The Osceola times., 1878-04-27
mass Is estimated to weigh about 1850
Southern Pacific Railroad.
Emphatic Condemnation Of Subsidies.
rhs Thirty-secsnd Parallel Road can be
CeussrucseA wishsse Piedaisa the
.t. PHbiic Credit. - ID g..
M IT,. .ud panifin Railfnad
Tho Texas and Pacific Railroad.

ODUUIT0OI80
-1| Pubiic Credit. - 49,
The Texas and Pacific Railroad.
SYNOPSIS OF THE MINORITY REPORT.
The Pacific Railroad committee of the House
having By a vote OF seven 10 six agreed TO re-
port the Texas Pacific Bill favorably-two or
more OF the seven expressing their desire TO
amend II, or defeat II ON the hoor-the minor
ity members MGssrs. Morrison Lauders, liut-
trell, Blair, Rice and Hewitt have stated Their
views In Report Of which the following are
the material portions:
We are unable 10 concur in the views OF the
msiority Of the committee, but desire the adop-
ton by Congress Of such measures - Will So
cure the early construction Of q transconti-
Mental railroad for the special use and develop
g,eyt 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 follow
ing views and the accompanying bih ior me
cp0adsration OF tho House: .fofs-g
rae rnEsESr CONDITION orrHE socrHxRH LINZ
The Texas and Pacific Railway company, .
q corporation OF the State OF Texas. In the
year 1871 was authorized by Congress 70 con
struct its road and telegraph from Marshall, In
EAstsrp Texas. along and near the thirty
second parallel OF North latitude, through that
state and the Territories Of New Mexico and
Arizona 10 San Diego, small city on the Pacific
coast. on the bay Of the same name supposed
to be well adapted TO commercial purposes, and
having . population Of 1000 to 5000 people.
The distance from Marshal to Ban Diego u
estimated at 1874 miles by the authorities OF
the Texas and PasiAc company, while those Of
the southern Pacific company bslieve 1t 70 be
about 100 miles greater.
Failing TO meet theae provisions, the Texas and
PsciAs company has obtained uy CONSTRUCTION and
ROAD. which enclose parailelesrsm in Northeastern
Texns having base Of 16s miles, extending from
Narshall 70 Fort Worth, now the western terminus
Of the rosd, which only is part OF the trunk ine.
The remainder OF the la3 miles is 30 located as to
secure the more valuable lands granted by the state
Of Texas probably because the pecuniary emearass-
meutA Of the company were such that Us credit was
based chiefly upon the granted lands. There In
thus remaining Of the trunk line between Fort
Worn and Hap Diego distance Of l. 491 miles upon
which nothing has been done.
OK the ten year. SLOWED oy sns ,,x sonr
and . considerable portion OF one OF these must
elapse before the enactment OF the desired leesla-
tion 10 possible. Six.terths 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
The corporation has fallen thus far short Of the
performance Of its undertaking although 1t received
from the State Of Texas the mnnincent grant OF
width along each side Of Its line, or eighty miies In
ALL through the state Of Texas, and the same ire 10
the United states through the Territories and In
California, contingent upon It's compliance WIN the
conditions OF the grant.
THE SUBSIDY DESIRED MORE THAN TIE RoAD
The credit Of the Texas and Pacific company w.
ecrtousIy IMPAIRED before the panic OF 1873, and
under its influence has still further declined IL
admits lie pecuniary inability, and assigns that as
fo xrifh
In is,s il applied to Cong tess for subsidy OF
over s0O In addition ~ its land grant OF ~,
acres in TeIas and isScVo m IN the ,sIrl
cost OF building and equipping i~ road.
The application failed. II now changes the form
rather than the substance OF Its request and ask
for guaranty OF interest on $4,000 mile for the
easier, and 1900 for the heavier PORTIONS OF the
road, amounting in all to 900 at Ave per cent
annually, for nifty years.
: The bonds of the aovernment bearing four and a
half per cent interest have recently been sold at
par in reiundins the national debt II the public
faith is kept and Its credit unimpsired the time is
not remote when the government will be able to
eject loans at the rates OF three aud three and a
half per cent, now paid by England. The Diff
ference between the interest these hve per cent.
Texas aud Pacific bonds for nifty years and the
ordinary rates which the government will have to
pay on the pame amount for the same time, II
invested as II might be by the government FOR the
payment of Its own debt, would amount to much
more than the cost OF the road, that the govern
ment would be far better OF to build the road and
give II TO the Texas and Pacific company outright
than to guarantee the interest on its i've per cent
hfty-yesr bonds. according to its request.
The total amount of interest guaranteed by the
government would II paid into q sinking fund
amount 10 more than sos, go in nifty years and
we are called upon 10 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 de-
sirable their construction. In time OF peace pri-
yate capital seeking profitable investment Will gen.
orally promote commercial development quite as
fast as is consistent With safety and permanent
prosperity. II the men in charge OF meriious en-
ttrprise command the confidence OF capitalists, or
even the tooeasiy trust of the middle classes,
there is no need OF calling upon the nation for sub
sides or guarantees.
THE SOUTHERN PACIFIC RAILROAD.
The Southern Pacific Railroad company is q cor.
poration OF the State of California.
This corporation has constructed its road to Foft
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 the Texas and Pacific Road. a
distance OF about 7l0 miles. Its track hiss been
laid through aud over extraordinary natural OBJ
stacles at the expense Of about 5000 oOo, and the
$50 miles OF it's Southern portion passes through a
desert and for 1di miles nearest the Colorado with
out oasis. This road built TO preserve the char
ter is OF little value except for its anticipated con-
nectons with the southern states from which ow'
IND to the failure OF the Fexss and Pacific company
to comply with the requisitions OF law. 1t Is now
more than 200 miles distant.
The road IL already there with its millions OF
money invested over n sar ty waste, upon The good
faith Of the government tha, the Texas and Pacific
Road shonld be constructed as to meet II At the
Colorado River or in the event Of the failure of
that corporation so TO do that Congress should take
such measures as should enable IL to connect with
the Southern States of the Union.
POSITION THE SOUTHERN PACIFIC COMPANY.
The southern Pacific Railroad, by force OF the
absolute necessity OF its securing Eastern counec-
tons soon possible, in order to preserve its
capital is the only party which has both the power
and the disposition TO build this road.
The Southern Pacihc company interpoeed no OPP
position TO the guarantee asked by the Texas and
Pacific east of the Rio Grande; but contemplating
the contingency OF the denial of guarantee OF bonds
10 the Texas aud Pacific company. and the conse-
quent total collapse Of it's undertaking, strongly in
s,ted that Justice required that they should not be
n. ~.