Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1878-03-27
The Southern Pacific.
A Talk with Col. Tom Scott, the Backe

A Talk with Col. Tom Scott, the Backer
Under the above captions the
Washington Post of the 9th inst. pub
fishes the following:
Col. Thos. A. Scott, Of the Pennsyl-
vania railroad, the Texas Pacific rail-
road and other railroads too numerous
to mention, paid the city flying visit
a day or two since. During his brief
stay a representative of THE Posr
called upon him at the headquarters of
the Texas Pacific, No. 5l2, Thirteenth
street, and had chat with the great
railroad king. The conversation natu-
rally 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 lit
tie. Even The POsT was compelled
to confess rather muddled condition
of intellect upon the subject. and with
view to its own satisfaction propound-
ed the following comprehensive ques-
| ton:
"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 interest at
the rate of 5 per cent. on the compa-
papy's bonds, not to exceed Cor all
purposes S3S 500, 900 for the construc-
tion and equipment of the main line
from Fort Worth to the Pacific ocean.
Of this amount only S3l,75O,O00 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
projections to the Government against
the payment of interest"
''Do [ understand all of your bonds
are to be placed in the hands Of the
Secretary of the Treasury to be issued
as the road is completed In ten-mile
sections ?"
Yes, the bonds are under complete
control of the Secretary OF the Treas
ury, and interest on the bonds begins
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 2"
Eyes, that is all that the Govern.
ment 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 north than Mem
phis; these points to be ascertained and
determined by commission of five, to
be appointed by the President Of the
United States, at least three of whom
shall be the ranking officers of the
United States Engineer Corps, and all
Of whom are to be disinterested in any
of the proposed lines or their connec.
tions"
GLOW is the Government to be
secured against loss on its guarantee? ="
"First-by primary mortgage on
the whole lioe to be constructed and
all the franchises, property and rolling
stock thereof.
Secondly retaining in the Treas
ury and applying to the payment of
interest, the compensation due the
company for all services performed for
the Government, including the trans
portation of mails, troops, supplies and
the use of the telegraph line.
Third-the company 1elinquishes
its land grant and the reservations
to the Government, which are to be
opened at once to sale and settlement,
the Government to apply one.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
earnings of the road are pledged for
the payment of interest. Besides this,
$4,000 per mile of the bonds author
lied to be issued are to remain in the
Treasury, to be sold from time to time by
the secretary, to meet any deficiencies
on interest accounts. This security is
deemed ample to protect the Govern
ment against the loss of one dollar"
"What control does the Government
retain over the road?"
"The right to the primary use of it
for postal, telegraph and military SER
vice and the absolute and uncondition-
al right to fix the rates OF commercial
traffic and travel over the whole line
from the Mississippi river to the Paci-
6c ocean,"
sDoes the Government have such
control over the Union aud Central
| Pacific roads?"
| s.r. D. A.