The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1878-02-01
PACIFIC RAILROAD COM
MITTEE.
Argument OF MejOr BOnd, of the Texas
and Pacifc-The Assault Upon Hun
tingaOn Wnged Fterccly.

unkeOn Wnscu Fterccsy.
WASHINGTON, January 29.--rhe house
committee on Pacific railroads to-day
heard the argument Of Mr. Bond, vice
president of the Texas and Pacific Rail
road company 1t contained a severe
Indictment with several very serious
counts, supported by strong array of
figures, challenging denial, against the
Southern Pacific road, which he charged
with beng simply ali extension of the
Central Pacific, for the purpose Of per-
petuating its monopoly as against the
people and government OF the United
States and as an obstruction to the
building of the Texas Pacific road.
These companies conjoned, he said,
control nearly 2, 400 miles of railroad in
California which is actually the proper
ty of four private citizens of that state
who have divided amongst themselves
since 1873 eighteen and half millions
of dollars in the shape of dividends on
its watered capital These roads owe
the United States to-day up.
wards OF Sal 100000 or nearly SIT 900
on every mile OF road they operate.
to the Central Pacific is $2SlO per mile
Cd its road, which is in strong contrast
with the showing of the Texas and Pas
cifc company which asks for a guaran-
tee OF only $3.50 per mile on the bonds
proposed to be issued.
He argued that the financial inward.
ness Of this Central-Southern combina>
ton shows that during the past two
years the expenditures of the Central
Pacific Railroad company were more
than SIS, 600, 900 in excess of the receipts,
and that the last years floating debt
has swelled to nearly 81, 600 600 more, as
the reports filed with the California
Board of Transportation attest. The
two companies, he declared, have not
the financial bottom, even if they had
the desire, which he said nobody be-
lieved they have, sufficient to construct
1900 miles Of road on the sd parallel,
which would inevitably come into com
petition with their line on the list par
allel,
He charged that their reports, intend,
ed for their stock and bondholders and
intended as basis of their credit under~
stated their Indebtedness by some $50, :
100000, and that the original estimates
Of the Central Pacific line were but
$50 500 per mile, but they had by con.
soldation increased their mileage and
the cost of construction to an average
OF SllS,000 per mile, saddling the road
with an interest. bearing debt of SSS, S4C
per mile. With such q showing, he
said they could not command the con
tidence of private capital to build the
twelve hundred more miles OF road they
are now seeking to build from the Colo
RADIO east to Fort Worth, or even the
six hundred miles east to the Rlc
Grande. The revelation of these de-
signs of private monopolists, he SAID
painted the moral that the general gov
eminent could not want for q better
opportunity to establish wholesome
precedent that congress be vested Will
the power to regulate the transporta
ton of all railways that seek its aid.
Mr.. Bond summed up his argumen
by few pertinent questions as t'
whether first, the public good required
that congress should denude the Texa
and Pacific railroad of its franchise
which the Central Southern combina
ton prays it will and give them ovel
to their undisputed possession. Sec
ond, does any one believe TN
Central and Southern Pacific PEG
pie want II raise up q competi
tor to then elves Third, can the,
build unaided with such showing a
the above2 Fourth, would it be righ
or Just to strip the Texas and Phclfi
company of its franchises when the
had built AMI are running four hundre'
and torty-fve miles of road without tn
aid of government dollar, and CIV
them to the Southern Pacific company
especially when that company has nc
Itself complied with the law, which re
4uIres it to complete continuous lin
from San Francisco to the Colorad
rlver2 Fifth, is it best that four privat
citizens should own two trans-continer
tai railways Sixth, wouldn't 1t be &c
the public veal to have a connectin
line built on a cash basis at the loves
rate Of INTEREST," Seventh, does not th
Texas and Pacific bill secure to the go
eminent and the people the cheape
transportation possible and take u
hxlng of the rate out OF the hands
monopolists and place it where IT D