New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-18
TEXAS & SOUTHERN PACIFIC
HOUSE MINORITY COMMITTEE REpoprs

construction Of transcontlnenta railroad for IN.
special and development OF the Southern and sou,h
western States and Territories. We believe that th,.
important object can DO accomplished without subsav
from the Government and submit the following view.
and the accompanying bill for tho consideration OF tia
| House.
NECESSITY FOR THE CONSTRUCTION OF soUru.
| ERN ROAD.
Although the present necessity for the consrctIon NJ
either Northern or Southern Pacific Railroad A. ls,
| imperative than WAS the emergency which compell.d
the Government in tine OF 10 at once terri
toral integrity and material prosperity by large appr
pations for the construction OF middle limo Of inter
oceanic communication yet the original idea OF thrs.
main transcontnentaI railroad routes for tho accom-
nOGdcn OF the whole country, far separated AZ IN
be practically independent OF each other, should be
steadily kept In view by Congress until IL Is realized
Numerous cross-nes and feeders will ultimately unl.e
these main lines and other roads on Intervening parsl
els will grde the Continent; but this generation viii
do well If 1t shall complete these great prophetic Ine,
opening 10 settlement the Western Territories and ur
nisng the basis OF vast prospective development Of
wealth and population.
No single line transport the now wain,
for accommodation, and the three together will In le,s
than quarter Of a century, he insufficient 10 perform
the land carrying trade OF the country between tho
oceans
This great development, only partially anticipated by
tie projectors OF these roads. Con gress now called
upon TO promote by appropriate legislation.
THE P~gsEST CONDITION or THE SOUTHERN LINE
| The Texas and Pacific Railway Company, CORPORA.
ton Of the OF Texas in the 1871 author.
lied by Congress to construct IT, road and telegraph
from Marsha IN Eastern Texas, along aud near the
hrtysecond parallel Of north latitude, through that
state and the Territories Of NewMexco aud Arizona 10
san Diego. small city on the Pacific coast bay Of
the same name supposed to DO well adapted CONNER.
cial purposes. and having population Of four i've
| Tba data srgln
Diego is estimated at I,57l miles by the authorities Of
the Texas aud Pacific Company. while those Of tie
Southern Pacific Company believe 1t TO be about one
hundred miles greater.
The So .enteenh section Of the charter Of the Texas
and Pacific railroad Company. by Congress. approved
March g. 1874. enacted:
That the said Texas and Pacific Railway Company shall
commence the construction of its road muaneOUsy ~
San Diego in tho state OF California and frou point Al
Marshall Texas as horcinbefore described, and
so prosecute the same have M least hiy coHsoc.
tive miles OF railroad from each Of said points complete
and in running order" in two years after the passage o.
this act and so continue each year hcea
ter a sulc nj number of miles to secure the completion
Of the whoe line from the Aforesaid point the
ern boundary Of the state OF Texas 70 the Bay o. san
Diego IN The State OF California. aforesaid within ten
years ater the passage OF this ac and upon failure 70
50 complete H. Congress may adopt such measure. "a IL
may deem and proper 70 secure It's speedy
Xnoihcr act was procured by the corporation. ap.
proved May - 1872, which, III tAe MN secilon provided
Ihai the said Texas and Pacific Railway Company
shall commence Tie CONSTRUCTORS q" is rOnd ~ or nF
Marshall. Texas and proceed viii IT, construction under
the original act and tnis supplement- of m pursuance %
said westerly from point near MARSHALL, aud toward
san Diego the state OF California, the liue author
lied by the original act aud 50 prosecute the sane a. TO
have at least 100 consecutive miles OF railroad ifon
SAID point complete AMI IN running order WITHIN tsO
years after the passage OF ms aci ana so eohuf %
construct each year thereafter sufficient number u
miles not lea, than 100, 10 secure the conpeuo " tho
whole line from the aforesnll point on the eastern
boundary % the state OF Texas le Bay o DIEGO
In the stale OF California aforesaid. within zen years
after the passage OF ms act; Provided however that
the said company shat commence The construction ~
said road from San Diego eastward WITHIN year i.0u
the passage OF TINS act ana construct NOT les th ~
miles before the expiration OF tie second year aud after
the second year, -ot less than twenty i've miles per an
NUN IN continuous line thereafter, between IAN DirsO
and the Colorado Kiye until the Junction j. formed
with The Line from the cast at tL latter point % east
thereof, and upon failure so 10 complete n, Congress nay
adopt such measures a. II may deem necessary aud
proper 10 lis speedy completion and n shall also
be lawful for said company 10 commence aud prosecute
the construction Of lis ne from any other point pouts
construed to authorize the grant OF additional
lands subsidy OF any nature 81 Kind whatsoever on
the part OF the Government Of the luifed States.
Failing "a meet these prOyisonS tue Texas and Pacific
Company has obtained by construction and purchase,
ana has IN operation if3 miles Of road which IN
close paralloogram In Northeastern Texas, hayinsa
worth now tte western terminus OF the roaI when only
is part OF the trunk line. The remainder Of tie ij
miles is located 10 the yalaaD.c Lands
granted by the state o. Texas probably because the pc
cuniary omharas or the company such That
IL credit was based chiefly upon the granted iands.
There Is thus remaining Of the trunk line between Fort
Worth and san Diego distance OF l,4yl 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. ana
the enactment possible six
enths OF the time has been consumed Ia the cousruc-
ton of ess than oneeighth Of the trunk lnc and that at
the eastery terminus In close connection With tue great
middle system Of roads and the central belt OF states,
rather than with tho southern system OF roads amt tue
a III,
formance Of its undertaking, although II received from
the state or Texas the munihcen grant Of the alternate
It's line, eighty miles in all. through Of
and the same from the United states through the
Territories and in California contingent upon its CON.
plianco with the conditions OF the grant.
THE DESIRED SUBSIDY.
The credit OF the Texas and Pacific Company was scri
ously impaired before the panic of 1873. under It's
influence has still further declined II admits pecu
MARY inability, and assigns that forts failure
to comply with the conditions imposed upon 1t by law
In 1878 it applied to Congress for subsidy Of over
$60000.000. III addition 10 its land OF 22j2S10
in Texas. and 100000 In the Territories beng
money subsidy Of twice the probable CO Of building
The application failed. It now changes the form
rather than the substance OF It's request and asss iog
guarantee OF interest on $4,000 mile for Tue taseI
aud 100000 FOR the heavier portions OF the IVssu'
amounting IN oil to s3soOoOOO, at per cent annually
The bonds OF the Government bearing 4i2 per cent
interest have recently been sold at par IN reundns te
NHllohai PuDAc - htlt diu IL, 'tN
unmpaired the time is not remote when the GOyelumea.
will be able TO effect loans at the rates OF and 80 per
cent now paid by England. The difference betweea
the interest these per cent Texas and Pacific Dond'
for hfy years and the ordinary rates which the Govern
ment Will have 10 pay on the amount for the s1e
time, II invested as IL might BIZ by the Government l
the payment OF its own debt. would amount 10 muss
than the cost OF the road that the GOytTnch
would be far better of 10 build tho road and give 70
the Texas and Pacific Company outright than 70
guarantee the interest on It's per cent fifty Dohds
according TO its request.
Assume that the average interest OF Government
4
and we have an annual loss to the GoNernmen.s
in the excess paid 10 these bondholdeIs OF ! yer
.nnt ~. MIN