NP, NOTP 1/26B/1862

From the New Orleans Times Picayune
 
January 26, 1862
 
[Communicated]
Trade with Texas
Editors Picayune
   My last closed with an imperfect enumeration of the expenses, delays, vexations and loses now attendant upon our trade with Eastern Texas. It is but justice to say that her people have done, if not all they could do, still very much for a young Commonwealth, to remedy these evils; and there seems really no end to her liberality towards works of internal improvement, especially railroads. These are just what she most needs, and to companies fairly organized she is donating, as stated in the article in the Picayune, the choice of location in all her public lands. These all belong to the State absolutely, without any future adjustments to be made with the General Government, and some of the Texas railway companies are offering their titles thus obtained -- the clearest and best that can be offered -- for sale at prices below those required by the State for lands located at the same time in alternate sections. This sacrifice is made by these companies to enable them to prosecute their works in these times of financial difficulty, when the subscribers to their stocks can not sell cotton nor pay installments due upon them.
   In Eastern Texas it is done to build their lines of railroad, not to their own markets, but to ours; not to supply their own cities with provisions and a commerce, but ours. That they have a convenience and a most important interest of their own to promote by this, is true; but that does not alter the fact with regard to us. That they are developing a vast and fertile country and making it commercially tributary to New Orleans, remains patent, whatever be the motive.
   Once made, their railways will be remunerative, and very probably, by their convergence upon our Louisiana lines, will make it to the interest of the latter to lay down double tracks to the Mississippi river, in order to transport the abundant and heavy freights which must pass back and forth between them and us. But now they struggle for life. The rich provision made for them in cash by a loan of $6,000 per mile from the general school fund of the State is rendered unavailable, by the depreciation and difficulty attendant upon any attempt to use the U. S. bonds in which this loan was to have been made. Formerly at a premium, they are now in value nobody knows where. Therefore these companies are driven by the impulses of patriotism, by a military as well as a civil necessity, to do the next best thing in their power to raise money; for it takes money as well as very much hard labor to build railroads; and money they must have. This dernier resort is, to offer their land certificates in the market for cash, instead of locating them. A distinguished financier, of this city, a public spirited gentleman, and one acquainted with the Texas railroad legislation, after conversing for some time on the subject remarked that "the Eastern Texas Railroad had better borrow money at 20 per cent. than to sell these certificates." And yet, under a necessity, partly military in its nature, for immediate progress, while her stockholders are unable to respond, that company has resolved to do this very thing. They have determined to sell enough to enable them to complete the connection of their road with the Houston and New Orleans Road {Texas & New Orleans RR} at Beaumont.
   A very large landholder of Texas informs me he has been offered $6 per acre for all his lands in Angelina county, along the proposed route of this road, and he refused the offer. This company has already located man sections of these certificates in that county, and could locate many more; but in selling them without location they may not obtain even one dollar an acre. This illustrates in some degree the sacrifice they are willing to make for the sake of complying with charter requirements and meeting the wants of the country.
   Now, in view of these facts, and of the further fact that this is no time to offer bonds whereby railroad companies are in the habit of raising money to complete their works, ought we not, as a great commercial city, to arise and help them? Ought we not to subscribe to their stocks, or at least to purchase their lands? By doing the former we become entitled to share with their own citizens in all the great privileges and advantages arising out of the munificence of the State and the profits of the roads; and by the later we obtain, for a mere fraction of their value, lands adapted not only to the production of our great staples, but of all the variety of provisions that we require for consumption or export. We shall, by either method, or by both, most essentially advance and secure our own private interests, while we promote those of the railroad companies, and confer a lasting benefit upon the public.
   Surely if these companies are willing, for the sake of constructing, without delay, their lines of railway leading to us, to sell their land certificates at one dollar an acre, or less; when, by locating them and awaiting the flood of population about to flow into Texas from the border States, they could realize from $3 to $6, we should be ready to buy as many acres as they will consent to sell. As an investment, few can be surer, or pay better. Probably events may show that few in real estate would afford an earlier return of profit.

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