Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-02-12

-" [H
Herald.
Your correspondent, desiring to secure
Mr. SCOTS views Of the numerous rumOrs
a1Oat, in reference TO the Texas and
Pacific and Memphis and ElPasO railroads,
and 70 hear what he had to say in refer
snce TO the many stories, which, if true,
Impeach his character not only as a man
but as a man, approached him in his
Office and had the following inter-
view:
TIE INTERVIEW.
Reporter came here to get some state
in regard to the Texas and Pacific
and Memphis and FL PasO roads.
Mr.. ScOtt-All the statements made in
in any paper relative to the Texas and Pa
cihc being in any way consolidated with
or interested in the Memphis and FL PasO
organization that existed some eight or ten
years ago, are without foundation in fact.
The Texas and Pacific charter was passed
by Congress after the Memphis and FL
Paso corporation had failed TO accomplish
the purposes for which it was designed, and
has never been connected with it. The
whole purpose Of making such charges is
evidently to create an impression in the
public mind, by implication, that such re-
latiOns exist; and it is done in my
judgment, in the interest Of other parties
to serve their own designs, and to a large
extent for the purpose Of blackmailing the
Texas and Pacific Company in some in
stances, and in Others to prevent the public
from having the benefit Of this line to the
Pacific coast. trust they viii fail in bO.h.
Q1estion-DO you know whether there
has ever been any conference with the Off
GERS of this company for the purpose Of con
solidating with the Memphis and FL PasO
Company?
Mr.. ScOtt-There has never been any
conferences on this subject, and it would
never have been entertained by the Texas
and Pacific Company, and never will be 50
long as l have anything to do with it.
COL. sCOTT's CONNECTION WITH THE
ROAD.
QuestiOn-Were you in any way inter
ested in the passage Of the Texas and Pa
ciic bill through Congress?
Mr.. Scott was in no way interested in
its passage through Congress. knew
nOthing abou. the project for months after
the bin passed, and then only through the
application Of a committee Of gentlemen
from New York who called upon me to say
that my name had been used as a corpora
tor in the bill, as, no doubt, many others
had who perhaps never knew Of its exis-
tence; this committee desired me to become
interested in the organization Of the CON-
pany and take the presidency with the
view Of having the road built under the
then existing charter, as granted by Con-
gress. After a full conference with a num-
Der Of friends here it was concluded that
the wOrkitself was an important n to the
development Of a very valuable section Of
the country, and would be Of great benefit
to the region to be ~traversed, and that under
all the circumstances 1 ought to take the
position that was rendered to me in the way
stated.
THE PANIC OF 1873.
Consequently, when the c~OrpOratOrs met
in New York, l became interested and as
sumed the Presidency Of the company, ex-
pecting and believing that when 200 or 800
miles Of the road were completed and
equipped we could place the bonds Of the
company in Europe and complete the road
under the grants it hell from the State of
Texas and the Government Of the United
States. l went to Europe in the summer
of 1873 70 CarTE out thesa purposes, and
should undoubtedly have placed the bonds
and constructed the work much within the
limits Of the time authorized by Congress
had it not been for the panic that occurred
in September Of 1873. This destroyed all
possibility Of negotiating this class Of
American securities; and in my judgment,
the only way the road can be completed
within any reasonable time is for the Gov
eminent 4 assure to the purchasers that
the interest on the eompany's bonds will
be paid each six months.
ADvANTAGEsiTo THE GOVERNMENT.
To meet this Obligation the company
places every bond created under the mort
gage in the treasury Of the United States,
aud pledges all its income and property Of
every nature, TO provide tea DAYS before
the maturity OF each coupon the moneys
Necessary to place the Secretary of the
Treasury in funds to pay this interest,
without asking the appropriation Of a do
lar from the government.
You, Of course, understand by the bill
before Congress that the construction Of
this road would be a certain economy to
the government Of from 100000 to So
100000 in its Indian and military trans
pOrtatiOn; that 10 would enable the govern
ment TO largely reduce its military forces
on the entire southern border and make
life and property secure. The company
also leaves the sum- Of over 100000 Of
its own bonds with the Secretary Of the
Treasury as
A CONTINGENT FUND,
with full authority to sell the bonds Of the
company at its own cost if necessary to
pay the interest guaranteed without calling
upon any appropriation committee of Con
gress or asking the aid Of the government
money for any such purposes, and that no
bond of the company should be issued
from the Treasury Of the United States ex-
cept upon a completed and equipped road,
and then only TO al extent sufficient to
meet the actual cost, as certified By the
Commissioners on the part Of the United
States government Cd, as 10 the condition
Of the road and its equipment (2), and
all expenditure Of the moneys used in
such construction.
QuestiOn-YOu stated a while ago that
you think these people who started these
rumOrs had some object in view. Why
did thew not attack both roads? How came
they to speak Of the Memphis and FL
Paso9
Mr.. Seott-As before stated, for the pur-
pose Of creating, by implication. in the
public mind an impression that the Texas
and Pacific road was connected with the
corporation that failed some years before
the Texas and Pacific was chartered.
EFFECT OF THE Ell PASO STORY.
Question-DO sou anticipate that these
rumoTs will affect the prospects Of the
road 10 any great extent? Do you suspect
that they Will have any influence upon
public opinion?
Mr.. Sc0tt-TLese arsicles are intended
to affect public opinion ~UnfavOrablY, and
especially the minds Of members Of Con-
gress, against the bill. But they are so far
from being true that any man who will
take the time to examine them certainly
would not be affected by such staten snts.
QueStiOn-A great many people, whose
names have been connected with the FL
Paso subject, have denied that they receiv-
ed any money.
Mr.. ScJtt-IknOW nothing whatever about
the organizations or connections Of the
Memphis and FL PasO stock; was never in
any way connected with it, directly or in
directly. l hope aud believe that all such
action on the part Of interested parties
will fail TO have any force whatever with
Congress, and that they will authorize the
road to be constructed on the plan submit
ted. l have no DOUBT that through its con
structiOn, an impetus WILDE given to DuSi-
ness in all branches, and especially will it
be the means Of employing many thou
Na go