It was not long after the introduction of the railroad that intelligent persons saw very plainly that the new mode of transportation was not to be confined to the working of an already established traffic, in densely populated regions, but that it would be of equal service in awakening the energies of undeveloped countries, in bringing the vast interior regions of the continents into communication with the seaboard, in opening markets to 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 States to obtain information concerning the railroads of this country.  It was this person who obtained from the Emperor the concession for the short railway from St. Petersburg to Zarskoe Selo, which had been opened in 1837, and who had also made a careful reconnoissance in 1835 for a line from St. Petersburg to Moscow, and had very strongly urged its construction on the American plan.  The more De Gerstner examined our roads, the more impressed he was with the fitness of what he termed the American system of building and operating railroads to the needs of the empire of Russia.  In one of his