| From the Alamo Express (San Antonio,
Tex.) |
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| April 5, 1861 |
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| The Southern Pacific Rail Road |
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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:
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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.
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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.
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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.
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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.
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His plan for relieving the company from the present embarrassment
is simply this:
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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.
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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.
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In speaking of the advantages and prosperity consequent
upon a vigorous prosecution of this road, said:
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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.
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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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