River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1878-04-25
Southern Pacific Railroad.
Emphatic Condemnation of Subsidies.
The Tbllty-steona Parallel Road can b
gsnsfruefed without PIsdgipx the
Public Credit.
The Texas and Pacific Railroad.

more of the seven expressing their desire to
amend ii, or defeat 1t 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;
We are unable TO concur in the views OF the
majority OF the committee, but desire the
| adoption by Congress of such measures as viii
secure the early construction of a transconti-
mental railroad for the special use and deyel-
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
LINE.
The Texas and Pacific Railway company,
| corporation of the State of Texas, in the year
| 1871 was authorized by Congress to construct
| its 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 we'll adapted to commercial purposes,
| and having population of 900 to 5000 peo-
| pie The distance from Marshall to San Diego
| is estimated at ,514 miles by the authorities
of the Texas and Pacific company, while those
of the Southen Prciic company believe 1t
| 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 paralelogram in Northeastern
| Texas, having base of 1888 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
secure the valuable lands granted by the State
of Texas, probably because the pecuniaIy embarass
ments of the company 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 1,49l miles upon
| which nothing has been done.
| 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
elapse before the enactment of the desired legisa-
ton is possible. Six-tenths of the time has been
! consumed in the construction of less than one
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 tue
performance of its undertaking, although II received
| from the State of Texas the munfcept grant of
| the alternate sections of land for forty miles In
width along each side of its line, or eighty miles Ia
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 lHAR 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. 1t ad-
l mits its pecuniary inability and assigns that
reason for its failure to comply with the conditions
| imposed upon it by law.
| In 1875 it applied to Congress for g subsidy of
500 900 900, in addition to its land grant of o.
52s 600 acres in Texas, and 100000 in the terri
1 tariQs a
| cost of building and equipping its road.
| The application failed. 1t now changes the form
rather than the substance of its request and asks for
guaranty interest S25 600 mile for the easier,
and $4,000 for the heavier portions of the road,
amounting in all to S3S500,000 at five per cent an
| nually, for fifty years
| The bonds OF the government bearing four and a
half per cent interest have recently been sold at par
| in refundng the national debt If the public faith
ia kept and its credit unimpared, the time is not
mote when theSoyernment viii be able to effect loans
at the rates OF three and three and half per cent
| as now paid by England. The difference between
the interest these five per cent. Texas and Pacific
bonds for fifty years and the ordinary rates ich
the government viii have to pay on the same amount
for the time If invested as it might be by the
government for the payment OF its own debt, would
amount to much more than the cost of the road, 50
that the government 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 It's hve
| cent nifty. 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 500 900 ia fifty years, and
1 are called to guarantee the payment this
sum 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 tne however desir-
| able their construction In time OF peace private
capital seeking profitable investment will generally
promote commercial development quite as fast ss is
consistent with safety and permanent prosperity II
the men in charge of meritorious enterprise COM
| mand the confidence of capitalists or the too
easily won trust of the middle classes, there is no
need of calling upon the nation for subsidies or
| guarantees.
THE SOUTHERN PACIFIC RAILROAD.
| The Southern Pacific Railroad company il a cor
| poration of the State of California.
This corporation has constructed its road to Fort
Yuma, the eastery bank of the Colorado river, in
the southwesterly of the Territory OF Arizona
which it claims to be the authorized point of connee
ton with the Texas and Pacific road, distance OF
about 40 miles, It's track has been laid through and
over extraordinary natural obstacles at the expense
of about $50 600 900, and tho $50 miles of it's south
portion passes through desert and for 164 miles
nearest the Colorado without an oasis. This road,
built preserve the charter, s of little value except
for its anticipated connections with the Southern
States from which owing TO the failure of the Texas
and Pacific company TO comply with the acquisitions
of law ii is now more than 200 miles distant.
The road is already there with its millions of money
invested a sandy waste. upon the good faith Of
the government that the Texas and Pacific road
should be constructed to meet 1t at the Colorado
river or in the event of the failure OF that corpora
ton do that Congress should take such
should enable to connect with the Southern
| States of the Union.
| POSITION or THE SOUTHERN PACIFIC COMPANY.
The Southern Pacific railroad, by force of the abb
soute necessity of its securing Eastern connections
as soon as possible, In order to preserve its capital Is
the only party which has both the power and the dis
| position to build this road
| The Southern Pacific company interposed no OPP
position 10 the guarantee asked by the Texas and Pa
cifc east of the Rio Grande but contemplating the
contingency of the denial of guarantee of bonds TO
the Texas and Pacific company, and the consequent
total collapse of it's undertaking, strongly insisted
that Justice required that they should not be held In
check awaiting the result of continued applications
by the Texas and Pacific company for the money
credit of nation with which to perform what the
Southern Pacific ready to do Immediately for the
TO this bill the Texas and Paihe company OBJ
| ected. The only argument entitled to weight, in
ur opinion tb Al the Southern Pacific, connect
ng with the at San Francisco, and having init
mate business relations with the Central PACING rail-
road, might enter into combinations with That cor
poration 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 coMBTsATIoS
We believe that any competition between rival par
ael lines of railroad for the business, which
results in loss TO the companies, is sure TO end In
one of two ways, either In combination by which
the public will lose far moro than ii has ever gained
from competition or on the other hand, In the ruin
ous cutting rates persisted In until the weaker cor
poraton il r'ied the public is left TO the rapacity
of the survive 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 as Tuinous IA combination
which gives them too much.
No one can believe that the Texas and Pacific com
pany would after constructing it, line TO the Pacific
ocean, long compete with any rival to it's own loss or
even so to produce any reduction OF rates below
the maximum TO which the public would submit; "r
that it would fail repair it's losses increase its
gains whenever 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 s recognized by the bill Of the Texas
and Pacific company reported by tbs majority OF the
COMMITTEES and stringent provisions are therein made
to hold that corporation within the bounds OF Justine
and law; very unusual safeguards being provided for
in com iteration of the fact that the government IL
self Is really required By the bill 10 furnish the mean
necessary to build the road and give the projectors
az additional bonus OF SO 600 Geo. Restrictions and
conditions In q charter can be enforced BY the ma
chinery of the Law against one corporation ~ wei a.
another.
WILL The SOUTHERN PACIFIC COMPANY BUILD THg