The Canton advocate. [volume] (Canton, D.T. [S.D.]) 1877-1897, 1878-05-14
Southern Pacific Railroad.
Emphatic Condemnation OF Subsidies
The Tsi.ty-secena Parallel Read Gan be
COOniructed without PledGing
the Public Credit.
The Texas and Pacific Railroad.


agreed to report the Texas Pacific bill favor
ably-two or more of the seven expressing
their desire to amend it or defeat 1t on the
foor-the min ority members, Messrs. Morri-
son, Landers, Luttrell, Blair, Rice and Hew.
it, have stated their views in a report Of
which the following are the material por-
tons:
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 contraction of q
transcontinental railroad for the special use
and development of the southern and south.
western states and territories. We believe
that this important object can be accom-.
plished without subsidy from the govern.
ment, and submit the following views and
the accompanying bill for the consideration
of the house:
TIE PRESENT CONDITION OF THE SOUTHERN
LINE.
The Texas and Pacific Railway Company,
a 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 Arizonat to San Diego, asmall city on the
Pacific coast, on the bay of the same name,
supposed to be well adapted to commercial
purposes, and having a population of 1000
to 5000 people. The distance from Mar
shall to San Diego is estimated at ,574 miles
by the authorities of the Texas and Pacific
Company, while those Of the Southern Pa.
cifc Company believe it to be about 100
miles greater.
Failing to meet these provisions, the r. xas and
Pacific company has obtained by construction and
purchase and has in operation 43 miles of
road, which eIcloses parable ogram in Northeast
ern Texas, having a base of 1853 miles, extending
from Marshall to Fort Worth, how the western
terminus of the road, which My is part of the
trunk line. The remainder Of the 443 miles is so
located as 10 secure the more valuable lands grant
ed by the State of Texas, probably because tho
pecunary embarrassmcnts of the company were
such that its credit based chiefly upon the
grant ed lands. There is thus remaining of the
trunk line between Fort North and San Diego, 3
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 re-
main, and considerable portion OF one Of these
must eapse before the enactment of the desired
legislation is ossible Sx-teDths Of the time has
been consumed i'll the construction of less than
oneeighth Of the trunk line, and that at the East
erly terminus, in close ccnnech with the great
middle +, ste III Of roads and the central belt Of
States. rather ihau with The Southern system Of
roads and the Southern States.
The corporation has fallen thus far short of the
performance of its undertaking, although it re-
ceived from the State of Texas the munifcent
grant of the alternate sections # land tor forty
miles i'll width along each side Ct its line, eighty
miles in ell, through the State Of Texas, and the
same from The Uued States through the Terri
tories and i'll California, contingent upon its COM
pliance 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 1878, and
admits its pecuniary inability. and assigns that as
reason Tor its failure to comply with the condi-
tons imposed upon it by law.
In 1915 it applied to congress for subsidy OF
over 500 OOO,CuO. in addition to It's land grant of
22,52S O0) in Texas and SCGO,0i in the ter
ritories. beng money subsidy OF twice the proba
Bile cost of building and eQuippiug its road.
The application failed. 1t now changes the form
rather than the substance of its request. and asks
for guaranty of interest on $l5,Ot 0 mile for the
easier, and $4,000 tor the beaver portions of
tire load. amounting in all to s380C0,5CO at five
per cent annually, for fifty years.
The bonds of the government bearing four and
half per cent interest have recently been sold at
par in rel unding the national debt. If the public
faith is kept and its credit unmplired, the time is
not remote when the government will ~ aNsA<
effect loans ut the rates OF three ana three and
| half per cent as now paid by England. The dill
ference between the interest these five per cent
| Texas and Pacific bonds for fifty years aud the
ordinary rates WI CHI the government will have to
pay on the same amount Tor the same time, II lu'
! vested as it might be by the government tor the
payment Of its own debt, would amount mn Oh
more than the cost of the road, SO that the govern
mont would be far better off to build the road ant
give it to the Texas and Pacific company outrigh
than to guarantee the interest on its five per cent
fifty-year bonds, according to its request.
| The total amount of interest guaranteed by The
governmet would if paid into sinkibg fu1f
amount to more than S70O, 100000 in fifty year,
and called ui5on-to- guarantee the paymeit
| this addition to fl9 EIOaAgus of the LAID
grant in order to eneble>tl h2 Eiexas and PacIic
company to complete its rnadS!.fs'S
| We are opposed TO al{ HeGAtQary subsidies AM
guarantees by tie government IN whatever Torn
LOT the cement ol fa'itoads al 'nlS tlhe, no"e'e
de Fapio thtlr cohsti ueticn' Ia 1iile u pene
Prl'a'e rapi'ai soehIn6 - , ~ Ss' ~
eeHerals prol.o'o coiaiIeIoiai uo'eo Pei. !tia
as lasI as Is Gonsstent WIN safety ana pe,
- se ~, ~ "a % "a
emu rPlIse Coihiiianu tio W 1I
vi eve wy W. sn,Ii,'r 49,, ~
classes tiere ID 10 netu VI o"iinS upon VIC h"t
io' HupS'uies Vi guarantees
THE SOUTHERN PACIFIC RAILROAD.
Tire Southern Pacific railroad company is cor
poration Of the State Of California.
This corporation has constructed its road to Fol-
Yuma on the easterly bank of the Colorado rive!
! in the southwesterly corner OF the Territory 4
Arizona which 1t claims 10 be tho authorized po1f
of connection with the Texas and Pacific road,a
distance OF about To miles, Its track has bon
laid through and over cxtraordlnaIy natural o.
stacles at the expense OF about S1OoOp,COl ana ne
$50 miles of liz southern portion passes tbroua
desert and for 164 miles nearest the Colorado VIII
out an oasis. This road, built to preserve the CAR
ter, is OF little value except for its anticipated on
nections wi h the Southern States, from wien,
owing to the failure OF the Texas and P@clnc ON
pany 10 comply WIZ the requisltohs u a", 10
now mere than 200 miles dttant.
! The road Is already mere WIN us mllilos OF
money invested over sandy waste, upon theIood
faith OF the government that the IL xas ana Pclnc
Road should be constructed so Us 10 meet IL the
Colorado RlVer or IN tue event OF the 1alue OF
that corporation 10 DO SO that congress shouldahe
such measures as should enable 1t TO cohnectWhh
the Southern States cf the Union.
POSITION OF THE SOUTHERN PACIFIC CoMP4Y.
Tie Southern Pacific Railroad, by force t the
absolute necessity OF its securing Eastern cnnec-
tons as soon as possible in order to preseve its
capital is tie only party which has both thepower
and the disposition 10 build TINS ROAD
The Southern Pacific company interposeno OPP
position to the guarantee asked by the Teas and
Pacific east Of the Rio Grande; but contemplating