The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1878-04-25
Southern Pacific Railroad.
emphatic Condemnation of Subsidies.
The ThIrty-secOnd Parallel Road c1n be
Constructed without Pledgi1G the
RIIhIic Credif.
The Texas and Pacific Railroad.


The Pacific Railroad committee Of the House
having by a vote of seven to six agreed to re-
port the Texas Pacific Bill fa7orably-two or
more Of the seven expressing their desire to
amend it, or defeat it on the hoor-the minor
ity members Messrs. Morrison, Landers, LuU-
trel, Blair, Rice 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
mqjority of the committee, but desire the adop-
ton by Congress of such measures as will Sc
cure the early construction of transconti-
mental railroad for the special use and develop
ment 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 bill for the
consideration Of the House:
THE PRESENT CONDITION OF THE SOUTHERN LINE.
The Texas and Pacific Railway company, a
q 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 and near the thirty
second parallel of North latitude, through that
State and the Territories of New Mexico and
Arizona TO 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 q population of 1000 to 5000 people.
The distance from Marshall to San Diego Is
estimated at 1874 miles by the authorities Of
the Texas and Pacific company, while those OF
the Southern Pacific company believe it to be
about 100 miles greater.
Failing to meet these provisions, the Texas and
Pacific company has obtained by construction and
purchase and has now in operation 443 miles Of
road, which enclose parallelogram in Northeastern
Texas, having base of 163 miles, extending from
Marshall to Fort Worth, now the western terminus
of the road which only is part of the trunk line.
The remainder of the 443 miles is located to
the valuable lands granted by the State
of Texas probably because the pecuniary embarass-
1nents of the company were such that its credit
based chiefly upon the granted lands. There Is
thus remaining of the trunk line between Fort
Of
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 the desired legiss-
consumed in the construction of less than
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 Southern States.
performance of its undertaking, although received
from the State Of Texas the nunlncent grant OF
width along each side of its line, or eighty miles in
all, through the State of Texas, and the same from
the United States through the territories ana IN
California, contingent upon its compliance with the
conditions of the grant
THE SUBSIDY DESIRED MORE THAN THE ROAD.
The credit of the Texas and Pacific company was
seriously impaired before the panic of 1873, and
under its influence has still further declined. It
admits its pecuniary inability and assigns that as
reason for its failure to comply with the conditions
imposed upon it by law.
In 1875 it applied to congress Tor SUBSIDY OF
over OOJ, in addition to its land grant OF p
b2s OGO acres in Texas and $4,000 coo in the terri
tories, being money subsidy OF twice the probable
cost of building and equippinS Its road
The application failed. It now changes the form
rather than the substance of its request and asks
for guaranty of interest $4,000 mile for the
road amounting in s to $SS 500 900 at five per cent
The bonds of the government bearing four and .
half per cent. interest have recently been sold at
par in refunding the national debt. II the public
faith is kept and its credit unimpaired the time II
not remote when the government viii be able to
effect loans at the rates OF three and three and q
half per cent, paid by England. The dtf-
ference between interest these five per cent.
Texas and Pacific bonds for fifty years and the
nav on the same amount for the same time, if
invested it might be by the government for the
more than the cost of the road, that the govern
nent would be far better of to build the road and
give it to the Texas and Pacific company outright
than to guarantee the interest on its ve per cent.
hfty-yeaf'b bonds, according to its request.
The total amount of interest guaranteed by the
government would if paid into q sinking 1und
amount to than 500 600 90 in fifty years and
called upon to guarantee the payment OF this
sum in addition to the proceeds OF the Iand grant
in order to enable the Texas aud Pacific company to
complete its road.
guarantees by the government in Whatever form
for the beneht of railroads at this time, however de-
sirable their construction In time OF peace PR
yate capital seeking profitable investment viii gen.
orally promote commercial development quite as
fast as is consistent with safety and permanent
prosperity If the in charge of meritorious en-
terprise command the confidence OF capitalists, or
even the too-easily 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 a cor.
| poration of the State of California.
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 it claims to be the authorized poin
| of connection with the Texas and Pacific Road,
| distance of about 100 miles. Its track has beer
| laid
stacles at the expense of about 500 900, and the
85o miles of its Southern portion passes through
desert and for 1854 miles the Colorado with
out an oasis This road built to preserve the char
ter, is of little value except Tor ITS anticipated con
| nectiops with the Southern States from which ov
ing TO the failure of the Texas and PACING coInpan!
to comply with the requisItions OF law 1t Is nov
| more than 1.20O miles distant
The road is already there with its millions o.
money invested over sandy waste, upon the goo'
faith of the government that the Texas and kacif
Road should be constructed so as TO ,peet At at tn
| Colorado River in the event Of the failure o
that corporation SO to DO that onSESss should tak
! the Southern States of the Union.
POSITION Of THE SOUTHERN PACIFIC COMPANY.
The Southern Pacific Railroad, by force of tn
lions possible, in order to preserve it
capital, is the only party which has both the Powe
| and the disposition to build this road.
The Southern Paciic company interpreted no OF
position to the guarantee asked by the Texas am
Pacific east of the Ri Grande; but contemplating
the contingency of the denial CT guarantee OF bond
| to the Texas and Pacific company, and the cOnse
Quent total collapse of its undertaking, strongly IN
sisted that Justice required that they should not b.
held in check awaiting the result OF continued appl
cations by the Texas and Pacific company for thu
n oney credit OF the nation with which to per
| form what the Southern Pacific was ready to do I'M
medately for the land grant alone.
| To this bill the Texas and Pacific company OBJ
| jected. The only argument entitled to weight
in opinion, was that the Southern Pacific, con-
Meeting with the ocean at San Francisco, anC
having intimate business relations with the Contra
Pacific Railroad, might enter into comb nations
with that corporation against the public interest
| and that the advantages of competition aud OF Al
| occasional connection at San Diego would then be
COMPETITION AND CONVERSATION.
! We believe that any competition between riVa
which results in loss to the companies, is sure y
( end in one of two ways, either in combination b.
which the public will lose far more than it has eve
gained FROM competition, or, on the other hand,
the ruinous cutting OF rates persisted in until tn
weaker corporation is ruined, the public is left Il
the rapacty Of the survivor. There is no real pro
lection to the public but in the enforcement of tn
| law of the land Competition which takes from
| corporations just compensation is quite ruinou
as combination which gives them too much.
No one can believe that the Texas and Pacih
company would. after constructing its line to tn
| Pacific Ocean, long compete with any rival to it
own loss or even so as to produce any reduction o
rates below the ximum to which the public woul'
submit; that it would fail to repair its l0sse
or increase its gains whenever n opportunity
| might offer. We repeat that nothing but the sw
and the enforcement Of the law by the government
can protect the public against the love OF gail
E9.cs ts inherent - s--c2n .at--9-
THIS truth Is recognIzed py me Din on the TU11
and Paci1c company reported by the majority o
She conInA1tee ana stringent PROVISIONS as seI
| made TO hold that corporation within IL
bounds CT justice and law; very unusual safeguard
being provided for in consideration Of the fact tina
! the government itself is really required by the bI
to furnish the means necessary to build the ros
and give TO the projectors an additional bonus o
ter can be enforced By the machinery of the La
against one corporation as wei another.
RELATIONS SOUTHERN CENTRAL AN