Oak Street s JNCLASSIFIED Texas and Pacific Railway Univ.of Ill. Library 54 ^7 A frET^ET, JNO.C. brown Vice-President. TO TOE PEOPLE OF TOE SOUTO PTTL A.SKI, TEBTlSr. V87S. Gen« jun 2 o i$34 Howard Mem.Lib TO THE PEOPLE OF THE SOUTH. .A. LETTER FROM JJSTO. C. BROWN, Vice-President of the Texas and Pacific Railway Co. As an officer of the Texas and Pacific Railway Com¬ pany, my attention has been naturally attracted by a re¬ cently developed opposition at the South to the interests of that enterprise, which has manifested itself in an open letter from Mr. Langdon, of Mobile; in the proceedings of the Sa¬ vannah and Charleston Chambers of Commerce; and in some newspaper editorials. Exhibiting itself just before the session of Congress at which the fortunes of the bill in aid of the Texas and Pa¬ cific Railway will be determined, and singularly alike in the grounds assumed by these very different authorities, I can scarcely fail to recognize that this hostility derives its mo¬ tive and its strength from the California monopoly. The subject is one upon which I readily admit there may be reasonable difference of opinion in the matter of de¬ tail between honest and patriotic men. But I have assumed a very grave responsibility to the people of the South in accepting the Vice Presidency of this company. I have in the past given some assurance of my devotion to Southern rights and interests. Trusted with important du¬ ties, I think I may venture to believe that I discharged them with fidelity, and not without success. The people of the South will not therefore think it unnatural if I now feel anxious to satisfy them that in assuming the position I hold it has been my earnest endeavor to serve, what 1 believe to 4 867356 2 be, their truest interests, as well as the best interests of the whole country, and that in so doing I have not been de¬ luded into schemes which are hostile to their prosperity, nor induced to support measures which are inconsistent with their political faith. The measure proposed is a very important one. Upon it every citizen has a right to form and express his opinions, and to insist upon full discussion and explanation of the ob¬ jections which his consideration of the subject may suggest. To such considerations, therefore, as are suggested by the open letter of Mr. Langdon, of Mobile, I would reply re¬ spectfully, recognizing the character of their author and the gravity of the reasons he urges, if they are substantial. To the proceedings of such bodies as the Savannah and Charles¬ ton Chambers of Commerce, I would accord the weight which should attach to the opinions of men experienced in Southern business and justly respected in commercial centres, provided I had the assurance that their views were the result of care¬ ful and impartial consideration. But I must feel some hesita¬ tion in assuming their action to be representative when I find it predicated upon the argument of a gentleman who, what¬ ever be his character and ability, is the recognized counsel of that great California monopoly which has spared no pains, no labor, no expense to defeat the completion of a Southern Pacific connection which is to be independent of its control. I therefore propose to lay before the Southern people my view of their interests in this very important matter, subject to such depreciation of its worth as they may think attaches to the fact that my maturest judgment and my most earnest convictions are committed to this enterprise, and that what¬ ever ability I may possess and whatever ambition I may re¬ tain will find their field and their fulfillment in its success. The objections which, as I understand these several com¬ munications, are disturbing, or are intended to disturb, the public mind of the South, are the following : 1. That the Southern Pacific Company of California, are willing to build, indeed are building, such connections as 3 will secure a truly Southern Pacific railroad, without further assistance from the Government. 2. That the bill in aid of the Texas and Pacific road now before Congress, does not secure such certain advan¬ tages to the South as it needs or claims, but places the con¬ trol of its traffic in the hands of Colonel Scott, who repre¬ sents what is charged to be a rival interest. 3. That the aid asked from the Government cannot be constitutionally given, and that the security offered the Gov¬ ernment is insufficient. First As to the completion of a Southern Pacific connec¬ tion by the Southern Pacific of California: Assuming for the moment that this is possible, and to understand the value of the assertion that this will he done without further aid from the Government, it must be borne in mind that the Southern Pacific and the Central Pacific are prac¬ tically one and the same. The present Northern Pacific connection consists of two roads identical in interest—the Union Pacific, running from Omaha to Ogden; and the Central Pacific, running from Ogden to San Prancisco— with minor connections I will not stop now to enumerate. This line, with its branches, has received from the Government since the first subsidy, seventeen years ago, in lands and bonds, $117,000,000. No interest has been paid, or is to be paid, by the companies on these bonds until they mature, and in the meantime that interest must he paid by the Government out of the taxation of the people, for the reservation of one-half the Government dues for transportation is not worth the calcu¬ lation in such an estimate; and for eight years, since the completion of the connection, the absolute monopoly of trans-continental traffic and travel has been in their hands, practically free from supervision or control by the Govern¬ ment. Now, deducting what may have been received by the Union Pacific, is it not clear that enough remains of this enormous subsidy, together with its accretions, to make any connection, Southern or Northern, built by the Central Pa- 4 cific, the result and application of aid from the Government? Does not every dollar it expends represent the monopoly of profit and the exemption from payment of interest, granted and maintained by the Government? Is not every year’s continuance of this condition of things “ further aid from the Government?” And if such a connection be built, is it in any sense what the South asks and the interests of the whole country require : an independent and competing road ? Huge and lavish as has been the aid given by the Government it is not that of w T hich the South complains—it is the maintenance of the monopoly,the exclusion of full com¬ petition. And what would a Southern Pacific road so built be but a doubling of this very monopoly, the extinction of all possible competition in the future—the measureless increase of the power of this almighty corporation which would then hold under its lock and key the commerce of the conti¬ nent ? The scheme of the connection proves it. It is not the connection between Marshall and San Diego, on the Pa¬ cific, with an independent terminus on the Mississippi, but a connection (by Fort Yuma) between the Mississippi and San Francisco, the whole current of whose trade has already run too deep for change along the course of the Northern line. In face of the fact that the reports of the Southern Pacific Company show that it is run at an annual loss of over half a million dollars, and does not pay the in¬ terest upon its bonded bebt, is it not clear that the useless and profitless line to Yuma from San Francisco was built for the very purpose of defeating competition, by alleging that this connection would furnish the South what it asked for, and thus diminish the chances of an independent road ? But even this ingenious contrivance to make a southern connection merely subordinate to the great monopoly, is a delusion and a snare. I know it will be said, it has been said that this company has indicated its good faith by proposing to push its work from Yuma to El Paso, and why should it do so except in execution of a genuine southern connection ? Look at the map. The work is proposed to be resumed from Yuma eastward under the delusive pretence of going to El Paso, but the line of proposed work goes elsewhere as well, and is directly in connection with other roads. Long before it approaches El Paso the point of divergence will be reached at which its real destination will be evident, and then, the vote having been taken upon the Texas and Pacific bill, it will, leaving El Paso and the southern trunk line two or three hundred miles below, join the Atchison,Topeka and Santa Fe road by way of Albuquerque, and furnish another rich tributary to the great northern current. I charge dis¬ tinctly that such is the purpose and intention of this pre¬ tended advance of the Southern Pacific Company upon the line of true southern connection. The evidence of it is patent to those familiar with the indications of railroad enterprise, and can scarcely be concealed from the public after the receut letter of Gen. Sherman to the vice-president of the Southern Pacific Company of California, from which I quote the following paragraph, as published in the San Francisco papers: “ I am informed that you contemplate an extension from Yuma eastward to Santa Fe , New Mexico , and that about two hundred miles to Maricopa Wells are to be contracted for at once.” I notice that since this letter has been published on this side, the words “ Santa Fe , New Mexico” are omitted, and the word “eastward ” left to confirm the delusion of a real south¬ ern purpose; for surely the intelligence of the southern peo¬ ple must discern that a connection from Yuma northeast¬ wardly to Santa Ee, New Mexico, and thence by the Atch¬ ison and Topeka road, whatever its commercial value may be to certain sections of the country, is not a southern con¬ nection with southern ports. Second. That the bill in aid of the Texas and Pacific road does not secure such certain advantage to the south as it needs and claims , but places the control of its traffic in the hands of Col. Scott , who represents what is charged to be a rival interest: 6 Mr. Langdon says, “ Take Alabama as an illustration ; Not a shovel-full of earth will be moved in Alabama: no Alabama laborer will find employment; not a dollar of the thirty-eight millions of Government money will be circulated among the people of Alabama.” Suppose not; but can Alabama be isolated from the general pros¬ perity of the South ? Has she no commercial relations be¬ yond her borders, and does Mr. Langdon consider Mobile a seaport and one capable of development ? Have not Ala¬ bama, Tennessee, Georgia, West Virginia, and East Ken¬ tucky advantages for using their iron ores which cannot be surpassed; and, with the proper energy, would not the build¬ ing of this road and its branches develop this valuable in¬ dustry? And what would be thought of a citizen of New York, Cincinnati, or Chicago, who would have opposed the building of the present Pacific connection because u not a shovel-full of earth would be moved” in New York, Ohio, or Illinois ? The Texas and Pacific road no more proposes to enter the States of Alabama, Georgia, South Carolina, than the Central Pacific proposed to enter New York, Pennsyl¬ vania, or Massachusetts. The one is a connection between the Missisippi and the Pacific, at San Diego, as the other was a connection between Omaba, on the Missouri, and the Pacific, at San Francisco. The theory of both is that between the termini of the Atlantic system of railroads and the Pacific Coast there was an immense territory which offered obstacles beyond the means of private enterprise to overcome, while the wants of na¬ tional commerce, national defence, and national unity im¬ peratively required that the connection should be accom¬ plished. Unable and indisposed to undertake the work itself, the Government was willing to give its aid in return for the advantages which this connection gave to its own immediate business. In doing so it was bound so to control that con¬ nection that its privileges should be equally shared by the various systems of State roads then in existence. How that duty was d ischarged in the case of the Central Pacific I need 7 not now discuss. But in the case of a Southern line the ne¬ cessities and requirements of equal justice to the existing system of Southern State roads are to be met by a trunk line which furnishes in its eastern terminus on the Mississippi a point with which the Southern States could connect with equal advantage. But this line does even more, for it se¬ cures the right of connection on equal terms at any point which the interest of any Southern State may require. This is all that the Texas and Pacific proposes to ac¬ complish, and if it makes its trunk line a fair distrib¬ utor of its traffic at such eastern terminus, it has accom¬ plished its purpose. Mr. Langdon therefore makes a graver and more pertinent charge when he denies that the provisions of the Texas and Pacific bill secures a terminus on the Missis¬ sippi. This is an advantage which the South both needs and claims, but I am at loss to understand how Mr. Langdon could have retained such an impression after reading the bill. For after providing for the selection of the route from Mar¬ shall to the point on the Mississippi which shall have been determined, the bill provides, section 12, “ That the eastern terminus of the said Texas and Pacific railway shall be on the east bank of the Mississippi river wherever this point may be designated, and which terminus may be reached either by suitable boats or a bridge over said river, as may be pre¬ ferred by said company ; And provided further , That the said Texas and Pacific Railway Company shall have the right to purchase the charter, franchises and property of any existing line, if any there be on the selected route, or construct a new one, at the option of said company ; and that a failure to so pur¬ chase or construct , at the rate herein provided , on the eastern exten¬ sion , shall work an absolute forfeiture of all right to the guarantee of the Government on the interest of the bonds to be issued for so much of the line as may remain unconstructed at the tune of such default” The same section provides “ That this part of said line shall be built at the rate of not less than fifty miles per annum.” It is difficult to see how, in presence of such a provision, Mr. 8 Langdon can say that no time has been fixed for its comple¬ tion, or that no penalty has been affixed to its failure. Nor can I perceive any greater force in the objections made by Mr. Langdon to the mode in which the Mississippi terminus is to be selected. The bill provides that this terminus shall not be further north than Memphis; that between Memphis and any other terminus on the Mississippi, the choice shall be made by a board consisting of three Engineer Officers of the United States Army of the highest rank, and two civilians, none of whom shall have any interest in any railroad connecting the Mississippi with the Atlantic or Gulf Coast, and their decision shall be subject to the approval of the President. Of course, a President might refuse to do his duty under this law, as he might refuse to do his duty under any other law. But the same objection would lie against all and any legislation which devolved duties upon him. One might as well object to the judiciary act creating a supreme court because it was physically possible for a judge to refuse to deliver judgment. As to delay in the action of the board, the interests of the company would seem from the above sections to be a guarantee against it. But if so remote a possibility need be guarded against it can he done by a very simple amendment; and I can assure him that, as the able and patriotic Senator (Mr. Lamar) who advocated the bill in the Senate declared, any amendment will be cheerfully re¬ ceived which is in good faith intended to perfect its pro¬ visions. I can scarcely suppose that the following language of Mr. Langdon is used seriously: “ The increased production in Texas of those agricultural staples on which the people of Alabama depend for their subsistence and prosperity will cause a depreciation in their market value, and to the ex¬ tent of that depreciation will the income of our people be diminished and their prosperity be retarded.” It this rea¬ soning be correct, so far from needing the Texas and Pacific Road, the South ought to destroy what roads it has, for every 9 new acre of cotton planted, every additional bushel of corn or wheat made will compete with the u agricultural staples ” of Alabama and “ diminish the income ” of her people; and thus the prosperity of every Southern State would have to be sacrificed to the logic of State selfishness. If this be the feeling of the South, not only must this enterprise be abandoned, but so must every other effort to develope her resources, enlarge her iudustry, increase her population, maintain her strength, or extend her influence. Fortunately, I know the people of the South better. They understand their changed condition. They know that the isolation of plantation life does not mean prosperity in the future. They want the freest and the speediest communi¬ cation with the whole country ; they want varied industries ; they want the influx of an active, energetic population. They are. preparing to play their part, and no small part, in that time which is surely coming when, independent of its foreign trade, the internal commerce of this continent will make us one of the wealthiest and most powerful of nations, and all they ask—and that they do ask—is that in that great industrial rivalry they shall not be denied by the govern¬ ment those advantages, which, at the expense of the whole nation, it has given to other sections. Having thus satisfied himself that there is to be no con¬ nection with the Mississippi, Mr. Langdon (as he erroneously supposes) has discovered the real and secret purpose of the Texas & Pacific Road, and quoting from Mr. Herbert, of Alabama, says: “Everyman in America who has studied the question knows that his (Colonel Scott’s) purpose was and is to turn the trade up by the Atlantic and Pacific, which runs from St. Louis down through Yinita, to tap the Texas & Pacific and draw the travel across the steel bridge at St. Louis to his great Pennsylvania combination.” How this connection through Yinita, which exists as yet only on paper, is no part of the Texas and Pacific Road, and is neither contemplated nor provided for by the bill under discussion. If the objection be that it is possible that such 10 a connection may be made in the future, then there never can be a Southern Pacific line unless legislation provides that the vast country lying between the Central Pacific, on the north, and the Texas Pacific, on the south, shall never be developed or create a system of railroad connections for itself; and that there shall be no connection with the Texas and Pacific which does not run southward from its trunk line. I have never maintained that the Government should give aid to the Texas Pacific as a purely sectional road,—as one which was to benefit the South alone. My argument has been, and still is, that the road is a national one—the completion of one national system of Pacific connection—of which the Central Pacific, already built by aid of the Gov¬ ernment, is a part. When built, then, it must be as open to the use of all as the Central Pacific ; and if other sections of the country find it advantageous to connect with it, their right to do so is indisputable. All that the South has the right to ask of the Government is that a Pacific connection be opened to it as well as the North on short and naturally practicable lines, and that equal connection shall be assured wherever commercial interest and enterprise may find it possible and profitable to make them. And when such a con¬ nection is completed as allows the various systems of rail¬ roads in the Southern States to take advantage of that con¬ nection at some point on the Mississippi River, just as the railroads of the Northern States connect with Omaha, then the Government has done for the South all that it can ask. The use which the South makes of such connection must depend upon its own resources and enterprise. Whether the South Atlantic and Gulf ports will develope into great commercial centres must depend upon themselves, not upon the forced suppression of competition. The creation of a commercial metropolis does not depend alone upon railroad facilities. These may be a necessary element, but they are not the only necessary elements. One would think, how¬ ever, that if Southern ports had the capacity for such devel¬ opment, they would scarcely fear a competition when traffic 11 must have traveled at least seven-eighths of the distance from San Diego to the Mississippi before it reaches the point of diversion, and then encounters a comparison of the dis¬ tances between Fort Worth and New York and Philadelphia on the one side, and the Southern ports on the other. I con¬ fess I share Gov. Throckmorton’s opinion that the supposi- ion that the owners and managers of eleven or twelve hun¬ dred miles of railway in Texas would, contrary to their own interest, turn trans-continental traffic away from their own line, is too monstrous to be treated otherwise than with derision. Third. That the aid asked from the Government cannot he constitutionally given , and that the security offered the Govern¬ ment is insufficient: As I have said before a committee of Congress, without even provoking controversy, it may be stated as part of the history of the Government that, with one or perhaps two exceptions, the doctrine of the constitutional power of the General Government “ to lay out, improve, and costruct highways,” national in their character, either through the States or Territories, has had the assent of the various ad¬ ministrations, incluning that of Mr. Jefferson. The prece¬ dents established by the legislative, executive, and judicial departments of the Government are unbroken and conclu¬ sive of this power. As early as 1817, under the leadership of Henry St. George Tucker, one of Virginia’s distinguished statesmen, supported by Mr. Clay, and other leaders of both parties, the House passed this resolution: “Congress has the power under the Constitution to appropriate money for the construction of post-roads, military and other roads , and of canals, and for the improvement of water-courses.” And the last word in this controversy, if controversy it can be called, may be considered as spoken in the decision of the Supreme Court of the United Stutes in the case of the Union Pacific Railroad Company against the United States, 1 Otto, p. 72. But I shall enter into no constitutional argument. I find in library — UNIVERSITY OF ILLINOIS 12 the application of common sense to the condition of things as they exist, and to the history of the causes which produced them, sufficient and ample justification for all I ask. The sudden and rapid settlement and development of the Pacific coast, coinciding as it did with the commercial open¬ ing of the great empires of China and Japan, raised a large and urgent question for the solution of American statesmen. Great asffiad been our territorial expansion and the spread of our population, it had been a steady, gradual continuous growth. The questions that arose slowly were settled leis¬ urely. Mile after mile as the emigrant wagon moved, acre after acre as the wilderness was cleared, at no long distance behind arose the school-house, the court-house, and the church. The frontier moved before the pioneer and commerce brought up the rear of the train. But now suddenly, at a distance of thousands of miles, with great mountain ranges, and impassable forests, and deserts of many days journey between, there sprang into existence not a settlement but a State—vast, rich, and powerful—bone of our bone, flesh of our flesh, part and parcel of our political sovereignty, pos¬ sessing an immense influence upon the commercial and polit ical future of the whole country, but further from the seat of government than Europe, and more difficult of access. The common instinct of the American people resolved that there never could be permitted the establishment upon this conti¬ nent of two civilizations not identical—the one on the At¬ lantic, the other on the Pacific—separated by thousands of miles of unsettled territory and bound under such circum¬ stances to develope in the future variant if not hostile interests. They felt that the Pacific coast must be brought nearer; must be within sound of our voice, within reach of our arm. A rail¬ road connection therefore with the Pacific coast was simply a matter of time ; and as it was absolutely beyond the power of any probable, we might say any possible, combination of private capital, the Government, as said by an eminent Southern statesmen, which purchased Louisiana, and acquired Florida, annexed Texas, conquered California; which built 13 light houses,cleared harbors and subsidized ocean steamers; which held absolute control of the commerce of the nation— such a Government, familiar with the exercise of such pow¬ ers, and supported by an almost unanimous public opinion, could scarcely afford to waste its time in puzzling over con¬ stitutional scruples in the face of such a duty. Owing to the necessity of long and careful exploration, to tbe differences of sectional interest, intensified by the un¬ easy consciousness of coming strife and the natural dilatori¬ ness in the execution of all great measures, the Government had not acted when the war of secession broke upon the country and threw a lurid but distinct light upon the value of the Pacific Coast to the Union. With a promptitude and liberality that cannot be too highty praised, acting upon a broad and noble conception of national duty, the Govern¬ ment supplied the aid that was needed, and thus completed that system of railroad connection which, for brevity’s sake, we will call the Central Pacific, and which placed San Fran¬ cisco and the Pacific Coast in safe, speedy, and certain con¬ nection with the great cities of the Northwest, and the com¬ mercial centres of the Northern and Northeastern Atlantic. But in so doing the Government denationalized the sys¬ tem of Pacific connection. For there are three facts which must never be forgotten in this discussion, without the full appreciation of which no discussion would be fair. They are these— 1. The line of connection drawn by the Central Pacific was a war line. That is, it was selected not because it was the best or the most natural, but because the connection had to be made in view of the civil war, possibly resulting in the establishment of a foreign and hostile con- federacy, from whose Northern frontier the line must be re¬ moved as far as possible, and because the connection then most needed by the Government was the most direct north¬ ern and northeastern connection. 14 2. In giving its aid to this enterprise the Government gave it—perhaps was obliged to give it—in such method as made the road when complete, not a public highway, but the immense, all-powerful monopoly of a private corporation. 8. The exhaustion of the South consequent upon the war, the abolition of slavery, and the misgovernment of the re¬ constructed State governments, made it absolutely impossi¬ ble for the Southern commercial and industrial enterprise either to establish a competition or use the partial advantage that an expensive construction of lines connecting with the Central Pacilic would give. The South does not complain of these facts. She does not ask the Government to undo any of their consequences, or to deprive the country or any section of the country of the advantages which their occurrence has given. Her lan¬ guage is this : Cheap, certain, and speedy transportation of freight and passengers between the Atlantic and Pacific coasts has been recognized as a national necessity; a policy approved before the war and since, by an almost unanimous public opinion. The line of connection and the method of its execution were subjects for discussion for the people, but all agreed in the wish for a connection which should give equal advantage to all sections. The war compelled the con¬ struction of a line which no one pretends would have been selected either as best in itself, considered simply as a road; or fair and just, considered as a national work the advan¬ tages of which were to be general. You have gone so far north as to make your line an uncertain communication on account of long interrruptions by the winter snows, and a partial and sectional communication by the situation of its termini. How this may have been unavoidable, but we have to bear our share of the burden of its support whilst we are cut off from our share of its advantages. We ask you only to complete your system of Pacific connection. If cir¬ cumstances have compelled you to make two roads—a north¬ ern and a southern road — and you were forced to finish 15 your northern section first, although it has given enormous advantages already to one section of the country over an¬ other, we do not ask those advantages to be taken away from them but only in justice to be extended to us. Make the Pacific connection what it was intended to be: a connection between the Atlantic coast and the Pacific—not a mere sec¬ tion of the Atlantic coast, but the whole Atlantic and Gulf coast, from Portland to Galveston. We do not criticise or cen¬ sure the mode in which you have begun the work, we only ask you to finish it. In the next place, the method which you have adopted in reference to the Central and Union Pacific has deprived you, and through you the people, of all control over the rates of transportation. You have bound yourself to leave this vital interest at the mercy of the private stockholders of the road until they shall be earning a certain clear per cent, upon, not their capital, but the capital we the people have furnished them. ISTow it is within their power—and as long as human nature is what it is, it will be within their purpose—to keep that rate of net income below the point which justifies your interference, and that, too, as is very well known, without diminution of their profits. This places the whole com¬ mercial transportation of the nation at the mercy of a joint stock company, and converts a public highway into a private corporation. The public opinion of the country, founded on principles of common justice, is beginning to be very restive under this transfer of sovereign rights to corpora¬ tions. If, by any new magic of science, a corporation could strike the ground and create a great navigable river running through the heart of a continent, controlling its commerce, increasing its population, building up villages and cities along its banks, directly affecting the safety of the country by its line ot military operation, does any one suppose for a mo¬ ment that the public opinion of to-day would tolerate the monopoly of its use and ownership by an hundred or a thousand stockholders ? And a great trans-continental railroad is very little less, and with full recognition of all 16 the differences, the analogy is sufficient to require on the part of the Government the exercise of some supervision over powers which so directly and vitally concern the for¬ tunes of the people. In the present relation between the Government and the Central Pacific the Government can do nothing. So much the more is it bound to complete its system, and, by the Southern extension of that system^ afford in a competing road the only check which can now be devised as a protection against this monopoly. Lastly. The condition of the South makes an exceptional case. The inevitable consequences of war are not confined to the limits of its merely military operations. “ Like the cannon-ball, it shatters that it may reach, and shatters what it reaches.” If it calls into exercise extraordinary powers to effect its purposes, those powers cannot cease abruptly with their accomplishment. If to preserve the Union the whole social and political condition of half an empire can be suddenly and permanently transformed, to maintain that Union which has been saved surely that condition must he harmonized with the imperative necessities of the country which has been made one. If to secure the ends of the war millions of property can be destroyed, the whole suffrage of the country he essentially altered, absolute military govern¬ ments substituted for State constitutions, surely the restora¬ tion of commercial and industrial life, the opening of new fields for emancipated labor, the perpetual prevention of sectional isolation, are equally within the power and the duty of the great Government which can do and has done such things. Now, without going over the long and sad tale of south¬ ern misery, without attempting to deny that what the United States did in the prosecution of the war it was obliged to do, there can be no question that the condition of the South to-day is the condition in which the war and the reconstruction acts have placed it. What that condi¬ tion is needs no description. It is confessed on all sides, by enemies as well as by friends, and it is now equally recog- 17 nized that the great national want is the restoration of the South to the full vigor of its capabilities, to be developed under the new conditions of national life. If, therefore, a direct southern connection with the Pacific is not only the necessary completion of the system of Pacific connection re¬ quired by national wants and interests, but the cheapest, promptest, and most efficient means for the development of southern commerce and agriculture, a compensation enrich¬ ing those w T ho give as well as those who take, the present condition of the South is the strongest argument for its speedy completion. But more than this : in asking the aid of the Government for this road I am asking it to save expense in its own proper business. Along the line of the proposed road the Government has for years past maintained more than forty military posts, garrisoned by nearly one-half of the entire army, where supplies for both Indians and troops have to be transported long distances at great cost and much risk. Fourteen regiments are, I believe, thus maintained at a cost of one million per annum per regiment. The saving to the Government by the Central aud Union Pacific in the trans¬ portation of postal matter, troops, stores, &c., has been for the last two years at the rate of $1,864,894 per annum. Why should not the same economy be effected in the territory through which the Texas and Pacific runs ; and how are the necessities of the Government supplied until it is completed? Surely, if, as the Quartermaster General reports, the saving on the Central and Union Pacific was the difference between nine millions and six millions, there is no reason why this thirty-three per cent, upon the fourteen millions which are being spent in the South and Southwest should not also be saved. And the importance of this road to the Govern ment, as the representative of the national interests, must be obvious to every man who reflects that for one thousand miles it runs directly along and near the territory of a for¬ eign power, with whom our relations are every day assum¬ ing a more delicate and difficult character. When, there- 18 fare we ask, we also give ; and I venture to assert, that five years of this completed road will fully compensate the Government for any aid it may give or risk it may take. But the Texas and Pacific Company are not asking a gift, but a loan,—and a loan not of the money of the Government but of its credit; and for this loan,' to effect an object as im¬ portant to the Government as to the road or to the South, we offer the amplest and most substantial security. On this subject I shall not say much. The provisions of the bill are before the country. They are precise, specific, with¬ out vagueness; matter of sober calculation that a business man can cipher out with certainty. We ask the United States Government to guarantee the payment annually of 5 per cent, interest for fifty years upon $38,000,000 of bonds, or so much thereof as may be necessary to complete the line, under direct government supervision, and to secure the payment of the interest so guaranteed, we offer as security: 1. A mortgage, paramount to all other liens upon the rail¬ way, with its equipment, buildings and property, from Fort Worth to San Diego—-1400 miles. And as the bonds can be issued only upon the completion of specified sections, the mort¬ gage at each issue of bonds covers a completed road of equiv¬ alent value. 2. The application to the payment of this interest of the entire amounts due from the Government for postal and Army transportation and telegraphic service, the amount of which may be fairly calculated from the reports of the Quartermas¬ ter-General as to the amount of similar service rendered by the Central Union Pacific, ail the circumstances indicating a larger use of the Texas and Pacific. 3. The retention of $5,000 per mile in the Treasury of the Government of the guaranteed bonds, with the right to sell and use the proceeds in making up any deficiency in pay¬ ment of interest by the company. 4. The payment into the Treasury of so much of the net earnings of the road as will be sufficient to meet the interest required. This will be less than $2,000 per mile, which is 19 less than the present net earnings per mile of the Texas and Pacific line without Western connections, and only about one-third of the net earnings per mile of the Central and Union Pacific line. 5. The relinquishment to the Government of the grant of lands made for the construction of the line through New Mexico, Arizona, and the State of California, opening them to speedy sale and settlement at Government prices with the provision that the proceeds of these lands shall be paid into the Treasury: one half to be appropriated to the payment of any deficit in the annual interest, and the surplus, which, should there be no deficit, will be the entire amount, to the re¬ demption of the bonds themselves. The character and value of this security I am willing to leave to the judgment of every practical business man, with¬ out one word of further comment. Besides the special objections to the Texas and Pacific bill to which I have endeavored to reply, it remains for me to notice the various schemes which have been suggested as substitutes. I cannot explain them in detail without maps, but, although they vary in minor provisions, they are very similar in general features. I have no hesitation in assert¬ ing that they have all been contrived by the California mo¬ nopoly, wrai no intention or expectation of their being passed, but to distract and divide the southern support of the Texas and Pacific bill. Their object has been*by sug¬ gesting advantages, to induce the friends of such roads to postpone action upon the trunk line, in hopes of dividing the aid proposed to be given to the Texas and Pacific, and they have deluded more than one honest and patriotic legis. ator into the belief that by supporting them he was securing to the several States a direct local connection, and securing it at less cost and with equal security to the Government. I will endeavor to state, fairly and clearly, their general character. 20 1. It is to give the Southern Pacific California Com¬ pany the entire land grant of the Texas and Pacific, and au¬ thorize it to complete the connection between Yuma and El Paso, and also to build the connection between its existing line, from a point to be selected by that company and San Diego. 2. To confine the Texas and Pacific to the connection be¬ tween Fort Worth and El Paso, giving it a subsidy of not less than $10,00C per mile, but varying in the different bills. 8. To authorize and subsidize five or six other railroads, at the same varying subsidy, from points in the States of Texas, Louisiana, Arkansas and Tennessee,two only of which are in any sense connections with the Texas and Pacific, the others being essentially local in their character, and links necessary to the completion of what are entirely State lines. 4. The security of the subsidy in every case by the. reservation in the hands of the Government of such freight transportation and compensation for telegraphic and postal service as may be due by the Government for the use of the road. The objection to the first is that it makes of the Southern Pacific connection one which is neither independent nor com¬ petitive. It is idle to assert that the capitalists of the Cen¬ tral Pacific will build a road which is to compe# with their main line, their interest in the great northern connection being supreme. And it must be remembered that this pro¬ posed connection consists in part of the California Southern Pacific as completed now, and which is under the direct con¬ trol of the Central Pacific, and about oue hundred and thirty miles of the Central Pacific, between Yuma and San Fran, crisco, neither of which is subject to the control of the provisions of this bill nor of Congress. The transfer of 18,000,000 acres of land from the Texas and Pacific to the Southern Pacific is the grant of further aid from the Gov¬ ernment, which the company, through its agent and attor¬ ney, Mr. Norwood, at Charleston and Savannah, vehemently 21 protests it does not ask: and it must not be forgotten that the proceeds of the sale of these lands, thfls absolutely given away, would, under the provisions of the Texas and Pacific bill, be paid into the Treasury of the United States to secure the guaranteed interest and the bonds themselves. Beside which some of these bills are so artfully worded that a plausible argument may be made to justify their appropria¬ tion of a money subsidy to the Southern Pacific, in addition to this land-grant. 2. The local lines which it subsidizes are in no sense other than local State roads, and although important to the States as connecting and completing their system of State roads, are not such works of internal improvement as by their character, extent, or direct use to the Government, come within the exercise of its powers. 3. The security offered for this subsidy, which upon the most reasonable computation and'at the least figure suggested,must amount in the aggregate to $40,000,000, and which when ex¬ pended will not secure an independent and competing South¬ ern connection,^ utterly insufficient,and there is no mortgage whatever upon either of these roads, or their property ; and upon some of them the probable services to the Government in the way of transportation would be positively inapprecia. ble. In short, there is not an objection made to the Texas and Pacific biU^iiich does not apply to these bills with increased force; and there is not an advantage secured to the South and the whole Republic by the Texas and Pacific which these bills protect. I have thus attempted briefly to reply to those objections which are being sedulously and mischievously circulated for the purpose of defeating the present bill, by dividing and disturbing the Southern mind in its hitherto almost unani¬ mous support of the measure. I have said but little of the general advantages of a Southern Pacific connection, be¬ cause I do not believe a doubt exists upon it, and because it would be almost impossible for me adequately to express how the vast importance of this enterprise has grown upon 22 me, as in the discharge of my duties I have travelled over its proposed line and realized in detail its consequences to our people. But what I do want to impress upon you is this, that a Southern Pacific connection, to be useful to you and to the country, must he an independent and competing connection, one which shall be open to all who desire to use it, and upon which the rates shall be under the direct supervision and control of Congress ; so that the farmer, the merchant, the manufacturer, the Government itself shall be free from the extortion and the power to extort of the existing monopoly. Any connection, even if such were built, which is a mere branch of the existing Central Pacific monopoly, subject in the arrangement of rates to its interest, limited in its con¬ nections to what it permits, free as it is from the wholesome control of the National Legislature, would be not only a delusion but an added danger. It would be simply the com¬ pletion of the most gigantic corporation known to history since the days of the East India Company—more powerful than even it was in the time of its undisputed authority, for the commerce of the continent will be the stock upon which they declare their dividends, and the great public highways of the nation will be' tolled by their bye-laws. They might as well be permitted to levy customs in your ports and taxes upon your rivers. And you ki%DW little of their spirit if you think for a moment that to them you will he anything but dependent and subject tributaries. JNO. C. BROWN, Vice-President Texas and Pacific Railway Co. Pulaski, Tennessee, October 1878. ' -V. •Afr-*- : : • - ■■■, t : v : v -r#'" & A' :■&.-, ;v -y : - %