New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1878-05-01
Southern Pacific was ready to do Immediately for tn.

Southern Pacific ready to do Immediately for the
land grant alone.
To this bill the Texas and Pacific company OBJ
scted. The only argument entitled TO weight, in
ng with the ocean at San Francisco and having init
mate business relations with the Central Pacific rail-
road, might enter into combinations with that
pOraon against the public interest and that the adj
yantages Of competition and of an occasional con-
nection at San Diego would then be lost.
COMPETITION AND COMBINATION
We believe that any competition between rival par
allel lines of railroad for the same business, which
one of two ways, either in combination by which
the public will lose far than it has ever gained
from competition, on the other hand, in the ruin
GUS cutting of rates persisted In until the weaker
poraon IL ruined, the public is left to the rapacy
of the survivor. There is real protection to the
public but in the enforcement of the law Of the land
Competition which takes from corporations Just
compensation is quite ruinous as combination
which gives them too much.
No one can believe that the Texas and Pacific COM
pany would, after constructing its line to the Pacific
ocean, long compete with any rival to its own loss
even SO as to produce any reduction of rates below
the maximum to which the public would submit; or
that would fail to repair its losses increase ts
gains whenever an opportunity might offer. We re-
peat that nothing but the law and the enforcement
OF the law by the government can protect the public
against the love Of gain which is inherent in human
nature.
This truth is recognized by the bill of the Texas
and Pacific company reported by the majority of the
to hold that corporation within the bounds of justice
and law very unusual safeguards being provided for
self is really required by the bill furnish the
necessary to build the road and give the projectors
an additional bonus of S2O,0OO,GeO, Restrictions and
conditions in charter can be enforced by the ma
chinery of the law against one corporation well
another.
WILL THE SOUTHERN PACIFIC COMPANY BUILD THE
ROAD?
We submit that it will work great wrong to the
How niGu 49,,
South and Southwest, and to the whole country, to
reject this bill and to enact the bill recommended by
the majority of the committee in the interest of the
Texas and Pacific company or TO reject this bill un-
dor any circumstances. This measure does not
tagonize, did the Southern Pacific railroad antag-
onize before us railroad project branch,
nection east of the Rio Grande It simply asks to
build 900 mics of railroad half way from the Coora-
do to Fort Worth, the present westerly terminus of
the Texas and Pacific company, and ninety addition
al miles in California to complete the San Diego
nectiOn without any public aid and subject to all
reasonable restrictions in the public interest True,
desires the land grant but we do not recommend it,
because believe that this corporation will build the
road without.
Should the representatives of that portion of the
country chiefly to be benefited, not by the subsidy
but by the road, defeat this measure it is difficult
for us to see how they can reasonably expect the
rest of the country to consent to burden the tax
payer and embarrass our policy with the most dan
gerous precedent, which would exhaust the Treasury
with hundreds of subsidies throughout the unlimited
future Of the nation.
himself to his constituency and to his country at
large in course which depletes the Treasury when
all that is desired is attainabe without expense to
the people.
VIEWS OF MEssRs. LUTTRELL,AND BLAIR.
Both the act and it's amendments required as a
condition precedent that the work should be prose-
cuted simultaneously from the Eastern and Western
termini. By the act of 1872 there were required to
be completed not less than 500 miles on the main
line in Texas and not less than ITO miles in Calfor
q n ct 1osa han
miles of the main line have been completed Wester-
ly from the Marshall terminus in Texas, and not one
mile or even a foot, from San Diego Easterly.
There has been marked failure on the part of the
company to comply with the terms which the
lands and franchises granted. This contingency
of failure was, by the caution of Congress- forseen
and provided for in both Acts, by proviso that
upon failure to 80 complete it, Congress may
adopt such measures as it may deem necessary and
proper to secure it's speedy completion"
In this attitude of affairs itrepresens that would
be great hardship to be compelled to wait indef-
nitely upon disabled company for connecting road
from the East, and asks of the privilege of
hnuing it's road eastward through the Territories to
the Rio Grande and as much farther might be
necessary to meet the Texas roads within six years.
Such is the desire for an outlet to the East which
shall admit it to participation in through overland
traffic that it offers that if it's request be granted to
construct line to San Diego harbor in addition to
its present termini and to prorate on through
business with all Eastern connections to San Fran
cisco other points, and to allow Congress to i'm
pose the rates and fares the line between its East
asking aid of the United States which it is not its
advantage for Congress to grant, This is rather
than it is within the power of the other company to
offer. No good and satisfactory reason is found why
this proposition should not be promptly and cheer
fully accepted.
FROM BUSINESS STANDPOINT.
Two propositions are before us looking to that end.
One of them, the Texas and Pacific seeKs to retain
its land grant from the United States amounting to
acres to obtain two years. additional time
and special aud extraordinary grant of the credit
of the nation in the form of an endorsement upon
3s,75O,0OO of the company's bonds, pledging it to
the payment of five per cent. gold interest for fifty
years.
The other, the Southern Pacific, asks only our
sanction to continue it's road eastward the ter
ritories within the time but without any other
or further assistance than the contiguous grant O
lands now at the disposal of Congress.
Which of these two propositions guardians O
the public interest can we adopt? Which of these
two candidates. practical business men, ought we
to intrust with this undertaking? We should select
the proposition most favorable to the good of the
people. 1t would that by the charter the grant
of land along the thirysecond parallel line in he
territories made double that of the pioneer line
by the parallel, if in lieu of future aid
in money or credit
Were we administering our private business
could we for moment hesitate between these offers,
one of which, besides being an undeserved favor,
involves grave responsibilities, dangerous precedent
and great risks, while the other avoids ali commit