The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-02-18
IFor the Dispaich.1

Your neighbor Of the Wing seems to be
sftlictcd with "Tom Scott on the braIu."
The statements of "CitiZen in the issue of
Saturday might he supposed TO have been
the utterances of the lillle man with the big
hat referred to 10y Major Sutherlin at the
meeting of the Richmond and Danville
stockholders, who seems to regard L. A.
Scott as the incarnation Of the spirit Of evil.
i do not propose 10 review the charges OF
"Citizen in detail, but only attempt to cor.
rect few Of the mSstatements.
THE Pcnnsy lyania Railroad Company un-
der the Eame of Southern Security Company
raidipg through the South" The Pennsyi-
vania Railroad Company did not control the
Security Company. It's interest never ex-
cecded 10 per cent. Of the stock, and 10 per
cent could not control the organization un-
less, as in the case of the fredericksburg and
Potomac railroad, majority interest was
pooled in the bands Of i minority to carry
out policy OF destructiyeness with view
to divert business TO another line in which
this minority had a large interest.
What have these raiders done: The Sc.
curity Company, composed largely Of south
ern gentlemen, expended many millions in
improving and re0rganIZiug southern rail-
roads. The Pennsylvania Railroad Comps
nv, from the report of the cXamioiDg COM
mttce, appears to have expended ten mil
lions, much of it in new construction. Who
has been benefited? Not the Pennsylvania
Railroad Company, who have not ye, received
the first dollar in return, and who can never
receive dollar until, by increased volume OF
business. consequent upon increased popuia-
ton and production, the net income OF the
lines in which they are interested can be in
creased TO an extent sufficient to pay dri-
dcnds. and then all other stockholders parti-
cipate equally with themselves. From the
report of President Butord il appears that
the Richmond and DanyIIe Railroad Com
p1uy, for the purpose of extending lis con-
nccionS and providing equipment, whether
wisely or unwisely is not now the question:,
endorsed several millions Of Airline
bonds, assumed large obligations upon
notes. aud Incurred Il floating debt Of oyer
million Of dollars. The Pennsylvania
Railroad Company purchased these bonGS-
the whole i,Sue-;lnd Cancelled the endorse.
mcnt. They surrendered all the notes, re-
leased the Richmond and Danyilie Railroad
Company from every dollar OF Airline ooi1'
CATIONS, and ulclnsel tor cash one million
of boudS OF the Richmond and DanYille Com.
pany. thus nearly canceliing the whole float
ing debt. snd placing This road in the strong
est financial position Of any railroad in the
South. And yet they were under no obligl-
tions TO exercise such liberality. They were
only stockholders. They had the power to
sell out the road and take it all, but they did
not use the power, and protected the into
rests Of all other stockholders equally with
their own. Richly did the Pennsylvania
Railroad Company merit the applause with
tl,, la
SulhcrIin Of this generous action on the part
of their co.partnerS was received by the
sto .khoders Of the Richmond and Daurile
Company at their annual meeting. If this be
1adlng. give us Il little more Of the same
sort.
But this Texas and Pacific scheme: What
about il: Is there no chance for stealing,
no Cltait-Mobilier, Cl no construction compa-
ny: Is all square!
There is no Credit. Mobiler. There was 4
construction company, which has agreed 20
reliuqui>h everything for actual cash eX.
pended in the work. The till leaves no loop
hole for rnscality. The bill is most carefully
| framed to guard against the possibility Of
| Discrimination against southern Us in favor
OF northern lines. The ten millions Invested
| hy the Pacific Railroad Company in southern
! roads SHOULD furnish some guarantee of fair
! play 10 protect this interest and make ii pre-
Guctiyc. All expenditures are 10 he made
| under Government supervision, and no more
bonds i>surd than the acu ual cash cost OF the
work requires. The Government is asked
TO guarantee only The interest, not the prin.
cpul. of the construction bonds. And the
strongest cvidcrccs are furnished that the
interest will be paid 10y the company; while
the Government, even II it did pay the in.
| terest, would save double the sum annually
in transportation, without considering the
thirty millions OF acres of public lands re-
turned to it enhanced in value by the con
| struction of the road.
The bill is before me, but l cannot say
| more at present. hope the public will no
be alarmed at the cry OF Tom Scott" bu
suspend opinions until they examine facts.
| ANOTHER CITIZEN.