Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-06-15
FRIGHTENING PROSPECTS OF THE



Company, hich was signahzed by an
immediate advance Of 90 per cent. on
the rates of ocean transportation via
Panama. This was done simply be-
cause the present season Of depres-
sion does not afford enough freights to
conduct both lines proftably. The re-
rival Of business viii give both full
employment, and Jay Gould can set
his own rates on either. The mer-
chants Of New York and other cities
I in the Northeast, begin to understand
that trans.continental freights are abb
solutely at the mercy Of this 'one-man
power" and the inevitable con-
sequence will be an active interest In
the Texas Pacific venture of Col. Tom
Scott. The Northwest also is concern
ed, and even Chicago may come to look
with less disfavor on the building of a
rival line that would tone down the des-
potism of the Union Pacific. Already
growls of discomfort have been heard in
that commercial center, over the new
tariff of Jay Gould, which makes the
same freight charges from Chicago to
San Francisco, as from New York, thus
placing the Western merchants at a
disadvantage in competing with Fest
ern cities for the Pacific trade, because
they must pocket as loss the cost of
transportation from the seabord on
their goods.
1t is IN the East, however, that the
necessity for putting some check on
the present monopoly is most apparent
aud best appreciated. With the East
and South a uait, together with all the
West as far north as 1t. Louis, while
the Northwest wo1ld be benefited in
directly, and both political parties in
California clamoring against the tyr
amy Of the Central Pacific, which con-
stitutes the furthermost link in jay
Gould's line, some conception may be
formed ofthe strength and inufencet that
the Texas Pacific is likely to command
in the next Congress. Notwithstand-
ing the popular opposition to further
Government subsidies, the argument
will be cogent that, since the Govern
ment has, through Credit Mobllier
legislation, aided the construction of
an oppressive monopoly, it cannot re-
pair the error except by breaking that
monopoly and aiding a rival road.
Commenting on the Jay. Gould CON-
bination, the United States Economist
views the situation from New York
standpoint as follows:
The only means Of neutralizing this
tremendous monopoly would be the
construction of one or both Of the
proposed new lines across the continent
Between the northern and southern
lines the choice at present would seem
to rest with the latter, although the
time will come, and it may be nearer
than is generally supposed, when both
lines will be a necessity. The North
ern Pacific Company, If indeed there
ever was any company apart from Jay
Cooke & Co, is now hOpelessly disor-
gained, and the public has so far lost
confidence IN the project and in the
route, that it Will be difficult if not i'm
possible to obtain the money necessary
for the undertaking.
The Southern Pacific Railroad Com
pany on the other hand, is full Of vital.
ty and resources. a considerable por-
ton Of it is already completed, and all
that is required from Congress is a
guarantee Of inteTest-nOt a or mt of
land or mOney-in order to complete the
work. This could be effected in less
than two years. This Journal has al
ways been opposed to government sub
sides on principle. But this is a case
in which an exception may be reasOna-
bly, made Something is due to by the
Federal Government to the Southern
and Southwestern States, to assist them
IN the process Ofindustrial recovery, and
nothing could be better or more effec-
tive than the construction of the new
railroad. 1t would open up new and
vast territory to civilization, and prove
source Of prosperity both to the
North and South.
These and other obvious considera-
tons are likely to produce their due
effect on the new Congress, and induce
II TO sanction the Southern or rather
the Texas Pacific RAILROAD scheme. 1t
is national In the best sense of the
word. The route Will be the most de-
lightful in the world. 1t travecses a
region of perpetual Spring, equally
free from the opposite extremes Of heat
and cold. L would form a new and
important link for the trade Of Mexico.
When finished it Will only require the
addition Of the necessary Switches
and turns OFF, to connect 1t with the
great railroad systems in the South
and Southwest already under the con-
troll Of Colonel Scott. 1t would also
be the shortest line across the CONT
nent. From New York to San Fran
cisco via New Orleans and San Diego,
the distance would be several hundred
miles less than by the existing route
via Chicago and Omaha. Within a
short time trains direct to San Fran
cisco will daily leave our city by the
Erie Union and the Pennsylvania
Texas lines. The Importance of these
connections to the commerce Of New
York is sufficiently obvious. 1t would
give our city a new impulse and tend
still further towards confirming its
commercial supremacy.
The statement that the distance be-
tween New York and San Francisco,
via New Orleans, is several hundred
miles shorter than via Chicago, is not
likely to be generally accepted; but
fortunately it does not invalidate the
argument for the Texas Pacific. Our
able contemporary IS looking at the
matter through New York spectacles.
In the way Of industrial recovery in
the South" it makes no allusion to the
commercial recovery of New Orleans
which would necessarily follow the
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