The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1878-04-26
SOUTHERN PACIFIC RAILROAD
Emphatic Condemnation of Sub
sides.
The Thirty.SecOnd Parallel Road Can
be Constructed without Pledging
the Public Credit.
The Texas and Pacific Railroad.
Synopsis Of the Minority Report.


Synopsis Of the Minority Report.
The Pacific Railroad Committee of the House
having by vote OF seven TO six agreed to re-
port tbs Texas-Pacifc bill favorably-two or
more OF the seven expressing their desire to
amend it, or defeat it on the fioor-the minor
| ity members, Messrs. Morrison, Landers, Lut-
| trel, Blair, Rice and Hewitt, have stated their
views in 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 adop-
ton by Congress Of such measures az will Be-
cure the early construction of trans-continen-
tai railroad for the special use and develop
ment Of the Southern and Southwestern States
and Territories. We believe that this import
| ant object can be accomplished without
subsidy from the Government, and submit the
| following views and the accompanying 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
| and the Territories of New Mexico and Arizona
to San Diego, small city on the Pacific coast,
on the bay OF the same name, supposed to be
we'll adapted to commercial purposes, and hay-
ing population OF 1000 to 5000 people. The
distance from Marshall to San Diego Is esti-
mated 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
100 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 inclose parallelogram in Northeastern
Texas, having base of 1888 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 az to
secure the more cauable lands granted by the State
OF Texas, probably because the pecunisry embar-
easements Of the company were 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 ], 49l miles upon
which nothing has been done.
or the ten years allowed by the charter within
which to complete this great work only four
main, and considerable portion of OF these
must eapse before the enactment OF the desired
legislation is possible. Six-tenths OF the time has
been consumed in the construction of less than
one-eghth OF the trunk line, and that at the East
ely terminus, in cloae 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 ia len thus far short OF the
performance Of its undertaking, although IL re-
ceived from the State of Texas the munifcent
grant Of 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
tories and in California, contingent upon its COM
pliance with the conditions of the grant.
THE SUBSIDY DESIRED MORE THAN THE ROAD.
TIE credit of the Texas and Pacific Company
was seriously impaired before the panic OF 1873
and under its influence has still further declined
1t admits its pecuniary inability, and assigns that
for its failure to comply with the condi-
tons imposed upon 1t by law.
In 1875 1t applied to Congress for a subsidy OF
over t6OOOOOOO in addition TO its land grant of 30
62SOOO acres in Texas ard 5000 900 in the Terri
tories, being money subsidy Of twice the proba.
bic cost Of building and equpping its road.
The application failed. 1t now changes the form
rather than the substance Of its request and asks
for guaranty Of interest $25 900 mile for the
easier and $780, 900 for the heavier portions Of the
road amounting in all to $Ss, 100000 at per cent.
The bonds Of the Government bearing Az per
cent interest have recently been sold at par in
funding the national debt. II the public faith is
kept and its credit unimpaired the time is not re-
mote when the Government will be able to effect
loans at the rates of and 81 per cent as now paid
by England. The difference between the interest
on these b-per-cent. Texas and Pacific bonds for
fifty years and the ordinary rates which the Gov
eminent will have to pay on the same amount for
the same time, IL invested as il might be by the
Government for the payment of its own debt would
amount 10 much more than the cost Of the road, so
80 that the Government would be far better off 10
build the road and give it to the Texas and Pacific
Company outright than to guarantee the interest on
its 5per-cent. hfty-year bonds according to re-
quest.
The total amount OF interest guaranteed by the
Government would, II paid into sinking fund,
amount to more than 500 0000 900 in fifty years, and
we are called upon to guarantee the payment of this
sum in addition to the proceeds of the land grant
in order to enable the Texas and Pacific Company
TO complete Its road.
We are opposed to all pecuniary subsidies and
guarantees by the Government in whatever form for
the benefit OF railroads at this time, however desir
able their construction. In time OF peace private
capital seeking profitable investment will generally
promote commercial development quite fast is
consistent with safety and permanent prosperity.
III the men in charge OF a meritorous enterprise
the confidence Of capitalists, or even the
too easilywon trust Of the middle classes there il
no need OF calling upon the nation for subsidies
guarantees.
THE SOUTHERN PACIFIC RAILROAD.
The Southern Pacific Railroad Company il a cor
poraton of the State of California
This corporation has constructed its road to Fort
Yuma, on the easterly bank OF the Colorado river
In the southwesterly corner of the Territory OF |
Arizona, which 1t claims to be the authorized point
Of connection with tho Texas aud Pacific read, |
distance OF about TO miles. Its track has been laid
through and over extraordinary natural obstacles
ut the expense Of about $50 O0O, 00O and the $50
miles OF its Southern portion passes through des-
ert, and for 164 miles nearest the Colorado without
m oasis. This road, built to preserve the charter
IS OF little value except for its anticipated connec-
lions with the Southern States, from which, owing 1
10 the failure OF the Texas and Pacific Company TO |
comply with the acquisitions Of law, IL is now more
han 200 miles distant.
The road is already there with its millions Of |
money invested over n sandy waste, upon the good |
'aith OF the Government that the Texas and Pacific
Dad should be constructed so 10 meet IL at the
Colorado river or, in the event of the failure Of
hat corporation 80 to do, that Congress should take
'uch measures should enable II TO connect with
he Southern States Of the Union.
POSITION OF THE SOUTHERN PACIFIC COMPANY
The Southern Pacific railroad, by force of the alb
olute necessity Of is securing Eastern
" soon as possible, In order to preserve ts capital
9 the only party which has both the power and the
to build this road.
The southern Pacific Company interposed no oppo- |
tion to the guarantee asked by the Texas and Pa
inc east OF the Rio Grande; but, contemplating the
contingency Of the denial Of guarantee OF bonds to
ne TEXAS and Pacific Company, and the consequent
ota collapse OF Its undertaking, strongly insisted
hat Justice required that they should not be held In
heck awaiting the result of continued applications
y the Texas and Pacific Company for the money or
red1t OF the nation with which to perform what the
outhern Pacific was ready TO DO at once for the
and grant alone.
To this bill the Texas and Pacific Company OBJ
ected The only argument entitled TO weight in
ur opinion, was that the Southern Pacific Connect
ng with the ocean at San Francisco and having
Intimate business relations with the Central Pacific
abroad, might enter into combination with that
orporaton against the public interest and that the |
dvantages OF competition, and of an occasional |
onnecnon at Ban Diego, would then be lost
COMPETITION AND COMBINATION
We believe that oorn N stit,c., |