The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1878-04-25
Southern Pacific Railroad.
Enphatie Cenlennatien Of Ssbs,d,e..
The Texas and Pacific Railroad.

8AVihK ~ Eote OF seven TO SIX agreed to re-
port the Texas Pacific Bill favorably-two o,
more Of the seven expressing their desire te
amend 1t, or defeat 1t on the hoor-the minor
! ity members nessrs. Morrison, Landers, Lut
trell, Blair, Rice and Hewitt have stated thei,
views In report of which the following arc
the material portions; pr ! =, 7s.><
We are unable to concur in the views of the
| majority Of the committee, but desire the
adoption by Congress Of such measures rs will
secure the early construction OF transconti.
| mental railroad for the special use and deyel.
ment Of the southern and Southwestern
States and territories. We believe that this
important object can be accomplished with.
out subsidy from the government, and sub
NIT the following views and the accompany
ing bill for the consideration of the House.
THE PRESENT CONDITION OF THE SOUTHERN
LINE.
The Texas and Pacific Railway company, a
corporation Of the State of Texas, in the year
1871 was authorized by Congress to construct
its road and telegraph from Marshall, in East
ern Texas along and near the thirty. second
parallel of north latitude, through that State
and the Territories of New Mexico and Arzo
ma to San Diego, a small city on the Pacific
cost, on the bay Of the same name, supposed
to be well adapted to commercial purposes,
and having = population Of 1900 to 5000 peo-
pie. The distance from Marshall to San Diego
is estimated at l ,574 miles by the authorities
Of the Texas and Pacific company, while those
Of the Southen Prcifc company believe it
to be about 100 miles greater
Failing to meet these provisions, the Texas and
Pacific company has obtained by construction and
purchase, and has now in operation AS miles Of
Texas, having : base Of 1s3 miles, extending from
Marshall to Fort Worth, now the western terminus
Of the road, which only Is part Of the trunk line.
The remainder Of the 443 miles is 10 located AZ to
the moro valuable lands granted by the State
OF Texas probably because the pecuniary embarass-
ments OF the company were such that it's credit
sas on the % Their
Worth and San Diego distance Of 1,49l miles upon
which nothing has been doae.
or the ten yeare allowed by the charter within
which to complete this great work only four remain,
and = considerable portion of one of these must
elapso before the enactment of the desired egisla-
ton Is possible. six-tenths Of the time has been
consumed in the construction Of less than ono
eighth Of the trunk line, aud that at the Eastery
terminus, In close connection with the great middle
system Of roads and the central belt of States,
rather than With the Southern system OF roads and
the Southern States.
The corporation has fallen thus far short of tho
performance Of is undertaking, although received
tho alternate sections Of land for forty miles In
width along each side of its line, eighty miles IN
oil, through tho State Of Texas, and the same from
California, contingent upon its compliance with the
conditions of the grant.
THE SUBSIDY Dks1RKD MORE THAN THE ROAD
The credit Of the Texas and Pacific company was
eeriously impaired before the panic Of 1873, and
der its influence has still further declined ct ad-
mits it, pecuniary inability, and assigns that as
for its failure to comply with the conditions
imposed upon It byl law.
$50 OO0 Co., in addition to it's land grant of a.
SIS 600 acres in Texas, and 600 In the terri
tories, being money subsidy Of twice the probable
cost Of building and equlpping its road.
Tho application failed. 1t now changes the form
rather than the substance OF It's request and asks for
guaranty OF interest on $2 900 mile for the easer
AMOUNTING in al to sss 600 At i've per Pc cent cen % an
' Ths bonds % q tSe a government bearing four and
in refundng the national debt II the public faith
IL kept and It's credit unimpaired the time not re-
mote when the government viii bo able to effect loans
as now paid by England The difference between
the interest on these hve per cent Texas and Pacific
bonds for hfty years and the ordinary rates which
the government vii have to pay on the same amount
government for the payment of its own debt, would
amount to much moro than tho cost of the road,
t0At the government would DO far better on to build
the road and give to the Texas and Pacific company
outright than to guarantee the interest its five per
cent hfty:year bonds, according to its request
The total amount Of interest guaranteed by the
amount to than 97OO 200 900 In nifty years, and
called upon to guarantee the payment Of this
sum In addition to the proceeds OF the and grant III
order to enable the Texas and Pacific company tu
complete its road.
We a1e opposed to all pccuniary subsidies and
guarantees by the government in whstever form fol
H~.~A ,AI L. Il
capital seeking profitable investment will generally
promote commercial development quite fast is
the men In charge of meritorious enterprise COM
mand the conhdence of capitalists, or even the too
easily won trust Of the middle classes, there is nc
| THE SOUTHERN PACIFIC RAILROAD.
The Southern Pacific Railroad company 10 = cor
p0ration Of the State Of California.
This corporation has constructed its road to For
Yama the eastery bank Of the Colorado river, ir
the souhwesterly of the Territory Of Ar1zona
which it claims to be the authorized point of connec
ton with the Texas and Pacific road, Z distance OF
about TO miles. Its track has been laid through
extraordinary natural obstacles 1t the expens,
Of about 900, and tho $50 miles Of ts south
ern portion passes through desert and for 1854 mile,
nearest the Colorado without an oasis. This road
for it, anticipated connections with the Souther1
States from which owing to the failure Of the Texa
and Pacific company to comply with the requisition
The road is already there With its millions of mono.
invested over . sandy waste, upon the good faith o.
the government that the Texas and Pacific roas
rver or in the event of tho failure of that corpora
ton to do that Congress should take such meas
ures "a should enable it to connect with the Souther
States Of the Union.
POSITION OF THE SOUTHERN PACIFIC COMPANY.
The Southern Pacific railroad, by force of the ab
o1,,k> ~ nf }fA
possible, In order to preserve its capital
tho only party which has both the power and the dir
position to build this road.
Tho Southern Pacific company interposed no OF
position to the guarantee asked by the Texas and Pa
cinc east Of the BIO 0rande; but contemplating tn
contingency of the denial Of guarantee Of bonds
total collapse Of its undertaking, strongly insiste
that justice required that they should not bo held
check awaiting the result OF continued application
credit Of the nation with which to perform what tn
Southern Pacific was ready to do immediately for tn
land grant alone.
ected. The only argument entitled to weight, l
opinion, was that the Southern Pacific, connect
ng With the ocean At San Francisco, and having int
mate business relations With tho Central Pacific rai
road, might enter into combinations With that col
poraon asainst the public interest," and that the at
vantsges Of competition and Of an occasional COZ
nection At San Diego would then be lost.
COMPETITION AND COMBINATION.
! We believe that any competition between rival pa
sllel lines of railroad for The same business, whic
results in loss to the companies, h sure to end
ono Of two ways, either In . combination by whic
re public xa lose fsr mors tasn nss ~ sssf M game
cutting of rates pessisted in until the weaker Co
poration - ruined the public 10 left to the rapac
public but in the enforcement Of The l.w Of land
Competition which takes from corporations 5u
, compensation y quito - ruinous ~ combinatto
| W 80 c.r h.jt.ws th.1 ~ r.x.. and Pacific con