48 Transactions Texas Academy of Science. — 1906. 
Only five cities had over 2,500 inhabitants. One hundred and twelve 
of the 243 counties of Texas today contained not a single settler. 8 
It will be seen that the business in this State w r as not sufficient to 
make railroads paying investments. With opportunities for profit so 
remote, it was idle to expect capital to be invested in these enter- 
prises. 
The limited aid extended by the State thus far was accompanied 
with one result. The franchises were secured by men without means, 
who intended to use them not to build railroads, but to speculate 
with them. These charters were either disposed of to other specu- 
lators at a premium, or were used to defraud the people of their 
money. 9 
Assuming that the promoters were honest in their intentions to 
build the roads, it is evident that their only available resource was 
the capital the citizens of Texas could be induced to subscribe. And 
this was insufficient. 
In 1858 the free capital was estimated at $2, 745, 493. 10 Its extreme 
paucity is further illustrated by the following incident, which is 
typical: When the Buffalo, Brazos & Colorado road proposed to 
extend its line from Richmond to Austin, a subscription was taken 
by the company from the citizens of Colorado, Fayette, Bastrop and 
Wharton counties. Only $54,025 was subscribed, and not all of this 
was collected. This was hardly sufficient to pay for five miles of 
road. 11 Yet the citizens of these counties were exceedingly anxious 
for railroad connection with the Gulf, and the Buffalo Bayou, Brazos 
■& Colorado road was one that commanded more confidence than any 
other company in Texas. 12 
It is evident that any aid extended by the State short of the 
amount necessary to construct the roads must be accompanied by in- 
evitable failure. If the roads were to be built, more aid was an 
absolute necessity. 
TO. Agitation for State Ownership. 
(a) Public Works in Other States. 
When the utility of railroads was first fully appreciated, many 
schemes of internal improvement were set on foot in the United 
States. Into private enterprises capital could not be lured ; but into 
public enterprises it readily found its way. Internal improvements 
were possible only at first by using the machinery of the State. 13 
It was in this manner that many of the earlier improvements in 
the United States were constructed. Thus, the Erie canal was built 
in New York in the early 20 ’s. 14 The first railroads of Pennsylvania 
