Year: 1878

profits and earnings of the road when
completed?"


1--WE expect to build the road for
less than one-third per mile of the cost
OF the Union Pacific line The cost of
maintenance and operation on account
of the lower grades and the more fav.
orable climate will be far less than on
the Union Pacific line. The annual
interest to be paid will not equal a
third of that paid by that line The
distance between the Mississippi river
and the Pacific ocean on our line is sew
eral hundred miles shorter than by the
Union and Central Pacific. With all
of these advantages it is safe to say
that our net earnings will at least equal
those of the Union and Central Pacific,
which are shown by their official re-
ports to be from $4,000 to $4,000 per
mile per annum. Our present line of
444 miles, without Western connec-
tlons, shows net annual earning Of
about $4,000 per mile, all Of which in
dlcates profitable operation of the
whole line."


"Whence, then, the necessity of a
guarantee of interest by the Govern
ment?"


Sowing to the financial distress and
the great want Of confidence In all en-
terprlses, even the securities of old and
we'll established lines do not find ready
market, aud the securities on lines to
be constructed are scarcel y marketable
at any price, or, if at all, at such heavy
discounts as to make the cost of con-
structlon SO enormous as to deter pru-
dent men from such ventures. With
the Government guarantee, as sought:
the bonds can be sold at par, which
will enable the company to construct
Its road at very low cost, and its in
terest bearing Indebtedness, instead of
largely representing discounts, would
represent only cash actually invested
In material and construction. 1t is
impossible for the company to use a
dollar sout of the proceeds of these
bonds, except in the payment for ma
terial and construction at their cash
cost"


How about the looping off of the
four branches to St. Louis, Memphis,
Vicksburg and New Oreans?"
eve greatly desire the connections
with these important commercial points,
but We are willing to accept the pro-
visions of the bill as reported from the
House committee"


"Whence comes your chief opposi-
tion?"


"From the owners and controllers of
the Central Pacific railroad company.
N Not that they expect or intend to COM
plete their Southern line, but because
our line if completed will come into
competition with their Northern line,
and compel them to carry the COM
merce OF the country at less exorbitant
rates and cut their profits to CORES.
ponding degree"


"Yes, but may you not, after the
completion of your line, consolidate or
pool earnings, as has been done by 9TH
er lines which were originally compe-
ttors?"
'Ths bill as reported by the House
committee prohibits US, under penalty
of absolute forfeiture of our franchises,
from consolidating or making any COM
bination with any competing through
line now in existence or which may
hereafter be constructed. Besides,
should Congress, as it reserves the
right to do, fix the rates of commercial
traffic we could not exceed those rates,
directly or indirectly, without incurring
the same penalty


'.Was this provision contained in
the original bill introduced at the in-
stance Of your company"


"It was; and if this feature is not
now sufficiently expressed and guarded
We challenge such amendments as will
place it beyond the power of the COM
pany to make any consolidation or
combination with any other line that
will tbwart the purpose of making us
essentially an Independent competing
highway of commerce across the CONT
nent."


"Ho y do you expect to succeed IN
Congress in the face of the anti.subsidy
resolution recently passed by the
House by such an overwhelming ma
jority?"


"The aid we ask from Congress is in
no sense subsidy. We do not ask a
dollar from the Treasury nor a bond
from the Governments. The truth is
we relinquish the lana subsidy of 49,
900 900 acres heretofore granted by
the Government in aid Of the con-
struction Of our line. Very many Of
the best friends Of the Texas Pacific
railway bill voted for the anti-subsidy
resolution, expecting at the same time
to vote for our bill"


"Then I understand you to say you
have but little doubt of success ic this
Congress"