New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-30
THE TEXAS AND PACIFIC RAID.
THE PROMOTERS OF TIRE. RAILWAY NOT DACNTRD
BY THE ANTI-sUBsIDY voTE-ARGUMENrs IN
COMMITTEE.
ley TELEGRAPH TO THE TRIBuSE.I


BY THE ANrI-sUBsIDY vorE-ARGUMENrs IN
COMMITTEE.
lEY TELEGRAPH TO THE TRIBuSE.I
WAsHINGToN, Jan. 29-The overwhelming vote
nv which Representative Bakers anti-subsidy Teso-
luton was passed by the House yesterday afternoon
does not seem to have dshearened the Texas Pacific
people in the least. At the meeting of the House
Committee having their bill under consideration,
this morning arguments in favor of its passage were
continued; the principal one being made by Major
Bond, an attorney for Colonel ScOtts road.
During the hour which he occupied Major Bond,
besides rehearsing some of the principal arguments
IN favor of the Texas and Pacific BILL devoted his
attention to the Central and Southern Pacific Com
panies, which he said were the principal opponents
of the measure. The Central Pacific Company. be
said having a monopoly of the transportation of the
Pacific Coast, requires the people of the whole COM
try To paw such tolls as it shall fit from time 10
time to exact To illustrate. he referred to the Town
of Reno Nevada, situated on the Central Pacific Rail-
road, 294 miles east from San Francisco. and the
centre of rich mining district from which supplies
arc distributed.
The miners use large quantities of wire rope for
hosting purposes in the shafts, which is manufac-
tured at Wlkesbarre, Penn, and other Eastern
points If miner at Reno, MAJOR Bond said, orders
a carload of this wire from the manufacturer, he
rate from New-York to San Francisco; and the car
will then be rebilled from San Francisco, or from
Sacramento back Reno, at the local tariff rate for
such goods. The same rule he asserted of charging
the through rate San Francisco and the local rate
back to the intermediate station, applies to ship
ments from all points east of the Missouri
River TO all points the main line of the Central
Pacific between Ogden and San Francisco.
Major Bond then introduced some tables showing
the rates charged for freight from NewYork TO San
Francisco at different times, and said that after the
failure of the Texas and Pacific bill in March, 1875
and the repeal Of the Pacific Mail Steamship Subsidy
Act these rates raised from 80 to rs per cent
and the result was that the Union and Central Pa
ciic Companies earned nearly $3,5O0OOO more
during the succeeding ten months, a smaller
volume of traffic, than during the ten
months previous LII view of these high
charges by the present lines, Major
Bond said il would seem TO be very clear that the
construction of another line of railway across the
Continent under proper Governmental restriction
as TO tariff rates for its IS absolutely necessary
to secure proper competition with the existing line
to protect the Government and the people against
oppressive charges. and TO secure to American en-
terprse opportunity for competing for the trade
Of India, China, Japan and Australia. Private
capital he said. will not build the Texas and Pacific
Railroad.
The amount of aid asked for is $31 100000. In
addition to this, the company is authorized by the
bill under consideration to issue another series of
bonds to be deposited with the Secretary of the
Treasury to the amount of $1,000 mile for the
whole road This makes the aggregate Of the two
issues SIS. 75S, 00O TO be secured by first mort
gage on tho railway, with its equipment. buildings,
property, etc.. including all lands granted by the
United States. The bill also provides for sinking
fund to be put into the Treasury OF the United
States until the bonds are all redeemed at OF before
maturity
Major Bond then went on to explain the provis-
ions, which he said would secure the Government
from all loss and to show that with bonds guar
anteed by the Government The company would be
able TO meet it's contracts on cash basis, ana 10
secure the completion of its road in the shortest pos
gbe time, and at the lowest cash cost The remain
der Of the speech devoted TO answering Constr
tutional objections, showing the alleged say
ing In Government transportation that would be
Effected by the completion of the road, explaining
Why, In the opinion OF the advocates Of the Texas
and Pacific scheme, the Central ana Southern Pacific
combination Is opposed, and showing the reasons
why the Southern Pacific could not be expected to
build the road Arizona to FL Paso and thence
10 connection with the railway system of Texas,