Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-02-22
PACIFIC ROADS.
PENDING BILLS IN CONGRESS AUTHORIZING
THEIR CONSOLIDATION


WASHINGTON, February 21.-There are
pending in Congress two favorably reported
bills, one in each house, authorizing the
Southern Pacific to consolidate with the
Texas Pacific. They were reported recently,
and the attempt made two or three weeks
ago to fix day for the consideration of the
House bill seemed 10 show that a majority
would support that bill. The House bill
authorizes the Southern Pacific "to CONSOLE
date and merge its corporate powers, fran
chises and organization with any other COM
pany or companies, whether organized and
existing under the laws of any State or Ter
rilory, or under the laws OF the United States,
for the purpose of forming through line Of
railroad between the city and bay OF San
Francisco, in California, and other ports of
tidal waters adjoining thereto, and such
ports and places as may be Sc
lected on the Mississippi river or Gulf
of Mexico, or the navigable tidal waters
adjoining thereto; and it shall be
lawful and competent for any one or more OF
such companies 10 unite, merge and consol-
idate their respective railroads, telegraph
lines, capital stock, rights, privileges, tran
chises, property and debts, with the said
Southern Pacific Railroad Company, and ii
and they are hereby authorized so to unite,
confederate and consolidate, upon such terms
as the said companies may respectively agree
upon, and may operate the same, with the
branches, spurs and tributaries thereof as one
continuous and connected system OF railroad
and telegraph lines"
The consolidated company is to succeed
to and have and enjoy all the powers, priv
leges and immunities necessary TO carry into
effect the purposes OF this ac,."
Nothing in the act is TO be construed to
authorizs or permit the consolidation oil
parallel or competing lines.
"But this section shall in no wise cut of
or impair any right of said companies con.
ferred by or derived under any act of Con
gress."
The bill ends with proviso that it sb al
not be construed so as 10 confirm or in any
| wise affect any grant of land to any railroad
| company.
Well informed persons who have studied
| this paragraph, say that it would prevent
the contemplated transfer. Mr.. Reagan has
| publicly declared that ii would not, and has
also declared that the proposed consolidation
means simply the capture and transfer of the
lapsed grant. Mr. Butterworth, who advo
Gates the bill. declared that Mr.. Dunn haG
prepared it with direct reference to prevent
| ing the transfer OF the grant; but Mr.. Dunr
| showed that the proviso which he had pre-
pared, and which would have prevented the
recognition OF the agreement OF November
26, 1881, had not been added 10 the bill.
Mr.. Converse thinks that it may be tha
no proviso like the one in the bill woulc
prevent the transfer if consolidation should
be authorized.
The Senate bill is repetition OF the Hous,
bill in nearly all of its parts.
There are worthy gentlemen who say tina
! the passage Of either OF the bills would re.
| cult in the transfer of an unearned land
grant to the Southern Pacific, and there ar,
others who say, and probably believe, tina
this would not be the effect. For m any rea
SONS the consolidation alone would be objec
tionable, and it is probable that the French
holders Of the bonds of the old Memphis
Ell Paso and Pacific Company, whose fran
chises passed in devious way into the pos
session of the Texas Pacific, will strenuous
ly oppose it.
Taking up the consolidation plan, withou
reference to the grant, the Language of tn
bill is 90 broad and vague that no one coult
tell how many short roads in Texas and ad
Joining States might be absorbed under it
These roads are 30 controlled now that very
little competition is allowed, and the passag
OF one of these bills would probably crusl
out even that competition. It'll expected tina
| an attempt will be made to pass the censoli
dation bills In the last week of the session.