Part 22

It is estimated that the 2870 miles of railroads finished in New England have cost $132,000,000,—which gives an average of nearly $46,000 per mile. In the Middle States, where the natural obstacles are somewhat less, the average expense per mile of the railroads already built is not far from $40,000. Those now in course of completion—as the Baltimore & Ohio Railroad, Pennsylvania Central, and other lines, the routes of which cross the Alleghany range of mountains—will probably require a larger proportionate outlay, owing to the heavy expense of grading, bridging, and tunnelling. In those States where land has become exceedingly valuable, the cost of extinguishing private titles to the real estate requires, and the damages to property along the routes form, a heavy item in the account of general expenses of building railroads. In the South and West the case is reversed: there the proprietors along the proposed line of a road are often willing and anxious to give as much land as may be needed for its purposes, and accord many other advantages in order to secure its location through or in the vicinity of their possessions. In the States lying in the valleys of the Ohio and Mississippi the cost of grading, also, is much less than at the eastward. Where the country is wooded, the timber can be obtained at the mere cost of removing it from the track; and through prairie districts Nature seems to have prepared the way for these structures by removing every obstacle from the surface; while fine quarries of stone are to be found in almost every region. These favorable circumstances render the estimate of $20,000 per mile in all the new States safe and reliable.

The primary design of nearly all the great lines of railway in the United States has been to connect the sea-coast with the distant interior, to effect which object it was necessary to cross the Alleghanies, which intersect every line of travel diverging to the West from the great commercial cities of the seaboard.

The Eighth Census (1860), continuing the line, makes this addition to that of the Seventh:—

Previous to the commencement of the last decade, only one line of railroad has been completed between tide-water and the great interior basins of the country, the products of which now perform so important a part in our internal and foreign commerce. Even this line, formed by the several links that now compose the New York Central Road, was restricted in the carriage of freight except on the payment of canal tolls in addition to other charges for transportation, which restriction amounted to a virtual prohibition. The commerce resulting from our railroads consequently has been, with comparatively slight exceptions, a creation of the last decade.

The line next opened, and connecting the Western system of lakes and rivers with tide-water, was that extending from Boston to Ogdensburg, composed of distinct links, the last of which was completed during 1850. The third was the New York & Erie, which was opened on the 22d of April, 1851. The fourth in geographical order was the Pennsylvania, which was completed in 1852, although its mountain division was not opened till 1854. Previous to this time its summit was overcome by a series of inclined planes, with stationary engines, constructed by the State. The fifth great line, the Baltimore & Ohio, was opened in 1853 still farther south. The Tennessee River, a tributary of the Mississippi, was reached in 1850 by the Western & Atlantic Railroad of Georgia, and the Mississippi itself by the Memphis & Charleston Railroad in 1859. In the extreme north the Atlantic & St. Lawrence, now known as the Grand Trunk, was completed early in 1853. In 1858 the Virginia system was extended to a connection with the Memphis & Charleston and with the Nashville & Chattanooga Railroad.

The eight great works named, connecting the interior with the seaboard, are the trunks or base-lines upon which is erected the vast system that now overspreads the whole country. They serve as outlets to the interior for its products, which would have little or no commercial value without improved highways, the cost of transportation over which does not equal one-tenth that over ordinary roads. The works named, assisted by the Erie Canal, now afford ample means for the expeditious and cheap transportation of produce-seeking Eastern markets, and could without being overtaxed transport the entire surplus products of the interior.

Previous to 1850 by far the greater portion of railroads constructed were in the States bordering the Atlantic, and, as before remarked, were for the most part isolated lines, whose limited traffics were altogether local. Up to the date named, the internal commerce of the country was conducted almost entirely through _water_ lines, natural and artificial, and over ordinary highways. The period of the settlement of California marks really the commencement of the new era in the physical progress of the United States. The vast quantities of gold it produced imparted new life and activity to every portion of the Union, particularly the Western States, the people of which, at the commencement of 1850, were thoroughly aroused as to the value and importance of railroads. Each presented great facilities for the construction of such works which promised to be almost equally productive. Enterprises were undertaken and speedily executed which have literally converted them into a network of lines, and secured their advantages to almost every farmer and producer.

The progress of these works in the aggregate, year by year, will be seen by the tabular statements at the close of the report. The only important line opened in the West, previous to 1850, was the one from Sandusky to Cincinnati, formed by the Mad River and Little Miami Roads. But these pioneer works were rude, unsubstantial structures compared with the finished works of the present day, and were employed almost wholly in the transportation of passengers.

With the advantages arising from the railroad routes, it is not at all surprising that our postal facilities have increased to such an extent that, next to the telegraphic wires, it may rank as one of the most extraordinary operative institutions in this or any other country in the world.

It will be perceived that in speaking of the department the author has paid little or no attention to the rebellion in connection with its operations. Situated as he is in the department, his opportunities are such that if the business of the office has lessened, as is supposed, in consequence, there is not a man engaged but must truly say that, instead of such being the case, their labors, as well as the business of the office, never presented a more stirring and flourishing appearance. In some respects it may have affected the general income, but upon the whole the vast increase of army letters and newspaper circulation, added to sundry articles of wearing-apparel coming under postal regulations, we question if this deficiency has not been partially, if not entirely, overcome. To a certain extent it affected foreign postage. The following statement, however, will convey a better idea of the postal finances than that of any theory established upon “why and whereof.” Figures, they say, never lie; but may not the master-hand forming them occasionally err in their formation?

The postal revenues for the year ending the 30th of June last were $12,438,233.78, and the expenditures of this department during the same period were $12,644,786.20, showing an excess of the latter of $206,532.42. The average annual receipts of this department from 1859 to 1861, inclusive, were $8,745,282.62, and the average annual expenditures for the same period were $14,482,008.44, showing an average annual excess of expenditures over receipts of $5,736,725.82; and the average annual receipts from 1862 to 1864, inclusive, were $10,871,530.97, and the expenditures, $11,694,785.72, showing an average annual excess of expenditures over receipts of $823,254.75.

The excess of receipts in 1864 over 1861, the first year of the rebellion, was $4,088,957.38.

Although the proportion of receipts as against the expenditures has doubtless been increased on account of the suspension of the postal service in the insurrectionary States, the above furnishes the evidence of an improving financial condition of the department highly creditable to the administration of my immediate predecessor.

The estimate of expenditure for 1864 was fixed at $13,000,000, in which was included the sum of $1,000,000 specially appropriated for the overland mail-service, being $355,213.80 more than the amount actually expended.

On the other hand, the revenues of 1864 were estimated at an increase of five per cent. on those of 1862, making $8,714,000, while they actually reached $12,438,253.78, or $3,724,253.73 more than the estimate. This increase equals 42-5/8 per cent.

The increase of expenditures in 1864, compared with those of 1863, is 11-5/8 per cent., and the increase in the revenues for the same year 11-3/8 per cent.

This exhibit promises an increase of the revenues for 1865 over the estimate submitted in the report of last year.

The revenues of this department for the year ending June 30, 1865, were $14,556,158.70, and the expenditures $13,694,728.28, leaving a surplus of $861,430.42.

The ratio of increase of revenue was 17 per cent., and of expenditure 8 per cent., compared with the previous year.

ESTIMATES FOR 1866.

The expenditures of all kinds for the fiscal year ending June 30, 1866, are estimated at $14,098,500 00

The gross revenue for the year 1866, including foreign postage and miscellaneous receipts, is estimated at an increase of six per cent. on the revenue of 1864, making 13,184,547 79 ————————————— Estimated deficiency of revenue compared with estimated expenditures 913,952 21

From this sum must be deducted the amount of the permanent appropriations to compensate the department for carrying free mail-matter, under acts of March 3, 1847, and March 3, 1851 700,000 00 ——————————— By which the estimated deficiency is reduced to $213,952 21

The grants for the transportation of free mail-matter for the last two fiscal years have not been expended. Assuming that the amount of $700,000 for the last year is still available, no appropriation for any deficiency in the revenues will be required.

In making the estimate of probable expenditures for 1866, the amounts actually expended under the several heads during the past fiscal year have been taken as a basis; but an increase in several of the items named has become necessary, particularly in the appropriation for postage-stamps and stamped envelopes, the estimated cost of the latter being increased $140,000 per annum, according to the terms of a new contract elsewhere referred to in this report.

_IMPORTANT FACTS._

The maximum annual receipts of the postal department, previous to the rebellion, from all the States was $8,518,067.40, which was exceeded in the sum of $6,038,091.30 by the receipts of the last year from the loyal States alone. The revenues during the past four years amounted to $46,458,022.97, an average of $11,614,505.74 per annum. Compared with the receipts of the four years immediately preceding, which amounted to $32,322,640.73, the annual average increase of revenue was $3,533,845.56, which has not resulted from any considerable additions to the service, the ratio of receipts to expenditures having been larger than, with few exceptions, at any previous period. A proper regard to economy in administration, aided by larger contributions from all the States of the Union, will enable the department to increase its usefulness from year to year in all its legitimate functions. But it must not be overlooked that the ability to fully perform its mission as the postal agent of the Government is greatly impaired by the burdens imposed by the franking privilege and expensive service upon routes established for other than postal purposes, the receipts from which are largely unremunerative. However much the establishment of these routes is to be commended for national objects, in which regard they command the approval of the country, it is not possible to see upon what principle they are wholly chargeable to the postal fund, which belongs to those by whom it has been contributed, and is pledged to meet the wants of the postal service.

The subjoined table illustrates the misapplication of the postal funds:—

+---------+----------+-------------- Routes. │ Pay. │ Receipts.│Excess of pay. ------------------------+---------+----------+-------------- Salt Lake City to Folsom│$385,000}│$23,934 44│ $726,065 56 Atchison to Salt Lake │ 365,000}│ │ Kansas City to Santa Fé │ 35,743 │ 6,536 57│ 29,206 43 Lincoln to Portland │ 225,000 │ 24,791 67│ 200,208 33 The Dalles to Salt Lake │ 186,000 │ 5,660 77│ 180,339 23 │---------+----------+-------------- Total │1,196,743│ 60,923 45│1,135,819 55 ------------------------+---------+----------+--------------

_THE RAILWAY POSTAL SYSTEM._

This system, which was suggested by the celebrated Rowland Hill, originated at a period in English postal history when the requirements of trade and commerce demanded a revisal of the code. Perhaps no man was better qualified for the purpose than was Mr. Hill. In 1839 railroad post-offices were in use for mail-bags. Each railway company provided a car, when desired to do so by the postmaster-general, for the exclusive use of the mails. These cars were fitted up with boxes to facilitate the distribution and reception of the mails. On the London and Liverpool Road (1839) it required the constant and active employment of two clerks to assort, receive, and hand out the mails: such is the rapidity of travel, and so numerous are the post-offices upon this route. Subsequently these cars were used for the distribution of letters in large cities, by assorting them on the routes. Not only were such distributions made on the cars for all the principal stations on the line of the railroads before the arrival of the cars, but distributions for the offices connected with the stations, and therefore incidentally for the entire district of country through which the lines are in operation. It was some time before our postal department could be made _sensible_ of the necessity of the system in our country. Perhaps no other country in the world possessed a larger amount of railroad travel and postal extent than ours, and yet the spirit of old fogyism was hard to be subdued in the encounter Young America had with it on this subject, nor was it until the cars were almost forced upon the department (experimentally) that they were first introduced. These experiments were made on the routes from Chicago, Illinois, to Clinton, Davenport, and Dubuque, Iowa, with the most satisfactory results, as were those between Washington and New York. The attention of the public was called to this new postal system by the postmaster-general (William Dennison) in his report for the fiscal year 1864, who stated “that cars requisite for the purpose are prepared for one daily line between New York and Washington, and, by means of clerks taken temporarily from the post-offices at Washington, Baltimore, Philadelphia, and New York, letters intended for distribution at either of these points are distributed in the cars, and so arranged that they can be despatched without delay on connecting routes.”

Among the railroads upon which these cars are placed are the Pennsylvania Central, between Philadelphia and Pittsburg: in fact, the system is now so fully established that it has become an essential element in the whole organization of the postal department. Those employed in the several post-offices from which the light of order radiates, under this new system, can fully appreciate the advantages resulting from it, as merchants and others already acknowledge

“This radiated head of the Phœnix,”

as it rises above the ashes of the old _fogy_ system.

Mail-matter from every direction will reach our citizens much earlier,—in most cases several hours sooner. This will show at once how essential to our merchants is this new improvement: nor can we at this early period of its introduction calculate all the advantages likely to result from it. The idea of a post-office performing its distributing duties on a railway, going at the rate of thirty miles an hour, is one of those scintillations of genius which only emits light once in a century,—that century the present.[49]

_THE FRANKING PRIVILEGE._

“I have said so much, that if I had not a frank I must burn my letter and begin again.”—COWPER.

It is the abuse of certain privileges, which all governments accord to a portion of its officers, which leads to fraud, crime, and corruption. Among these, that of the franking system may be ranked as a most prominent one. Had it been checked at an earlier period of our postal history, how many evils would have been prevented, and how far more plethoric would have been its treasury!

As early as 1782, even in its incipient state, far-seeing men objected to its exercise. In December (6th), 1782, an ordinance extending the privilege of franking letters to the heads of all the departments was reported and taken up. Various ideas were thrown out on the subject at large,—some contending for the extension proposed, some for a total abolition of the privilege as well in members of Congress as in others, some for a limitation of the privilege to a definite number or weight of letters. Those who contended for a total abolition represented the privilege as productive of abuses, reducing the profits so low as to prevent the extension of the establishment throughout the United States, and throwing the whole burden of the establishment on the mercantile intercourse. On the other side, it was contended that in case of an abolition the delegates or their constituents would be taxed just in proportion to their distance from the seat of Congress,—which was neither just nor politic, considering the many other disadvantages which were inseparable from that distance; that, as the correspondence of the delegates was the principal channel through which a general knowledge of public affairs was diffused, any abridgment of it would in so far confine this advantage to the States within the neighborhood of Congress, and that as the correspondence at present, _however voluminous_, did not exclude from the mail any private letters which would be subject to postage, and if postage was extended to letters now franked the number and size of them would be essentially reduced, the revenue was not affected in the manner represented. The ordinance was disagreed to, and the subject recommitted with instructions to the committee, giving them ample latitude for such report as they should think fit. Whether the report was ever made we are not advised; but its latitude has increased with the introduction of every new State and Territory. Since the above date, almost every postmaster-general has alluded to the franking privilege. Mr. Blair, in his report of 1863, says,—

“I renew the recommendation made last year, that the franking privilege of postmasters be abolished, except for correspondence between them and other officers of the department upon official business.

“It should be abolished also as to the correspondence of all persons addressed to the several departments and executive officers of government, except upon official correspondence addressed by an officer of the government.

“Both these privileges, as they now exist, have been much abused, and have no proper place in a correct postal system.”

Mr. Blair, however, falls into the same error that many official rulers commit,—that of calculating chances of success, instead of commanding them. In the report alluded to, we find this passage:—that “the postal revenue has nearly equalled the entire expenditures,—the latter amounting to $11,314,206.84, and the former to $11,163,789.59, leaving a deficiency of but $150,417.25. Good reason, therefore, exists for the expectation that within a brief period this important department of the General Government will become self-sustaining.”

We do not think so. The postal department is not, nor can it ever be made, a speculative one. It is based on the increase of trade and commerce throughout an extent of country unparalleled in history, as uniting in one system of rule upwards of thirty millions of people. To keep up the routes over such a vast space, connecting State to State, Territory to Territory, passing over lakes, rivers, mountains, even over the land-route to California, through almost impassable sections, contending with difficulties scarcely to be realized in descriptions, the expense is necessarily great. Previous to 1850 many of the routes bordering the Atlantic were for the most part isolated lines, near to which trade and traffic had not approached. The settlement of California, and the opening of a trade which has ultimately proved a second Peru, as regards gold, may be dated as the commencement of a new era in the physical progress of our country. In connecting a line of posts, establishing post-offices, and furnishing modes of conveyance, the question of dollars and cents is but a secondary consideration. The word profit was repudiated, and the sole purpose of the government was to establish the post, no matter at what cost. The time may come when it shall prove self-sustaining, but never if at the expense of the public interest, nor while the franking system exists.

We contend that every letter, document, or newspaper, no matter by whom mailed, or how high the functionary, should be prepaid; for men in authority are the servants of the people, and have no more claim upon the _public treasury_ than has the lowest worker in any of the departments. _The postal department, however, in its official correspondence, should be the only exception to the rule._

Nor is it the mere privilege we complain of, but its abuse. Reduce it to an honest and equitable use, and we venture to say the public will endure the act.

Mr. George Plitt, in his report while a special agent of the post-office department, made February 3, 1841, speaking of the franking privilege, says, “The actual number of franked packages sent from the post-office of Washington City during the week ending on the 7th of July last was 201,534; and the whole number sent during the last session of Congress amounted to the enormous quantity of 4,314,948. All these packages are not only carried by the department into every section of the country _free of charge_, but it is actually obliged to pay to every postmaster whose commissions do not amount to $2000 per annum, _two cents for the delivery of each one_! Supposing all the above to have been delivered, the department would lose from its revenue for this one item upwards of $80,000, besides paying for the mail-transportation.”

In 1834 the “Washington Globe,” speaking upon this subject, used the following language:—