The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1878-04-25
The Texas and Pacific Railroad.
SYNOPSIS OF THE MINORITY REPORT

The Texas and Pacific Railroad. |
SYNOPSIS OF THE MINORITY REPORT.
The Pacific Railroad Committee of the |
House having by a vote of seven to six
agreed to report the Texas Pacific Bill
or more of the seven ex-
it ON the f1oor-the- minority members
Messrs. Morrison, Landers, Luttrell, Blair,
Rice and Hewitt have stated their views in
a report of which the following are the
material portions:
We are unable to concur in the views of
the majority of the Committee, but desire
the adoption by Congress of such measures
as will secure the early construction of
transcontlnental railroad for the special
use and development of the Southern and
southwestern States and Territories. We
believe that this important object can be
accomplished without subsidy from the
government, and submit the following views
and the accompanying bill for the considera-
tion of the House:
THE PRESENT CONDITION OF THE SOUTH
ERN 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 Mar
thirty-second parallel of North latitude,
through that State and the Territories of
New Mexico and Arizona to San Diego a
small city on the Pacific coast, on the bay of
the same name, supposed to be well adapted
to commercial purposes, and having popu-
lation of 1000 to 5000 people. The distance
from Marshall to San Diego is estimated at
1,574 miles by the authorities of the Texas
and Pacific Company, while those of the
Southern Pacific Company believe it to be
about one hundred miles greater.
Failing to meet these provisions, the Texas and
Pacific Company has obtained by construction and
purchase and has now in operation 443 miles of
road, which enclose parallelogram in Northeastern
Texas, having base of 1873 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 so located to
secure the more valuable land grants by the State
of Texas probably because the pecunary embarass-
ments of the company such that its credit was
| based chiefly upon the granted lands. There is
thus remaining of the trunk line between Fort
Worth and San Diego, distance of 491 miles upon
which nothing has been done.
OF the ten years allowed by the charter within
which to complete this great work only four remain
and considerable portion of one of these must
elapse before the enactment of the desired legisa
tion is possible. Six-tenths of the time has been
| consumed in the construction of less than one
eighth Of the trunk line. and that at the Easterly
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 the
performance of its undertaking. although it received
| from the State of Texas the magnificent grant o
the alternate sections of land for forty miles in
width along each side of its line, eighty miles in
all, through the State of Texas and the same from
| the United States through the Territories and il
California, contingent upon its compliance with the
| conditions of the grant.
THE SUBSIDY DESIRED MORE THAN THE ROAD.
The credit of the Texas and Pacific Company wal
seriously impaired before the panic of 1878, ant
under its influence has still further declined.
admits its pecuniary ability and assigns that as
reason for its failure comply with the condition
In 1875 It applied to Congress for subsidy o
600 in addition to its land grant of %,
900 in Texas and 18 600 900 in the terrific
ries, being money subsidy of twice the probabl
OF 6udag and Its the
rather than the substance of its request and ask
for guaranty of interest on $4,000 mile for tn
easier and $40 900 for the heavier PORTIONS of tn
road amounting in all to $685. 90, 600 at five per cent
annually, for fifty years.
The bonds Of the government bearing four and
half per cent. interest have recently been sold a
par in refunding the national debt. If the publ
faith is kept and its credit unimpaired, the time
not remote when the government will be able
effect loans at the rate of three and three and
, half per cent, as now paid by England. The dii
ference between the interest on these five per cent
Texas and Pacific bonds for fifty years and tn
ordinary rates which the government will have
. pay on the same amount for the same time, if in
vestigated as it might be by the government for tn
payment of its own debt, would amount to muc
more than the cost of the road that the govern
ment would be far better off to build the road an
give it to the Texas aud Pacific Company outrigh
than to guarantee the interest its five per cen
fifty year bonds according to its request.
Ine 1oa. a e o. ad nt oy Tn
amount to more than 500 0o0, 600 in fifty years. an
we are called upon to guarantee the payment of tn
in order to enable the Texas and Pacific Compan
to complete its road.
We are opposed to all pecuniary subsidies an
guarantees by the government in whatever form ft
the benefit of railroads at this time, however desir
! bic their construction In time of peace priva
capital seeking profitable investment will general
2 promote commercial development quite as fast
| consistent with safety and permanent prosperit
Ii the men in charge of meritorious enterpri
command the confidence of capitalists, even tt
tooeasily won trust of the middle classes there is
need of calling upon the nation for subsidies
4 guarantees.
v THE SOUTHERN PACIFIC RAILROAD.
The Southern Pacific Railroad Company is a co
poration of the State of California
(; This corporation has constructed its road to Fo
a Yuma, on the Easterly bank of the Colorado Rive
! | in the South esterly corner of the Territory
Arizona, which it claims to be the authorized poi
e OF connection with the Texas and Pacific Road,
distance of about 720 miles Its track has been la
through and over extraordinary natural obstacles
the expense of about $50 900, and the $50 miles
its Southern portion passes through desert and f
= 164 miles nearest Colorado without an oasis. Th
road, built to preserve the charter is of little vail
+ except for its anticipated connections with Il
Southern States, from which, owing to the failure
1 the Texas and Pacific company to comply with Il
requsitions of law, it is now more than 200 mil
q distant.
9 The road is already there with its millions
. money invested over a sandy waste, upon the go
= faith of the government that the Texas and Paci
n Road should be constructed so as to meet it at t
Colorado River in the event of the failure of tn
corporation SO to do that Congress should take
q measures should enable it to connect with t
e Southern States of the Union.
u POSITION OF THE SOUTHERN PACIFIC COMPANY.
The Southern Pacific Railroad, by force of the a
solute necessity of its securing Eastern connecto
assoon possible in order to preserve its capital
the only party which has both the power and t
disposition to build this road
The Southern Pacific company interposed no Q
position to the guarantee asked by the Texas a
y Pacific east of the Rio Grande; but contemplate
the contingency of the denial of guarantee of bon
to the Texas and Pacific company. and the con!
quent total collapse of its undertaking, strongly
e sisted that justice required that they should not
d; held in check awaiting the result of continued
L plications by the Texas and Pacific company for
money or credit of the nation with which to perfo
"a what the Southern Pacific was ready to do immet
r. r. ately for the land alone.
u To this bill the Texas and Pacific company
D. jected. The only argument entitled to weight,
!, our opinion was that the Southern Pacific, come
. ing with the ocean at San Francisco, and having
Is innate business relations with the Central Paci
III Railroad, might enter into combinations with Il
corporation against the public interest," and that
II advantages of competition and of an occasional &C
lie nection at San Diego would then tie lost.
se COMPETITION AND COMBINATION.
e We believe that any competition between ri
parallel lines of railroad for the same business whi
II results in loss to the companies, sure to end
III one of two ways, either in combination by whi
the public will lose far more than 1t has ever gain
: from competition, or, on the other hand, in
ruinous cutting OF rates persisted in until the veal
1t corporation is ruined, the public is left to
rapactv of the survivor There is real protect
" to the public but the enforcement of the law of
n land. Competition which takes from corporate
h just compensation is quite runous as combinati
which gives them too much.
a. No one can believe that the Texas snd Paci
l. company would, after constructing its lines to
Ia Pacific Ocean, long compete with any rival to
40 own loss or even to produce any reduction
se rates below the maximum to which the public wol
If submit or that it would fail to repair its los
or increase its gains whenever an opportunity mis-
u offer. We repeat that nothing but the law, and
enforcement of the law by the government, can p
IF tect the public against the love OF gain which is
=. herentin human nature.
Ill This truth is recognized by the bill of the Tel
o. and Pacific company reported by the majority of
Z, committee, and stringent provisions therein
u to hold that corporation within the bounds of j