The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1878-04-24

conditions in a charter can be enforced by the ma
chinery Of the awagainst one corporation as well US
another. 8S =
WILL THE SOUTHERN r1o1r1o COMPANY BUILD THE
f. " ROAD?
We submit that it will work great wrong to the
Southern Pacific railroad corporation, to the great
South and Southwest and to the whole country, to
reject this bill and to enact the bill recommended by
the majority Of the committee in the interest of the
I asa anu OF ts sa p nt an
tagonize, did the Southern Pacific railroad antag
onize before any railroad project, branch, con-
nection east of the Rio Grande. 1t simply asks to
build 600 mi of railroad half way from the Colora
do to Fort Worth, the present westerly terminus of
the Texas and Pacific company, and ninety addition
nection, without any public aid and subject to all
reasonable restrictions in the public interest True,
it desires the land grant but do not recommend 1t,
because we believe that this CORPORATION will build the
road without.
Should the representatives Of that portion Of the
country chiefly to be benefited, not by the subsidy
but by the road defeat this measure it is difficult
for us to see how they can reasonably expect the
rest of the country to consent to burden the tax
payer and embarrass our policy with the most dan
gerous precedent which would exhaust the Treasury
with hundreds OF subsidies throughout the unlimited
future of the nation. Eas=t -..--es i. $50 8
1t would seem impossible for any man to justify
himself to his constituency and to his country at
large in course which depetes the Treasury when
all that is desired is atainabe without expense to
the people. s ~ -
VIEWS OF MEssRs LUTTRELL AND BLAIR.
Both the act and it's amendments required as .
condition precedent that the work should be prose-
cuted simultaneously from the Eastern and Western
termini. By the act of 1872 there required to
be completed not less than 500 miles on the main
line in Texas and not less than ITO miles in Cafor-
mia by May 2 1878, whereas, in fact, less than 200
miles of the main line have been completed Wester-
y from the Marshall terminus in Texas, and not one
mile or even foot, from San Diego Easterly.
There has been marked failure the part of the
company to comply with the terms which the
lands and franchises granted. This contingency
of failure was by the caution of Congress- forseen
and provided for in both Acts, by proviso that
"Upon failure to complete it, Congress may
adopt such measures as it may deem necessary and
proper to secure its speedy completion
In this attitude of affairs represents thatit would
be great hardship to be compelled to wait lndef
ntely upon disabled company for connecting road
from the East, and asks of us the privilege of con-
tnuing it's road eastward through the Territories to
the Rio Grande and as much farther as might be
necessary to meet the Texas roads within six years
Such is the desire for outlet to the East, which
shall admit it to participation in through overland
traffic that offers that if its request be granted to
construct a line to San Diego harbor in addition to
its present ocean terini, and to prorate through
cisco or other points, and to allow Congress to inn
pose the Rates and fares the line between its East
ern and Western termini at Pacific ports, although
asking aid of the United States which it is not its
advantage for Congress to grant, This is rather
than it is within the power of the other company to
offer. No good and satisfactory reason is found why
this proposition should not be promptly and cheer
fully accepted.
FROM BUSINESS STANDPOINT.
Two propositions are before us looking to that end
One of them, the Texas and Pacific, to retain
lis land grant from the United States amounting to
600 acres to obtain two years. additional time
and special aud extraordinary grant of the credit
of the nation in the form Of endorsement upon
S38, 900 of the companys bonds, pledging it to
the payment Of five per cent gold interest for fifty
years.
The other, the Southern Pacific, asks only our
ion to continue it's road eastward the ter
rltOr1es within the same time, but without any other
further assistance than the contiguous grant of
lands now at the disposal of Congress-.
Which of these two propositions as guardians of
the public interest can adopt? Which of these
two candidates., practical business men, ought we
to intrust with this undertaking? We should select
the proposition most favorable to the good of the
people. It would that by the charter the grant
of land along the thirty-second parallel line in the
territories made double that of the pioneer line
by the forty-frst parallel if in lieu Of future aid
| in money credit. Ef -
! Were We administering our own private business
could we for moment hesitate between these OFFERS
one of which, besides being an undeserved favor
involves grave responsibilities, dangerous precedent
and great risks while the other avoids all commit
ments all doubtful policy, and insures all its profered
benefits within the time without the risk of q
dollar of the peoples money or credit? We con
| ceive not here the almoners of the bounty
of the government to its citizens corporations but
guardians of the public welfare and trustees Of its
property and credit of the naion to obey the
constitution and protect the best interests Of the peo-
pe and in this view we cannot concur in the report
of the majority which proposes to grant subsidy or
guaranty $685. 900 of the peoples credit
| to corporation
! ANTI-SUBSIDY VIEWS OF MR. MORRISON.
The Texas and Pecifc Railroad company seek to
obtain the guarantee of the United States for the
payment of the interest 900 of ifty-year
five per cent. bonds, to be issued by said railroad
company, and used by it in building and extending
Ocean at San Diego, in California. The road to be
constructed is miles in LENGTH the bonds to be
issued amount to 27678 per mile; and the interest
guaranteed to be paid by the United States used as
| sinking fund and invested in government bonds
bearing the rate of interest, would pay $780,
600, 900 of the public debt.
| POWER OF CONGRESS DOUBTFUL. --.l
Has Congress the power to authorize the coveted
guarantee? If it has, then power has been conferred
| upon Congress to make gifts of the public moneys
to and
Constitution, is it Necessary to the execution of
any power that it is granted?
| This railroad, when built, will be the private
property of the shareholders. It will be military
and post road in the same sense, and to the same
extent, and none other, that all other railroads of
the country over which the government may trans
port it's mails, troops, supplies for reasonable
compensation, are military and post roads, 1t is
submitted that the power has not been conferred
| upon Congress to make the United States party
in such enterprise by subscription to it's capital
stocks or more, to authorize the construction of the
road out OF the OF the people to be made
gift to the railroad company. i.s- f. $50
The attempt to derive such power, the power to
build and give away railroad from the power to es-
tGbIish military and post roads, u.s. in the opinion of
the undersigned, an attempt to prevent the obvious
purpose Of power intended for the public good to
private ends. The United States ara bound to pro-
vide for the general defence, but it does not follow
that they may construct operate railroad for the
exclusive benefit of private corporation, because
they may ultimately and in possible contingency
want to it for military purpose, any more than
they may go into partnership with stock raiser be-
cause horses necessary in The United States
have power to regulate foreign commerce between the
States but it does not follow that they may indorse
the notes of q shipbuilder merchant by way of
| stimulating and encouraging business. The under
signed is unable to perceive any distinction in pr1n
cple between these and the demand of the pro-
jectOrs of this railroad for loan of the government
credit to the extent of many Millions with which to
| prosecute private speculation. q &l
| DANGER OF SUBSIDIES.
| The railroad company which asks for this enor.
nous appropriation Of credit presents claim upon
the public which entities it to exemption from the
general rule The enterprise is essentially private
one, and the company has already received from the
United States and the State of Texas sufficient basis
OF credit to have built the road had its assets been
| prudenty managed
The undersigned is not unmindful of the fact at a
later period different rule of construction prevailed
from that which in the earlier days of the republic,
and which is now here insisted upon. = IT. J,
| Undelegaed power is necessarily unregulated and
unrestralned. Power usurped never was and never
will be honestly administered
But it Is submitted that this belief affords no sniff
| Gent justification for the guarantee and subsidy
asked. For it rendered, as it is not that this
enterprise is essentially of the Southern character
with which 1t is attempted to be stamped no reason
can be built upon that fact which may not be urged
/ with equal force a WHY ont