NP, AE 4/5/1861

From the Alamo Express (San Antonio, Tex.)
 
April 5, 1861
 
The Southern Pacific Rail Road
   On the 27th ultimo. a meeting of the Southern Pacific Railroad Company was held in New Orleans. Col. V. R. Stevenson, the President of the company made a very able speech in which he set-forth the trials, tribulations and prospects of the great enterprise. In giving a brief history of the company since his connection with it he said:
   The first object to be achieved was to place the financial affairs of the company in such a condition  and upon such a basis that the company would be secure against a very contingency; and ??ly, to bring to its aid the requisite strength to prosecute the work vigorously.
   To accomplish these objects, they first sought the aid of the Federal Government, and, in the next place, and subsidiary to it, to enlist capitalists to build the road rapidly through Texas. How far the agents of the company had accomplished the objects contemplated -- with what industry and ability they had labored -- were evidence in the results which were already partially matters of history. It was a well known fact that, for fifteen years, intelligent, enterprising men had endeavored to enlist the aid of the Federal Government at Washington in a scheme of building a railroad to the Pacific. But up to the time that Dr. Fowlkes and other enterprising gentlemen had taken the matter in hand, no bill had been introduced into Congress that promised the slightest hope of success. They, by their energy, their industry -- by exhibiting to the country the unparalleled advantages of a railroad to the Pacific, had secured a decided majority in both branches of Congress, and were only defeated by events for which they were not responsible, and over which they had no control.
   He referred to the political revolution which had terminated with the secession of the Southern States. If, indeed, that revolution could have been postponed for thirty days the friends of the enterprise would have accomplished all they desired. And, in order that the stockholders might understand and fully appreciate the labors of their officers and agents, he would state briefly what were these results: 1. The Pacific Railroad bill secured to this company thirty-six millions of dollars and the right of way through the territories with a grant of land amounting, in the aggregate, to about fifteen millions of acres. 2. A contract had been made with a wealthy French company, which secured the rapid construction of the road to the Pacific ocean. These French capitalists, under this contract, agreed to furnish $1,200,000 to pay for the fifty miles of road now being built by DeGraff & Co., leaving a surplus to meet contingencies.
   As many of the stockholders were doubtless advised, the Pacific Railroad bill passed the U. S. House or Representatives by a decided majority. It was then sent to the Senate where it underwent amendments, and was remanded to the House for concurrence on those amendments. These alterations met the sanction of the friends of the bill, and all that was required to secure its passage was a favorable opportunity to call it up. Immediately afterwards the political complications of the country culminated in the secession of several of the Southern States, and with the further understanding that Texas would also secede. Northern men then seemed reluctant to support a bill embracing such a large grant of money and land to a section and a State that denied the authority of the Union. They said they could not do so and sustain themselves at home. The friends of the bill, however, urged its passage as a peace offering, and succeeded in their efforts, when immediately afterwards the news reached Washington of the seizure of the forts and arsenals and other public property in Texas.
   His plan for relieving the company from the present embarrassment is simply this:
   He simply proposed that every man who held stock in the road should subscribe for as much more as would be equal to an advance of one dollar on each share of his stock. In other words, if an individual possessed five shares, he should subscribe for an additional share; if ten shares, he should subscribe for two additional shares, &c.
   This would furnish a fund sufficient to discharge all the indebtedness, pay for the iron, ship it to Marshall, and furnish and fully equip fifty additional miles of road. This would give the company 75 miles of road, and he had no hesitation in saying that it would be a paying road, and for the simple and plain reason that it perforated a populous and wealthy country where there were no navigable streams, and where business would come to it from a hundred to a hundred and fifty miles in almost every direction. If the Jackson road, running side by side with the Mississippi river, earns a handsome dividend to its stockholders, how much more reasonable is it that a road that traverses a country having no other means of outlet, will prove a profitable investment.
   In speaking of the advantages and prosperity consequent upon a vigorous prosecution of this road, said:
   He had some experience in railroads, and he thought he knew something of the value of railroad stocks and securities. He had no hesitation in saying, basing his opinion alone upon his experience, that this was one of the grandest enterprises of the day, and he was really surprised that it was not properly appreciated by those who owned it. Here was a company with a charter granting them the privilege of constructing a road through the centre of a State not possessing a single navigable stream worthy of the name. For this they were to receive a bonus of about eight millions of acres of land. What was this land worth? He could only judge by the effect of railroads elsewhere. Lands on the line of the Nashville & Chattanooga Road advanced from ten to fifty dollars an acre. The lands of the Illinois Central could not be sold before that road was built for $1.25 per acre. When it was finished, they were worth from $40 to $75 per acre.
   Is there any good reason to believe that these Texas lands will not increase in value as rapidly as those of Illinois? Cotton lands are intrinsically more valuable than wheat lands, and the day is not far distant when they will command a much higher figure than they do now. Estimating the lands of the Southern Pacific Company at ten dollars per acre, and they will realize upwards of eighty millions of dollars; at twenty dollars per acre. Did the world ever before present such a chance for speculation? It was a mine of inexhaustible wealth, which needed but the proper spirit for its development.

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