Year: 1876




two points, both distant from the San
Francisco Division of the main line,
viz: at the Southern extremity of the
San Joaquin Branch of the Central
Pacific Railroad, and at Los Angeles,
which is within 20 miles, by rail, of a
coast port; the intention being to con-
meet these two portions as rapidly as
possible, and thereby secure continu-
Gus railroad communication between
San Francisco and the central portion
of the State, and the cities of South
ern California, in anticipation of the
more direct route of the Southern Pa
cific Railroad via Salinas valley and
Polonio Pass. For these reasons a
very large force (more than 1000 mem
has been kept at work for some time
back, so as to finish the heavy grading
in crossing the Sierra Nevada range
by the Tehachape Pass, and also 900
feet tunnel near San Fernando, ALL of
which is now in well advanced con-
dition.


At the same time the company have
been pushing the road Eastwafdly
from Los Angeles toward the Arizona



via San Bernardino and the San Cor
gonio Pass, 100 miles, the roadway
graded to Dos Palmos. so miles fur
ther, and steel rails are being laid rap
idly thereon. BY the time these two
divisions are united it is expected the
track will be laid to the Colorado river
at Fort Yuma, if that should prove
to be the best crossing pointer to-
tai distance of continuous rail from
San Francisco of over 100 miles. You
will perceive, therefore, that fully one
third of the distance between San
Francisco and the Mississippi river,
and nearly half of the distance be-
tween the former point and the seve-
raj Texas lines, will soon be covered
by the roads operated in Southern
California.


A word of explanation in regard to
the latter part of your statement seems
to be called for. 1t is true that some
of the more portant shareholders in
the Southern Pacific are, at present,
also shareholders in the Central Pa
cific, while there are others in the
management of the Southern who
have nothing to do with the Central,
and vice versa. 1t is no uncommon
thing, believe, for the same parties
to own, and in part control, two or
more railroad properties; and the
Southern Pacific company are glad to
avail themselves of the assistance and
ability of some Of the experienced
railroad builders of the Central Pa
cific company. Their hearty co-ope-
ration, however, does not imply any
hostility to second line across the
continent, but, on the contrary, the
paralleled eXertions of the managers
of the Southern Pacific railroad COM
pany eLtitle them to be considered as
the best friends to that project Du-
ring the past two years of financial
depression they have constructed over
250 miles of road, which, with the
work done in advance of track, and
materials on the ground and in tran
stu, represents an outlay of twenty
millions in gold, which is more than
has been expended, in the same time,
by any other corporation in the coun-
try on new works, and forms a large
proportion of all the new road built in
that period in the United States. All
this is a positive contribution toward
a second trans continental railroad by
the 32d parallel, and is greater than
any Incorporation has made-how-
ever great may be its show of zeal for
a so.called Southern line to the Pacific,
whose terminus and connections are
on Northern territory.


The company have done this in the
first instance with the design of pro-
noting through line, e,agreeably with
the spirit of the Act of March 3, 1871,
whose provisions they accepted, in
common with Others, in good faith,
and with which they have complied,
without breakdown or default, unlike
the companies now seeking to have
the burden of their obligations light
ened for the second time. It's mana
gers were also satisfied that the devel-
opment of the agricultural, pastoral
and mining industries, throughout the
wide territory it served, would be so
considerable as to justify its construc-
tion for local purposes, and that it
would yield remunerative traffic in
advance of its connection with the
Eastern States. In this they have not
been disappointed; and when its tenn
porarily separated parts are united,
they anticipate satisfactory returns
upon its total cost.


The. assertion by the Texas and Pa
cific Company's advocates, that the
which their plans encoun-
ter springs from the desire of the Gen.
trail Pacific Company to maintain a
monopoly Is, / may say in its behalf,
as an officer Of the company, shall
low pretense, and is made to cover
purposes which will not bear scrutiny.
The facts are, that the managers of
the Central Pacific, in common with
nearly all Californians, are so thor
oughly satisfied of the immense future
expansion of the Pacific States and
Territories, in population and in re-
sources-such is the bounty of soil and
climate-that they entertain no doubt
of the insuf1iciently of single line to
the East, and therefore have neither
dread nor jealousy of a second, or even
a third road. They realize, moreover,
as business men, that whatever tends
to build up and populate that coast
helps the existing road more than it
hurts. Inasmuch as 65 per cent, of
the gross receipts of the Central Pa
cific, and consequently a still larger
percentage of its net earnings, is de-
rived from local traffic, and, as the real
competition from through business is,
and must be, not from another over
land railroad, but from the water car
riage, via the Isthmus of Panama and
Cape Horn, which long ago cut down
the through rates close upon the actu-
al cost of transportation, they knew
that second road will add more to
the local business of it's main line and
branches than it will take from the