Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-11-01
RAILROAD INTERESTS.
Gel, Thomas A. SCOTS Negotiations I'm
EurOpe-His Views Of the Prospects
M the Texas and Pacific Railroad.
Il I'll

EurOpe-His Views Of the prospects
of the Texas and Pacific Railroad.
From the New York Tribune.
PHILADELPHIA, Oct. 2S.-Col. Thomas
A Scott, President of the Texas and Pa
cifc Railway, and Vice President of the
Pennsylvania Railroad, returned to this
city Yesterday after an absence in Europe
of several months. he went there hoping
to negotiate loans for the Texas Pacific
Railway. Wishing to ascertain what sue
cess he had met with, your correspondent
called on him at the Pennsylvania Railroad
Company's building, in Fourth street.
In consequence of the large amount
of business matters requiring his
individual attention, which had &C
cumulated in bis absence, Col. Scott
gave audience to but few persons. He
readily admitted the representative Of the
Tribune, and expressed bis willingness to
give sill desired information. He stated
that the loan of 100000 900 for the Penn
sylvanis Railroad Company was negotiated
by tie company's bankers in London
few DAYS before the present financial re
vulsion began. The Pennsylvania was
therefore in excellent condition to meet its
requirements. The panic was entirely UD-
expected and unlocked for abroad. 1t
vould have been difficult to raise so large
an amount On terms so favorable on any
American securities after the outbreak Of
the panic. With reference 10 the Texas
and Pacific Railway, he had not been so
fortunate, He had not been able to close
successfully negotiations 70: a sale OF bonds,
but obtained financial aid, SO that work on
the road will not be discontinued. The
work needfnl TO build the road within the
limits OF the requirements Of Congress and
the State of Texas will be con-
tinued by this company. The effect
of the recent panic was 70 stop the
GALE of the bonds of American railroads in
Europe for the present. This condition Of
things he believed to be merely temporary,
and be thought there would soon be
ready sale for bonds as well secured as those
of the Texas Pacific Railway. The conf
p2py now have about 800 miles Of COM
pletad road in operation, built solely from
means raised by individuals, and have not
as vet disposed Of any of their bonds, nor
do they intend to sell at any time except
upon completed line, thus giving an abso-
Lutte property in working order as security
to purchasers of bonds.
One Of the leading officers of the Pennsyl-
yanis Railroad Company was questioned
by your correspondent relative to the 1naR-
ciai condition Of the road, and the extent to
VIII Oh 1t is effected by the present revulsion.
He stated that the loan Of 100000 re-
Gently negotiated In Europe had made mat
ters easy in monetary way. OF course
the business of the road was affected
by the panic. There WIS no
class or kind Of business in the country that
was not affected by it more or less. The
business Of the Pennsylvania Railroad was
affected much less, however, than might
naturally be supposed from the general con-
dition of affairs. The passenger traffic had
shown some falling off within few weeks.
BE presumed this could be accounted for
partly on the score of economy, few persons
travelling for pleasure at this time, and In sd'
dition the majority of business men are re-
ouired to remain at home and look after the
details of their affairs and how best TO pro-
vide against loss or failure. The ffeightiDg
business of the road is good. Western
bound freights have fallen of somewhat
Eastward bound freights have materially In
creased, The next annual report will show
An increase in earnings over last year of from
81 500 900 TO S2O00,000. Expenses, es
pecisrly in the construction and equipment
departments, have been reduced to the low
for the growing business of the road
He believed the financial revulsior
would ultimately inure to the benefit of the
old and wel-estsblished railroads. 1t woult
have the effect of stopping altogether or de
laying the construction Of many lew rail
roads which had been projected, and somt
on which much work had already beef
done. Weak financially, they would prob
ably in the end pass under the control Q
those running and operatingtbe older roads
and be run in connection with those roads
and in their control the districts to be &c
yeloped would be sure of ample rsilroa
facilities. The great shrinkage in value
of railroad stocks and securities have ser
ously crippled many of the large operator
and induced distress on the part OF man
others. Il was not, therefore, likely tina
there would be any large amount OF build
ing of new roads for considerable time
come. Nevertheless, be believed IN Il
stability of most of the old railroads in ii
country, and that majority would col
tinue, as heretofore, to pay good DIVIDEND
on the amounts expended in their coDstru
tiOn and continent.