Helena weekly herald. [volume] (Helena, Mont.) 1867-1900, 1876-03-30
TIE RAILROAD QUESTION.
The Proposed Subsidy Means Ruin or
Reputation.

Pacific Railroad must soon be decided by the
people, we desire to submit through your
valuable paper a few suggestions with refer
ence to the matter
First If the three millions proposed by
the bill is truly a loan and not a gift, it will
really be of no benefit to the company, while
fraught with peril and embarrassment to the
Territory Il the company is in fact to pay
the seven per cent. interest on the bonds, and
the principal at the end of thirty years, it
might just as well borrow the money from
some other source as from the Territory of
Montana. 1t must necessarily borrow six
millions Of dollars to build the road as far as
Glendive creek before the Territory advances
can as we'll in all probability borrow the re-
naming three millions to build further on.
Second. II the company cannot borrow
the money from any other source and must
rely upon this aid of Montana, then the road
would stop rs soon as our aid was
exhausted and leave US still without rail-
road, after our three millions had been spent
Third. If the company can get the money
from other sources, but declines to do so, and
requires of us this loan, it is then certain that
it is not its purpose ever to pay either the
principal or interest of the three million
bonds and the Territory will be compelled to
pay it. Loans of credit to railroad companies
have almost universally amounted to only
subsidy in the end. When both the Federal
and State governments have been powerless
| in such cases. what can Montana expect?
| Under our Organic Act the Council is linn
| tied to thirteen members. and the Lower
| House to twenty-six. If the railroad COM
pany can control seven men in the Council,
it can block all legislation looking to an en-
| forced collection of the bonds. They can
| run the legislature and own the Territory by
| securing twenty votes. THERE'S nota doubt
that the same influences that have proved
potential in the halls of Congress and swayed
to its purposes the Legislatures of the largest
States, would also bend to its will the petty
Legislature of Montana.
But even according to the terms of the bill
itself, the Territory is to pay the interest on
the bonds, and the railroad company only
agrees to pledge the receipts of the road west
of Glendive creek. When the road is built
two hundred miles west Of Glendive creek
1t qcW still be nea1},y three AunGred miles from
the heart Of the Territory, according to Mr..
Roberts ozca figures. Freights for Montana
over the Northern Pacific would still come
by way Of Carroll or Benton. While then
we would be paying seven per cent. interest
per annum on nearly two millions of bonds
issued to build this road, we would not get a
dollar from the receipts west Of Glendive
creek for the reason that there scouM be no
receipts. The Bill then virtually amounts
to a subsidy; and, MIR. Editor, subsidy of
three millions of dollars would be nearly
equal to one-half of our fixed and tangible
property. / mean property that could be
reached by railroad tax. Such all enormous
subsidy is out of all proportion to our means
1t is without parallel in the history of rail-
road legislation. 1t aco,tld add nearly seventy
thousand dollars per annune to tie taaes Of
Leuis and Clarke county alone, and in the
same ratio to other counties. If in spite of
heavy taxes our county has got in debt $780,: |
600 passing through the flush times of the
last ten years, what will become of us in the |
future, with business depressed, property
shrinking in value, and taxation doubled?
If we secured railroad at our doors by the
subsidy, we mi ght at least have some measure
of hope; but such a subsidy without getting
a railroad is ruin Or reputation. The enor-
nous taxation would PROSTATE every branch
Of industry. The merchant, the miner, and
the ranchman would suffer alike. 1t would
drive from our hills our herds Of cattle and
sheep, for they would naturally seek other
climes where grass was as good and taxes
were lighter
Were the Northern Pacific to terminate in
NJ M)ntana, it would at best be but summer
road. 1t would be twelve hundred miles
long and would cost nearly two millions OF
dollars per annun, at Eastern estimates, to
run it winter and summer and keep it in re-
pair. This does Lot include interest on the
eighteen or twenty millions Ct dollars re-
quired to build the road into The settled por-
tons of Montana.
Were the trade Of Montana increased twenty
or even thirty fold, it would not pay this in
terest, running expenses. and repairs. But
in winter the running expenses Of the road {