4,09i
Rails repaired....................
New cross-ties..................

number. 15,302
65,000
u

Joint chairs.......................
Iron joiut splic’ ..................
Joint holts & nuts,
bpikes ....................

...

14,172
67,943

13,838
91,848

10,000
6,000

1,677
9,400

' 4,687
218,033

526

679

235
824

kgs.

1,151
14,681
9,088
83,602
112,037
82,377
--------Pounds---------12,530
8,906 159,757
279,044 378,934 220,706
,-------Pounds------ ■«
442 109,120 101,915
1,163 221,840 174,630

The financial condition of the company at the close o f each year, as ap
pears on the general Balance Sheet, is summed up in the following state
ment of liabilities and profits:
1861.
1861.
1863.
1864.
1865.
1866.
Capital stock............................. $4,746,200 $5,000,000 $6,000,000 $8,0.0,000 $6,000,000 $6,000,000
Funded d eb t...............................
510,000
510,000
510,000
491,500
475,000
450,000
Bills payable...............................
.........
.........
150,000
....
.........
.........
Divid’ s p lyable............................
237,310
499,430
249,895
419,692
299,835
239,8S8
.
B a la n c e due on accounts ........
7,023
304
9,537
2,107
28,225
Surplus...........................................
416,826
444,398
313,081
6,136
43,200
81,358
Total liabilities........................ $5,917,359 $8,454,130 $7,232,513 $6,919,435 $6,843,260 $6^71,246

Against which are charged as follows, viz.
Road and Depots............................. .
Equipment...................................... ........
Stocks and uonds ..........................
Materials on band...........................
Bills receivable.................................
Balance due on acc’ts......................
Real estate ......................................
Springfield Branch..........................
Wood lands (balance)....................
Insurance scrip.................................
Loan to Cleveland and Mahoning RR.
Total profits, &c...........................

1,230,777 <1,394,7S3 4,000,000 <1,000,000 <1,070,000
723,116 825,285 750.000 750,000 790,000
674,007 11,032,625 1,137,750 ]1,137,750 :1,182,750
134,789 231,501 286,973 321,941 315,419
596, (DO 600,50S 691,946 514,112 372,764
11,8)9
68,184
74,574
2,504
72,117
53,358
10,905
3-,456
11,863
19,987
22,576
21,147
It,70S
17,603
16,358

637,216

24,000

2,9*80
24,000

20,979
2,905
24,000

13,656
1,170
24,000

5,627
1,355
24,0.0

2,344
770

4,654,130 ’7,232,513 6,919,435 (j,843,260 6,771,246

1867]

INDIA RAILROADS AND THE COTTON TRADE.

137

The following table, deduced from the above, exhibits the relation of
capital, earnings, profits, &c., and the rates o f dividend paid in the
several vears :
1861. 1862. 1863. 1S64. 1865.
1866.
Cost of road, &c., per mile...................................... $21,439 $25,938 $27,330 $24,837 $24,837 $25,413
Earnings per mile......................................................
6,614 9,031 11,266 13,085 12,493 10,124
Expenses per mile......................................................
2,801 3 320 4,443 6,619 8,118 6,565
Expenses percent......................................................
42.35 36.76 39.43 40.00 65.00 64.81
5,711 6,823 6,466 4,375 3,559
Net earnings per cent per mile...............................
3,813
Net earnings per cent.................................................
57.65 63.24 60.57 59.40 35.00 35.19
19.79 20.02 19.03 12.75 10.54
Net earning to capital per cent...............................
13.85
Net earnings to cost, &c., per ct..............................
15.60 22.02 24.99 26.03 17.61
14.00
15
11
Dividends per cent—cash..........................................
13
15
8
10
20
Dividends per cent—stock........................................

The net earnings, as above, are the gross earnings less operating
expenses, and before any deduction is made for taxes or other extraordinary
accounts.
The market price of the stock o f the company (range) for each month
is stated below :
1861.
January............................... 92 @100
Febraaiy............................. 94 @ 94$
March.................................. 93}@100}
April........................................90 @ 95
May........................................91 @ 93$
June.................................... 93$© 97
July...................................... 94 @ 98
August................................. 94 @ 95
Sept’ r.................................. 95 @ 96$
October............................... 96$@ 99
Novem’r................................ 97 @ 99
Decem’r.................................100 @102
Year.....................................90 @102

1862.
110 @110
103 @110
109}@U3
112 @115
112!@1I6$
119 @120
113 @125
118 @125
121 @125
132 @135
335$@133
141 @145

1863.
147 @175
155 @161
158 @167
158i@160
160 @165
159 @101
155 @160
155 @155
150 @155
160 @160
155 @157}
163 @181

103 @145

147 @181

1864.
1865.
1866.
180 @180 170@183 110 @123
146 @157
150@160 114 @115
157$@175 130@150 111 @115
165 @174
. @ .. 1141@115
163 @168
130@ 35 114 @115
167j@169 12S@130$ 116 @118
149 @170
130@133 110 @113$
170 @171
121@130 110 @111$
170 @170
12o@128 111$@115
164 @164
127@130 113 @115
170 @170}
127@130 111$@113$
180 @182
125@127} 109 @112
146 @182

124@1S0

109 @123

INDIA RAILROADS AND THE COTTON TRADE.
The efforts recently made b y the English Government to develop the
resources o f its vast emrpie in Hindostan, evince remarkable energy and
sagacity. Probably no country in the world has made more material
progress within the last few years than British India. Notwithstanding
the discouragements arising from the mutiny o f the Sepoys, and the
disasters o f famine and financial collapse, the present condition and future
prospects o f the people have been greatly improved. Railroads have
been built, highways have been thrown up, canals widened and deepened,
obstructions removed from rivers, bridges constructed over rivers and
mountain chasms, and the j ungle has been rendered passable for the first
time.
These great changes in the condition o f the interior o f British India
were initiated, or, at least, actively commenced in accordance with a
policy adopted at the commencement o f our civil war. England, in
place o f attempting to break up our monopoly o f the cotton trade b y an
open and formal assistance o f the South, resolved to effect the same
object by other and surer means. Her statesmen, with far reaching
sagacity, resolved to improve the opportunity afforded b y the American
crisis, so as to attach the tottering Indian Empire to the imperial gover
nment by a bridge o f gold. India has always been famous for cotton
VOL. l v ii — NO. II.
4

138

INDIA RAILROADS AND THE COTTON TRADE.

\AugUSt,

manufactures of unrivalled fineness and elegance, and it was known that
her climate presented admirable facilities for the culture of the raw
material.
Under the stimulus of high prices the whole world was
invited to compete for the production o f cotton. Rut special measures,
as is well known, were adopted to develop its culture in British India,
and for this purpose the wealth and experience o f the English people
and government were brought into requisition.
The opportunities were favorable. The Imperial Government had got
rid o f the cumbersome and obsolete machinery of the East India Com
pany, and assumed direct control o f the vast Empire o f India. In
1860-01, the Marquis Dalhousie, Governor General, inaugurated the
extensive system o f internal improvement, which was to enable the
people o f Hindostan to compete with America for the cotton trade of
the world. T o effect this object great changes were required. The most
favorable cotton regions o f India were inaccessible for want o f proper
facilities for communication. In order to get the staple to a market, it
was necessary to carry it b y man- and horse power over vast tracts of
jungle, across mountains and ravines, and ferry it over great rivers.
To obviate these difficulties, the railroad movement inaugurated was
o f the most comprehensive character. The population o f India subject
to the English government is probably not less than two hundred m il
lions. The country comprises an area o f 1,364,000 square miles, stretch
ing 1,800 miles in length and 1,500 miles in breadth from east to west.
There is a coast line o f 3,200 miles, o f which 1,900 are on the Indian
Ocean and 1,300 on the Bay o f Bengal. The climate is tropical, but
embraces every variety o f temperature from the extreme cold o f the
Himmalayan mountains to the warmth of the tropics. This great country
is broken up into an almost endless geographical diversity. There are
vast and impassable jungles, huge forests, mighty rivers, mountain
chains and extensive plains, the whole being combined with a wonderful
luxuriance o f vegetation, which at every step obstructs progress and
almost prevents any passage b y man or beast.
It was over this country, presenting so many difficulties, that Lord
Dalhouse contemplated his admirable network o f railroads. The system
was, of course, planned with reference to the geographical features o f
the country, so as to connect the extremes o f the vast empire with
grand trunk lines, from which branch lines, or feeders, might be con
structed, according to the future requirements o f local commerce. Four
thousand six hundred miles o f railroad were to be built, at an estimated
expense o f $400,000,000. The credit o f the Imperial Government was
granted to private companies, guaranteeing a certain amount o f interest
on all money invested in Indian railroads. The government wisely left
all details of construction and management to the energies o f the com
panies themselves, which had every motive for economy, as all money
earned above the guaranteed dividends was clear gain. This system
worked so well, that last year several Indian railways exceeded the 5
per cent, guaranteed interest. During the half year ending December
31st, the East Indian and the Great Peninsular railroad companies were
able to declare surplus dividends. H alf the amount o f surplus income
was devoted to the repayment o f former advances for interest by the
government, and the other half was divided among the stockholders.

1367]

INDIA RAILROADS AND THE COTTON TRADE.

139

The net amount o f guaranteed interest paid by the government diminishes
every year. In 1865 the amount was £ 1,450,000; in 1866 it was
£800,000, and this year only £600,000 was required. These figures
indicate the profitable character o f these Indian railroad enterprises.
The original system o f Indian railroads contemplated the establish
ment o f communications between Bombay, Madras and Calcutta, the
three great centres o f military and commercial power. The extremes
of the empire were united, and roads were cut through the great
agricultural and producing districts.
The East Indian Railroad Com
pany has now under its management 1,310 miles o f railway, constructed
at an expense o f $100,000,000, and is the longest line o f road in the
world under one company.
The Great Indian Peninsular road will
be 1,233 miles long when completed, and next year it will be open for
traffic along its entire length. In 1868 from Calcutta to Bombay, a dis
tance of 1,458 miles, there will be an unbroken railroad communication.
The branch lines connecting with the main stems are o f great extent, and
will cost as much money as the main roads. T o show the progress o f
Indian railroads it may be stated that it is only fourteen years since the
first line was opened in that country. A t the present time there are
3,200 miles in operation, and next year a thousand additional miles will
be completed.
This development o f railroads in British India is o f the highest im
portance as affecting the cotton trade. Formerly we enjoyed a monopoly
of the m arket; now, nearly one-half o f the cotton manufactured in Eng
land is derived from India alone. A late Liverpool circulars estimates
the quantity o f American cotton now on hand and to arrive before D e
cember 31st, 1867, at 680,000 bales, while the supply o f India cotton
for the same period is estimated at 925,000 bales. W ithout express
ing any opinion as to the correctness o f these figures, the more important
fact for us to remember is that the manufacturers o f England have so
altered and improved their machinery as to be able to use in much larger
proportion than formerly the shorter India staple, while, at the same
time, the quality o f cotton from that country has been decidedly and
steadily improved, and is being more carefully prepared for market.
Judging then o f the future from the past, it may be expected to equal
the American article at no distant period.
The establishment o f railroads in India removes the chief obstacles to
the growth o f an almost unlimited supply o f cotton. The country is
admirably adapted for it, and the teeming population has long been
familiar with the staple, and exhibit great aptitude in its culture. The
best cotton regions have not yet been opened to the world ; the only
facilities for reaching a market being the slow and expensive process of
cattle teams. The new railroads, however, will couvey the products of
these regions to market cheaply and expeditiously. And it is a noticeable
feature oflndian railroad companies that their revenues are derived from
goods rather than from passengers. O f $35,000,000 income o f Indian
railroads during the three years ending June, 1866, two-thirds were
received from merchandise traffic.
These facts throw considerable light on the future o f the American cot-j.
ton trade. They indicate that American cotton will henceforth be subjec,
to a keen and active competition. The cheapness o f labor in India w ir

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[August,

also tend to place us at a disadvantage, as it is doubtful whether the
freedmen can work as cheaply as the Hindoo, who lives on a handful
o f rice a day, and whose clothing consists of a yard o f calico a year.
It is evident therefore that the trade in our chief staple will be sub
ject m the future to new conditions that may seriously affect our entire
country. In this view it is o f the utmost importance that every facility
should be extended to the cultivation o f the staple in the Southern States,
and that every obstacle should be removed. The injudicious cotton tax,
that operates as a direct bounty to foreign production, should be instantly
repealed, and new capital should be tempted into the production o f the
staple by the indispensable guarantees o f security and political quiet.

THE GROWTH OF OUR CAPITAL AND INVESTMENTS.
In every country where a high degree o f industrial activity and
material prosperity prevails, there is continually going on an increase
and accumulation o f capital; and the laws b y which that increase is
governed have received some attention from political economists, though
far less, probably, than their importance deserves. O f these laws, one
o f the best established is that the capital o f any nation increases in
proportion as individual property is protected b y law and as safe remu
nerative investments are easily accessible to all classes o f the com
munity. In M exico and some o f the South American republics, property
o f all kinds being insecure, capital increases very slowly, if at a ll; and
when the insecurity reaches a certain point, capital undergoes an actual
diminution, and the country grows poorer every year. In England,
on the contrary, and in this country, where the central principle o f
the laws rests on the security o f person and property, and where the
rights o f capital are fenced round with all the safeguards which the wit
o f man can contrive, wealth grows very rapidly, and the increase of
capital has surpassed anything ever realized in the history o f modern
nations.
Next to the security of property, one of the most important condi
tions for the increase o f wealth is that good investments shall be
easily accessible to all classes o f men who have the ability, b y frugal
thrift end skillful industry, to amass a surplus above their wants. In
this respect, for some years past we have had an advantage over other
countries. It is true that our currency for three or four years after the
commencement o f the war, was being gradually inflated. But the effect
o f the redundant issue o f paper money was twofold. It acted in favor
o f the poor and o f the great masses o f debtors throughout the country,
b y enabling them to pay their debts in a denomination o f money o f less
value than that in which they were incurred; and what is o f more im
portance for our present purpose, it gave that stimulus to all kinds of
industry which an abundant currency among an industrious, energetic,
ingenious, versatile people never fails to develop. The rapid, steady
growth o f wealth, and the extraordinary material prosperity which re
sulted astonished our political economists, because it was realized in
apparent defiance o f some o f those general facts and laws which they
had been accustomed to regard as equally stern and unyielding with the
laws o f gravitation. Notwithstanding that in the prodigious expen

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141

diture o f the war, capital was annihilated and spent with a profusion un
known before, the industry o f our people created new capital as rapidly
as the old was wasted. If we spent two millions a day on the war, we
made three or four millions a day by accessions to the activity o f
our production. To supply the place o f a million o f our hardworking
citizens, we invented or constructed labor-saving machines, which, at
less expense, would do the work o f several millions of men.
It
was with reference to this state of things that M r. Seward, on a memor
able occasion, asserted publicly that “ not only had the war not im
poverished any body but it had largely augmented the national re
sources.” Something o f that enduring valor, resistless impetuosity and
overwhelming force which immortalized our fighting armies in the field
seemed to communicate its fire to our industrial armies in their peaceful
arts at home. Consequently every body seemed to be growing rich,
and as was natural, there never was such luxury and extravagance among
any people in the world as prevailed in this country during the years
1803 and 1864.
Such were the results o f the extraordinary investments for capital which
were developed on all sides by the extraordinary stimulus which
operated during the war.
It would be absurd to say that all the
growth and wealth which were then realized were healthful and perma
nent, but it would be equally wrong to suppose that the augmentation
o f wealth was radically unsound, shadowy and unsubstantial. W e might
as well say that the vegetable life o f the tropics is less sound and perfect
than that o f Russian America because it is produced more rapidly and
under the stimulus o f a more exciting temperature. It was one o f Mr.
McCulloch’s speculative errors when he was Comptroller o f the Currency
that he failed to recognise the vast forces which were at work to increase
the wealth o f the country. In a circular letter to the National Banks,
containing practical hints o f the greatest value, he ventured into more
abstract disquisition, as follow s:
“ Although the loyal States appear superficially to be in a prosperous condition, that
such is not the fa ct: that while the Government is engaged in the suppression of a
rebellion of unexampled fierceness and magnitude, and is constantly draining the
country of its laboring and producing population, and diverting its mechanical industry
from works o f permanent value to the con traction of implements of warfare: while
cities are crowded, and the country is to the same extent depleted, and waste and ex
travagance prevail as they never before prevailed in the United States, the nation,
whatever may be the external indications, is not -prospering. The war in which we
are involved is a stern necessity, and must be prosecuted for the preservation of the
Government, no matter what may be its cost; but the country will unquestionably
be the poorer every day it is continued. This seeming prosperity of the loyal States
is owing merely to the large expenditure of the Government and the redundant
currency which these expenditures seem to render necessary.”

In a Comptroller o f Currency such a want o f appreciation might pass
without attracting special notice, but in a Secretary o f the Treasury it
could scarcely tail to lead to some errors in wielding the vast adminis
trative powers which in the anomalous condition o f our finances are at
present concentrated in his hands.
D id space permit we might take the principle that “ capital increases
in any country in proportion as safe remunerative investments are offered
o it,” and show how it illustrates one o f the compensations which our
ational debt has brought with it. In no other country in the world are

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[August,

there such lucrative investments for larger or smaller amounts o f money
as are offered among us. In no other country can the frugal laborer
or domestic servant, when they have saved up 50 or 100 dollars, invest
it so as to bring in an annual income o f 7 to 8 per cent. In no other
country can the millionaire place his money so as to secure with equal
returns o f interest an equal degree o f security. The rapid increase of
capital in England is partly attributed to the safe investments which
consols afford for all moneys whatsoever, and if offering, as they do,
absolute security with moderate interest, the British consols have done
so much to stimulate the growth o f wealth in England, what may not
our American consols be expected to do in this particular, when they offer
with absolute security a high rate o f interest. W e shall not only attract
foreign capital, but we shall utilize our own capital and make it fructify.
E ornow , as heretofore, it is a distinguishing characteristic o f this country
that partly because o f our vast regions o f rich, virgin soil, partly from
o f our mineral, manufacturing and agricultural industries, partly from
o f the ingenuity, energy and versatility o f our people, but more because
o f the free air we breathe, and the free institutions under which we live
there is an almost tropical impulse given to the growth o f wealth among
us; and in finance as well as in politics, M r. Madison’s words to Miss
Edgeworth are verified, that Providence seems to have set the United
States to do many things which before were thought impossible.
In view o f these facts we see how it was that our people were able to
lend, without foreign help, so vast an amount o f capital as 2,500 mil
lions o f dollars to the Government to carry on the late wyar. In that war
we wasted much o f our capital, but what was left fructified with such
rapidity that it left us at the close richer than we were at the beginning.
W e also see that there is really no danger o f repudiation o f our pub
lic debt. It is too widely discributed among ourselves, it is held by too
many o f our people, it forms too fundamental a part o f the great fabric
o f our national life to admit o f its being disturbed. To repudiate our
national debt would be to shake the security o f all property throughout
the country. A revolution o f such magnitude would end in the disrup
tion of the nation, and would deservedly make o f us a monument for
the contempt and wonder o f the nations o f all sueceding times. So
monstrous and absurd is the anticipation o f repudiation, that the very
word has long ceased to be whispered by our most confirmed croakers.
Occasionally it is urged, we observe by certain unappreciative English
journals, which thus deter some o f their countrymen from investing in
our bonds, doing us the service thereby o f checking the too great foreign
demands for the most remunerative, safe investments which can be had
at present by British capitalists.
W e have sa:d the foreign demand is too great. Eor ourselves, we do
not look with so much favor on the exportation o f Five-tw-enties as do
some persons for whose judgment we have the highest possible respect.
If, while the national debt was increasing, the growth o f our wealth was
so great that we could absorb the bonds as they were issued, surely, now
that the debt has ceased to increase, we can take care o f these bonds, by
means o f the constant augmentation ever going on, o f our rapidly grow
ing wealth. Besides our bonds are too cheap as yet. W e cannot look
with complacency on their passing into the hands o f foreign creditors
at eighty cents on the dollar for six per cent, gold-bearing Five-twenties.

ECONOMY IN FUEL.

143

Moreover, there is another fact which may be variously interpreted,
but is not without interest. Our daily papers have recently given con
siderable attention to the increasing disposition o f capital to invest
itself in railroad property. During the period in which the national debt
was growing, the new federal securities which were being issued absorbed
our new capital, but two years have passed since the debt ceased to
grow. A s our wealth has been growing during that time, the argument
is that that the national securities are not now sufficient to afford the
means o f investment. Hence, it is said, the attention o f capitalists is
diverted to other securities, and to those o f the most promising railroads
among the rest. W e do not endorse this opinion. It is, however,
worthy o f examination in connection with the general movements o f
capital to which we have referred.

ECONOMY IN FUEL.
Some very interesting and important experiments have recently been
made in England with what is called Lancaster’s patent for inducing the
more perfect combustion of fuel in furnaces. The enormous amount of
coal wasted in the furnaces, as at present constructed, has long engaged
the most serious attention, adding as it does materially to the cost of
steam power. In the furnaces as at present constructed, a very large per
centage of the heating power escapes through the funnel, and the smoke
which should be consumed passes off into the air. On shore the atmo
sphere is polluted and vitiated, and at sea those on board ship are an
noyed by the “ smoke fog,” which frequently interferes with the “ look
out.” In Lancaster’s patent the smoke is consumed, and not only
is the heating power greater because more sustained at a regular
temperature with less variations, but the saving of coal is some
thing extraordinary.
For the benefit of the steamship-owning
community, who are so largely interested in the matter, we sub
join the results of some of the experiments on board the steamer
Demetrius, Captain Baron. The Demetrius is a steamer of 418 tons regis
ter, fitted with engines of 70 horse power nominal, her furnaces being con
structed on the Lancaster principle. The ship is a fair specimen of the
merchant steamers engaged in the Mediterranean and other trades. In order
to test the advantages of the Lancaster principle, a trial trip was made from
Liverpool to Llandudno Bay, and the very great value of the invention was
most satisfactorily demonstrated. It was found that a saving approaching
one-half was effected, and that the funnels were comparatively smokeless.
The engines were worked at 65 revolutions, and there was a remarkable
regularity in firing, indeed, the fireman had a light time of it. The
measured mile was run in 6 minutes leaving Liverpool, and in 5 minutes
40 seconds on the return trip. It was found that almost any amount of
pressure could be obtained, the combustion being most complete, and the
heat intense and well diffused over the whole o f the furnaces. After the
run the tubes were found to contain less deposit than under the old system.
The engineers on board expressed their very high approval of the Lan
caster system. W e may state that the invention has already been anplied
to locomotive and stationary engines, and that it has been found to work
exceedingly well. The principle is also applicable to puddling furnaces.

144

TYPOGRAPHY AND TYPE*SETTING- MACHINES.

[ A u ffU S t ,

TYPOGRAPHY AND TYPE-SETTING MACHINES AT THE PARIS EXPOSITION.
BY

F . F . B L 4 N C .*

For four hundred years past type-setting, this important part of typography,
has been performed in the same manner. While in all other branches of in
dustry machines came to aid or supplant the hand of man, compositors alone
have remained at their posts, perfecting their art, it is true, and making un
paralleled efforts to acquire a skill which in many instances is truly marvelous
and would not fail to astonish the first old printers if they could see what the
“ craft” is able to do now a-days.
The fact is, it is by no means easy to replace by a machine the constant at
tention indispensable to the compositor, who incessantly tries to familiarize
himself with the thoughts of the writer whose manuscript he is studying. Just
try to make a machine read handwritings such as are seen only too often, and
the illegibility of which frequently puzzles even the writer when the compositor
in despair places before him the words which he was unable to read or to guess.
To be a good compositor it is not sufficient for a man to have good eyes and
nimble fingers, he must also have some literary knowledge, and especially be
familiar with punctuation, that his “ proofs” may not look too bad. He must in
some sort, as it were, identify himself with the author, penetrate his peculiarities
and fully understand what he means. A compositor destitute of these qualifi
cations can not claim a distinguished and lucrative position in his honorable
trade; he must devote a great deal of time to the correction of his “ proofs,”
makes, of course, less money than his more skillful colleagues, and will lose his
place a great deal sooner than these.
It is owing to this careful and pains-taking attention which the compositor
must give to what he sets up that machines hitherto have not been able to fill
his place in the printing offices. But inventors, these tenacious benefactors of
mankind, do not allow themselves to be disheartened, and being unable to sup
plant the compositor entirely, they have sought the means of assisting him and
facilitating, by a more rapid process', the setting of the letters destined to form
words, always leaving him the responsibility for the work executed by his will.
Starting from this idea, M. Delcambre, more than twenty-five years ago, in
vented the pianotype. This machine, which combines a great many peculiarities
of the piano with those of the sewing-machine, created some sensation toward
the year 1845. Several proprietors of printing-offices bought these machines,
and for a short time it was really believed that a revolution would take place in
the great realm of typography. A great number of these machines had been
manufactured, and a single printer purchased ten of them. The trial proved
deceptive, and the printers soon cast aside as worthless the instrument which
had cost its inventor a great deal of money and labor.
One of the principal causes of this failure was the distribution, that is to say

♦Translated for the Cincinnati Com m ercial , from the E evu e de P a r is .

1867]

TYPOGRAPHY AND TYPE-SETTING MACHINES.

145

the return of the type used iu composition to their places in the cases. The
compositor was obliged to distribute them with his hands, as is being done now,
then to put the equal letters together in order to place them in the openings of
the type setting machine. It is easily seen that this preparatory composition
made the compositor lose already in advance all the advantages which he de
rived afterward from the performance of the composition by the machine. The
machine was obviously incomplete. It was all-important, therefore, to perfect
it, or rather invent a distributing machine which would place the types in the
order in which they must be to serve again for the formation of words; it was
impossible to derive any benefit from the former machine without adding the
latter to it. The inventor, therefore, had to go to work again, and to-day we
see at the Exposition both the perfected machine and the dislribu'er, all manu
factured by Messrs. Fridore Delcambre, Oruys & Co. The first time that I saw
this type-setting machine, I could not repress my admiration, and I should have
willingly awarded a grand prize to its inventor. I did not see and could not
see whether there were imperfections about it. I scarcely ventured to make it
work or ask explanations about it, so much I was afraid of having my fond
hopes dispelled.
In effect, there is a fascination in the spectacle presented by the types falling
so nimbly and noiselessly under the pressure of the fingers which touch the keys
of the finger-board, one believes that perfection in this attractive trade has been
attained. The types are detached one after another, glide through small chanDels on an inclined plane and form a number of words from which the compositor
takes enough to fill his galley, which is attached to the end of one of the abovementioned channels. But I had to restrain my admiratiou. I had to examine
carefully and conscientiously what future this new machine might have. To
describe all its details would be tedious and would not give my readers an ade
quate idea of its value. Therefore, it seems to me preferable to speak at once
of the results of my investigation.
The machine itself works certainly very well, and if the all-important thing
was to drop the types regularly, I should hasten to state that a most valuable
increase in the rapidity of type setting had been accomplished. But it is com
plicated, and three persons are required to work it, one to distribute, the second
to compose, the third to arrange the words in the galley. I do not care whether
women or children may be employed to fill one or more of these places. The
advantage or loss are to be calculated according to the time used by the com
positors and not by the number of the hands employed. Now I do not hesitate
to say that the fact that three persons are required to work the machine neu
tralizes the advantages to be derived from it.
In the present system of type-setting, when a compositor loses time by re
peatedly reading the copy which he has before him and correcting what he has
set up, it is he alone that loses, and this loss of time, which is renewed very
often during the day, and frequently caused by trifling things, is sustained only
by himself and does not injure two other persons. Here, on the contrary,
whenever he stops, his two assistants at the galley and the distributor must do
so too. This is more serious than it seems at first, and would almost suffice to
make us question the value of the whole invention.

146

TYPOGRAPHY AND TYPE SETTING MACHINES.

[A u g u st,

On the other hand, it is to be regretted that the compositor working at the
finger-board can not himself correct what he has set up. It happens often that
the compositor sets up a word of which he is not quite sure, and corrects it on
reading the end of his line, being better informed by the subsequent words
which he has read since then and which give him the true sense of the phrase.
In punctuating, above all things, this way of correcting is the best. Kow, to
do this, the compositor must have the copy before him. By repeatedly examin
ing it, he will afterward be saved the trouble and vexation of having his proofs
disfigured by an endless number of corrections. The compositor arranging the
lines in the galley of Delcambre’s machine does not see the copy at all. It is
in the hands of his companion working at the finger board, who continues to
touch the keys as if the man at the galley need not se; the manuscript at all,
and as if the second part of the labor was not Inseparable from the first.
These considerations deprive the type-setting machine of its importance and
dispel the enthusiasm with which we contemplate it at first. And yet all this
is nothing compared with the great difficulty of distribution, which is not sur
mounted by the machine.
The distributor attached to the type-setting machine is destined to save it, or
at least counteract its imperfections. Instead of doing so, instead of facilitat
ing the process of distribution, it impedes it. I can not explain the details of
the distributor, which would take too much space, and will say merely that, as
in setting up, the compositor must give his attention to the distribution, and
that the work is performed by his will, under his fingers, and while he is read
ing his copy. He who has seen our compositors engaged in distributing is
astonished at the rapidity and skill with which they perform this part of their
typographical trade. It seems impossible that the work should be done better
and with greater regularity and quickness. In effect, this hand, which is in in
cessant motion and which seems to have an eye on every finger, will a long time
yet successfully defy the mechanical distributor. The advantage of the latter
is, that it puts back in the cases entire words, which may be placed again in the
type-setting machine without recomposition, which was one of the weak points
of the first invention. This advantage, however, has to be dearly purchased.
The manner in which it is constructed does not permit the compositor to read
directly the lines which he is about to distribute. He is obliged to have re
course to a mirror reflecting them in a precarious and imperfect manner. In
distributing, quick and unhesitating reading i3 of the highest importance. The
mirror arrangement is not calculated to facilitate the operation. It is precari
ous already in broad daylight. You may imagine how it will be at night or
when the sky is overcast. I must say, therefore, greatly to my regret, that the
distributing machine does not perfect the type-setting machine, and as the latter
in itself is of no use, the problem of mechanical type-setting has not yet been
solved.
Let us now turn to another machine, that of Mr. Plamm, and constructed by
M. Coyen-Carmouche. This machine, I must confess, embarrassed me not a
little accustomed to hear our printers talk of a Danish machine which I did not
see at the Exposition, and of Delcambre’s machine, both of which use ordinary
types, we had thought all researches in this direction would follow the same

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TYPOGRAPHY AND TYPE-TETTING MACHINES.

147

beaten track. Mr. Flanim did not look at the matter in this light, and, regard
less of what had been tried prior to him, bravely entered the lists with a machine
entirely suppressing the typographical case aDd the letters which it contains. An
alphabet, with all its accessories, capitals, marks of punctuation, is all he cares
for. He does not suppress the compositor, but certainly the material which the
compositor uses at present. To tell the truth, Flamm’s machine makes mattrices
in place of setting type, and the clicheur is here indispensable. The letters which
are to compose the words are placed in a reservoir turning on a pivot; these
letters imprint themselves at the pleasure of him who works the apparatus in a
paste orflan prepared beforehand, and placed under the above mentioned reser
voir. To facilitate this operation the inventor has had every letter, or marks
engraved on the surface of the reservoir; the compositor presses on it and thus
lowers the letter that he needs. Theflan, which becomes a matrix, is supported
by a small wagon which moves under the reservoir as is required, transversely or
longitudinally; the former movement is required for the formation of the lines ;
the latter to obtain the length of the pages and to divide the lines.
On seeing this very ingenious and well-working machine, an expert will at once
ask himself how the justification of the lines is to be brought about by it. With
moveable letters, when the words do not terminate the line, and the space of a
lew letters which cannot be separated from their words remains vacant, the evil
is remedied by an enlargement of the intervals between the words of the line; iD
the Flamm’s system this is impossible. But to obtain the same result Mr. Flatnm
has placed under the reservoir an apparatus with a moveable needle; this needle
touches a small bell and indicates at once to the compositor when it is time to
think of this sort of work. He proceeds then co enlarge or narrow the intervals
between the last words. An experienced hand will find no trouble in surmount
ing this difficulty.
However, this is not the only difficulty, there is a much greater one. The real
difficulty is to be found in the correction. To correct what is set up, fresh paste
has to be spread over the imperfect part, and the composition of the word or the
line has to be recommenced. The difficulty is much increased in case the correc
tions to be made augment or diminish the number of lines. This difficulty seems
to me so great, that it seems to me Flamm’s machine can only be used in reprint,
ing printed matter, not necessitating any change or important corrections.
Now, it must be stated that as a labor-saving machine, Flamm’s invention is
not very remarkable, for it does not work more rapidly than an ordinary com
positor. Its whole advantage then would consist in the suppression of the print
ing material; but, to judge from the prices affixed to the machines, it is
doubtful whether they do not require a capital equivalent to that of our ordinary
offices.
Flamm’s machine for lithographers is much more practical, and will do better
service than his common printing machine. For the rest, he is not the only in
ventor who has thought of supplanting type-setting by matrices. An American
has exhibited a machine which, though constructed in a different manner, leadto the same results, with the exception of its advantages to lithographers. My
censures regarding justification and correction are applicable to it as well as
to Flamm’s machine. For the rest the inventor admits that he has not yet found

148

HOW MEXICAN SILVER MINES ARE WORKED.

\ A u g U S t,

“ le dernier mot," (the last word). He is happy at having invented the principle
of his machines, and calls upon other inventors to perfect it. This is shown, at
least, by the words which he graciously printed in reply to the questions which I
put to him : “ The inventor of this type setting machine desires to have it un
derstood that he claims by no means to have reached perfection.”

HOW MEXICAN SILVER MINES ARE WORKED.
A newly discovered mine belongs to any person who denounces it, provided a
shaft of at least ten varas in depth be sunk on the vein within sixty days after it
is denounced. A claim consists of 200 varas square. Mines that have been
abandoned, or those in which work has been suspended for a space of four con
secutive months, may also be denounced. The reducing and crushing work
(haciendas de benjicio) are considered as having been abandoned, and may become
the property of whomsoever denounces them when they no longer serve for their
original purpose—when the roots have fallen in, and the machinery has been
removed—but the owner has a delay of four months to resume operations if he
wishes to preserve his property. A miner or the proprietor of metallurgical
works cannot be expropriated by his creditors, who may take possession of a mine
and work it for their own benefit until the debt contracted by the owner is ex
tinguished ; but they are compelled by law to allow him sufficient means to
maintain himself aDd family. A shepherd or a laboring man accidentally dis
covers near these crestones, which rise above the surface, quartz containing metal
lic substances. He endeavors to procure some rock at a depth where it has not
felt the action of the atmospheric air, builds a fire in which he casts a few pieces
of ore at a very high temperature, and if specks of silver are observed the mine
is denounced for the purpose of securing possession of it to the discoverer. The
law requires a shaft to be sunk in the vein of at least ten varas within 60 days
after the denouncement, at the expiration of which if the mine has been ascer
tained to be new one, or to have ceased to be the property of a former denouncer,
a grant is made of 200 varas square. The grantee then procures partners to
develope the mine, should he lack capital for that purpose. The value of the
mine is divided into twenty-four shares, called barras, the half cf which is given
over to the capitalists, named aviadors. The regular development of the mine
then commences. When a depth has been reached where silver is generally the
most abundant, and the quantity of water and expenses of extracting not yet too
considerable, the yield is very remunerative; at this stage of development,
reducing works are erected (haciendas de beneficio) frequently on a large scale
not always based on the future ceneral yield of the veins. A t the same time
underground work is carried on to facilitate mining operations, as also the
extraction of the ore, and the draining of the mine. When mines in the bonaza
condition are in the hands of one individual, as in the case of Counts de Valenciana and Reglas, and the Marquis de Rayas, these works are remarkable not
only for their magnificence and extent, but for their utility in less prosperous
times, when without them the ores becoming poorer could not be extracted

1867]

CO-OPERATIVE SHIPBUILDING.

through the older communications. In most cases at the present day the 24 barras, which constitute the shares of a mine, are divided into small fractions, and
represent numerous conflicting interests which seem to combine but for one pur
pose, that of realising from the undertaking as much as possible, disregardful of
the evil consequences which may affect the future prosperity of the mine. Their
motto appears to he, “ Sufficient unto the day is the profit thereof.” The conse
quences of this view of mining operations is that no regular and methodical
course is pursued, the richest ore only being extracted at several places at the
same time, or where it is most easily obtained, masses of poorer ore being left
behind, the working of which is resumed when the bonzana ceases. It is difficult
to understand why a small amount of these enormous profits is not devoted to
researches which are undertaken, only when the expenses exceed the profits, and
the prospects of a profitable investment are doubtful. When the zone of the
greatest yield has been worked through, if the depth is such as to renderthecost
the cost of extraction too considerable, the bonzana ceases. The poorest ore left
in upper parts of the mine is then worked, and, as the greatest expense is the
draining, the water is allowed to fill the lower works. Eor some time the reserve
of ore of medium yield is sufficient to cover expenses; but beyond a certain
point, day or contract work for a certain weight of ore extracted is no longer
profitable; and in order to guard against the chances of loss, the miners are
allowed an interest in the profits, say one-sixth, one-third, and even one-half of
what they extract. The owner furnishes tools, light and powder, the draining
and hoisting being also at his expense. This is called partido; the miners, who
are then called buscones, prefer it to day or task work, and as it is voluntary
labor they take it easy, and find a certain charm to be indebted to chance for
their salary, which will frequently, in one week, be enormous, after working for
a month or more without earning scarcely sufficient for their maintenance.
Gradually the resources are exhausted, and the number of men only required by
law are kept at work, in order to retain possession of the mine, and new aviadores
are found who supply the funds necessary for the expense of draining and con
tinuing the work in the lower part of the mine, running prospecting drifts at
points where ore was expected to be found, but which had been neglected when
the mine was full of water.— New Orleans Price Current.

CO-OPERATIVE SHIPBUILBI1
VU
Perhaps we should have said co-operative shipowning, but that the two are
very closely connected with each other. Our purpose is to illustrate a phase of
the co-operative principle which is now, and has been for some years, in success
ful operation in the maritime provinces. We allude to the system of shipbuilding
and owning in shares, a system which is largely practised both in New Bruns,
wick and Nova Scotia, and which we believe to be capable of a much wider
range of application than it has yet received. The extent to which shipbuilding
operations have been carried in the maritime provinces is almost without a
parallel, and in proportion to their population they have more shipping than any

150

CO-OPERATIVE SHIPBUILDING.

[August,

other similar population in the world, the co-operative system contributing more
than any other cause to this result. In the remarks we are about to make we
shall refer more particularly to New Brunswick; but they are equally true in a
general sense when applied to the sister province of Nova Scotia. Prom a refer
ence to official papers, we find that the total amount of shipping on the registry
books of the province in the year 1865 (the latest return published) was 1,019
vessels, measuring 349,675 tons, and that the quantity of the new shipping built
during that year amounted to 148 vessels— 65,474 tons. Twelve of these
vessels measuring 11,774 tons, were sent home for sale, and it is pretty
good evidence of the superiority of New Brunswick-built shipping when we find
that they average from 10s. to 20s. per ton higher in price than Quebec-built
vessels. A large number of those remaining are, however, owned and sailed by
parties residing in the province, and very many of them were built under this
system of co-operation. The comptroller of customs of St. John, in his last re
port, says :—“ The business of shipowning in shares, which has now become
general in New Brunswick, has done much to bring about an improved state of
affairs, and has tended during the last few years to increase very materially the
wealth of the country. The earnings of our vessels abroad, which are constantly
coming into the province in the shape of exchange, have assisted greatly to pre
vent derangement in our monetary affairs. It is not an uncommon thing for a
good spruced class vessel of this country to keep herself in good repair and
insured, and pay for her first cost in four years, and sometimes even
in two or three years.” The mode of procedure is something as fol
lows :—A number of individuals join together to build a vessel of a
certain size and class, probable expense is easily ascertained, and she is
divided into 64 shares; these are taken by as many individuals as there are
shares, or are distributed as may be found most convenient ; the payments are
spread over as long a time as the vessel may take in building, usually three, six,
and nine months ; the outfit is ordered in England, and very frequently the first
freight can be handled in time to pay the cost of outfit. There are some regu
lations of a peculiar kind with regard to the management. The business of the
vessel is usually conducted by one of the shareholders, but if the management
should not be considered satisfactory, five-eighths of the shares can take
possession of her upon giving bonds to the other owners that she shall be kept
in good order, and if the vessel should run in debt those who have taken
possession of her are alone responsible. On the other hand, the minority
share no portion of the profits which may be made during that time.
Each shareholder is allowed to underwrite his own share, and, as it is
the practice of all who extensively own in this way to distribute their
shares among a great number of vessels, considerable advantage is derived from
this source. Under this system we see there are a number of individuals, each
of whom is interested in procuring freight, or otherwise forwarding the interest
of the vessel. The captain probably owns a share, and the result is that these
vessels are sailed cheaper and make more money for their owners than any other.
We remember hearing a story that at the time of the war between the Greeks
and the Turks it was remarked that the Greek vessels were seldom or ever cap
tured, and the reason assigned was that every soul on board, from the captain

18673

Ru s sia , P ru ssia , Pe r s ia

and

I n d ia

telegraph s.

151

to the cabin boy, had an interest in the vessel: and whether the story be true
or not, there can be no doubt that it is owing to the operation o f some such
principle that the success o f co-operative ship building and owning is indebted.
A few instances, taken from among a great many others which have come to
our knowledge, may serve to illustrate the extent to which the system is carried.
One gentleman residing at Fredericton owns shares in 25 vessels, in most o f
them only a sixteenth, and in none o f them more than a quarter. Another at
Dorchester has in the same way shares in 24 vessels, from a sixteenth to a quar
ter ; and in St. John there are many parties who are interested in different
vessels from two to three up to 20 or even 30 shares. I t will be observed that
there is little or no risk in this business (especially when the sharer’s shares are
distributed among so many vessels).

The vessel, too, is always kept well in

sured, and many families derive a steady and even handsome income from this
source. I t should be noticed that, as a general rule, the class o f vessels built
and run in this way are n ot o f large s iz e ; a great many o f them are brigantines
and schooners, ranging from 150 to 300 tons, and a good spruce vessel, built
to class four years at L loy d ’s, is considered the best kind. They may not be
quite so durable as hocmatic, but they cost less, and carry a larger cargo on the
same draught o f water.— Montreal Trade Review.

RUSSIA, PRUSSIA, PERSIA AND INDIA IN TELEGRAPHS,
The following are said to be the exact terms o f the arrangements lately en
tered into by the Russian and Prussian Governments with Messrs. Siemens
Brothers, o f London, and Siemens, Halske & Co., o f Berlin and St. Petersburg,
in relation to th e construction o f a new line o f telegraph between England and
India through their respective territories. The latter firm have for many years
been under contract with the Russian Government to maintain their lines o f
telegraph in working condition, one o f the partners residing for that purpose at
Tiflis, in the Caucasus.

The Russian Government have now agreed to give a

right o f way through Russian territory, free o f cost, and a concession for work
ing a new line o f telegraph and stations for twenty-five years from the date o f
opening. The government yield to the company their right o f forwarding
messages to and from India upon the Imperial Telegraph lines, and engage to
hand over to the company all such messages touching Russian territory for
transmission over its lines.

The company is to work the line by means o f its

own officials. In return for these privileges the Russian Government exact a
royalty o f less than one-third o f the existi ng internal tariff— that is to say, a
royalty o f five francs per message, which is to be diminished rateably as the
through tariff between England and India is diminished from the existing rate
o f £5 I s . On the other hand, the Prussian Government engage to construct
and to maintain tw o special lines through N orth Germany at their own expense,
and to hand them over to the company for the period o f twenty-five years.

F or

these services o f construction and maintenance, and for the privileges men
tioned in the concession, the Prussian Government charge 2£ francs per mea

E g y p t ia n

152

ag r ic u lt u r e .

[August,

sage, to be reduced as iu the case o f Russia, in the event o f the through tariff
being reduced. A ll messages to and from India, touching German territory,
will be handed over by the German officials to the company for transmission
over its lines. A right o f landing cables on German territory is given to the
company. A s there are no private telegraph lines in Russia or in Prussia, the
company will enjoy a complete monopoly o f all the through messages.

The

Electric and International Company also agree to lease two wires o f the cable
lately laid to Hanover to the Company. The British Government assist the
whole arrangement and engage to give every facility for the transmission o f
messages over the lines which they work in Persia, between India, Ispahan and
Teheran.

The Persian line in British hands consists o f two wires, and works

very well. The British Government also promise to reduce the tariff over the
Persian lines and the Persian G ulf cable so soon as an increase o f messages
shall occur in consequence o f the new lines. The Prussian and Russian G ov
ernments permit the transmission o f half messages to and from India o f ten
words each at half the present tariff, and it is expected that the same concession
will be made by the British Government. A t present no message can be
charged at less than twenty words. The company will lay a submarine cable
in the Black Sea, 280 miles in length, between the Crimea and the Circassian
coast. B y means o f these several arrangements an English company will hold
and work an uninterrupted line o f telegraph from England to Persia, the line
from Teheran to India being already in the hands o f the British Government.
The few sections o f the line which consist o f submarine cables are laid in shal
low water, where repairs can be effected w ithout delay or difficulty. The cost
o f land lines is only one-third or one-fourth that o f submarine lines, and the
great interest which the respective governments possess, through whose terri
tories it is proposed to pass, that their countries should form the telegraphic
highway to India and the East will, it is considered, insure the efficient maintenance o f the contemplated communication. Negotiations are in progress
with the Persian Government for an independent line in the com pany’s hands
between the Russian territory and Teheran.

Immediate steps will be taken to

raise a portion o f the capital in England and to commence the w ork.

EGYPTIAN AGRICULTURE.
The report o f M r. Stanley, the English Consul at Alexandria, states that the
present condition o f the agricultural industry o f E gyp t has been so entirely di
verted from the rotation o f crops in its normal state that any person now going
through the country to take a view o f the produce o f the soil would be altogether
misled. The enormous profits which were realised by the growth o f cotton dur
ing the American war have caused this. W hen the Cotton Supply Association
sent out their Secretary, Dr. Eorbes, to India, that gentleman was bearer o f a
memorial to the late V iceroy Said Pasha, praying his Highness to use every pos
sible effort to encourage the cultivation o f cotton.

The reply was characteristic,

aad evinced a correct impression and almost a prophetic dread o f the revolution

THE RAILWAY REPORT « F INDIA.

1867]

15 3

that would be produced by an immoderately enhanced pi ice o f cotton. H e said :
“ Prices alone will prove a sufficient stimulus with out any effort on my p a rt;
but God forbid that I should ever see the abandonment o f the ordinary succession
o f crops for the production o f cotton, to the exclusion of those products on which
we subsist.”

W ithin a short period o f that time Egypt, which had ever been a

large exporter o f grain, o f beans, &c.,had to seek food from other countries, and
became an extensive importer. Grain was considerably dearer in the interior
than at Alexandria. In some places absolute famine ensued. A n undesirable
change was wrought, the recovery from which will be as slow as its accomplish
ment was rapid.

The value o f land was quadrupled, wages rose in an equal ratio,

laborers earned so easily sufficient for their wants that they became indolent, an
excessive luxury sprang up, and that not o f a nature to benefit the commercial
world, being displayed in a demand for white slave giris, costly pipes and other
such appliances which (the consul remarks) do not much benefit the industrious
world without.

Meanwhile the land, from the constant crops o f cotton in suc

cession, has become impoverished. Cotton, however, has long been, and must
continue to be, the most important production o f E gypt. I t is sown in March
or A pril and arrives at maturity in A ugust or September.

A n average yield

in good summers is 300 lbs to the a cre ; the N ew Orleans variety has been found
to yield 800 lb. per a c r e ; but it is found unmarketable, and is therefore little
cultivated. Cotton seed has also become an important source of profit. In 1858
the ardeb o f 270 lb. sold for 25 tarif piastres, now it sells from 65 piastres to 75
piastres. Formerly it was not o f sufficient value to justify o f its being sent to
Alexandria, and it was used as fuel. N ow it is all shipped to Europe, and from
it is pressed an excellent oil, and from the refuse a cake is made which is said to
be more nutritious than linseed cake. The cattle murrain, which commenced in
Egypt before it proved so severe a scourge in England, destroyed, tfie first year,
800,000 head o f horned cattle.

In lower E gyp t almost every animal was des

troyed, and it will take years to restore the number o f animals.

THE RAILWAY REPORT OF INDIA.
The annual report on railways in India, by M r. Juland Danvers, has just been
presented. The traffic for the year 1866 was affected by the commercial troubles
as well as by droughts in some parts o f the country and unparalleled floods in
other parts. Still the tw o great companies, the East Indian and the Great In
dian Peninsular, realized profits during the earlier half which enabled them for
the first time to divide more than the 5 per cent interest guaranteed. T o p re
vent any check to the progress o f construction o f the various lines from the
difficulty o f rising capital, the Government have at times made advances o f
more than a million sterling. A t the beginning o f the year there were 3,331
miles open, 205 were finished during the twelve months, and 101 miles since, thus
raising the total to 3,637.

The completion o f the Great Indian Peninsular to

N agpore places India in a greatly improved position for providing this country
with cotton. A s regards the works in course o f construction, it is expected
VOL. LVII— NO. II.

THE TRAFFIC IN SHIP TIMBER,

154

\AugUSt,

that the East Indian line to Jubbnlpore will have been opened to the public on
the 1st o f the present month and that the Great Indian Peninsular will, by
October or Novem ber, 1868, effect a junction at that place which will establish
a through communication between Bom bay and Calcutta. The total length of
railways remaining to be constructed and for which a Government guarantee
has been granted is 2,0051 miles.

In addition, proposals have been considered

for three lines, namely, one 570 miles from Baroda to Delhi, one o f 500 miles,
to unite the Scinde and Punjab, and one o f 250 miles from Lahore to Peshawur.
The first would cost £6,840.000, the second £6,000,000, and the third £5,000,000, making a total o f nearly 18 millions. It has been determined not to
authorize the Lahore and Peshawur, and no decision has yet been come to with
respect to the others, but surveys are being carried on. There are also pro
jected, which are evidently not regarded with disfavor by the Government, for
a chord line for the Great Indian Peninsular railway to the sea coast and an
extension o f the East Indian across the H ooghly into Calcutta.

The financial

public may, therefore, still have to exercise vigilance to prevent a repetition of
the old system o f a too profuse grant o f guarantees, by which English capitalists
are tempted to come under commitments that not only prevent capital from
being directed 1o any other country than India, but also prove extremely bur
densome when any revulsion occurs from a period o f inflation in the money
market.

The fact that the native population continue to abstain from furnish

ing any portion o f the capital o f these undertakings adds especial weight to
these considerations. Out o f 43,398 shareholders and debenture holders, the
native proportion, which was in the previous year only a little over 1 per cent
is now actually below that amount.

The total capital thus far raised for the

Indian lines is £67,254,820, and the further lines already authorized will raise
this to £88,000,000.

The receipts o f the year ended the 30th o f June, 1866,

were £4,537,235, whilst the expenses o f working and maintenance were £2,225,425, showing a net profit o f £2,304,534— a result which contrasts favorably
with the working expenditure o f our largest English companies, notwithstanding
the adverse influence o f dear fuel. A t the existing rate o f freights, coal and
coke, before they are landed in India, cost 50s. per ton, and the extra charges,
so far as the western and southern districts are concerned, raise the cost to about
60s.

The East Indian Company have exceptional advantages from the coal

fields near Calcutta, and the cost to them o f coal per train mile is 8Jd., while on
the Great Indian Peninsular it is Is . 6Jd. Coal from Australia and Labuan is
being tried, but wood is looked to a3 the resource that must in many cases be
relied upon, and with that view planting on an extensive scale should take place
it is considered, annually for severally years to come.

THE TRAFFIC IN SHIP TIMBER.
The Toledo Blade says that one o f the most remarkable features o f the traffic
at Toledo at present is the large quantity o f ship timber shipped to tide water.
In 1866 this trade was deemed very large when, prior to the 15th o f August,
about 540,000 cubic feet was sent forward, but the business this season has been

RAILROAD REPORTS.

1867J

more than doable that of last year, amounting from the opening o f navigation
to Saturday last to almost one million cubic feet. This timber, it should be
known, is all o f oak, principally o f the “ white” variety. It is rafted hither
down the river and through the canal, and is here loaded into vessels constructed
for that particular trade. There is now a fleet o f ten or twelve vessels engaged
exclusively in this traffic.

A s showing the activity in the business this season,

we have collected from our files the following figures, exhibiting the amount of
timber shipped, its destination from here, and number o f cargoes taken away
from the opening of navigation to Saturday last, July 27 :
No. Cargoes.
To Buffalo......................................................
40
To Clayton...................................................................................................... 4
To Kingston.................................................................................................... 14
T otal..................................................................................................

The quantity shipped to each o f the above ports is shown below :
Cubic feet.
To Buffalo............................................................................................... 710,500
To Clayton............................................................................................. 46,000
To K ingston.......................................................................................... 185,000
Total............................................................................................. 948,000

The timber shipped to Clayton was intended for local purposes,and nearly all
of it has or will go into the lake marine. A considerable portion o f that
shipped to Buffalo (or Tonawanda) will be used in building for the lake marine,
but by far the greater part o f it goes forward to N ew Y ork , where it is used in
the construction of vessels.

It may be safely asserted that Toledo furnishes

more than one half o f all the white oak timber used at Buffalo and N ew Y ork
in the construction o f vessels. Ship builders at both the ports named are very
partial to the oak from the Maumee country, as the demand which necessitates
so large shipments is evidence.
A s shown above, there has been shipped to Kingston fourteen cargoes, aggre
gating 185,500 cubic feet. This timber, as we are informed b y the captain o f
a vessel employed in the timber trade, is not designed for use at Kingston. It
is purchased for the use o f the British Government, and from the port named
above is shipped direct to England. W e learn that there also the timber from
this locality is estimated very highly for its strength and durability. O f the
quantity shipped on English account all has been destined for the navy yards, to
be used in the construction o f war vessels.

RAILROAD REPORTS.
NEW

YORK AND

NEW

HAVEN

R A IL R O A D .

The earnings and expenses o f this company from operations for the five
last fiscal years ending March 31, were as follows :
Passengers.............................
Freight..................................
Mails, &c................................

1862-3.
1863-4.
1864-5.
1865-0.
$801,754 18 $1,134,899 23 $1,500,333 74 $1,548,5S0 18
166,614 78
214,854 02
263,904 30
340,017 79
68,068 81
75,519 06
83,053 77
93,614 75

1866-7,
$1,612,63825
333,38199
122,23981

Total earnings.................... $1,036,437 77 $1,424,772 31 $1,847,291 81 $1,982,212 72 $2,068,200 05

[ August ,

RAILROAD REPORTS.

156

From which were paid on account o f operating—
Transportation, ....................
Repairs of road, &c..............
Repairs of equipment...........
Fuel, oil and waste...............
Haulage by horse-power. ..

$222,302 91 $318,614 23
109,535 84
54,417 59
137,069 61
151,690 46
83,880 62
136,188 20
29,552 60
43,399 50

Total expenses...................

$582,341 58 $704,309 98

Earnings less expenses...

$454,096 19 $720,462 33

$485,452 68
220,915 10
226,206 16
214,902 27
77,128 75

$469,689 31 .$548,817 60
385,485 84
324,79860
221,712 39
247,3 <9 54
194,143 39
173,49709
78,692 30
69,79075

$1224,694 96 $1,349,723 49 $1,364,243 58
$622,596 85

$632,439 25

This road (including 15 miles o f the Harlem Railroad) extends
Y o rk to N ew Haven, a distance o f 76 miles.

$704,016 47

from New

It is a double track throughout.

The following shows the mileage o f trains, the number and mileage o f passen
gers , and the tons and mileage o f freight in each year :
1863-4.
1864-5.
1865-4.
1862-3.
1866-7*
465,617
530,138
535,126
Trains (passenger), mileage............................ 418,743
551,604
104.308
101,623
101,340
109,150
“
(Freight),
“
...............
... 97,024
36,110
485
17,994
“
("Service),
“
...............
..
3,043
16,0S9
570,410
652,755
672,576
Total trains,
“
...............
676,843
.. 518,810
Passengers carried........ .................................... 1,174.171 1,455,155 1,833,575 1.848.915 1.885,898
“
“
one mile.............................41,348,675
.41,348,675 53,660,428 68,736.307 66,769,592 65,211,107
94,726
168,360
119,742
127,765
Tons of freight carried. . . ..................... ^ ...
74,707
4,429,874 5,539,174 6,048,608 6,737,444 7,369,912

The “ general accouut ” showing the total financial transactions o f the com.
pany for each year, is given in the following statem ent:
Cash on hand April 1 ............... ...........
...........
Materials on hand..................
Inc. of acc’ ts pay’ le............... ...........
Earnings less exp..................
Total............ ...............................

1863-4.
1852-3.
118,643 28 $242,015 81

18P4-5.

1865-6.

1866-7.

110.000 00

90,515 17
73,276 45

80,330 55
720,462 33

............. 1,001,025 00
11,499 12
.............
150 00
.............
622,596 85 632,489 25

338,998 41
995.000 00
117,200 60
704,01647

884,273 95 1,133,323 89 1,187,003 29 2,102,281 65 2,562,327 23

Per contra, as follows* v iz .:
Coupons.......................................... . . . $129,120 00 $129,120 00 $129,120 00 $129,120 00 $129,120 03
Loss “ Canal R .R ” .............................
20,349 34
9,908 47
28,905 03
30,705 1
44,799 97
Dividends........... ................................. 360,100 00 876,500 00 324,897 00 144,852 00 550,000 00
Reduction of accounts payable
82,411 55
Bonds, retired and purchased..
920,500 00
Fractional shares on allotment
*7,190 00
Equipment (new).......................
2,089 94
52,38419 167,487 86
37,855 22
51,462 63
Real estate (purc’d)..................
30,7JO00
Schuyler f’d settlem................................................
970,002 70
64,540 29
Railrd (new works)...........................
183 66
12,493 61
7,826 01
21,508 54
Materials on hand...............................
90,51517 222,347 22 362,321 98 338,998 41 247,024 59
Cash on h’d Mar. 31.................... .
242,015 92 330.410 10 166,445 42 407,051 80 516,736 05
Total...............................................

844,2‘.3 95 1,133,323 89 1,187,003 29 2,162,281 65 2,562,327 28

The financial condition o f the company, as shown on the general balance
sheets at the close o f each year, is exhibited in the following figures :
1862-3.
1863-4.
1864-5.
1865-6.
1866-7.
Stock (100 shares)........................... $3,000,000 00 3,572,800 00 3,619,600 00 5,000.000 00 6,000,000 00
Bonds due Dec. 31, 1866 ...................
912 000 00 912,000 00 912,000 00 912,000 ( 0
11,000 00
B’ds due Oct. 1, ’75........................... 1,088,000 00 1.088,100 00 1,088,000 00 1,088,000 001,068,500 €0
Profit ana lo s s ................................... 622,995 22 827,869 08 967,543 90
940-396 18 934,?87 52
Accounts payable.............................
131,367 14 211,697 69 223,196 81 140,785 26
258,04586
Total.............................................. 6,754,362 S6 6,612,366 77 6.810,340 71 8,081,181 44 8,272,133 3S

1867]

r a il r o a d

reports,

157

Against which are charged as follows, v i z . :
Railroad, &c....................................... 4,643,832 Si 4,656,426 45 4,664,102 40 4,656,302 48 4,617,811 00
Loss by Schuyler fraud........................................... 572,800 00 619,600 00 1,599,202 70 1,663,742 99
Equipment..........................................
112,492 85
764,877|34 932,865 19 970,220 41 1,021,673 09
Real estate (including leases)...........
65,505 66
65,505 66
65,505 66
65,505 66
96,245 63
Forfeited stock..........................................................................................................................
48,900 00
Materials.............................................
90,515 17 222,347 22 362,32198 338,998 41 247,024 59
Cash...................................................... 242,015 84 330,410 10 160,445 42 407,05180 516,736 05
Total.............................................. 5,754,362 36 6,612,366 77 8,810,340 71 8,081,1S1 44 8,272,133 38

C IN C IN N A T I, H A M IL T O N

AND D A Y T O N R A IL R O A D .

The earnings and expense account o f the Cincinnati, Hamilton and Dayton
Railroad Company yearly for the last five years, ending March 31, gives the fol
lowing results :
1S62-63.
1863-64.
Passenger earnings.............. $348,893 39 $457,162 85
Freight
“
............. 446,633 03
526,758 46
Mail and express earnings.
47,167 21
56,115 94
Rent of track, & c . . . ...........
27,286 66
82,568 59
Miscellane’ s.............................
7,323 57
10,722 63

1861-65.
$546,810 15
614,944 53
47,421 12
30,328 56
2,442 35

1865-66.
$545,666 09
748,678 38
46,690 66
20,531 34
...........

1866-67.
$457,66526
737,001 15
41,76310
62.93349
2,173 67

Gr’s income........................... $877,403 86 $1,083,328 47 $1,241,856 71 $1,361,566 47 $1,301,536 67
Oper’g exp’ s ........................... 390,936 81
554,507 12
738,628 92
829,270 85
847,594 10
$486,407 05

*528,821 35

$503,227 79

$532,289 52

$453,942 57

Prom which were disbursed the following, v i z .:
Interest on bonds.................................. $93,601 60 $93,380 00 $112,169 75 $112,164
Interest and exchange..........................................................................................
1,575
Taxes........................................................
20,693 46 30,699 17 58,356 14 95,016
2,430 82
4,074 00
4,590
Insurance, & c ...............................................................

50 $123,151
80 39,127
05 68,920
00
2,194

06
66

Ordin’ry disbursemt’ s ......... .................$114,295 12 126,509 99 $114,599 89 $213 346 35 $233,394 15
Extra’ry disbnrsem’ts...........................
1,358 50 21,553 72 51,242 07
...........
b5,720 00
Totalp’d from earn’g s ........................... $115,653 62 148,063 71 $225,841 96 $213,346 35 $299,114 15
Dividend fund..........................................$370,813 43 380,757 64 $277,385 83 $318,943 17 $154,828 42
Dividend ana tax.................................... 222,247 42 239,963 91 257,894 72 270,000 00 297,328 00

The finaucial condition of the company as exhibited on their balance sheet at
the end o f each year, (31st March,) is shown in the following statement :
1863.

1864.

1865.

1866.

1867.

Capital stock...................................... 2,155,800 00 2,500,000 00 3,000,000 003 , 000,000 00 3,260,800 00
1st mort. bonds................................... 884,000 00
384,000 00 379,000 00 379,000 00
9,000 00
2d
“
.................................
950,000 00 1,250,000 00 1,250,000 00 1,250,000 00 1,250,000 00
3d
“
..........................................................................................................................
500,000 0O
Div. fund, surplus.....................
243,728 15 384,517 48 498,133 59
547,076 76 404,577 18
Current accounts...............................
254,668 89
477,147 53 430,250 31 437,000 05 213,4.35 44
Bills payable....................................................................................
44,412 07 383,000 00 529,724 93
Total................................................. 3,988,192 64 4,996,265 01 5,601,795 97 5,996,076 81 6,197,637 55

Against which are charged as follows, viz.:
$

Construction..........................................2,648,206 38 3,364,049 42 3,897,229 06 3,920,736 12
3,930(42336
Equipment............................................ 481,082 79 499,086 19 593,209 13 826,107 09
991.19520
Real estate............................................ 285,581 54 303,859 98 344,551 10 338,123 60
343,88309
Wood & materials..................................
48,15042 107,966 56 272,882 58 288,177 24
233,94652
Woodlands..............................................................
17,659 32
24,245 56
16,245 56
12,540 00
Bills receivable.......................................
44,60114 112,848 33
17,847 33
24,152 24
21,69670
Stocks and bonds..................................
91,94726 138,147 26 203,089 65 234,417 33
149,83393
Accounts curr ent ..................................
76,95058 139,304 62 158,706 32
78,930 1 2
77,04012
Dayton & Micb. RR......................................................................
36,002 16 171,845 57 323,117 96
Cash & cash assets............................... 811,58253 253,343 33
90,034 84
97,844 97
11 2 ,3 5 4 01
Total.................. ............................. $3,988,192 64 4,996,265 01 5,601,795 97 5,996,073 00 6,197,537 55

158

[August,

RAILROAD REPORTS.

The actual nett earnings o f this company in 1866-67

amounted to $220,548

42, but from this was paid $65,720 00 (discount onbonds issued) which left for
dividends $154,828 42.
The dividends paid with tax thereon amounted to
$297,328 00, the difference ($142,499 58) having been taken from accumulated
earnings. I t is evident from this that the road earnings were not sufficient to pay
more than half the amount thus disbursed. The deficit in nett earnings is due,
perhaps, to temporary causes, chief among which is the loss o f freight from short
crops, but also the increased rate o f wages paid to employees. These difficulties
time will remedy. But is it politic to pay dividends under such circumstances,
and especially while increasing both the stock and bond accounts in the interest
o f connecting roads, which, at least for many years, will not return one half the
interest on the outlay.

W e allude to the A tlantic and Great Western Rail

road, and the leased roads with which this once flourishing company have become
saddled. The large floating debt o f the company is to be paid off by an issue o f
ten years 8 per cent, bonds.
MICHIGAN CENTRAL RAILROAD.

The fiscal year o f this company ends M ay 31.
the past five years read as follows :

T h e results o f operations for

1S62-63. 1863-64. 1864-65. 1865-66. 1866-67.
Passengers.......................................................... $889,683 $1,362,415 $1,771,814 $2,061,335 $1,824,226
(Av. p pass. p. m . cents............................. .
2:49
2:4I X
2:59
2:72
2:69
Freight . ............................................................ 1,983,757 2,073,274 2,233,529 2,208,592 2,285,522
(Av. p. ton p . m .) cents.................................
1:99
2:25
3:06
2:60
2:49
Miscellaneous....................................
73,121
98,859
140,076
176,563 215,7:3
Total gross earnings......................................
Expenses..........................................................

$2,946,560 $3,434,548 $4,145,419 $4,446,490 $4,325,491
1,272,360 1,720,125 2,406,149 2,808,376 2,820,777

Net earnings...................................................... $1,674,200 $1,714,423 $1,739,270 $1,638,114 $1,498,715
“
percent.........................................
56.82
49.92
41.96
:.6 .r 4
34.64

The general income account, varying somewhat from the above figares,
exhibits the total revenue and disbursements as in the following statement :
1862-63. 1863-64. 1864-65. 1865-66. 1866-67.
Balance from previous years................................. $3X2,194 $772,636 $1,002,894 $708,385 $460,803
Receipts from earnings.......................................... 2,947,917 3,417,186 4,121,213 4,415,279 4,833,705
Total revenue..................................................... 3,260,111 4,189,822 5,124,107 5,159,664 4,794,507

From which amounts were disbursed as follows, viz.
$1,272,360 $1,720,125 $2,406,149 $2,808,376 $2,826,777
84,500
84,500
84,500
84,500
84,500
617,657
600,217
622,691
643,726
628,081
(3) 181,713 (6) 363,432 (12) 757,889 (4) 259,648 (5) 849.135
(5) 302,860 (6) 363,432 (6) 378,912 (5) 341,035 (5) 375,135
.................................................. (6) 389,472
...........
I o s v k J 21,753
69,955
£5,723
26,926
1
33,469
95,280
113,381
60,503

Expenses.............................
Sinking fund........................
Interest and exchange___
Cash dividends—July.......
“
—January.
Stock dividend, July, 1865.
U. S. tax on dividends___
“
on receipts.........

Total dishnrsements.................................. $2,487,475 $3,186,928 $4,415,722 $4,698,861 $4,351,057
Balance to next year......................................

$7' f2,636 $1,002,894

$708,385

$460,803

$443,450

The general balances are shown in the following accounts, as o f May 31,
yearly :
1863.
Capital stock..................................... $6,057,436
Bonds..................................................
7 ,999,489
IT. S. tax on coup.............................
4,956
Unpaid dividends..............................
437
Jack n, Lans’g & Saginaw HR. Co.
.........
Bills & sundries .............................
.........
Balance of income...........................
772,636
Total

1864.
$6,315,906
7,740,989
5,435
1,598
.........
.........
1,002,894

1865.
$6,491,886
7,565,489
158
660
........
15,492
708,385

1866.
1867.
$6,982,866 $S,070J66
7,463,489
7,268,989
58
4
1,059
965
.........
233,469
279 915
.........
460;S03
448,450

$14,834,955 $15,066,822 $14,781,570 $15,188,190 $16,017,543

lSG’/J

1 59

COMMERCIAL CHRONICLE AND REVIEW.

Per contra the following are shown :
Construction, &c............................. $13,SOS,576 $13,805,576 $13,805,576 $14,316,423 $14,930,814
Materials.......................................................................................
174,026
288,065
209.8S7
Cash, loans, &c.................................
654,725
807,641
224,603
75,750
333,660
Jol. & N . Ind.RR.............................
168,225
168,215
163.225
168,225
168.225
Jacks’n, Lans’g& Sag’wbondac’ t
..........
..........
.........
.........
8,055
Land accounts...................... ..........
..........
.........
214,173
125,911
122,036
As’ts in offl’ s h’ds...............................
168,310
75,736
137,069
145,737
152,110
Bills & accounts...................................
38,118
209,444
39,596
68,078
92,753
Total...........................................$14,834,955 $15,066,822 $14,781,570 $15,188,190

$16,017,513

THROUGH FREIGHT LINES.

That success should atteud the establishment o f great Hues o f transportion
managed by a central directory could never be doubtful.

That they have be

come a success, the semi-annual circular report o f the business and earnings
o f the “ Bine Line,” which commenced business
beyond cavil. This shows the following facts :
Freight moved East........... ...........
*
W e st......................

40,050.94 tons.
26,281.26 tons.

Total............................................

66,332.20 tone.

January 1, 1867 proves

Net earnings..........................$701,064 81
“
“
........... ............... 491,6S8 44
Total net earnings.................. $1,192,753 25

The number o f miles run was 8,800,856, and the number o f tons carried one
mile, 62,534,422, at an average rate o f 1.92 cents per ton per mile. P rop or
tion o f freight East, 61.46, and W est, 38.54 per cent.
The division o f earnings was made as follows :
Hudson Eiver ra’lroad........................ 80,82811 Michigan Central railroad......................$305,61647
New York Central railroad......................383,93005Chicago,Burlington and Quincy rail
Great Western (Can.) railroad.................. 289,21739 road. ...................................................
4 ,12 9 89
Boston and Worcester W e s te r n
Chicago and Alton railroad..................... 20,30001
Railroad and others east of Al
Illinois Central railroad........................... 1,70604
bany................................................ $106,925 29
Total amount distributed...........................
$1,192,753 25

The number o f regular “ blue cars” now in the line is 402.

The approaching

fail and winter business, it is estimated, will require 1,500 to 2,000 cars for its
accommodation.

COMMERCIAL CHRONICLE AND REVIEW.

Rates of Loans—Prices of Railroad Stocks—Stock Exchange—Prices of Governments—
Course of Consols and American Securities at London—Import and Export of Coin and
Bullion—Movement of Coin and Bullion—Course of Gold at New York—Course of Foreign
Exchange at New York.

Business during July was characterised by the dulness which

ordinarily pre

vails during that month. The most notable feature in trading circles was a de
cided improvement in confidence, inspired by the splendid crop prospects through
out the country, which, thus far have not been doomed to disappointment through
the occurrence o f unfavorable weather.
This revival o f hope, however, has not
been attended with any exaggerated preparations for the fall trade.

Merchants

\August,

COMMERCIAL CHRONICLE AND REVIEW.

160

appear to be governed by a strictly conservative feeling, and deem it prudent to
wait for the demand rather than anticipate it.
Manufacturers have probably
made ample preparation for the Pall trade; and, apparently apprehending that
there is danger o f the markets being overstocked, some have curtailed their pro
duction during the latter half of the month. The jobbin g trade has been cautious
rather than sanguine; less, however, from any doubts o f their being an active
demand for goods than from a supposition that the markets may be over
supplied.
A s the natural consequence o f the general quiet in trade, money has been very
abundant, and speculation in W all street active.

The banks have had large idle

balances, and the rate o f interest on demand loans has ranged at 4 @ 5 per cent.,
and during the last week o f the month balances were loaned at 3 per cent.
The following are the rates o f loans and discounts for the month o f July :
RATES OF LOANS AND DISCOUNTS.

July 5.

Call lo a n s..................................................
Loans on Bonds and Mortgage...............
A 1, endorsed bills, 2 m o s .....................
Good endorsed bills, 3 <Ss 4 mos.............
“
“
single names.........
Lower g ra d e s............................................

@ 6
@ 7
@ 7
@ 8
@ 10

@15

July 12.
4 @ 5

@ 7
@ 7
7 @ 8
6
6

9
11

@ 10

@15

July 19.

4 @
6 @
6 @
7 @

9
11

5
7
7
8

@ 10

@ 15

July 26.

4 @ 6
6

@ 7

@ 7
7 @ 8
6

9
11

@ 10

@15

A protracted depression in railroad stocks succeeded by the prospects o f un
usually large grain freights, had prepared the market for a brisk upward move
ment, and the dealers entered upon the “ summer campaign ” with an unusual
unanimity o f view as to the upward tendency o f values, and the result has been
a much more rapid advance than was realised within the same period last year.
The following comparison shows the prices o f stocks at the close o f July, 1866
and 1867 :
July 26, July 30.
1866.
1867.

N. Y . Central.........
Erie...........................
Hudson River.........
Heading...................
Michigan Southern

.. io4x
..

Cincinnati & Pittsburg..............
76% Northwestern........................
%
"
“
pref......................
107% Rock Island..................................
81%fPort Wayne....................................

120 120
64%

.. 111%

July 26, July 30
1866.
1867.
81%
83%
35%
50%
64%
71%
99%
102%
101%
106%

ios%

83%

The aggregate transactions in stocks at both boards during the month were
2,240,991 shares, against 1,577,646 shares in July last year.

The total sales

from January 1 to the close o f July are 13,580,850, which is about 10,000 shares
less than for the same period last year.
The following table shows the volume o f shares sold at the N ew Y ork Stock
Exchange and the open Board o f Brokers in the tw o first quarters and the first
half o f the current year, in the month o f July and since January 1 :
1867.
Since
1st Quarter. 2d Quarter. Hlf year.
July. Jan. 1.
Bank shares...................................................
7,815
11 153
18,968
4,784
23,752
Railroad “ ................
5,079,773
4,910,358 9,990,136 1,888,121 11,878,260
Coal
“ ...................................................
67,800
25,405
93,205
31,563
124,768
Mining
“ ...................................................
123,857
91,188
215,045
63,110
278,155
Improv’n tu ...................................................
81,269
103,435
184,704
47,585
232,289
Telegraph “ ...................................................
117,973
153,118
271,091
109.620
880,711
Steamship11 ...................................................
228,683
215,873
444,556
58,138
602,694
Expr’ ss&c“ ...................................................
17,674
104,480
122,154
88,067
160,221
VOLUME OF SHAKES SOLD A T THE STOCK BOAKDS, JULY,

At New York Stock Ex................................ 2,072,408
At Open B’d................................................... 3,652,443
Total 1867................................ ..................'[5,724,849
Total 1866 ................................................... 6,172,087

2,074,351
3,540,659

4,146,757
900,241
7,193,102 1,340.750

5,615,010 11,339,859
5,842,110 12,014,197

2,240,991
1,577,646

5,046,998
8,533,862
13,580 85o
13,591,843

162

COMMERCIAL CHRONICLE AND REVIEW.

[A u g u st,

The quotations for three years compound interest notes on each Thursday o f
the month have been as shown in the follow ing statem ent:
PRICES OP COMPOUND INTEREST NOTES AT NEW TORN, JULY,

Issue Of
July, 1864.......
August, 1864..
October, 1864..
December,’64..
May, 1865.........
August, 1865...
September,'’65
October, 1S65..

1867.

July 3.
July 11.
July 18.
July 25.
August 1.
.......
.119 @1193* 1 19% @ 119% ....... @ ...................@ ...............
118%@119 118%@119% 119 @119% 119 @119% 119%@119%
117%®118 117%@118% 118 @11814 118%@11S% 118%®118%
.117 @117% 117%@117% 117%@117% 117%@1I7% 117%@117%
•116%@116% 116%@116% 116%@116% 116%@U7% 116%@117%
■115%@115% 115%@lln% 11514@11514 115%@116% 115%@116%
.115 @11514 115 @ '1 5H 115%@115% llo%@115% 116%@U5%
.114%@U4% 1I4%@114% 114%@115% U4%@115% 114%@115%

The first series o f figures represents the buying and the last the selling price>
at first class brokers’ offiees.
The following are the closing quotations at the regular board on Friday
o f each o f the last seven weeks.
Cumberland Coal.............
Quicksilver......................
Canton Co..........................
Mariposa pref..................
New York Central.........
B rie....................................
Hudson River..................
Reading.............................
Michigan Southern.........
Michigan Central....... ..
Cleveland and Pittsburg.
Cleveland and Toledo___
Northwestern..................
preferred.
Rock Island................... .
Fort W ayne............... .
Illinois Central...............

June 14.
30%
28

June 21.
27%

19%
10 2 %
60%
59%
108)*
103)*
106)*
107%
68 %
70%
113
x.(1107
76%
77%
118
120 %
35%
34J4
59%
59%
89%
90%
9S
97%
120 %
20
10 1%

June 28.
33%
31%
47
2 1%
104%
60%
109%
109%
78s*
110 %
84%

July 12.
40%
33%
4-<
23%
105%
70%

July 5.
32
24%
105%
68 %
109%

11 0

103%
79%

110

61%

110
86 %
12 1%

120

91%
119%
44%
08
97
10 1%

45%
07%
97%
100 %

42%
65%
95%
10.3%
12 1%

122

July 19. July 26
38%
33%
34%
48%
52%
23%
109%
106%
74%
71%
1 6%
119%
107%
104%
83
79%
11 0
112 %
Cl
91%
12 1
124%
44%
48%
72%
70%
104
99%
10 1 %
106%
119

The closing prices o f Consols and certain Am erican securities (viz. U. S. 6’s
1862, Illinois Central and Brie shares and Atlantic and Great Western consoli
dated bonds) at London, on each day o f the month o f July, are shown in the fol
lowing statement :
COURSE OP CONSOLS AND AMERICAN SECURITIES A T LONDON—iU L T ,

Date.

Cons Ame rican 3ecuri ties
for U. S. Ill.C. Erie A. &
mon. 5-20s sh’ s. sbs. G .W

Date.

Monday 1............. 94% 72% 79% 43% 25
T u e s... 2 ............ 94% 72% 79)* 43%
Wedne. 3 ............. 94% 72% 79% 43%
Thurs.. 4 ............ 94% 72% 79)* 44)*
Friday. 5 ............. 94% 72% 79% 44
Sat’ day. 6 ............. 94% 73
79% 43%
Sunday. 7 ...........
Monday 8 ............. 94% 73* * 79% 44%
Tueg .. 9 ............. 94% 73% 79% 43%
Wedne. 10 ........... 94% 73% 80% 44%
Thurs. . 1 1 ............. 94% 73% 80% 45%
Friday. . 1 2 ............. 94% 73% 60% 45%
Sat’day.13............. 94% 73% 86 % 45% 24**

Sat’day.SO.............
Sunday.2 1 ...........
Mon day22............. 94%
Tues. .23............. 94%
Wedne. 24............ 94%'
Thurs.. 25............. 94%
Friday..26............ 94
Sat’day. 27............. 93%
Sunday.28.............
Monday29............. 94'*
Tues. ..3 0 ............. 94
W e d ...31............. 94

94%
94%
94%
Thurs.. 18............. 94%
Friday..19 ........... I 94%!

Lowest..................
Range...................
Lo ) o ’-1 .............
h i y § i .............
| B a j ® § ...........

Mondayl5.............
T u es.. .16............

73
80%
73% *76%
73% *77%
73% 80%
72%|x76%|

47
23%
46% 23%
46% 22 %
46)* 22 %
46%| 22

1867.

Cons Ame rican secur ties.
for U.S. Ill.C. Erie «. &
mon. 5-20s sh’s. sh’ s. G .W
{H oi d a y )

725*
72%
72%
72%
72%
72%

£76)*
76%
76%
76%
76%
76%

46%
46)*
47
48%
47%
47%

22%
22 )*

24
23%
23
23

72% 76% 48% 22 %
72% 76% 48% 22 %
72% 77
48% 22

94% 73% 80%
93% 72% 76%
4
V,
90
67% 72%
96
75% 82%
6
7% 10

48%
43%
5%
35%
46%
10 %

25
22

3
22

26
4

The lowest and highest quotations for U . S. 6’s (5-20 years) of 1862 at Frank
fort in the weeks ending Thursday have been as follows :

July 4.

July 11.
77%@77%

July 18.
77%@77%

July 25.
76%@77%

An v. 1.
76>4@76?4

1867]

com m ercial

c h r o n ic l e

an d

r e v ie w .

163

The import and export o f coin and bullion at the port o f N ew Y ork in the
two first quarters and the first half o f the current year, and in the month o f J u ly '
and the total since January 1, have been as shown in the following statement:
IMPORT AND EXPORT OF COIN

AND BULLION.

Receipts from California...........
Import from foreign p o rts........

First
Second
Half
Quarter.
quarter.
year.
$5,109,861 $6,899,5.’i5 $13,009,416
409,077
1,147,619
1,556,696

Month of
Since
July.
Jan. 1.
$2,662,139 $15,671,555
64,391
1,621,087

Total receipts............... ; . .
Export to foreign ports..............

$6,518,938
6,566,958

$2,726,530 $17,292,642
10,578,424 35,174,091

Excess of exports........................

$48,020

$8,047,174 $14,566,112
38,028,709
24,595,667

$9,981,535 $10,029,555 $7,851,894 $17,881,449

The following: statement shows the amount o f receipts and exports in July
and since January 1, for the last seven years:
,—California Receipts—, r-Foreign Imports—, /—Foreign Exports—,
July. Since Jan. 1.
July. Since Jan. 1.
July. Since Jan. 1.
10,578.424 $35,174,091
$64, *91 $1,621,087
$2,662,139 $15,671,555
5,821,459 51,603,589
6,754,669 23,175,014
345,961 1,506,147
723,986 18,630,745
253,640 1.319,163
1,092,805 10,035,127
12S,052 1,555,066
1,947,329 31.099,450
711,645
6,534,216
182,245 1,036,013
5,268,881 25,900,850
726,027
8,022,940
8,669,337 36,034,688
29,001
730,556
1,961,468 13,943,535
11,020
3,260,45S
2,055,368 21,175,405 6,996,498 32,906,166

1867.
1866 .
1865 .
1864 .
1863 .
1862 .
1861 .

The course of the gold premium has been steadily upward, the price having
advanced from 138 to 140-f. The remittances o f specie for the settlement o f
bankers’ credits and on account of Erie and Illinois Central stock returned, as
well as for United States coupons due July 1st, have been quite considerable, the
total exports from N ew Y ork for the month being $14,301,702. The exports
and receipts from customs duties together amount to $24,096,106; while the re
ceipts from California, from abroad, and from the payment o f coin interest ag
gregate $14,032,901.

It thus appears that the withdrawals from the market for

the month exceed the receipts by $10,063,205 ; yet, at the close o f the month,
the amount o f specie in the banks was $969,098 more than at the beginning;
showing that $11,032,303 o f gold was drawn from outside sources, a large pro
portion having doubtless been drawn from Washington, Philadelphia and Bos
ton, being the proceeds of July coupons paid in those cities. From the state
ment below it will be seen that the withdrawals for the first seven months o f the
year exceed the supply from California and interest disbursements by $47,370,818. This large deficiency has been made up chiefly from sales by the Treasury,
overland receipts from the mines, and coupon disbursements by the Treasury at
other cities forwarded here for sale. The following formula shows the details o f
the movement in the first two quarters and first half o f the current year and in
July, with the total movement since Jan. 1 :
GENERAL MOVEMENT OF

In Lanka at com ment...........................
Rec’ sfrom California.............................
Imp’ s f’mfor’n conn’ s ...........................
Coin interest paid by U. States...........

COIN AND BULLION.

1st quarter. 2d quarter. Half-year.
-Tuly. Since Jan.l.
$13,186,222 $8,622,609$13,185,222 $7,768,906 $13,185,222
6,109,861
6,899,655 13,009,416 2,662,139 l i ,671.555
409,077
1,147,619 1,556,696
64,391 1,621,087
10,838,303 17,793,025 28,631,328 16,306,371 39,937,699

Total repo’ d snp’y ............................. $30,542,463 $34,862,808 $56,382,662 $21,801,897 $70,415,563
Exp. 10 for’ ,, count’s.............................
$6,566,958 $18,028,709 $24,595,667 $14,301,702 $38,897,369
Customs duties.........................................
83,170,6*8 27,185,888 60,356,514 9,794,404 70,150,918
Total withdrawn...............................

$39,737,586 $45,214,595 $84,952,181 $24,096,106 109,048,287

Excess of withdra’ls.............................
Specie in b’ks at close...........................

$9,195,123 $10,851,787 $28,509,519 $2,294,209 $38,632,724
8,522,609 7,768,996 7,768 990 8,738,094 8,738,094

Deficit made up from nnreported
sources................................................. $17,717,732 $18,620,783 $36,338,515 $11,032,303 $47,370,

COMMERCIAL CHRONICLE AND REVIEW.

1C4

[ A llg U S t,

The statement which follows shows the daily fluctuations in the price o f Am eri
can gold coin, as quoted at the Gold Room during the month o f July :

1381/ 133
138% 138
138% 138%
(Hoi
138% 138%
139% 138%

1381/
1381/
13S*
day.)
1391/
139%

Monday......... 8 .............
Tuesday......... 9 .............
Wednesday.. .10.............
Thursday.......11.............
Friday............ 12.............
Saturday.........13.............

138*
13 s *
138%
139X
139^

138*
138%
138%
138%
139
139

139
138%
138%
139%
139%
139%

Monday..........15.............
Tuesday......... 16.............
Wednesday.. .17.............
Thursday.......18.............
Friday........... 19.............
Saturday......... 20.............

139%
139%
1*0%
139%
139%
139%

139%
139%
139%
139%
139%
139%

139%
140%
140%
139%
140
139%

1381/
1381/ Monday........22...........
1381/ Tuesday .. .23.............
Wednesday..24...........
138% Thursday___25.............
Friday......... 26..............
139
Saturday...... 27.............
138%
138% Monday........ 29.............
138% Tuesday....... 30.............
139% Wednesday. .31.............
139%
139% June ..1867..................
“
1866...........•___
“
1865....................
139%
“
1864...................
140%
44
1863 ..................
139%
131%
44
1862...................
139%
139% S’ce Jan. 1,1867 ...........

tc
s

Closing.

Monday........... 1 ...............
Tuesday.......... 2 .............
Wednesday... 3 .............
Thursday........4 ...............
Friday.............5 ...............
Saturday......... 6 ...............

Date.

Openi’g

•s
5

1861.
1
Lowest.

-4
-5
D
O

Closing.

Date.

Lowest.

Openi’g

COURSE OP GOLD AT NEW YO RK , JULY,

140
140
1391/
139*
139)*
139%

139*
139*
139*
139*
139*
139*

140
140
139*
189*
139*
140*

139%
139%
139%
139%
139%
140

140% 146* 140% 140*
140% 140 140% 140*
140 139* HO 140
138)/
154*
141
222
144*
109

138
147
138*
222
123*
108*

140*
155*
146*
285
145
120*

140
149
144
255
128*
115

132% 132% 141% 140

Foreign exchanges have ruled firm at the specie shipping point throughout the
month.

The supply o f commercial bills has been very lig h t; a moderate amount

o f acceptances has been drawn agamst shipments o f Five-twenties; but there has
been a large deficiency, which has had to be made up by the shipment o f specie.
A fter midsummer the foreign bankers usually settle their European credits ; but)
although the remittances for that purpose have been large, an impression prevails
that, owing to the very low rates o f interest at London, a considerable amount
o f balances has been allowed to remain unsettled.
The following table shows the course o f foreign exchange daily for the month ;
COURSE OP FOREIGN EXCHANGE

Days.;

1.......................
2 ......................
3 ...................
4 ...............................
5 ...................
6 ...................

Loudon.
cents for
54 pence.

(60 D A Y S)— AT

NEW YORK.

Paris. Amsterdam. Bremen. Hamburg.
centimes
cents for
cents for
cents for
for dollar.
florin.
rix daler. M. banco.

Berlin,
cents for
thaler.

109%@110% 517%@513% 40%@41% 78%@7S% 36 @36% 72 @72%
109%@U0% 517%@513% 4U%@11% 78%@7S% 36 @36% 72 @72%
109%@110% 516%@513% 40%@41% 78 @78% 36 @36% 71%@72%
(Independence Day.—National Holiday.)
110 @110% 613%@512% 41%@41% 79 @79% 36%@36% 72%@72%
110 @110% 513%@512% 41%@41% 79 @79% 36%@36% 72%@72%
iio” @iio% 513%@5i2% 41%@41% 79 '@79% 36%@36% 72%@72%
9....................... 110 @110% 513%@512% 41%@41% 79 @79% S6%@36% 72%@72%
10 ................... 110 @110% 513%@512% 41%@41% 79 @79% 36%@36% 72%@72%
11 ................... 110 @110% 516%®512% 40%@41 %78%@79
36%@36% 71%@72
12 .................... 110%@U0% 612%@511% 41%@41% 79 @79% 36%@36% 72%@72%
13 ................... 110 @110% 516%@512% 40%@11% 78%@79
36%@36% 71%@72
14 ...........................................................................................................................
15 ........ ....... 110%@U0% 512%@511% 41%@41% 79 @79% 36%@36% 72%@72%
16 .................. 110%@110% 512%@511% 41%@41% 79 @79% 36%@36% 72%@72%
17 ................... 110%@U0% 512%@511% 41%@41% 79 @79% 36%@36% 72%@72%
18 .................•____ 110 @110% 516%@512% 41l%@41% 78%@79% 36%@30% 71%@72%
19 . ............... 110%@UO% 512%@511% 41%@41% 79 @79% 36%@36% 72 @72%
20 ................... "110 @110% 516%@512% 40%@41% 78%@79 36 @36% 71%@72%
21 ....................................................................................................
22 ................... 110%@110% 512%@511% 41%@41% 79 @79% 36%@36% 72%@72%
23 ................... 110%@110% 512%@511% 41%@41% 79 @79% 36%@36% 72%@72%
24 .......................... 110%@tl0% 512%@oll%
41%@41% 79
@79% 36%@36% 72%@72%
25 ...................... 110%@110% 512%@511% 41 @41% 78%@79% 36%@36% 72%@72%
26 ................... 110%@110% 512%@511% 41%@41% 79 @74% 36%@36% 72%@72%
27 ................... 110%@U0% 513%@512% 41%@41%' 79 @79% 36%@36% 72%@72%
28 ....................................................................................................................................................................
29 ................... 109%@U0 515 @512% 41%@41% 79 @79% 36%@36% 72%@72%
30 ................... 110 @110% 513%@512% 41%@41% 79 @79% 36%@36% 72%@72%
31 ................... 110 @110% 513%@512% 41%@41% 79 @79% 36%@36% 72%@72%

JOURNAL ON BANKING, CURRENCY, AND FINANCE.

1867]

165

Days
July...........................
June...........................
May.............................
A p r ...........................
Mar.............................
Feb.............................
Jan.............................

London.
109%@110%
109%@110>$
109#@110#
108#@10 %
108 @ 1 09 #
108#@109
108%@109#

Paris.
Amsterdam. Bremen.
517X@511&
4(>X@41% 78 @ 79 ^
518%©511&
40%@41# 7 8 # @ 7 9 #
520 @510
40%@41% 78%@80
522#@512#
4 0 # @ 1 1 # 7 S # @ 79 #
525 @515
4 0 # @ 4 1 # 78 @ 7 9 #
522#@515
40#@ 41# 78#@ 79#
520 @ 513# 41#@41% 7 8 # @ 7 9 #

Hamburg.
36 @ 3 6 #
36 @36%
36 @36%
35#@36#
35#@36#
36 @ 3 6 #
36#@36#

Berlin,
71^@72#
72 @ 7 2 #
71#@72#
71#@72#
71#@72#
71#@72#
72 @72%

Since Jan. 1............

108 @ 1 10 #

525 @510

35#@36#

71#@ 72#

40#@41%

78 @80

JOURNAL OF BANKING, CURRENCY, AND FINANCE.

Quarterly Report of the New York City National Banks—Quarterly Report of the Nationa
Banks of Boston and Philadelphia—Monthly RaDge of sales of Bank Stocks—New York,
Philadelphia and Boston Bank Returns.

The Comptroller o f the Currency, Mr. Hulburd, has prepared with unusual
promptitude the following abstract o f quarterly reports o f the National banking
associations o f the cities o f N ew Y o rk , Philadelphia and Boston, showing
their condition on the morning o f the first Monday in July, 1867, before the
commencement o f business on that day. W e add for comparison previous re
turns issued this y e a r:
QUARTERLY REPORTS OF THE NEW YO RK CITY NATIONAL BANKS.

R esou rces.

January.
April.
July.
Loans and discounts................................................$157,967,294 27 $152,863,769 78 $147,467,891 66
Overdrafts.................................................................. 1
f
128,56782
Banking house ................................................... ! t?
cor 7 r
k 7 1 Q097 ro J 5,080,915 68
Other real estate.......................................................(
5,719,027 oO 1
’338,99237
Furniture and fixtures............................................j
I
292,22908
Current expenses.....................................
431.050 92
1,674,995 66
383,23749
Premiums.................................................................
637,324 70
941,100 96
1,173,14256
Cash items (including revenue stamps).............
78,758,830 91
69,414,067 77
9,978,33250
Exchanges lor Clearing HouseJA. M............................................................................
94,273,528 78
Due from National bauks......................................
9,583,978 64
7,947,324 06
9,340,153 34
Due from other banks and bankers....................
4,136 978 64
2,689,883 83
2,959,935 04
U. S. bonds to secure circula’n ...........................
42,487,800 00
42,46 ?,8U0 00
42,487,80000
Other U. >. Securities to secure deposits.........
5,170,300 00
4,800,900 00
4,869,00000
U. S. bonds and securities on hand..................
15,781,250 00
15,123,950 00
15,092,00000
Other stocks, bonds &mortg’ s .........................
4,534,610 36
6,260,1.'8 78
6,230,04821
Bills of National banks........................................
2,228,868 00
1,439,115 00
3,070,53800
Bills of other banks................................................
69,4S8 00
69,699 00
45,75800
10,547,117 30
5,718,722 80
6.034,30643
Specie .............................
Fractional currfncy.................................................t 41 409 1 1 7 rq
94 70 ft <170 91 J
211,087 32
Legal tender notes.................................................. 1 « , 4tK,ll7 59
^,<00,372 21 -j 4 3 ^ 3 963 5t}
22,785,940 00
25,939,480 00
24,240,10000
Compound Interest notes....................................
Aggregate................................................................$402,149,036 42 $337,790,364 23

$416,871,52684

Liabilities .

Capital stock paid in..........................
Surplus fund.................................... .
National circulat’ n outstand’g.........
State bank notes outstanding.........
Individual deposits.............................
United States deposits.. ...............
Deposits of U. S. Disbursing Offices,
Cashiers checks outstanding.......... .
Due to National Banks......................
Due to other banks and bankers.......
Profit and loss. ..................................
Aggregate,

$75,009,700 00
17,573,506 57
34,257,816 00
406,037 00
201,962,194 16
2,319,414 34
4,884 47
52,466,889 22
13,278,308 39
4,870,196 27

$75,009,700
17,301,440
34,972,371
379,353
175,493,039
2,789,205
996

00
86

(0
00
91
f5
70

51,841,582 80
12,508,466 93
7,491,207 48

$75,009,700
17,79(5,381
34,775,( 30
339,265
216,186,740
3,005,090
996
1,477,222
49,704,962
12,294,349
6,281,788

00
98
00
00
21
38
70
72
26
49
10

$402,149,036 42 $377,790,364 23 $416,871,526 84

166
QUARTERLY

JOURNAL OF BANKING, CURRENCY, AND FINANCE.
REPORTS

THE

NATIONAL

\August,

BANKS OF BOSTON AND PH ILADELPHIA.

Resources.
--------------Boston.--------------* »-------- Philadelphia.-------- s
April.
July.
April.
July.
S
$
$
$
56,811,075 24 58,197,191 40 32,215,000 01 33,905,149 14
Loans and discounts...
1,470 49
Overdrafts......................
6,876 93
1,365,394 51
Banking house............. .
1,085,547 54
1,420,072 61
Other rent estate......... .
41,075 02 1,183,073 57
101,835 43
Furniture and fixtures
87,373 25
31,165 78
255,295 44
Current expenses.........
435,596 12
147,617 64
Premiums...................... ..........
...........
55,145 35
67,769 88
395,847 33
404,888 73
Cash items (including revenue stamps) .. 4,516,321 66
857,395 ^7 1,032,735 19
350,932 32
5,343,305 11
4,947,090 71
Exchanges for clearing house, A. M ..........
Due from National banks............................. 8,458,871* 83 7,919,982 93 4,805,130 79 4,547,220 44
248,084 03
141,289 42
Due from other banks and bankers............
460,494 75
467,41233
U. S. L'onds to secure circulation. ........... 29,044,350 00 29,044,350 00 13,118,000 00 13,118,000 00
Other U. S. Securities to secure deposits 1,925,000 00 1,900,000 00 2,047.600 00 2,222,200 00
U. S bonds and securities on hand............. 3,947,550 00 4,036,500 00 3,288,580 00 2,663,700 00
Other stocks, bonds and mortgages......... 1,084,150 00 1,149,650 00 1,057,42 24 1,447,047 81
Bills of National banks............................... 1,355,611 00 2,406,604 00
422,935 00
898,39800
635,244 00
3,722 00
Bills of other banks......................................
30,364 00
16,79300
454,986 52
Specie..............................................................
792,037 48
417,10998
725,278 28
103,479 84 8 410 2^8 84
Fractional currency.................................. )
144,307
6,085,087 49 6,623,512 00 8,410,253 34 9 160t769 0340
Legal tender notes.................................... j
Compound interest notes............................. 11,531,180 00 9,331,980 00 S,348,470 00 7,298,990 00
Aggregate

$127,604,785 51 129,119,097 59 78,045,537 82 83,833,524 05
L iabilities.

Capital stock paid in...................................... 43,550,000 00
Surplus Fund................................................... 6,849,511 10
National circulation outstanding.............. 25,309,509 00
State b’k notes outstand’g ...........................
311,258 00
Individual deposits....................................... 39,011,725 13
United States Deposits................................. 1,465,594 19
Deposits of U. S. disbursing offices...................................
Cashiers checks outst’d’g ........................
Due to National Banks................................. 10,108,134 06
Due to other banks and bankers................ 1,< 50,696 80
Profit and loss...............................................
918,356 23
Aggregate

42,550,000 00 16,017,150 00 16,517,15000
6,896,267 37 5,175,784 01 5,332,437 83
25,221,746 00 11,006,790 00 11,004,241 00
288,304 00
185,085 00 125.18500
37,413,277 43 35,516,987 95 41,217,662 67
2,213,219 49 1,887,404 12 1,644,962 30
31 30
.................
411,890 56
101,799 61
....
..........................
10,814,017 35 5,622,9C9 44 5,592,515 85
1,044,135 24
974.533 83
962,41147
2,516,299 80 1,708.813 47 1,025,067 37

$127,604,785 51 129,119,097 59 78,045,537 82 83,833,524 05

The following table shows the monthly range o f sales of bank stocks at the
N ew Y o rk Exchange Board o f Brokers for the first six months o f the current

year:
Banks .
America......................
Amer. Exchange......... . . .
Butchers’ & Drov.......
Central.........................
Chatham.......................
Commerce.................. .
Commonwealth......... . . .
Continental.................
Corn Exchange......... . . .
East River....................
Fourth..........................
Hanover........................
Import. & Traders’ . . . . . .
Irving...........................
Manhattan..................

January.
115 -115

1104-115
106 -106
....-....

112 -1134

...........- ___

Mechanics’ .................. ...1 1 6
Meehan. B. Assoc.......
Merchants’ .................. . . . 115
Merchants’ Exch.........
Metropolitan.........
.. 123
National (Gallatin)___
New York....................
N inth............................
North America........... . 1 0 6

-li6

February.
134 -134
115 -1151
.. . —. . ..
109 -111
140 -140
112 -114
1044-106
101 -105
...
. . . .- . . . .
103J-1044
..,
112 -113
....— . .

„ ..

___- ___
135 —i 85
117 -117
110 - 1 1 1

-115
-123

1054-1054
123 -1244
110 -11 0

117 -118
-....
105 -106

-107

March.
....- ....
115 -115
-

April
135 -135
116 - 1 1 6 4

May.
1374-1374
1124-113
... 1094-111
114 -lio

104 -1054

112 -115
106 -106
1024-103
1184-1i9
.. . . . . . .
104 -105

11 0 - 1 1 0

112 -11 2

112 -113
. . . . - ...

1094-110
104 -104

11 0 - 1 1 2

113
106
103
119

- ___
-116
-108
-104
-119

_
_
_____
_- _

_..
1091-1104_- _ _.

June.
115 -118
... 111 -114
_
1124-114

_ _

110 -1 1 2

103^-104

104 -1064
123 -123

100 -10 0

105 -1074]
115 -117

107 -110
113 -113

11 0 - 1 1 1

111 -113

180 180
135 -135

____

_- ___

__ _

135 -135

118 -118

114 -114

115 -116
.. ..- ...
123 -126
. . ... .
118 -118
.........
.........

1144-115
....... ,
124 -125
___-

116 -116
1074-1074
1254-1254

114 -114

105 -106

... - ..
105 -107

117 -117
111 -11 1

_
..._
_- ___

110 - 1 1 1

,.._

...

110 -110

131 -131
11 0 - 1 1 1

.115 -1154
1084-109

1867]

JOURNAL OF BANKING, CURRENCY, AND FINANCE,

B an ks.

Ocean........................... .

January. February.
102^-103

March.
101 -103
130 -130

_- ...

P a r k .......................................
P h o e n i x ................................

104 -io 6

Republic......................
Seventh Ward...........
Shoe and Leather........ . . . 1 1 0 - 1 1 2
State of New York.. . . .. 106 -108
Tradesmen’ s .................
Union.............................

106 - ’ 08
}14 -114

ii5 -ii6

May.
10 1 -10 2

June.
102 -105

140 -142

140 -148
105 -106
115 -115

145 -148
108 -108
115 -118

.........

_- _

114*-115
105|-1074

... . - . . . .

110 - 1 1 0

112 -112

1 1 H -112
109 - 1 1 0

115
106
145
117

...
i i 2 -112
106 -107

April.
10 1 -10 2

108 -109

. . . . —....
. .......

.........

117 -117

.........
-111*
-111

-145
-117

11 0 - 1 1 0

110J-118
110 -114
143 -143

Below we give the returns of the Banks o f the three cities since Jan. 1 :
N E W T O R K CITY BAN K ]

Loans.
Jauuary 5. . .. $257,852,460
January 1 2 . .. .. 258.935,4S8
January 1 9 ... .. 255,032,223
January 26 .. .. 251,674,801
Febru iry 2 .. . . 251,264,355
February 9 ... . . 250,268,825
Febru’ ryl6 . . . . . 253,131,328
J?et>ru’ry23...
2 ...
March
9 . .. 262,141,458
March
March 16 ... . . 263.0 2,972
March 2 3 ... . 259,400,315
March 30 . .. 255,-82,364
6 . . . .. 254,470,027
April
1 3 ... .. 250,102,178
April
2 0 . . . .. 247,561,731
April
2 7 ... .. 247,737,381
April
4 ... .. 250,871,558
May
1 1 ...
May
1
8 ... . . 257,961,874
May
2 5 ... . . 256,091,805
May
252,791,514
June
1 ... . .
8 ...
June
1 5 ...
June
2 2 . . . . . 243,640,477
June
2 9 ... .. 242,547,954
June
6 . . . . 246,361,237
July
1 3 ... .. 247,913,009
July
2 0 .. . .. 249,580,255
July
27 ... .. 251,243,830
July

T Z Date.

Specie.
Circulation.
12,794,892
32,762,779
14,613,477
32,825,103
32,854,928
15,365,207
32.957.198
16,014,007
16,332,981
32,995,347
16,157,257
32,777,• 00
14,79^,626
82,956,309
13,513,456
33,006,141
11,579,381
33,294,433
33,409,811
10,868,182
9,968,722
33,45*0.683
33,519,401
9,143,913
8,522,6 9
33.669,195
8,133,813
33,774,573
8,856,229
33.702,047
7,622,535
33,648,571
7,404,304
33,601,285
9,902,177
33,571,747
33.595.869
14,95’.*,590
15,567,252
33,63 .',301
33,697,252
14,083,667
14,617,070
33,747,039
33,719,088
15,699,038
33.707.199
12,656,389
9,399,585
33,633,171
33,542,560
7,768,996
10,853,171
33,669,397
12,715,404
33.653.869
33,574,948
11,197,700
8 73?,094
33,596,859

Deposits. Legal Tend’s. Ag. clear’gs
202,533,564
65,026,121
486,987,787
202,517,608
63,246,370
605,132,006
201,500,115
63,235,386
520,040,028
197.952 076
63,420,559
568.822,8(14
200,511,596
65,944,541
512,467,258
198,241,835
67,628,992
508,825,532
196,072,292
64,642,940
455,833,829
198,420.347
63,153,895
443,574,086
198,018,914
63,014.195
46? ,534,5-9
64,523,440
200,2'3,527
544,173,256
197,958,804
62,813,039
496,558, 19
19 f,375,615
60,904,958
472, 02,318
188,48<>,250
62,459,811
459.850.602
183,861,269
59,021,775
531,835,184
182,861,236
60,202,515
525.933.462
184.090.256
64,096,916
447,814,375
187.674,341
67,920,351
446,484,422
195,721,072
70,587,407
559,860,118
200,342,832
67,996,639
524,319,769
201,436,854
63,828,501
503,675,793
193,673,345
60,5b2,440
431,732,622
190,386,143
58,459,827
442,675,585
184,730,335
55,923,1. 7
461,734,216
180,317,763
67,924,294
460.968.602
179.477,170
62,816,192
442,440,804
186.213.257
70,174,755
493,944,356
191,524,312
71,196,472
494,081,990
197,872,063
72 495,708
521.259.463
199.435.952
73.441,301
491,830,952
200,608,886
74,605,840
481,097,226

PHILADELPHIA BAN K RETURNS.

Loans.
Date.
Legal Tenders.
January 5 ...............................$ 2 0 ,2 0 9 064
52,3x2,317
January 12.................................. 20,006,255
52,528.491
January 19................................... 19,448,099
53,45^ 307
52468,473
January 26.................................. 19,363,374
55,55 ,130
February 2 .................................. 19,269,128
52,384,329
February 9 .................................. 19,659,250
52,573,130
Febru’ rylO................................... 18,892,747
52,394,721
Febru’ry23................................... 17,837.598
51,979,173
March
* ................................... 18,150,657
51,851,463
March 9 ...................................- 17,521,705
50,5 8,294
Earch 16 ................................. 16,955,6 >3
50,572,490
March
23...........
16,071,780
50,880,306
March 30........................... .. . 15,856,948
50,998,231
April
6 ...................................
15,882,745
51,283,776
April
13................................ 16,188,407
51,611,44*
April
20................................ 16,582,296
51,890,959
April
27................................ 16,737,901
May
4 ................................ 17,196,558
53,054,267
53,474,388
May
11................................ 17,278,919
53,826,320
May
18..........
16,770,491
53,536,170
May
2 5 ................................ 16.019,180
52,747,308
June
1 .................................... 16,881,109
53,158,124
June
8 . ................................... 16,S80,720
53,192,049
June
15................................. 16,300,010
52,968,441
June
22...................
15,964,424
52,538,963
June
29................................ 16,105, 61
52,420,272
July
H.. . .
16,022,675
52,802,352
July
13................................ 16,234,914
53,150,569
July
20................................ 16,608,860
43 104,475
July
27........................................................

Specie. Circulation.
903,663
10,388,820
903.320
10,380,577
877,548 10,381,595
880.582
10,384,683
871,564
10,430,898
873.614
10,449,982
867,110
10,522,972
841,223
10,586,434
816,843
10,5 1,600
832,655
10,572,068
858,022
10,580,911
807,4 3
10,611,987
602,148 10,631,532
•64,719
10,651,615
546.625 10,645,367
485,535 10,647,234
382,817 10,638,021
386,053 10,639,695
408,762 10,627,953
402.978 10,630,831
369,133 10,635,520
334,393 10,637,432
346.615
10,642,920
368,261 10,046,298
373.308 10,642,224
365,187 10,641,311
461,951 10,640,201
419,399 10,641,770
371,744 10,637,651
333,118 10,633,750

Deposits.
41,308,327
41,023,421
30,048,645
39,001,779
39,592,712
39,811,595
40,050,717
38,646,013
39,367,388
37,314,672
3 ,826,001
34,5-1 545
34,150,285
33,796,595
34,827,683
35,820,580
36,234,870
37,371,064
38,172,169
38,230,833
37,778,783
37,332,144
37,252,614
37,174,269
37,333,*79
36,616,847
37,077,456
37,885,226
38,170,418
37,829,640

108

JOURNAL OF BANKING,, CURRENCY, AND FINANCE.

[A u g u s t,

BOSTON B A N K RETURNS.

(Capital Jan. 1, 1868, $41,900,000.)
Loans.
January 7 ....... .
January 14......... ____
January 21 .. ..____
January 28......... ____
February 4 ......... ____
Febru.ryll.........
Febru’ rylS......... ____
Febru’ ry25......... .......
Mar h
4 .... . . . .
March 1 1 ......... ____
March 18......... ____
March
5 ......... ____
April
1
....
April
3 .......
April
1 5 ........ . ..
2 2 ..
.. . . . .
April
April
29......... . . . .
6 .........
May
13.........
May
May
2 0 .........
May
27..........
June
3 ......... ____
June
1 0 ......... . . . .
June
17......... . . . .
June
2 4 ....... . . . .
1 ......... . . . .
Ju y
July
8.........
15.........
July
....
22
July
July
2 0 .........

98 4 >1,778
95,298,982
97,891,329
97,742,461
96,949,473
95.33 ,900
95,050,727
92,078,975
93,156,486
92,661,060
91,712,414
92,472,815
92,353,922

92,694,925
93,436,167
93,725,428
92.951,163
92,996,703
95,096,5 1

Specie.
1,183,451
1,334.300
1,078,160
1,058,329
956,569
873,396
929,940
779,402
958,887
695,447
568, 94
516.184
435,113
456,751
376,343
343,712
329,854
5S«,8?8
517,597
507,806
441,072
571,526
436,767
511,095
470,544
617,456
915,298
833,466
650,203
361,878

C ONTENTS
NO.

1.
2.
3.
4.
5.
6.
7.
8.

9.
10.
11.

Legal
Tenders.
17,033.387
16,829. 15
16,59 ,-99
16,816,481
10,394,604
1 ,103.479
15,398,333
15,741,046
1.5,9-8,103
15,519,479
16.270,979
16,557,905
17, 12,423
16,860,418
16,815,355
16,549,598
16,926,564
16,571,536
16,552,421
16,499,319
16,883,361
17,173.901
16.767,854
15,719,795
15,758,396
16,055,141
15.065,466
15,397,828
15 427,625
15,543,401

FOR

Deposits.
40,824.618
40,246.216
38,679,604
39,219,241
39,708,053
39,474,359
38,900,5 10
37,898,963
38,316.573
36,712,052
36,751,733
36,751,725
37,056,388
37,258,775
37,218,525
38,207,548
37,837,092
38,721,769
38,504,761
37,874.852
37,132.051
37,0 6.894
36,033,71 Q
36,039,933
36,521,129
37,475,337
38,251,040
38,640,431
38,328,613
38,548,722

,-------Circulation-------,
National.
State.
24.580,367
312,664
24,997,446
311,749
24.275,162
301,911
24,716,597
302,298
24,691.075
306,014
24,686,663
305,603
24,765,420
305,603
24,953,605
303,228
24,675,767 - 301,430
24,346,631
*89,538
24,809,523
299,133
24,738,722
299,091
24,843,376
206,025
24,851,522
296,011
24,838,819
287,205
24,852,200
286,701
24,81 ,437
284,982
24.784,332
283,806
24,80-*,992
283,514
24,838,469
283,491
24,80^,860
280,961
24,725,794
279,275
24,804,153
268,768
24,771,778
271,048
24,768,947
267,294
24,727,3-3
£66.353
24,801,823
266,494
24,771,683
264,922
24,744,291
252 696
24,653,742
256,564

AUGUST.

PAGE. I NO.

PAGE

Railway Extension and its Results___ 89 | 12. The Growth of our Capital and Invest
Debts and Taxation of our large Cities 107
ments.......................................................... 140
The Insurance Business for 1866......... I ll 1 18. Economy in Fuel.......................................143
Commercial Law, No. 35—Life Insur
14. Typography and Type-setting machines
at the Paris Exposition.......................... 144
ance .............................................................. 113
New York City Government and Fin
15. How Mexican ~iver Mines are worked 148
149
ances........................................................... 12 0 16. Co-operative shipbuilding..............
Projected Railroad from Oswego to
17. Russia, Prussia, Persia and India in
Niagara River.............................................123
Telegraphs..........................
151
152
North China Trade..................................... 127 18. Egyptian Agriculture..................
Railroad Earnings for June and Second
19. The Railway Report of India................. 153
Quarter....................................................... 131 20. The Traffic m Ship Timber.. . . . .. . . . 154
Debt of New Jersey............................. 132 21. Railroad R p o r ts ..................................... 155
Cleveland, Columbus and Cincinnati
22. Commercial Chronicle and Review___159
Railroad..................................................... 134 23. Journal of Banking, Currency, and
Finance .................................................. 165
India Railroads and the Cotton Trade. 137

The following advertisements appear in our advertising pages this month:
MERCANTILE.
Barstow, Eddy & Co.—26 Broad St.
Lillie’s Fire & Burglar-Proof Safes—198 B’ way Gilmore, Dunlap & Co.—Cincinnati.
Lewis Audendried & Co.—ItO Broadway—An DeWitt, Kittle & Co.— 88 Wall St.
thracite and Bituminous Coal.
Vermilye & Co.— 44 Wall St.
A. B. Sands & Co.—139-141 William St.—Drugs Eugene Kelly & Co.—36 Wall St.
BANKERS & BROKERS.
Simon De Yisser—52 Exchange Place.
Duncan, Sherman & Co.—Cor Pine & Nassau.
in s u r a n c e .
New York Mutual Insurance Co—61 William st
L. P. Morton & Co.—30 Broad Street.
Fidelity Insurance Co.—17 Broadway.
Tenth National Bank—336 Broadway.
Marine—Greit Western Insurance Co.
Ninth N .tional Bank—363 Broadway.
Fire—Hope Fire Ins. Co.—92 Broadway.
Lockwood & Co.—94 Broadway.

OFFICE

THE

Insurance Ctmtptg,
51 WALL STREET, cor. of William, NEW-YORK,

N ew Y

ork ,

January 2oth, 1S67.

The Trustees, in Conformity to the Charter of the Company, submit the following State
ment o f its affairs on the 31st December, 1866:
Premiums received on Marine Risks, from 1st Jan., 1866, to 31st Dec., 1866.
Premiums on Policies not marked off 1st January, 1866..................................

$8,282,021 26
2,188,326 16

Total amount of Marine Premiums
........................................ .............. $10,470 346 81
No Policies have been issued upon Life Risks ; nor upon Fire Risks discon
nected with Marine Risks.
Premiums marked off from 1st Jan., 1866, to 31st Dec., 18 6 6........................
$7,632,236 70
Losses paid during the same p eriod ......................................

$5,683,895 05

Returns of Premiums and E x p e n s e s ..................................

1,194,173 23

The Company has the following Assets, v iz .:
United States and State o f New York Stock, City, Bank and other Stocks.
Loans secured by Stocks, and otherwise...............................................................
Real Estate and Bonds and M ortgages.. . .........................................................
Interest and sundry notes and claims due the Company, estimated a t . . . . . .
Premium No.tes and Bills Receivable.....................................................................'
Cash in Hank.. . . . . . . .
. . . .. ..........................................................................
Total amount of A s s e t - ...................

.............................’ .............................

$6,771,885
1,129,350
221,260
141,866
3,837,735
434,207

00
00
00
24
41
81

$12,536,304 46

Six per cent interest on the outstanding certificates o f profits will be paid to the holders
thereof, or their legal representatives, on and after Tuesday the Fifth of February next.
The outstanding certificates of the issue of IS64, will be redeemed and paid to the holders
ther of, or their legal representatives, on and after Tuesday the Fifth of February next, from
which date all interest thereon will cease. The certificates to be produced at the time of
payment, and cancelled.
A dividend of Twenty per cent is declared on the net earned premiums of the Company,
for the year ending 31st December, I860, for which certificates will be issued on and after
Tuesday the 2d o f April next.
By order of the Board,
*
J. H. CHAPMAN, Secretary.

trustees.
■TORN D. JONES,
CHARLES DENNIS,
W. H, H. MOORE,
HENRY COIT,
WM. C. PICKERSGIjuL,
LEWIS CURTIS,
CHARLES II RUSSELL,
LOWELL HOLBROOK,
It. WARREN WESTON,
ROYAL PHELPS,
CALEB BARSTOW,
A. P. I’ lLLOT,

WILLIAM E. DODGE,
GEO. G. IIOBSON,
DAVID LANE,
JAMES BRYCE.
LEROY M. W ILEY,
DANIEL S. MILLER,
WM. STURGIS,
HENRY K. BOGERT,
JOSHUA J. HENRY,
DENNIS PERKINS.
JOSEPH GAILLARD, Jr.
J HENRY BURGY.
SHEPHARD GANDY.

CORNELIUS GRINNELL,
C. A. HAND,
B. J. HOWLAND,
BENJ. BABCOCK,
FLETCHER WE8 TRAY
ROB. B. MINTURN, J r.
GORDON W . BURNHAJv.
FREDERICK CHAUNCKr,
JAMES LOW,
GEORGE S. STEPHEN80N,
WILLIAM H. WEBB.
PAUL SPOFFORD.

J O H N D . J O N E S , President .
C H A R L E S D E N N IS , Vice-President.
VV. H . H . M O O R E , 2 d Vice-President.
.1 D . H E W L E T T , 3 d Vice-President .

L O S S E S

P A I D

LPT 4 7

Y E A R S ,

$19,127,41On0 6

illiii
O F

H I A K T E O R E ,
M i O.

Lia hi

M et, -

O O P T L T .

$ 4 ,07 5 ,830.55
221 ,236.35
$ 3 ,8 5 4 ,5 9 4 .2 0

A gencies in all the Principal Cities and Tow ns throughout the U nited States.
P olicies issued w ithout delay.

Loss by Portland F ire, July -Ith, 1866.
T he am ount c o v e r e d b y JEt.na Policies on property destroyed >r
ringed was $ 2 0 0 ,S54.
O or total loss w ill not vary tunjii from $ 1 6 5 ,0 0 0 , and was prom ptly adjusted and paid. This sum
is 4 per ceut., upon the Oompciny’s assets, an am ount less than o u r itovm t.tncnb atid State tnxos paid
last year, or a proportion eqhAj to a $ 4 ,0 0 0 loss for a Com pany o f $ 1 0 0 ,0 0 0 assets.
T h e necessity lor I lsiiiftnc© .and'the value o f w ealthy, strong corporations, is forcibly illustrated
by th is fire..: .Several weak Insurance, Companies are destroyed. Portland has a population of
.‘fd.000
\ s haodKO'^oly built,
fine'^yjck o r stone structures— protected a>. 1 screened bv up
wards of'^jKJO'sliud trees—bounded flV Threejsidos by w ater— indeed, lite rc’ Jy, almost lisir.g'fruni
tho o c e a n -:i; dMvflt e. good stearn lire bop irtmfcnt— yet it has $ 1 0 .0 0 0 ,OOt o f property consumed
in a, few hours-"‘^ pf a a holiday At he it g * people are least, occupied— from the very insignificant cause
s r a contem ptible '(*& cracker.
^tetuOmherthe M iBing o rig in o f fires tlrat sweep away in a few hours the ea: lin g s o f years. Consi '.'r vpur best /ntynsst. i n a gitto the jE tna A gent a call i f you need proper Insurance security. Pay
a f a jr p ‘ At pr£n. V i c t o r a good and genuine arttfcle, and w ith these lights and experiences before
you , pfcvure you r I ><ar&ico w ith shrewd ju dgm en t.
f

Fire mid Inland Navigation Policies Issued at as favorable rates
and rules as are consistant with reliable indemnity.
life

£M

Branch Office, 171 Vine St. Cin. J. B. BENNETT, Gen. Agt.

Full text of The Merchants' Magazine and Commercial Review : August 1867, Vol. LVII, No. II

FRASER