Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-11-19
HISTORICAL REVIEW.


Letter to the Petersburg CVa.) Index-Appeal.l
In 1856 the State of Texas
chartered the Memphis and FL Paso railroad
company, which was authorized to construct
a railroad to El Paso and thence to the west
ern boundary of the State. This was the cor
poration which General Fremont, after the
late war, undertook to revive by. the sale OF
bonds in Europe, but no work of any mate
rial importance was done; and, as congress
would not grant its a'd to a scheme under his
of French bondholders, this measure virtually
fell through. Meanwhile, in 1866, con-
gress had chartered corporation known as
the Atlantic and Pacific railroad company,
with power to build a road tIom Springfield,
Missouri, to the Pacific coast, along the
thirty fifth parallel. This was an independ-
tween the Union Pacific aud the thirty-sec-
Ond parallel, which the Memphis and
Ell Paso company were presumed
route. In IS7I, sfter Fremont's scheme had
fallen through, congress passed a bill incor-
porating the Texas Pacific railroad company,
Marshall, Texas, along the thirty second
parallel TO San Diego, California. This bill
was passed after heated discussion as an act
ofjustice to the south. So plainly was this
motive avowed, and so desirous was congress
TO accomplish the object, tnat its charter for
bid consolidation with any competing line to
the Pacific, while its construction was to be
begun and prosecuted simultaneously from
Marshall and San Diego, along the thirty-sec-
ond parallel. This anti-consolidation feature
deserves particular attention in the considera-
tion of this subject, since its removal is the
pivot on which SCOTS scheme turns. Mean
while the Pennsylvania railroad company,
which has been extending It's lines to-
ward ST. Louis, had acquired a con-
trolling influence in the Atlantic and
Pacific road which, by leases, contracts and
construction, had been extended to place
called Vinita, in the Indian Territory. Re-
cognizing the fact that two additional Pacific
routes were not needed and could not be sup
Tod nd nfZin a nj
the line on the thirty-second parallel was the
cheapest and better of the two, the company,
through its agents, set 10 work and bought up,
for an Insignificant sum, the control of the
Texas Pacific company, which had then done
comparatively little if anything toward the
accomplishment of the objects of its charter.
Thomas A. Scott was soon after elected presi-
dent of that company, with directory of
whom all but one were paid officials of the
Pennsylvania railroad company. AS a stroke
of policy, TO prevent competition and TO Sc
cure the additional land grants which Texas
had made, Scott & Co. acquired by sort of ju-
the Mem phis and Ell Paso company, and now
claim to be in full control of any and ali right
TO build road TO the Pacific on the thirty
second parallel. Unfortunately for this boast
ed right, there has come to light history of
the so-callsd legal proceedings had by and
before Judge Bradley, of the United States
court for Texas, by which the Memphis and
FL Paso company was passed into the hands
of receiver, and subsequently transferred to
Scott & Co. The New York Stfn truthfully
=
romance" and characterizes the proceedings
then had as fraudulent. There can be no
doubt but that the supreme court will
promptly set aside the whole transac-
lion and restore this property and the
franchises and land grants to the trus-
tees, or some agent OF its appointment, to
recompense, in some degree, the wronged and
injured bondholders OF the Memphis and FL
Paso company. And thus it may be that
some people other than Scott & Go. have or
can acquire rights in this direction. Once
firmly in the saddle, Scott began his work by
launching upon the Texas Pacific company,
of which he was president a credit mobilier
called the California construction company,
whose performances excel everything this
countrv has ever seen. Scott was 70 much
interes ed in this credit mobilier that he stood
as an .,Sorser tor 81 1900 of its paper, which
went to protest under the pressure of the great
financial panic of 1873. The nature OF the
contracts which he made with his credit mo-
bilIer NAV easily be inferred when il Is stated
that for building each mile OF road 1t received
the modest sum of S96,2eS, and that II has in
hand, by its own official report, SS7, ,00O,0 900 of
the bonds and stocks OF the Texas Pacific
company as its pay for work which only cost
SIl 6lQC COO. Small wonder is 1t that Scott & Co.
wart t0 finger the contracts for building a
trans-contlnental line off of the credit of
Uncle Sam, and that they are willing to give
the SS 000,OO0 they hold on bonds and stocks
10000, which the work done by his credit mo-
biller is said TO have cost, with interest
thereon.
THESE HISTORICAL FACTS
are uS6lQGl ( CeSSdTy IO d Iull UNDERSTANDING
Of the situation. In furlherfnce OF their
scheme 10 divert the southern Pacific road TO
their own ends, Scott & Co. now ask congress
to pass bill authorizing their Atlantic and
Pacific company TO extend its line from Vim
ita, not along the thirty nth parallel, where
IL was intended TO be run, but southwestward-
ly, so that IL may connect with the Texas Pa
cife road Tor Southern Pacific, as IT is COM
monty Lus improperly called) at some point
west OF Fort Worth not further north than
the thirty third parallel, at the same time the
Atlantic and Pacific agrees to give up its
right to the construction OF its original line
along the thirty nth parallel, for which ii
would have no further use, after II shall have
secured better line, and shall have seized
Gnd swallowed up its most formidable rival.
IL can well afford TO give up this barren night
and agree TO give back to the national domain
the and which its charter conveyed, for, tell
IT not in Gath, the Atlantic and Pacific com
pany is a bankrupt. utterly unable TO build a
uE, or 10 acquire title TO single
acre of the laad II so magnanimous-
ly agrees 10 give back, 1t IS 1o-daY in
restored 10 health II it could be grated into a
healthy tree whose roots were bedded in gov
ernment bonds. From Fort Worth TO the Pa
| citic coast they propose thencefoTth TO be 8
| common line. with the two arms, the one
| leading to Marshall, Texas, and the other 70
! st. Louis. shrewd provision is inserted to
| the eject that "efther company falling TO com.
! plete' It's road To the designated point Of juno
lion within the time shall forfeit, for the IN
finished portion OF Us line, the privileges and
! company, II not in default after completing
| its line TO such designated point Of junction
shdl have the right TO construct the unfinished
portions OF the line OF the other company
! II viii be observed thai here Is an express pro
vision looking TO the default OF one Of the line;
! diyergipg from Fort Worth to the east, ant
| providing that the defsu!t shall only work
| FORFEITURE OF THE UNFINISHED
PART
| OF the line, leaving the completed portion
4 with the whole franchise intact The othe
company, in case OF such default, shall hav'
! the rlghI TO construct this unfinished por ioI
OF the others line, but II is not required to d'
| so. How easy, with such a charter, would /
be for Scott y Co 70 SEQ 70 IL that the lin
| from Marshall TO Fort Worth was not com
| pleted within the time specified. while IL
line TO st. Louis were speedily completed