West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1878-05-04
SOUTHERN PACIFIC RAILROD.
Emphatic Condemnation Of Subsidies.
The Thirty second Parallel Road cnn he
Constructed without PIedEing the
Public Credit.
The Texas and Pacific Railroad.
SYNOPSIS OF THE MINORITY REPORT

agreed 10 report the Texas Pacific Bill
favorabIy-two or more of the seven ex.
pressing their desire to amend it, or defeat
IT on the hoor-the minority members
Messrs. Morrison, Landers, Luttrell, Blair
kice 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 adoption by Congress of such measures
as VIII secure the early construction Of a
transcontinental railroad FOR the special
use ana 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-
ton OF the House:
THE PRESENT CONDITION OF THE SOUTH.
ERN LINE
The Texas and Pacific Railway COMPANY.
corporation of the State of Texas, In the
year 1871 was authorized by Congress to
construct its road and telegraph from Mar
shall, in Eastern Texas, along and near the
thlrty-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.
iation OF 10000 5000 people. The distance
| rum mdtHnall 10 San Diego rs estimated at
| l,574 miles by the authorities of the Texas
ana Pacific Company, while those of the
southern Pacific Company believe il to be
about one hundred miles greater.
rmhng to meet these provisions, the Texas and
racine Company has obtained by construction aud
purchase and has now in operation 443 miles of
road which enclose parallelogram in Northeastern
Texas, having u 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
Inc remainder Of the 4i3 miles Is so located as to
/ lnIa
oil Texas, probably because the pecunary embarass-
ments oil the company were such that its credit was
Dased CHIEFLY upon the granted lands. There II
thus remaining Of the trunk line between Fort
worth and san Diego, distance of i9i miles upon
which,nOthing has been done.
Oh the ten years allowed by the charter within
winch TO complete this great work only four remain
ana considerable portion OF one of these must
eapse before the enactment Of the desired legisa-
ton Is possible. Sx-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
thessouthern States.
The corporation has fallen thus far short of the
performance of its undertaking although IL received
from the state OF Texas the magnificent grant of
the alternate sections Of land for forty miles in
width along each side of its line, eighty miles n
H. M, ' W,ssd me STATE oil Texas and the same from
me united states through the Territories and in
California; contingent upon its compliance with the
conditions of the grant.
THE SUBSIDY DESIRED MoRE THAN THE ROAD.
seriously impaired before the panic of 1873 aud
under its influence has still further declined II
admits It's pecunary ability, and assigns that rs
reason Tor its failure to comply with the conditions
| imposed upon it by law.
! In 1873 It applied to Congress for subsidy of
oNers6O,WO,OOO in addition to its land grant of %
900 acres in Texas and $4,000 900 in the terrific
ries being money subsidy of twice the probable
| cost OF building and equippng its road
The application failed II now changes the form
rather than the substance of its request. and asks
Tor guaranty OF interest on $4,000 mile for the
| In fhn laaN
road, amounting in all To $685. 90 900 at i've per cent
annually, for fifty years.
| Inc bonds of the government bearing four and n
nan per cent interest have recently been sold at
par In refunding the national debt. III the public
alth is kept and It's credit unimpaired, the time
not remote when the government will be able to
elect loans at the rate of three and three and
hait per cent, as now paid by England The diff
Terence between the interest these five per cent
| Texas and Pacific bonds for fifty years aud the
ordinary rate, which the government will have to
| pay on the same amount for the same time II in
vestgated az II might be 10y the government for the
| payment OF its own debt, would amount TO much
more than the cost OF the road so that the govern
ment would be TAR better of Ia build the road and
give 1t To the Texas aud Pacific Company outright
Than to guarantee the interest its 1--WE per cent
| nifty year bonds, according To its request.
| The total amount of interest guaranteed by the
| government would II paid into sinking fund
amount 10 more THAN 7OOOOO0 O0 In fifty year, 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 Compan
| to complete its road.
We are opposed 10 all pecuniary subsidies and
guarantees by the government in whatever form for
the benefit OF railroads at this time however desira
ble their construction. In tirdc of peace private
capital seeking profitable investment will generally
promote commercial development quite as fast as is
consistent with safety and permant mt prosperity
| III the men in charge Of mcrtorious ENTERPRISE
command the confidence of capitalists or even the
tooeasily won trust Of the middle classes there is no
nted OF calling upon the nation for subsidies or
/ guarantees
THE SOUTHERN PACIFIC RAILROAD.
The Southern Pacific Railroad Company is a cor
| a tat nlfI NaatF,Y
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 IL claims to he the authorized point
| OF connection with the Texas and Pacific Road n
distance OF about 40 miles. Its track has been laid
through and over extraordinary natural obstacles al
the expense OF about SEQ 600 and the $50 miles
us southern portion passes through desert and for
l6i miles nearest Colorado without an oasis This
road, built to preserve the charter Is Of little value
except for its anticipated connections with the
southern states from which, owing to the failure of
the Texas and Pacific company to comply with the
distant. ''-'O '''''''
money invested over a sandy waste, upon the good
iaith oil the government that the Texas and Pacific
ROAD should be constructed to meet ID at the
CoOrado RIVER or In the event Of the failure OF that
corporation 50 to do that Congress should take such
measures as should enable II to connect with the
southern states OF the Union.
POSITION OF THE SOUTHERN PACIFIC COMPANY.
The Southern Pacific Railroad bv force of tho all
soue necessity Of it's securing Eastern connections
as soon as possible I'm order To preserve its capital
| inc only party which has both the power and the
disposition to build this road.
! Inc southern Pacific company interposed no op-
position to the guarantee asked by the Texas aud
racine east Of the Rio Graudc, hue contemplating
the contingency Of the denial Of guarantee Of bonds
| TO the Texas and Pacific company, and the cOuso-
quent total collapse Of its undertaking. strongly in
sisted that justice required that they should not bc
held In check awaiting the result Of continued an
plicattOns by the Texas and Pacific cOmpany for the
money or credit Of the nation with which 10 perform
! what the Southern Pacific was ready 10 do inmcdi-
/ ately Tor the land alone.
To this bill the fexas and Pacific cop,papv Oh
/ jected. The only argument entitled 10 weight in
our opinion was that the SOuthc~n Pacific connect
ing Win the ocean az san Francisco and having i'm
Innate business relations with tho Central Pacific
Railroad, might enter intOcOm binatious with that
corporation against the public interest and that mo
advantages OF competition and Of occasional con.
I necuon atSan Diego would then be lost
COMPETITION AND CONVERSATION.
We believe that any competition between rival
parallel lines Of railroad Tor the same business
results IN loss ~ the companies s sure Ia end iu
ono ~ Two Ways either iu a com binatiou bv whfc
me public vii lose ior more than 70 has ever gained
/ I,y' ,Vllptutoii' or, ON The other hand, in the
runous cutting ~ rates persisted Zoo until the weaker
/ corporation b. ruined, the public b. left 10 the
rapacity NJ the survivor There is no real profcot
~ the public but the enforcement of the law al tho
] land Competition which takes from corp0ratious
just compensation is quite az rulnous az
| which gives them Oomuch.
/ No one can believe that the Texas snd Pacific
company would after constructing It's lnot to tho
I Pacific Ocean, long compete with any rival 10 h.
own los5 ~ even so ~ TO produce any reduction of
I submit NJ that 10 would fail ~ repair H. io.ecs
or increase tts gains whenever an 0pprtunifv rtbt
ohcr. We repeat that nothing hut the law and ibo
enforcement Of helaW by the government can pro