lands which before were beyond the reach of commerce. And it was seen, too,
that in event of war, a new and invaluable element had been introduced,
viz., the power of transportation to an extent never before imagined.

Especially were these advantages foreseen in the vast empire of Russia, and
an attempt was very early made to induce private capitalists to undertake
the construction of the lines contemplated in that country. The Emperor,
besides guaranteeing to the shareholders a minimum profit of four per
cent., proposed to give them, gratuitously, all the lands of the state
through which the lines should pass, and to place at their disposal, also
gratuitously, the timber and raw materials necessary for the way and works
which might be found upon the ground. It was further proposed, to permit
the importation of rails and of the rolling stock free of duty. Russian
proprietors also came forward, and not only agreed to grant such portions
of their land as the railroads might pass through, gratuitously, but
further to dispossess themselves temporarily of their serfs, and surrender
them to the use of the companies, on the sole condition that they should
be properly supported while thus employed.

With regard to the great line, however, which was to unite the two
capitals, St. Petersburg and Moscow, it was decreed that this should be
made exclusively at the expense of the state, in order to retain in the
hands of the government and in the general interest of the people a line of
communication so important to the industry and the internal commerce of the
country. The local proprietors agreed to surrender to the government,
gratuitously, the lands necessary for this line.

It was very early understood that the railroad problem in Russia was much
more analogous to that in the United States than to that in England. The
Emperor, therefore, in 1839, sent the Chevalier De Gerstner to the United