New-York tribune., 1875-01-27
THEMES IN MONEY CENTERS.
THE TEXAS AND PACIFIC RAILROAD SUB
SIDY BILL.


-, ,up ,,ruPHrs AND Ell PAso-GRoUSDs ON
WHICH THs SUBSIDY Il URGED.
70 iAs EdifOr Of Ths Trt6H"s'
SIR, In your paper of yesterday you pub
ssbad an article dated at Washington, Jan. .,
headed Texas and Pacific in need of investiga-
t;on.1 am inclined TO believe the writer OF that
article or perhaps the party who furnished him the
data is more in need of investigation than the Iexas
and Pacific Railway Company. His whole state
n,ent from beginning to end may be designated:
using the mildest form of language, as tissue OF
mlsstatemoDts.
FIRST never had anything TO do with the pro-
euring of the charter of tho Texas and Pacific Road
know nothing about ii until some months after the
charter was obtained. when | was waited upon 10y
a scommittee Of gentlemen from New York to know
whether would tako largo interest in the stock.
and assume the dates of President of tho Company
which, after consultation With a number of friends
here it was concluded should do, as it was an i'm
portant public highway, and would ultimately be oil
great value TO the country 1t trayersed.
Second. 1t never was consolidated with the Memphis
and III Paso has it anything to do with the char
ter or obligations of that Company, or any connec-
ton with II at all, and except that the Texas
and Pacific Company about two years since, in view
Of some rights that the Memphis and FL Paso had in
an old land grant under decision Of the Supreme
Court of the United States, did agree under au-
thorty from tho United States Court 10 the Receiver
Of the Company, to buy from him certain portions OF
the old grading in bis charge aud also certain land
grant bonds that had been sold in Paris some years
previously by the Memphis and FL Paso Company,
with the view of removing number of difficulties
that had arisen there and clearing away II possible
tbs stain upon American credit believing, as dld'
that by aiTording the bondholders TINS relel they
would take an active interest in the matter, and
n rlyo sale NJ
the bonds of the Texas and Pacific Railway Com
pany.
In perfecing this arranr ment we were TO trans
fer to the Receiver for the benefit Of the holders of
The land giant bonds referred to- through the house
Of Duncan. Sherman, g. Co, the titles 10 certain
portions of land granted by the State Of Texas to
the Texas and Pacific Company and the holders of
the bonds were to deposit them with that house for
exchange. am informed that the deposit of the
bonds has been made to a large extent. and
when il is completed, the transfer viii be made as
authorized by the United States Court on compli-
ance with the agreement. Ii the panic of 1913 had
occurred 80 days later under the arrangement made
the bonds of the Texas and Pacific Company wOuld
have been negotiated, and the road constructed
through such negotiations; but since that date 1t
has not been possible to negotiate the Sc
curities OF an unconstructed line. no matter
how good they might be, without some
such assurance as the Company is now asking from
the Government Of the United States, that the in
terest on the bonds will be promptly paid, the Com
pany itself providing through its own revenues the
means for this purpose. and also sinking fund
commencing in 1889 that will redeem the principal.
and for which principal the Government is in no
way responsible.
You of course understand that by the plan sub
mitted to Congress all the bonds of the Company
placed in the Treasury of the United States, and
there can only be issued therefrom an amount not
exceeding SS5.OOo per mile, with the further provi-
sion that Commissioners of the United States shall
supervise all expenditure, aud that only the actual
amount needed for construction and equipment shall
be delivered to the Company, aud this only on
road completed and equipped III sections as provided
by the act. Al the remaining bonds of the Com
pany, amounting to over $1000O000, arc held by the
Secretary of the Treasury to be sold By him at cur
rent market rates. if any deficiency should occur in
earnings to meet interest, and thus prevent any
possibility OF his ever coming TO an appropriation
committee T. ask for dollar of Government money
l would De glad to have you understand that
neither Mr.. Scott nor any person associated with
bIm has rec lived dollar of profit from this huge
speculation your correspondent terms it, If the
plan now proposed to Congress to build the SD
parallel line meets lis approval, as it ought
his great highway can be constructed
without tine appropriation of dollar
If Government bonds OF Government money. and il
Nl in my Judgment, do more TO revive the bust
uess of the South and Of the North also than per
haps any project that has been presented to the
Congress OF this nation. In the present depressed
condition of the industries Of the country this
measure would tend greatly to restore prosperity by
treating demands for material, supplies aud labor
10 build this line. 1t would start our idle mnes.
uills, aad factories, and give employment TO thou
sands OF deserving men, many OF whom are now IN
want Oi the necessaIies Of life
1t would Liahe a direct economy To the Govern
ment Of fr .d 50. 5000 10 S5.0OJ0OO per aDuum IN
the maintenance of its military, Indian, and
)ther establish. ents along our southern
border. II would n5e The Government the
means for q humane solution of the troubles con-
ncc,od via tle Indian Q"cstion as they
now exist in that country. l, will also make an
open ichway with which every road in tho country
,an connect on equal terms through to the
waters of the Pacific Ocean. and would
yitalize the entire system of Southern rail
ways, aud as a competitor 10 other lines 1t
would be Of great value to the Government
in it's transportation and other expenditures, ard be
Of still value TO the population of the eastern
sDd western slopes that might desire to use it, Ii
will deY clop large amount Of entirely new wealth,
and thus add greatly TO the taxable Of the
Government enabling il at the time to take
care of the population in the States and Terri
tories to be trayersed by the line that after it,
construction human life and property be made
perfectly safe which certainly not the at tins
lime.
1t rs perhaps unnecessary 10 90 through the form
Of an Investigation by Congress, as | prepared
~ show 60 any party, Interested or diInere5ed,
lhat 10 bond OF share 0l stock has ever been DIS
- atg1t .l.A III sI