| From the Houston Telegraph |
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| December 5, 1864 |
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| A good deal of indignation has
been expressed that the Legislature should have voted to allow the
railroad companies to pay their debts to the State with its own to
them, that is, that the Legislature should have put the credit of
these companies on a par with that of the State. It seems to us this
indignation is rather inconsistent with State pride, as well as
uncalled for by existing facts. |
| The railroad companies, as
long as they were doing their regular business before the war, were
able to pay their interest, and did pay it, we believe, most of them.
After specie went out of circulation they accumulated moneys for this
purpose which the State did not receive for interest, and which
depreciated largely in their hands. Their present business, so far as
the people are concerned, a small part of it indeed, is on a specie
basis. For the government, which occupies four fifths of their
freight, they however work at about one fourth the lawful schedule. |
| The railroads are all wearing
out. For every part of their repairs as well as supplies imported,
they are obliged to pay from three to six prices in specie. The public
is so much in the habit of looking upon these institutions as vast
machines of oppression that anything done or attempted for their
benefit, at once calls forth the clamor of the ignorant and the
designing. Why this should be the case it is difficult to see. In
enhancing the value of property they have paid for themselves to the
State many times over. In decreasing the cost of freight and travel,
as well as enhancing the public convenience, they have paid for
themselves to the people as many times. And yet of them both State and
people seem to be as jealous as though they were a public nuisance in
place of being a public advantage. |
| But all this talk is mainly
unnecessary, because of the impossibility of the railroads availing
themselves of the terms. To receive Texas Warrants at par, is to do
business at one-fourth the schedule prices. While they have to pay for
material for repairs at four times the old rates, they are in a
condition, compared with previous to the war, to pay their debts as
one to sixteen, so far as this is concerned, or as one to eight so far
as all their other expenses are concerned. No railroad in the State
can afford this. |
| Were there plenty of money to
be had by borrowing, the roads could make an elegant thing by
borrowing specie, buying warrants and paying their debts at 25 cents
on the dollar. But at present there is no money to be obtained. Where,
for instance, would the Central road look for $100,000 in specie now?
Where could the Harrisburg road borrow that amount, or the Tap road
$75,000? Why, we doubt if the roads all put together could be sold for
money enough to do this, albeit in times of peace and prosperity the
State mortgage on them is about the best security for the amount owed
we know of. |
| If there was capital in the
country for the purpose, a good speculation might now be made in
buying these bonds from the State and paying for them in Warrants. It
is no time now, however, to consolidate capital for such purposes, and
there is no danger of its being done. Those people who fear the
Legislature has "thrown away" the school fund, may possess
their souls in quiet. Nothing yet done will be apt to impair its
value. |
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