Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1878-09-18

it seems is determined to place before
thu public in a false position. We do
not propose at this time to 20 into a
general discussion Of the matter, but
wish only to present for the considera-
ton of the Banner an editorial on that
subject from the Madison Democrat of
March 18th, 1878, which is perfect
answer to many Of the Banners prop.
ositions. The D:mocrat is an ardent
supporter of Mr.. Caswelps opponent,
and hence ought to be considered good
authority by the Banner, and by all
Dem ocrats. 1t will be seen that the
article spoken of presents the question
fairly and candidly, and is full and
complete justification of all the votes
Mr.. Caswell has given in aid of the
Texas and Pacific Road. The Demo-
crat SAID:
The subcommittee on railroads in the
senate has agreed to report favorably on
the house bill granting an extension OF
credit to the Texas Pacific railroad.
There is fast developing in congress a
feeling to head off the Union Pacific rail
road monopoly, and this sentiment acts
directly in favor of the Texas Pacific.
We have ample reason for believing that
the Texas Pacicfc bill is SO guarded that
the government cannot possibly lose any
thing by guaranteeing the paying of five
per cent interest on this company's bonds.
This is all the Texas Pacific asks; and
the conditions upon which this guarantee
is made are such that the governmnt can
not lose a cent While we are stronly OPP
posed to subsidies, upon principal, object
ions from that source do not apply to this
bill. The government is to be secured,
irst-by a. primary mortgage on the
whole line, its franchises, property and
rolling stock; secondly retaining in
the treasury and applying to the payment
of interest, the compensation due the COM
pany for all services performed by the
government, including the transportation
of mails, troops, supplies and the use
of the telegraph line; third-the com
pany will relinquish its land grant to the
government, which lands are to be;opened
at once to sale and settlement, the govern
ment to apply one-half Of the proceeds
first to the payment ofinterest and second
to the sinking fund for the redemption of
the bonds at maturity; fourth the whole
of the net earnings of the road are pledg-
ed for the payment of the interest, and be-
sides this, $4,000 per mile of the bonds au-
thorized to be issued, are to be sold by
the secretary whenever any deficiency in
payment occurs.
The other provisions Of the bill are of
the most protective and stringent nature.
The government is to have primary right
to use the road for its services and has, al
so, unconditional right to fix the rates of
tariff. Any attempt on the Texas Pacific
TO pool with the Union Pacific Or any
other road will cause the absolute forfeit
ure of its franchise. 1t must also be re-
membered that the company does not ask
for dollar Of money from the treasury
nor an acre Of land. In fact, in consider
alton of the governments guarantee that
the interest on the bonds issued by the
Texas Pacific shall be paid, the company
re-conveys to the United States its entire
grant 5000, 900 acres of land on condi-
road from the Mississippi to the Pacific
is 700 miles shorter than the Union and
Central Pacific, and the road will be built
for one third the cost of the latter.
1t is often asked why the Texas Pacific
should seek the governments guarantee
under such restrictions. 1t is simply be
cause the guarantee that the interest will
be paid promptly will enable the company
to sell its bonds readily and at par. We
have tried to show, recently, why the
government should encourage the Texas
Pacific instead of allowing the tool of
the Union Pacific to kill off its rival and
build up an already grown and vim
dictive monopoly. Believing that the
Texas Pacific company is in earnest and
that, if encouraged, it will relieve the peo-
pie of a terrible burden; and in the light
of recent information believing also that
the building of this road will not conflict
with the Northern Pacifc's chances we
trust that congress will pass the bill in
question
poyfipr Dam norof