New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1878-05-01
The Thfrry-second Parallel Road can be
Constructed without Pledxinx the
Public Credit.
The Texas and Pacific Railroad.

85Gl0g 3I8Ul anE gfteel Is
The Texas and Pacific Railroad.
SYNOPSIS OF TIE MINORITY REPORT.
The Pacific Railroad committee Of the House
having by vote of seven to SIX agreed to re-
port the Texas Pacific Bill favorably-two or
more Of the seven expressing their desire to
amend it, or defeat it on the foor-the minor
ity members Messrs., Morrison, Landers, Lut-
trell, Blair Rice and Hewitt have stated their
views in a report of which the following are
the material portions; " 8!lgt aIE
We are unable to concur in the views OF the
majority of the committee, but desire the
adoption by Congress of such measures as will
secure the early construction of a transconti-
mental railroad for the special use and devel-
ment Of the Southern and Southwestern
States and territories We believe that this
important object can be accomplished with
out subsidy from the government, and sub
NIT the following views and the accompany
ing bill for the consideration Of the House.
THE PRESENT CONDITION. OF THE SOUTHERN
The Texas and Pacific Railway company, a
corporation Of the State of Texas, in the year
1871 was authorized by Congress to construct
it's road and telegraph from Marshall, in East
ern Texas along and near the thirty. second
parallel of north latitude, through that State
and the Territories of New Mexico and Arizo
ma to San Diego, a small city on the Pacific
cost, on the bay of the same name, supposed
to be well adapted to commercial purposes,
and having population Of 1000 to 5000 peo-
pie. 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 Southen Prolific 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 paralleogram in Northeastern
Texas, having o base of 1873 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 tho 443 miles is 80 located as to
secure the valuable lands granted by the State
Of Texas, probably because the pecuniary embarass
ments of the company were such that its credit was
based chiefly upon the granted lands There is
thus remaining of the trunk line between Fort
Worth and San Diego distance OF ,491 miles upon
which nothing has been done. fIg
Of the ten years allowed by the charter within
which to complete this great work only four remain,
and considerable portion of one of these must
eapse before the enactment of the desired legisla
ton Ia possible. Six-tenths of the time has been
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. "
The corporation has fallen thus far short of the
performance of it's undertaking. although it received
from the State of Texas the munificent grant of
the alternate sections Of land for forty miles in
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 and 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
der its influence has still further declined It adj
mits its pecuniary inability, and assigns that as
reason for it's failure to comply with the conditions
imposed upon it by law. "'f
In 1876 it applied to Congress for subsidy of
$6000O00O, in addition to its land grant of o.,
$4,000 in Texas, and 18, OOO 900 in the terri
tories, being money subsidy Of twice the probable
cost of building and equlpping its road
The application failed. It now changes the form
rather than the substance of it's request and asks for
guaranty OF interest $25 900 mile for the easier,
and $4,000 for the heavier portions of the road,
amounting in all to $38500,000 at five per cent an
nually, for fifty years. VIA
The bonds Of the government bearing four and
half per cent interest have recently been sold at par
in refunding the national debt If the public faith
is kept and it's credit unimpared, the time is not
mote when the government will be able to effect loans
at the rates OF three and three and half per cent.
rs now paid by England. The difference between
the interest these five per cent Texas and Pacific
bonds for fifty years and the ordinary rates which
the government will have to pay the same amount
for the time, if invested as it might be by the
government for the payment of its debt, would
amount to much more than the cost of the road, SO
that the government would be far better off to build
the road and givei to the Texas and Pacific company
outright than to guarantee the interest its five per
cent. fifty.year bonds, according to its request.
The total amount of interest guaranteed by the
government would if paid into the sinking fund
amount to than S70O 900 900 in fifty years. and
we are called upon to guarantee the payment of this
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 tme however desir-
able their construction. In time of peace private
capital seeking profitable investment will generally
promote commercial development quite as fast as is
consistent with safety and permanent prosperity If
the men in charge of ameritorious enterprise COM
mand the confidence of capitalists, the too
easily won trust of the middle classes, there is no
need of calling upon the nation for subsidies or
guarantees. sr
F+et THE SOUTHERN PACIFIC RAILROAD.
The Southern Pacific Railroad company is cor
poration of the State of California.
This corporation has constructed Its road to Fort
Yuma, the easterly bank of the Colorado river in
the southwest e " of the Territory Of Arizona,
which it claims to be the authorized point of connec
ton with the Texas and Pacific road, distance of
about 100 miles. Its track has been laid through and
over natural obstacles at the expense
of about $4,000 00O, and the $50 miles of its south
ern portion passes through desert and for 1874 miles
nearest the Colorado without an oasis. This road,
built to preserve the charter is of little value except
States from which owing the failure of the Texas
and Pacific company to comply with the acquisitions
of law, tits now more than ], 200 miles distant
The road Is already there with its millions of money
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