1849.] 



THE CIVIL ENGINEER AND ARCHITECT'S JOURNAL. 



87 



tion of the two countries. It may be added, that the taxation of 

 the United States for public works is not greater than Hindostan. 

 The reason for the different state of affairs must be sought for in 

 the policy and legislation of the two countries, for India has 

 rivers, has cotton, has an English government, a settled state of 

 society, good credit, and access to English capital. It is to the 

 mode in which these resources are managed that we must look. 



What has been done with regard to railways in Hindostan we 

 have seen; but it has been far otherwise in the United States. 

 There every encouragement has been given to joint-stock compa- 

 nies, and every facility for the raising of capital. The greatest 

 freedom is shown in granting powers to new companies, and the 

 e.xpense and delay are trifling. The Indian railway companies 

 have not yet been able to obtain charters of incorporation, and they 

 have been thwarted in getting acts of parliament; and we are not 

 aware that the Ganges Steam Navigation Company, or the other 

 steam navigation companies, have been better protected. 



How miserable has been the policy and proceedings of the 

 Indian government. They have caused difficulties to the railway 

 companies by requiring a preliminary deposit; whereas in the 

 States, an act of incorporation and full powers would be granted 

 without any money being paid up. The Indian government have 

 been obliged successively to reduce the amount of this deposit, or 

 expose themselves to the accusation of strangling the companies: 

 but as it is, they have much crippled them. 



The United States believe that people would not ask for railway 

 powers, without meaning and striving to carry them out; and while 

 they take the application for evidence enough of the intention, 

 they recognise the difficulty of raising the money for new under- 

 takings ; and if they cannot encourage this oi)eration, never place 

 any restrictions in its way. Although there are many imaginary 

 obstacles to the free grant of powers for executing public works, 

 there are no real objections, and no difficulties have arisen where 

 the system of making such free grants has prevailed. The saving 

 of time by authorising an undertaking on its projection is very 

 great, and the projectors come into the market with a full assu- 

 rance that when the money is raised, no delay will take place in its 

 profitable application. The powers of such an act of incorpora- 

 tion, of course, only become operative in proportion to the capa- 

 bilities of the subscribers to carry them out. 



The New Englanders do not send out railway inspectors-general 

 to settle how works shall be made years before they are executed, 

 whether the white ants will eat up the sleepers, or the railways will 

 pay a good profit. These are left to the shareholders and their 

 officers, for it is the money of tlie shareholders that is laid out, and 

 not that of the government. The appointment of Mr. Simms we 

 regarded at the time as calculated seriously to prejudice and delay 

 the execution of the works; and so it lias proved. Instead of 

 having a number of miles of railway after four years of agitation, 

 we have only a number of blue-books, which, however well written, 

 are not calculated to satisfy any one, for practice and experience 

 alone can determine what are the best materials to be employed, 

 and how the works can best be executed. Had Mr. Simms spent 

 his time in India as engineer to a railway, his abilities would have 

 been more honourably bestowed, his reputation would have been 

 extended, and some lasting good would have followed. As it is, 

 positive injury is the absolute result. 



The Indian railway question is no longer a res integra; the go- 

 vernment have damaged, and instead of being able to start afresh, 

 they have to repair the injuries committed. VV^e consider it neces- 

 sary that liberal guarantees should forthwith be given to the two 

 companies — the East Indian Railway Company, and the Great 

 Indian Peninsular Railway Company — with full powers to raise 

 money, with free grants of land, and if needful with loans of 

 money on debenture. The lost ground must be made up, and the 

 only way is by encouraging a start, for capitalists are disgusted 

 and disheartened by the difficulties which have been thrown in 

 their way. 



This should be accompanied by a general railway act for India, 

 which should authorise the several governors, without reference to 

 the home government, to grant charters of incorporation for rail- 

 way companies. Such charters should ensure the non-liability of 

 the shareholders beyond the amount of their payments, eJcemptUm 

 from being sued for culls, unlimited powers of borrowing money at any 

 rate of interest, and the liberty of paying interest on calls, divi- 

 dends, and bonuses, and the issue of new shares. There should be 

 full power of taking land — the compensation, in cases of dispute, 

 to be settled by the local courts. The shareholders should liave 

 the right of making bye-laws for their own government. There 

 should be no limit to the amount of dividend, nor to the amnunt of 

 fare to be charged, nor any restrictions as to the running of trains. 



A similar law should be passed for steamboat and electric tele- 

 graph companies, and to include such joint-stock undertakings aa 

 the several governors might think fit. 



The al)Ove recommendations are widely different from the usual 

 course of railway legislation, and will appear extravagant to those 

 who have not watched carefully the workings of the joint-stock 

 system ; but they are supported by the theory of political economy, 

 and by the most extensive jiractice. 



Unless there is a limited liability, a man of large capital will not 

 for the sake of a small profit make an investment, as his whole 

 property is at stake; and the millionaire will not jeopardise his 

 thousand of thousands for one thousand. 



Freedom from being sued for calls is the most essential power to 

 enable the shares to pass current, and capital to be raised. The 

 power of forfeiting shares for non-payment of calls is quite a suffi- 

 cient penalty on the defaulter, and inducement enough to make 

 him strain every nerve to raise the money for the calls; if not, lie 

 can always sell "them to some one else, who will venture another 

 call. As the other provision enables the man of large capital safely 

 to become a subscriber, so this enables the man of small capital 

 safely to become a subscriber. The objection which is commonly 

 made, that directors could not carry out contracts with creditors 

 of tlie company, does not apply, for tlie creditors would have t!ie 

 property of the company to fall back upon, and they would con- 

 tract with a full knowledge of the conditions on which they gave 

 credit. If a man is willing to give credit to a corporation, let 

 him do so: he can better protect himself than any government 

 can. 



The same reason applies to lenders of money on debenture ; let 

 them take any rate of interest tliey can get ; and let them, as in 

 case of lending money on any other security, ascertain for them- 

 selves the nature of the property on which they lend. They are 

 willing to do so, if the law-makers will not insist on protecting 

 them. It is indeed strange, when capitalists are so ready to lend 

 money to Spain, Peru, and Columbia, without any protection by 

 act of parliament, that law-makers sliould persevere in protecting 

 them, as they call it, in lending money to railway companies. 

 Rothschild arid Baring must surely be better able to protect them- 

 selves than tlie collective wisdom can be to do it for them ; and as 

 to the poor, at present no protection is wanted for them, as the 

 companies do not like to take money in sums less than 1,000/. 



Tlie shareholders are best able to'determine how many directors 

 they shall have when they shall meet, and how the business shall 

 be conducted, and let them make the arrangements ; whereas now, 

 a company that wants six directors, is obliged to have twelve ; and 

 one that wants eighteen is limited to the smaller number of twelve. 



AVe do not propose a limit to the amount of dividend, because 

 the higher the dividends that are declared the more capital will be 

 brought to bear on railway construction. 



We consider it equally needless to place any limit on fares; for 

 with the full opportunity for starting opposition lines, and the full 

 knowledge of this on the part of the companies, there will be 

 every disposition to suit the public convenience. Nothing can be 

 more mischievous than inculcating the belief in a monopoly of 

 public works and public accommodation, as it acts for the injury 

 and disappointment of all parties. We believe that an old com- 

 pany, fairly conducted, has such superiority in raising capital and 

 giving accommodation, tliat no opposition company could be started 

 against it. ^^'e mean, that an old comparry could always maintain 

 a higher rate of dividend than that which any new opposition 

 company would dare to offer as an inducement to subscribers. 



In conclusion, we earnestly advocate that the government should 

 remove every obstacle on its own part to steam navigation ; that 

 it should not allow its own boats to compete ; and that it should 

 gi\e every encouragement to steam navigation on the Ganges, 

 Indus, Burhampooter, and other rivers. 



If enterprise be left unfettered, we believe the result will be, 

 first to extend steam navigation on the rivers ; and then to estab- 

 lish railways as an auxiliary, or in those places where there is no 

 railway accommodation. Nothing is better calculated than steam 

 navigation to develope the traffic in India, because it is impos- 

 sible at once to lay down a complete railway system; and there 

 will be a natui-al tendency to work the two together, so that the 

 river shall feed the railway, and the railway bring traffic from 

 those districts in which there is no water communication. 



As a further measure for the benefit of iuland communication 

 we advocate the adoption of the plans of Mr. Albert Robinson, 

 the engineer of the Ganges Steam Navigation Company, for im- 

 proving the course of the Indian rivers, as mentioned in our last. 

 This can be done at a small expense. Whatever increases the 



