The home journal. (Winchester, Tenn.) 1858-188?, 1878-05-02
mass is estimated to weigh about 1850
Southern Pacific Railroad.
Emphatic Condemnation Of Subsidies.
Tho Thirty-second Parallel hond Gun DC
Constructed without Pledsi"s '"o
Public Credit.
The Texas and Pacific Railroad.

The Pacific Railroad committee OF the houso
having by u vote OF seven TO SIX agreed 70 re-
port Tho Texas Pacific Bill fayorably-two or
mara OF the seven expressing their desire to
amend il, or defeat il on tho iloor-the minor
ity members Mossrs. Morrison, Landers, Lut-
troll, Blair, Rice and Hewitt have stated their
views In a Report OF which the following are
tho material portions
We are unable TO concur in tho views Of the
mtjority Of the committee, but desire the adop-
ton by Congress Of such measures AZ Will So
cure the carly construction OF a transconti-
mental railroad for the special use and develop
mcnt Of the Southern and Southwestern States
and Territories. We believe that this import
ant object can DO accomplished without subsidy
from the government, and submit the follow
ing views and tho accompanying bill for the
consideration OF the House;
THE PRESENT CONDITION on THE SOUTHERN LINE.
The Texas and Pacific Railway company, a
a corporation Of the State OF Texas, in the
year 1871 was authorized by Congress to CON
struct its road and telegraph from Marshall, IN
Eastern Texas, along aud near the thirty
second parallel OF North latitude, through that
State and tho Territories Of New Mexico and
Arizona to San Diego, a small city on the Pacliic
coast, on tho bay Of the same name, supposed
TO be vol adapted to commercial purposes, ana
having a population OF ,OOO to 6,OOO people.
The distance from Marshall to San Diego IN
estimated at i,57i miles by the authorities OF
the Texas and Pacific company, while those OF
tho Southern Pacific company believe II 10 be
about 100 miles greater.
Failing to meet these provisions, the Texas aud
Pacific company has obtained by construction ana
purchase aud has now IN operation a'a ihlles OF
road, which enclose a parallelOgram IN NOrtheahterh
Texas, having a base Of 1853 miles, extending from
Marshall to Fort Worth, now the western terminus
Of the road, which only is part OF the trunk me.
The remainder OF the 443 miles IL so located M to
secure the more valuable lands granted by the State
OF Texas, probably because the pecuniary embarass-
monts of the company were such That lts credit was
based chiefly upon the granted lands. lheTo "
thug remaining Of the trunk line between fort
Worth and San Diego a distance of ,i9l 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 a considerable portion of one OF these must
elapse before the enactment Of tho desired leRisla-
tiol is possible. Six-teIthB Of the time has been
consumed In the construction OF Less than one
eighth OF the trunk line, aud that AZ the Edat1riy
terminus, in close connection with the great llllule
system of roads and the central bclt OF STATES
rather than with the Southern system OF roads ana
the Southern States.
The CORPORATION has fallen thus far short of the
performance of its undertaking, although 1t received
from the State Of Texas the mnnihccnt grant OF
the alternate sections OF land Tor forty miles I'D
width along each side Of tts line, or eighty miles IN
nil. through the State of Texas, aud the same rem
tho United States through the Territories and in
California, contingent upon It's compliance with the
conditions of the grant.
THE SUBSIDY DESIRED MORE THAN THE ROAD
The credit of the Texas and Pacific company W..
seriously impaired before the panic OF 1878, ana
under liz influence has stu inrtller dcclhch' ~
ndmits is pecuniary inability, and assigns that as
reason for ita failure to comply with the conditions
imposed upon 1t by law.
In 1915 it applied to Cong 'ess Tor a subsidy OF
over 500 COG, OOj, In addition 10 its land grant OF ~
500 900 acres in Texas, and lS,OOO,OUO in the terri
tories, being a money subsidy OF twice the probable
cost Of building and equipping liz road.
Tho application failed. 1t now changes the form
rather than the substance of liz request, and asks
for Il guaranty OF interest on $l5, 900 n mile for the
easier, and 900 0 for tho heavier portions OF the
road, amounting In all to f3S, 100000 Mt hve per cent.
annually, tor NIFTY years.
The bonds OF the government bearing four and o
half per cent. interest have recently been sold at
par In rotundinV the national debt. If the public
faith IL kept and It's credit uninpaired, the time IL
not remote when the government VIII he able TO
effect loans at the rates of three aud three huu
half per cent, ~ now paid by England. The diff
ference between the interest on these hye per cent.
Texas and Pacific bonds for fifty years aud the
ordinary rates which the government VIII nave TO
ply ON the same amount Tor the same time, II
invested az IL might be by the government for the
payment of It's own debt, would amount to much
more than the cost Of the road, 20 that the govern
mcnt would be far better off to build the road and
give it TO tho Texas and Pacific company outright
than To guarantee the interest on Its Ave per cent.
~hfty-year bonds, according to its request.
The total amount of interest guaranteed by the
government would if paid into Il sinking fund
amount to more than S7OJ,OOO,OtO in fifty yeart, and
we are called upon tn guarantee the payment OF THIS
sum IN addition to the proceeds OF the land grant
In order to enable the Texas and PaciiG company to
complete ita road.
We are opposed to all pcCuniary subsidies and
guarantees 10y the government in whatever form
for the benefit Of railroads at this time, however de-
siabls their constructions. In time of peace pri-
ypIn ,ntiiaI uaphiuu pFnntablp iuypHtmpnt will ZEN
orally promote commercial development quite AZ
fast IA IL consistent with safety and permanent
prosperity. II tho men In charge off moritoriou' en-
terprisc command tho confidence of capitalists, or
even the toO-easily won trust of the middle classes,
there IL no need of calling upon the nation Tor sub
sides or guarantees.
THE SOUTHERN PACIFIC RAILROAD.
The Southern Pacific Railroad company Is Il cor.
porntion of the State of California.
This corporation has constructed its road to Fort
Yuma, on the Ensterly bank of the Colorado River,
in ,he SOnthwrstcrly corner Of the Territory OF
Arizona, which II claims to be the authorized point
of connection with the Texas and iaclhc Road, a
distance of about 100 miles. Its track has been
laid through and over extraordinary natural OBJ
stacles at the expense Of about 5000 O,O0O, aud the
$50 miles OF it's southern portion pnsses through a
desert and for lGi miles nearest the Colorado with
ont an oasis. This road, built to preserve the char
ter, In of little value except for Its anticipated con-
ncctions with the southern States from which ow'
ing to the failure of the Texas and Pacific company
to comply with the acquisitions OF Law, 1t Is now
more than 300 miles distant.
The road Is already there with its millions OF
money invested over a sar1y waste, nrOn tho good
faith Of the government THAI the Texas and Pacific
Road should br constructed 80 az to meet 1t at the
Colorado River Or in the event of the failure OF
that corporation 10 to do that Congress should take
such IN, assures as should enable 1t TO connect with
the Southern States OF the Union.
POSITION or THE soUruERs PACIFIC COMPANY.
The Southern Pacific Railroad, by force of the
absolute necessity of it's securing Eastern connec-
tiOns AZ soon az possible, In order to preserve It's
capital, il the only party which has both the power
and the disposition to build this road.
The Southern Pacific company interpreted no OPP
position to the guarantee asked by tine Texas and
Pacific east Of the Rio Grande; but contemplating
the contingency of the denial of guarantee OF bonds
to the Texas aud Pacific company. and the conse-
quent total collapse Of its undertaking.. strongly In.
sisted that justice required that they should not be
held In check awaiting The result OF CONTINUED appll-