The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1878-01-28
Tom scotrs Pacific Railroad
Arguments Of Thomas and
others Before the House Com.
mIttee on Saturday.

WASHINGTON, January 26.-The ar
gument Of the Texas Pacific Railroad
question was resumed this morning be-
fore the House Committee on Pacific
Railroads. Mr.. Storrs having finisheC
his statement OF legal points on which
the Southern Pacific, Of California, de-
sired the right 10 build through to El
Paso, Gov. J. @. Brown, Vice President
Of the Texas Pacific Railroad, discussed il
full the general questions which had gov
erned the policy Of the government In
aiding in the construction Of commercial
highways. The Texas Pacific, he said
had built already AS miles Of road with
out dollar Of aid from the government,
and justice required the extension Of the
aid asked by It rs q union, and the Cen.
tral Pacific Companies had received "a
millions Of dollars OF bonds and 53 mil
lion acres OF land, the Northern Pacific
AZ million acres Of land, and the Texas
Pacific only IS million acres, no portion
OF which could the latter receive until
after Il had built 1000 miles through
Texas.
Thomas A. Scott, President of the
Texas Pacific, briefly reviewed the
grounds on which the government aid
was asked and the advantages the gov
ernment and people would secure through
o competing line. he showed that with
the present prices Of labor and material
and ability to market bonds at par
which would be secured by the govern
ment endorsement Of the interest there
on the whole amount Of the annual
interest TO be paid out Of the earnings Of
the line, would be less than $4,000, 900,
while the present trans.continental rail-
road line has to earn more than four
times that amount. He further claimed
that under the plan proposed the interest
would be paid each six months by the
Texas Pacific Railroad Company while
the sinking fund would gradually redeem
the principal and leave the road ulti-
mately without debt; that under the
power reserved TO the government 10 reg.
ulate the rates 80 as 70 take care Of the
actual capital these rates would annually
be reduced to the great benefit Of the gov
ernment and people, and that the govern
ment alone would save three million
dollars yearly by the building OF the
road more than the entire interests
on the bond II IL never earned cent.
He claimed that the Central Pacific had
no intention to build line 10 compete
with Themselves, but merely offered to
build road to prevent'its construction
they were not bound to build mile, and
II their bill passed they could simply sit
still six years and during that time mo.
nopolize the entire traffic across the con.
tinent and tax 1t as enormously as they
were doing now without any action. The
Texas Pacific Company had spent
SIG 100000 in good faith, and had It not
been for the panic Of 1873, would have
had the whole line nearly completed by |
this time, and under the aid proposed |
would complete 1t by the year 1882. |
Scott closed with 3 strong appeal to the
TO look at the question, not in |
the light Of its technicalities, but on the |
broad ground Of the interest Of the
whole country, and expressed his con-
viction that every member Of Congress
who aided in securing this great highway
on basis just to the people and the in
terest Of the Government as competing |
line between the two oceans would in al.
ter years regard il as one Of the proudest
Of his political life. The
then adjourned until Tuesday,
when the arguments will be concluded.