The Hickman courier., 1878-05-03
Southern Pacific Railroad.
Emphatic Condemnation Of Subsidies,
The Thirty~secOnd Parallel ROud can be
Constructed without PledEinE The
Public Credit.


Emphatic Condemnation of Subsidies.
/ The Thirty~second Parallel Road can be
Constructed without PIedEinE The
Public Credit.
The Texas and Pacific Railroad.
SYNOPSIS OF THE MINORITY REPORT.
The Pacific Railroad committee Of the House
+ having by q vote of seven to six agreed to re-
I port the Texas Pacific Bill favorably-two or
more OF the seven expressing their desire TO
/ ity members Messrs. Morrison, Landers, Lut-
/ trel, 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 adOp-
/ ton by Congress OF such measures Is VIII So
I cure the early construction OF tranBconIl-
mental railroad for the special use and develop
ment of the Southern and Southwestern states
and Territories. We believe that this import
/ ant object can be accomplished without subsidy
I from the government, and submit the follow
/ ing views and the accompanying bill for the
( consideration Of the House
/ THE PRESENT CONDITION OF TEE SOUTHERN LINE.
( The Texas and Pacific Railway company, a
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
sscOnd parallel OF North latitude through that
State and the Territories o. New Mexico aud
.
coast, on the bay OF the same name, supposed
to be well adapted to commercial purposes, and
having a population of 600 10 5000 people.
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 Southern Pacific com gany believe II 10 be
about 100 miles greater.
Failing 10 meet these provisions, the Texas and
Pacific company has obtained by construction and
purchase and has now in operation Ai5 miles OF
road which enclose paralelogram IN Northf astern
Texas, having base Of 1873 miles, extending from
Marshau 70 Fort Worth, the western terminus
OF the road, which only Is part Of the trunk line
The remainder Of the s43 miles Is 20 located AS 70
secure the valuable lands granted by the state
of Texas probably because the pecuuiary enbafass-
meuts OF the company were such tLst its orelI Wa
based chiefly upon the granted ANUS. 4Aetg 70 70
thus remaining OF the trunk hne between tort
Worth and San Diego distance OF ,4yl miles upon
which nothing has been done.
OF the ten years allowed by the charter within
which complete this great work only four remain,
eapse before the enactment OF tho desired egisla-
ton Is possible SiL-teEths OK the time has Deen
consumed ia tho construction OF less than one
eighth OF the trunk line, and that at the E4sterly
terminus In close connection with the great middle
syst.In OF roads aud the central belt Of States,
rather than with the Southern system OF roads aud
The CORPORATION has fallen thus far short Of the
performance OF its undertaking, although It received
from the State Of Texas ths muuihcent grant OF
the alternate sections Of land for forty miles IN
width along each side OF its lne eighty miles N
al through the state Of Texas and the same from
the United States through the Territories ana IN
California, contingent upon Its compliance win the
conditions Of the grant
TIE SUBSIDY DESIRED 2IoBE THAN THE ROAD
The credit Of the Texas and Pacific company W.
seriously impaired before the panic OF 1873, and
under iis influence has still further declined. It
admits its pecuuary inability, and assigns that As
reason for its failure 70 comply WITH the conditions
- Ia js15 Il appliei to Congress for subsidy OF
over SEQ 900 OO addition - lts land grant OF "a
soT;e S0 beirs 1T a. oy isi I Of twice tie pro5abie
cost Of building and eQu4ppIn8 It's road
The application failed It now changes the forIc
rather than the substance OF Us request ana AK
guaranty Of interest on IS 900 mile for me
easier, and $4,000 for the heavier portions OF the
road amounting in all 70 S3s 800 900 at nye per cent
annually, for dfty years.
The bonds of the government bearing four ana
half per cent. interest have recently been sold ct
par in refundinR the national debt II the public
faith kept and it's credit unimpared the time Is
not remote when the government Wlll be aoIe 70
eject loans at the rates Of three and three and
half per cent, as now paid by England The df-
ference between the interest on these nve per cent
Texas and Pacific bonds for atty years and the
ordinary rates which the government VIII have 70
pay on the same amount for the same tine, II
invested as it might be by the government for the
usvmeut Of its own debt, would amount to mucn
more than the cost Of the road that the govern
rnent wouId be far better of to build the road and
give it TO the Texas and Pacific company outright
hfty-year bonds, according to It's request.
The total amount of interest guaranteed by the
government would If paid into sinking iuno
amount to more than 800 100000 in nifty years ana
we are called upon TO guarantee the payment OF TINS
sum in addition to the proceeds OF the land grant
in order TO enable the Ie1as anu racine CopHHs ~
complete its road. -,
guarantees by the government in whatever form
for the benefit Of railroads at this time, however de-
sirabe their construction. In time OF peace prl-
vate capital seeking profitable investment VII gem
orally promote commercial development quite as
fast as is consistent with safety ana permanent
prosperity. If the men in charge OF en-
terprise command the commence OF capitasts OF
even the too-easily trust of the middle classes
there is need of calling upon the nation LOT Sud
sides or guarantees
TIE SOUTHERN PACIFIC RAILROAD.
The Southern Pacific Railroad company is
poration Of the State of California.
This corporation has constructed lts road TO Fort
Yuma on the Easterly bank of the Colorado River,
i'm the Southwesterly corner of the Territory OF
Arizona which it claims to be the authorized point
of Connection with the Texas and Pacific Road
distance of about 100 miles. Its track has been
laid through and over extraordinary natural OBJ
stacies at the expense OF about $6O'ouuoy ana me
s5a miles OF its Southern portion passes through
desert and for IG4 miles nearest the colorado with
out oasis. This road, bu't 10 preserve me cIiar-
ter is OF little value except for its anticipated con-
nections with the Southern States from which ow-
ing the failure OF the Texas ana racine company
to comply with the acquisitions Of law, It is now
more than I.2OO miles distant
The road is already there with its millions of
money invested over a sal 1y waste, upon the good
faith OF the government thay the Texas and Pacific
Road should be constructed so as to meet it at the
Colorado River or in the event of the failure ef
that corporation to do that Congress should take
such measures as should enable 1t to connect with
the Southern States Of the Union.
POSITION OF THE SOUTHERN PACIFIC COMPANY.
The Southern Pacific Railroad, by force of the
absolute necessity of its securing Eastern couneo-
tions as soon as possible in order to preserve its
capital is the only party which has both the power
and the disposition TO build this road.
The Southern Pacihc company interposed no OPP
position to the guarantee asked by the Texas and
Pacific east OF the Rio Grande; but contemplating
.ne eop2geney & Of e the dsS %, AEaate 5 t OF bonds
quent total collapse of its undertaking. strongly in
sisted that justice required that they should not be
held in check awaiting the continued appli-
cations by the Texas and Pacific company for the
n oney or credit of the nation with which TO per-
forT aTrhaf he N n
mediately for the land grant alone.
To this bill the Texas and Pacific company OBJ
ected. The only argument entitled to weight,
in opinion, that the Southern Pacific, con-
Meeting with the ocean at San Francisco, and
Pacific Railroad, might enter into comb nations
with that corporation against the public interest
occasional connection at San Diego would then be
lost.
COMPETITION AND CoMBINATIoE.
We believe that any competition between rivaI
pa raieI lines or railroad for the same business.
which results in loss to the companies is sure to
end IN one of two ways, either in a combination By
WHICH the public viii lose far than it has ever
gained froUl competition or on the other hand IN
the ruinous cutting of rates persisted in until the
weaker corporation is ruined, the public is left to
the rapaci of the survivor There is no real pro
lection to the public but in the enforcement of the
law OF the land Competition which takes from |
pofatlons just compensation Is quite ruinous
as com bination which gives them too much
no one can believe that the Texas and Pacific |
company would, after constructing its line to the
Pacific Ocean, long compete with any rival to its
own loss or even so as to produce any reduction Of
rates below the maximum to which the public would
snbnit or that il would fail to repair its losses
or increase its gains whenever an opportunity
might offer. We repeat that nothing but the law 4
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 is recognized by the bill of the Texas
and Pacific company reported by the majority OF /
the committee and stringent provisions are therein
made to hold that corporation within the /
bounds of Justice and law; very unusual Safeguards
being provided for in consideration of the fact that
ia real
TO furnish the means necessary to build the road
and give to the projectors an additional bonus OF
SAO,0oOo0. Restrictions and conditions in a char
ter can be enforced by tho machinery of the Iaw
against one corporation well another
RELATIONS OF THE SOUTHERN ORNrRAI, AND
TEXAS PACIFIC ROADS EACH OTHER AND TO