The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1876-01-09


/ Grenada. Houston and Eastern Rallroa
| Company, land for other purposes, approve
January II, 1875, as eXempts sald raliroa
company and its acquisitions from taXatioi
! The agricultural land scrip fund wa
recently bestowed by the United States, {
/ constitute a perpetual fund-the capital 9
which shall remain forever undimlnisheQ-
and the interest of which shall be InvIolaDl
! apprepriated by each State, which may tax
/ and claim the benefit of this Act, TO the Ell
dowment, support and maintenance OF a
least one agricultural college.
The State was authorized, at the sam
time, TO invest this fund in 'Stock of tn
L, ). or of the States, or some other stocks.
Has the State done so!
Tie railroad company to which this funt
is proposed to be surrendered, has not com
pleted single mile of road. AS projected
it will when completed, extend some PSI
miles in this state, and about $50 miles il
the State of Tennessee, making a total o
some 400 miles. The section now beins
worked on is between Okolona, on the Mo-
bile s. Ohio railroad, and Grenada, on tht
Mississippi Central, NOW the New Orleans
ST. Louis and Chicago) railroad, distance
of some IS miles. 1t is asserted that some
twenty miles are now ready for the iron.
Judging by its progress to the present
time, number of years must elapsc before
these sixty-fi five miles can be completed and
in condition to pay interest on its bond
Were it in working order to-day, between
Okolona and Grenada, it would run through
but one county untraversed by railroads
and would be but feeder to two great rail-
roads.
Its Southern terminus is some two hum
dred miles from the Gulf of Mexico, and
almost equi-distant intervals the road is in
tersected by three rich and powerful lines,
well established and in successful operation.
The history of railroads has taught that
only through roads, which carry the pro-
ducts OF country to market, are successful,
and especially is this the case in sparsely
settled sections; and is has also taught that
new roads are rarely, if ever, able to meet
the powerful demands of stock and bond
holders.
Is paper railroad, like tn is, one but lit
tie more than projected, safe inUeStmeRt2
Is it one that can in any reasonable period
of time, from its legitimate business, pay an
interest of eight per cent to its bondholders
Is it an investment from which the principal
can be Withdrawn at will? Ii It, it GER
tainly is not the best investment that could
be made, nor even safe one.
In the consideration of this subject. il
must not be forgotten that the Vicksburp
and Nashville Railroad is not railroad in
reality; 1t is but projected one
observe the security extended by that
Company to the State. Four hundred miles
of road, at $4,000 Der mile, supposed to be
1alr estimate when completed and in good
running order, VIII cost some twelve mil !
lions of dollars ($l2,000,000). The State is
expected to advance to the road 1920. 900 !
ana receive, In return, the note of the Com /
pany, secured by first mortgage bonds TO
he same amount. Can this note be regard. I
ed as safe stocks - Could the limited |
lon OF our youth, nave contemplated such |
IN investment?
Inc hrst mortgage bonds, proposed as
collateral security, cannot be deemed OF /
much value; for other first mortgage bonds. /
o the amount of some ten millions ($l0,OOO,-
wv may De Issued. In fact, the law places /
ponds. - '''0n
The experience of the State. in aidino
allroads with its trust funds has not hern
II such character as to cause its tax paw
rs 20 contemplate the effects of this law
WITH any very lively satisfaction.
In our reasoning as to the =, fen, of this
INVESTMENT we should not neglect to con-
idef, should the law remain unrepealcd.
ne possible action of some future Lepisla-
ure, when this company, in DAYS of adyer-
r misfortune. ~
The success of this road can in no wise
epend on the sum of $4,000 exDecteI
rom the State, which, though insignificant
, compared to the cost of the road, is highly
~ portant to the State. To withhold IT,
ro~reoS In,l ass the Toad or Impede its
stocks Of the II IL should then the
,ailroad cannot be re~ardad T" u Nashville Mas
ne sooner tho foot :; = .o "iuoI' as S0e, and
~ ho 'o orn tie lact is known by the people
~, n3 are re paying taxes in the interest of the
We shonId ha r. ,,,,
nd circnmspect in pf tbe more cautious
,'irs Vi ,iie state. IMAM with our own. Are I
yn gtnIJs ~ 81, rHi ,'ulvlauais' 10 invest our
p,, ' w., I,,. ~ thi9 fnIerprise: :
jn ,' "i'S 3 5- charter, ana by the Act
re road Is a 'n .' re h rfgr re- TO-
-, ,l''ini "f Imitation, and All its prop erty
all be- ,,,r,o.lS, OF whatever character
Ears. or I'll II" ,a ,ot' 1aAf''"i for thirty
ciyht ,o >, c lne T Ca sii'il Pay dividend
Cndrr such pra,s 81 n,og M ibe %o.o
e State can re conSnj'i1f"d , 'ni Io4.S IN
rf,e "nl ntiA4 TO tenth or fifth