Lyon County times. [volume] (Silver City, Nev.) 1874-1907, 1877-06-27
TEXAS PACIFIC RAILROAD.

will be pressed to a conclusion at
the next session OF Congress. Both
the advocates and opponents of the
proposed Southern trans-continen-
tai road are preparing for decisive
parliamentary engagement. The
measure has been so long before
the country, has been so often and
fully discussed in Congress and the
press, that no one interested IN the
commercial economy of the coun-
try can be supposed to be ignorant
of its distinctive features or OF the
arguments by which it is attacked
and defended. The question IN
several of its aspects is of national
importance. Fortunately i: does
not present party issue. and while
the friends of the road may count
upon almost solid Southern vote,
they have good reason to expect a
powerful support from the North
west and from certain quarters in
the North. The influence of the
Administration, which is always con-
siderable, is favorable. the Presi-
dent having openly committed him
self to the policy of affording the
enterprise a reasonable amount OF
Government aid.
There has existed for some years
past pretty general opposition to
subsidies 20 railroads. 1t is neces-
sary. therefore, to establish the fact
that nothing in the nature of q
money subsidy, properly so-called,
is asked for in the Texas and Pacific
Railroad bill, and that the General
Government is exposed to no H.
nancial risk by any of its provisions.
The Government is only asked 10
secure the payment of 5 per cent.
interest on the company's bonds.
The bill provides that the road shall
be built by sections of ten miles,
and upon the certified completion
of q section the Government is to
deliver to the company its own
bonds, not exceeding $50, 600 per
mile for the main trunk; S25 600 for
the branches; and 100000 for the
San Diego connection. Wherever
the cost of reduction is found to be
under the maximum stipulated, the
amount in bonds delivered is to be
correspondingly reduced. In order
to secure the Government against
loss upon the guaranteed interest
payment the bill accords it:
l. A mortgage, paramount to all
other liens, upon the road, Its
equipments, net earnings and pro-
ceeds of sales of the lands OF the
company.
2 The application to the pay
ment of this interest of amounts due
from the Government for postal and
army transportation and telegraphic
facilities.
8. The retention of $4,000 per
mile in any event, and more ii the
road cost less than the average speci-
fed OF the guaranteed bonds, with
the right to sell and use the pro-
ceeds in making up the deficiency
of the payment guaranteed, should
such deficiency exist.
4. The payment into the treasury
of so much of the net earnings OF
the road as will be sufficient to meet
the interest required.
1t is beyond doubt that the Sc
curity thus provided is entirely sat
isfactory and ample. The next
question which presents itself is,
whether the Government can, under
proper construction OF the consti-
tuition, lend its credit for such a
purpose? That question has al
ready been practically answered by
the practice of the Government for
many years. The Government has
expended many millions to connect
New York and Chicago with San
Francisco, and under its fostering
influence the Pacific States and
Territories are growing populous
and rich. Congress granted the
requisite aid to the Union and
Pacific lines by authority of its
right and duty to regulate COM
merce between the States. The ap-
plication of the principle so favor
ably to one section would appear
equally just where another is con-
cerned.
The resources Of vast expanse
of country. including the north
western portion OF Texas. the Terri
tories OF New Mexico and Arizona,