NP, MAP 4/10/1861

From the Memphis Appeal
 
April 10, 1861
 
The Southern Pacific Railroad
   The friends of this enterprise ought to be up and doing. It is all important that the debts of the company in Texas should be promptly met, and that iron, supplies and every necessary thing to insure a vigorous prosecution of the work, should be shipped as early as possible. The navigation in Red river and Lake Caddo is now good and freights are cheaper than they have been for years; but who can tell how long the navigation will last? If it declines, nothing can be shipped before late in the fall or winter. It is vitally important, and we would enforce this idea upon stockholders, that fifty additional miles of this road should be completed to take off the growing crop, which promises to be universally large and to command good prices. For when this is done, a revenue will be afforded fully adequate to meet any ordinary demand that may be made upon the company. There will then be one hundred and two miles completed, eighty-two of which will belong to the Southern Pacific company, extending into the heart of a cotton country of unequaled wealth and fertility. There is not, in all this section, a navigable stream, except Red river, worthy of the name, and consequently business will come to it from hundreds of miles in every direction. 
   This line of road, when completed, will be worth, with the other assets of the company, not less than $2,500,000. The company is entitled to a land bonus of 10,200 acres of land to the mile, which upon 82 miles of road amounts to 836,400. It is not extremely moderate to value this road at $2,500,000. Then, with fifty more miles of railroad, and a connection with Shreveport, the stockholders will possess a property worth, in round numbers, five millions of dollars.
   Now let us look what it will have cost them. The existing stock, recognized by the company, may be estimated at about $2,200,000; that is 440,000 shares, upon which the stockholders are required to make an advance of one dollar, and to take it in new stock.
   As an arithmetical proposition it is easy of comprehension. The company will have property in its possession worth, at the least calculation, five millions of dollars, which will have cost them but $2,600,000.
   Nor is this all. The company will be entitled to a loan from the State of Texas, of $6,000 per mile, upon this 82 miles of finished road. That is $432,000. It can then proceed and construct fifty miles more, and obtain a further loan of $300,000 for these fifty miles; in all, $700,000; a sum amply sufficient to pay for the work.
   What will be the condition of the company then? It will have 132 miles of road completed, worth $3,960,000, and lands in fee simple amounting to 1,346,400 acres. Now, it must be recollected that with 132 miles of railroad completed, and a promise of rapid progress of the work, these lands will possess a marketable value. Any one who has any experience of the effect of railroads upon the value of lands, and of the immense immigration into Texas of late years, will not question that these lands of the company can be readily sold, if the company should conclude to sacrifice them at that price to raise money, at over five dollars an acre. Then, these stockholders will be worth over nine millions of dollars, upon an investment of $2,600,000.
   All that is necessary to achieve these results, is for the stockholders to step forward and protect their own interests by the insignificant subscription of one dollar upon each share of their stock. This will give the company $400,000, which, with the State aid, will finish and equip the fifty additional miles of road and leave a surplus. Surely the stockholders, thinking, practical men, as we presume them to be, will not suffer their property, worth at the present time not less than two millions of dollars, sacrificed for debts which amount in the aggregate to not over $75,000. This will not permit this work to languish for aid, in view of such prospectus of munificent results?
    Here is a railroad company such as we have represented, with a gentleman at the head of it of unquestioned integrity, ability, and experience second in fact to no railroad man in the country -- one who has the character of never having failed at anything he undertook. Would he hazard his reputation, sacrifice his time, and invest his money in a delusive scheme? And hence it is astonishing to us why it is that any stockholder should hesitate a moment as to what his interest demands of him in this emergency. It is acquisition on one side and total loss of investments on the other. While they are hesitating and debating the road may and quite likely will be sold out, unless they come to its relief. Delays are dangerous, and if they do not lose the road, they may, by their supineness, defeat the purpose of constructing fifty additional miles this year, which, as we said in the beginning must be regarded as all important. If the stockholders are blind to their own interests, they may rest assured there will be found others to take their places. They may fail, but the enterprise will not. It has attracted the attention of the leading, thinking men, in both hemispheres. If sold, they may rest assured there will be a company formed to purchase it, able and willing to carry on the work. And while we should like to see those who have invested their means in this enterprise realizes the golden harvest connected with its successful prosecution, we may not regret, as we otherwise should, if the stockholders fail to come forward promptly in the present emergency, to see it change hands and a new company formed of men possessing more enlarged views, liberality and practical knowledge.
   We clip the above from the New Orleans Crescent of the 3d inst., and commend it to the serious consideration of all who are interested in this great national work, now peculiarly interesting to all southern men. We learn that the stockholders at New Orleans are all paying up, and a private letter dated the 3d inst., from that city, says upwards of thirty stockholders responded on that day. This is as it should be -- just to the public and calculating for themselves. The policy of Col. Stevenson commands general approbation, and it will win for him and the enterprise what both merit, i. e., success.

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