The weekly miner. [volume] (Butte, Mont.) 1878-1881, 1881-06-28
An Interesting Railroad War.

The Texas Pacific is one of the Oldest char
tered of transcontinental railways. Like the
Northern Pacific, it was awarded an immense
subsidy in land, but no loan of government
bonds. Under Its old management the work
was prosecuted in a dilatory way, and for
years no progress was made. Several years
ago the company applied to congress for an
act for the loan Of government credit by the
guaranty of interest at what is now a high
rate on the company's first mortgage bonds.
The proposal met with earnest opposition
from the other Pacific railway corporations
then in operation and made no Roadway in
con.ress. In fact, there was but one chance
for its success, and that was to make common
cause with the Northern Pacific, both COM
pauies agreeing to surrender their vast land
grants and accept in lieu thereof an indorse-
ment by the United States of their mortgage
bonds. This was regarded a. repulsive to
public opinion against additional subsidy III
auy form ; and the Northern Pacific coming
under a new management, with ample credit
among moneyed syndicates, that company
manifested nc disposition to combine
with the Texas Pacific on the latter's
proposal. In fact, the Northern Pacific dis
covered some years ago that its land grant
was Sufficient security, together with the road
already in operation from Duluth to Bis
marck, for all the money requiredto complete
the road from Bismarck to Puget Sound.
In tie meantime the Southern Pacific of
California was pushing its road rapidly to-
ward Arizona, while the Texas Pacific was
tagging under inefficient management. Since
the Southern Pacific reached Arizona Jay
Gould has become the active manager OF the
Texas Pacific, and its affairs have assumed a
more promising phase. Its credit is unllmlt-
ed, and the work OF construction has for soine
time been going OH in Texas at the tate OF
fu.o rpilas nav .lay ar1 ito Track is aynprtpI tn
reach Ell Paso as early as the coming August.
Mr.. Gould, in al his recent railway enter
priseS, rejects the subsidy plan and depends
on the intrinsic merits of his roads to secure
him the means OF construction. But he ami
bis company hold that the land grant OF the
Texas Pacific is still good as good as th.t Of
the Northern or Southern Pacl1c-hallng
never been regularly and formally declared
forfeited and restored to the public domain.
That the grant is as good as either OF the 9th
er companies just named there is no doubt.
Neither of them has complied with the
terms of their grant, nor has the Texas Pacific.
But The government has exercised a strange
liberality in this respect toward all other rail-
way grantees and may see fit to do so wi h this
one. AT all events, the com Dany, under Mir.
Gould'S management, is treating the grant as
still good. The Southern Pacific Company,
on the other hand, have been treating il as
VOID. and have Constructed q considerable
part of their road through it, as well in Ari-
IONA as in New Mexico and Texas. Mr..
Gould has joined issue with them on this
point aud sued out a restraining injunction
upon farther operations by the Southern Pa
cific, and so war is declared between the two
companies.
Whatever else may result from this war
the case cannot be determined in the courts
without a thorough test OF the validity of IA
land grant by Congress. the terms Of which
have been violated by the grantee. The
grant of tie Texas p ,cliic covers $4,000, 900
acres. 1t is not cOntended-at least it has
not so far been contended-tlat a company
is not entitled to its pro rata of the grant for
as many miles of its road as were built ami
IN operation before the grant lapsed. But
that question may figure in this case. Should
it be decided against the Texas Pacific, 1t must
needs operate to cut the Northern Pacific and
Southern Pacific out of by much the largest
part of their respective grants. The proba-
bility is tllatthe case will never be allowed to
come on trial on its merits, but that the par
ties litigant will compromise in some shape
or other.-Sdn Francisco Chronicle.