The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1878-03-21
THE TEXAS PACIFIC.
A Talk with Col. Tom Scott, the hacker
The Enterprise FaIIy DeHerIbed-What
the Govern neDt 4 AsLEed 40 DO-CO4t
OF Contracting the Road-Sue-
aa.a for
cess Predicted for 1t

Vania railroad, the Texas Pacific railroad |
and other railroads too numerous to |
mention, paid the city a flying visit
day or two since. During his brief stay |
a representative of the Post called upon |
him of the headquarters Of the Texas |
Pacific, No. 512 Thirteenth street, and |
had chat with the great railroad king.
The conversation naturally turned upon
the Texas Pacific scheme, about which so
much has been written and spoken, and
of which, after all, the mass of the people
know so little. Even the Post was com
PEELED to confess rather muddled con-
dition of intellect upon the subject. and
with view to its own satisfaction pro.
pounded the following comprehensive
questions
What, in brief, Col. Scott, is the
proposition that the Texas Pacific makes
to the government" To which the
colonel replied:
cit is that the government shall
guarantee the payment of the interest
at the rate of five per cent. on
the company's bonds, not to exceed for
all purposes $38, 100000, for the con-
structiOn and the equipment of the main
line from Fort Worth to the Pacific
ocean. OF this amount only $31, 100000
can be used for purposes of construction
and equipment, the balance at the rate
of $4,000 per mile to remain in the
United States treasury as one of the pro-
tections to the government against the
payment of interest"
Do I understand all of your bonds
are to be placed in the hands of the sec
rotary of the treasury to be issued as the
road is completed to ten-miie sections "
I" Yes, the bonds are under the COM
plete control of the secretary of the
treasury, and interes: on the bonds be-
gins to run only from the date of their
issue.'
" This Stephens bill, as adopted by the
majority of the committee, provides for
only trunk line from Fort Worth to
San Diego ?"
Eyes, that is all that the government
guarantees the interest on, but the bill
provides that the company, without
guarantee of interest, shall build from
some point on the eastern part of its line
as now constructed TO some point ON the
Mississippi river, fixing its terminus on
the east bank thereof, not further nerth
than Memphis; these points to be ascer-
| tanned and determined by commission
of five, to be appointed by the president
of the United States, at least three of
whom shall be ranking officers of the
| United States engineer corps, and all of
| whom are to be disinterested in any OF
| the proposed lines or their connections"
Chow is the government to be secured
against loss on its guarantee pr
"First-By primary mortgage on the
whole line to be constructed and all the
| franchises, property and rolling stock
thereof.
''Second-By retaining in the treasury
and applying to the payment of interest,
the compensation due the company for
all services performed for the govern
nent, including the transportation of
J mails, troops, supplies and the Use of the
telegraph line.
"Thlrd-The company relinquishes its
land grant and reservations thereof to
the government, which are to be opened
at once to sale and settlement, the gov~
eminent to apply ene-half of the proceeds
of all lands within the reservation first
to the payment OF interest, and second to
the sinking fund for the redemption of
the bonds at maturity.
Fourth-The whole of the net earn
ings of the road are pledged for the
payment of interest. Besides this, $4,000
per mile of the bonds authorized to be
issued are to remain in the treasury, to
be sold rom time to time by the secretary
.
accounts. This security is deemed ample
to protect the government against the
loss of one dollar"
"What control does the government
retain over the r9ad?"
The right to the primary use of it for
postal, telegraph and military service
and the absolute and unconditional right
to fix the rates of commercial traffic and
travel over the whole line from the Mis-
sissippi river to the Pacific ocean,"
Does the government have such con.
troll over the Union and Central Pacific
roads p
at has not. By the act incorporating
and substituting those lines the governs
meDt only reserved the right to fix g
maximum of rates when the net earnings
of those companies shall equal ten pei
cent. on the cost of construction, which
contingency is not likely ever to hap
PEN"
"What is the estimated cost per mile p
The average cost, taking the plain anC
mountain country, is between $25, 00C
and $26, 900 per mile"
"What are your expectations Of the
profits and earnings of the road wheI
completed p
eve expect to build the road for les
than one-third per mile of the cost o
the Union Pacific line. The cost o
/ maintenance and operation, on accoun
J of the lower grades and the more favor
: able climate, will be far less than on tn,
Union Pacific line. The annual interes
to be paid will not equal a third of tina
paid by that line. The difference be
tween the Mississippi river and tn,
| Pacific ocean on our line is severa
/ hundred miles shorter than the UnioI
, and Central Pacific. With all of thes,
4 advantages it is safe to say that our ne
3 earnings will at least equal those of tn,
, Union and Central Pacific, which ar
shown by their official reports to be from
5000 to 1000 per mile per annunl
| Our present line of IA miles. withou
3 western connections, shows net annua
| earning of about $4,000 per mile, all @
2 which indicates a prof table operation @
: the whole line"
Z ''Whence, then. the necessity of
. guarantee of interest by the govern
D ment 90
! "Owing to the financial distress sn
: the great want of confidence in all enter
r prises, even the securities of old and we,
: established lines do not find read
e market, and the securities on lines to b
!, constructed are scarcely marketable &
3 any price, or, if at all, at such heav
c discounts as 10 make the cost of cor
t struction so enormous as to deter prU
T dent men from such ventures. With tn
D government guarantee, as sought, th
e bonds can be sold at par, which will Ell
b able the company TO construct its road {
]. a very low cost, and its interest -bearin
c indebtedness, instead of largely repr
4 senting discounts, would represent onI
e cash actually invested in material an
s constru elton 1t is impossible for Il