The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-01-27
NEW ORLEANS PACIFIC RAILWAY
COMPANY.

| Objections are raised to that passage OF the
bill to amend and re-enact the section OF the
| act Of 1878 relative to the loan OF State bonds
to the Pacific Railway Company. The objec-
ton is that the State is simply binding itself
to pay the interest on the bonds loaned, with
out any guarantee to protect her against
being called upon to make these payments at
the maturity OF the coupons Of interest as
they fall due.
If such were the fact, then the objection
should prevail. But such Is not the fact.
There is ample provision to protect the State !;
and it Is not In the line Of probabilities
might say possibilities-that the State will
have to pay solitary coupon Of the interest,
for in the economy Of the act of 1878, as pro-
posed to be amended, the State can at any
time, and Of her own volition, protect herself
against any such contingency.
In the first place, the statute does not
authorize the loan and delivery at once, and
Internationally, Of the two millions Of State
bonds.
There is first installment to deliver
$25O,0oO OF State onds-representing work
already done on the railway.
These series of State bonds are to be deliv-
cred to the company as the work progresses,
and not In anticipation OF work to be done:
and when work has been actually done, and
the matter officially ascertained and deter
mined then State bonds are to be loaned
and delivered at the rate Of $4,000 per mile
for every section Of ten miles of road graded,
brid0ed and metdled.
The State bonds, therefore, are issued as a
loan only after the road IL In running con-
dItion, and exclusively In the proportion and
to the extent OF the work consummated
As pledge for the redemption Of the inter-
est coupons on the State bonds thus loaned,
the State will hold tho second mortgage bonds
Of the company ITSELF with the expressly
given privilege Of selling these mortgage
bonds to an amount sufficient to pay the in
terest coupons should the company fail to
make provision for the payment OF any in
stallment Of interest.
Now, as State bonds are to be issued solely
In proportion to the progress and consum-
nation of the work on the railway, 1t is OBJ
vious that the railway will be in operation In
the meantime. fully to the extent of the State
loan whenever and progressively made. By
the time the State will have loaned the two
millions Of bonds-tif ever the company
should need this whole amount)-the trains
will be running between New Orleans and the
Western terminus distance Of $50 miles.
With the road thus built, including Its
rolling stock and other investments, the COM
pany will have millions Of capital invested
permanently in railway connecting the me-
tropolis Of the South with the Texas, Ar
kansas and Missouri railroad, and will put
the rich valley OF the Red river parishes In
hourly communication with New Orleans.
Such railway would certainly compare
with advantage to the New Orleans and jack
son Railroad, the New Orleans and Mo
bile Company, the Texas Central Company,
the Iron Mountain Company, the Missouri,
Kansas and Texas Company, and the Texas
and Pacific Company, with branches. These
railroad companies exhibit gross yearly re-
ceipts for each running mile OF various
amounts, ranging between $4,000 and $500. as