NP, NOTP 4/5/1861

From the New Orleans Times Picayune
 
April 5, 1861
 
Prospects of the Southern Pacific Railroad Company
   We are pleased to learn that the stockholders of the Southern Pacific Railroad Company, in this city, are responding promptly to the call made by Mr. Stevenson, by subscribing for the new stock equal to an advance of one dollar upon their former subscriptions. They are, in our view, pursuing the right course, and if their example is followed by the stockholders throughout the country, as we have no doubt it will be, the future of this great enterprise promises, to all appearance, to be as successful and brilliant as the past has been seemingly unfortunate and disastrous. All it seems to us that is necessary to achieve this result is for the stockholders, and for those who regard with favor this enterprise, to correctly understand the facts. Until recently many of the stockholders have been inclined to regard with distrust their investments. They had received vague impressions that the company had been badly managed, and that the profits anticipated from the liberal donations by the State of Texas were too uncertain and too far distant in their realization. But the history of the management of this road for the last three years, which was until recently imperfectly understood, has presented such an exhibition of administrative ability, financial skill, energy, and management, that the stockholders and the public of New Orleans have begun to properly estimate the character of the men who have been entrusted with the control of this great work. And, on the other hand, the immediate benefits to be derived from prompt action by the stockholders, has been so clearly and forcibly presented, that not a shadow of doubt can rest upon the mind of any intelligent, reflecting man, that it is their interest to furnish at once all the money required to construct fifty miles of road this year in time to carry off the growing crops. They will then be entitled to that aid from the State of Texas, which will enable them to prosecute the work successfully, and against every conceivable contingency. Hence it is that we are not surprised that the stockholders are awakening to their true interests.
   There are many and great advantages derived from having a large list of stockholders scattered over the country, and to the information disseminated through this channel, may be attributed, in a great measure, the just recognition of the superiority of this route for a railroad to the Pacific. But while this is the case, the disadvantages are equally great. It is difficult to reach such a body of men, so as to get them to attend to their own interests. Who can doubt that if this enterprise had been in the hands of a few men of wealth, energy and enterprise, that they would today have two hundred miles of road constructed and in active operation? For that much road they would have received a land bonus from Texas of 2,048,000 acres, and a loan to aid them in the construction, of $1,200,000. These lands of the company would be worth five, and in all probability, ten millions of dollars. Under such circumstances, the Southern Pacific would be the wealthiest railroad company in the world. Why cannot the present stockholders pursue this course, and reap like advantages and profits?
   Just look at the facts. The Illinois Central Railroad Company received but six sections of land to the mile, while the Southern Pacific has a grant of sixteen. The Texas lands are intrinsically superior, in every respect, to those of Illinois; for while the latter will only produce wheat and corn, those of the former -- while they are superior wheat and corn lands -- are among the finest cotton lands in the South. The report of the Agricultural Bureau at Washington for 1859, represents the Texas wheat as exceeding in weight that of any other wheat; a fact perhaps not generally known. But the great superiority of these lands in the production of wheat is found in this, that the crop is harvested five or six weeks earlier than in Illinois and the Northwestern States. Then, if the Illinois Central sold a million of their lands at seventeen millions of dollars, is it not reasonable to suppose that the Southern Pacific Company will get equally as much or more for theirs? The Illinois Central Railroad Company received, in the aggregate, for 700 miles of road, 2,688,000 acres. The Texas bonus for the same amount of road is 7,168,000 acres. In other words, if the Texas lands sell for as much as those of Illinois (and we cannot understand why they should not sell for more,) the Southern Pacific Company, under proper management, can pay for their whole road with a little over a million of acres of land, and be the owners of nearly six millions of fine cotton lands, and a road seven hundred miles long, running through the heart of a State capable of holding a more dense population than any in the South.
   It has been the policy of the Picayune to advocate all those works of internal improvement which have been of late years so rapidly developing the resources of the South, and which, if continued, are destined to make New Orleans the largest and wealthiest emporium on this Continent. This road connects us immediately with Eastern Texas. It establishes an intimate connection with a district of country of greater extent than the State of Pennsylvania. If prosecuted vigorously for seven years, it opens to our commerce the rich mines of New Mexico, Arizona and Mexico. In all probability, before ten years the gold of California and Australia will be brought over this line instead of going to New York and Europe. Suppose that, in 1855, when the merchants of New Orleans were so much embarrassed, from the want of navigation, that a road connecting Eastern Texas with the Mississippi river had been in operation, what would have been the effect upon the commercial interests of this city? And when we consider that Eastern Texas is filling up at the rate of from eighty to a hundred thousand a year, and that the emigration is destined to be largely increased by its railroads, who can estimate the result upon our commercial interests in the next ten years, from this road?
   No one doubts, or can doubt, that the Southern Pacific Railroad, if properly managed, will prove a profitable investment of capital. The history of public enterprises does not present a parallel case, promising such munificent returns. It has been shown that in the hands of its present managers the affairs of the company have been managed with consummate skill and ability. The reputation of Mr. Stevenson presents an assurance that such management will be continued.
   The plain, practicable views announced by him in his recent speech in this city, is sufficient to impart confidence as to his future course. All therefore that is necessary, if for the stockholders to come forward and second his efforts by subscribing for the insignificant amount asked for. They will be richly repaid. The golden harvest lies out before them, awaiting only the energy and exertion to gather it.

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