The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1882-05-04


liability of rates
MlIidouCo, that ~ Il
Iling aud druwbHCEs
M for any serious com
within the borders OF the
Drxns. We ARE Willing 10 submit
r1iCt Of the intelligent aud success
IS men Of the state To sustain OuI
this question.
CONSOLIDATION.
IS branch OF the subject, ! shall con
self with calling your attention to
f2i6 and 1917, OF your Revised STAT
uN,. These articles are word for word IN
the language OF your Constitution. Ihey
are IA positive interdict both against
the consolidation of parallel and com
peting roads, as well as an inter
dict against the consolidation or
any railroad company organized under
the laws of your own state, with corpora
ton organized under tue laws OF any other
state or OF The United States. These artl-
Giles IN AXE such consultations void, ana OF
no effect any citizen, tor himself, or for
himself and other citizens, or the state with
its strong arm and its Overlooking tre' sury
for the people of the state, can invoke the
aid of the courts, and have such combine
tions declared void and of no effect. what
more can a state desire? What more can
the people ask J.? Ifyou have the power TO
protect yourselves under existing laws why
. should vindictive legislation be passed rs
\ contemplated by some of the bills now
pending which propose, punlshmenls
that are harsh and wholly inadequate
to the oflensc /? You may enact laws until
the day of your adjournment, prescribing
the penalty of forfeiture OF charters Tor
such combinations, but presume no law,
Dr. will assert that such law Will pc held
effective to the extent OF FORGETTING the
charter rights of CORPORATIONS, and espec-
ially of those brought lnLo existence prior
to the constitution 1876.
GENERAL POWERS OF THE LEGISLATURE.
We deny the proposition, as asserted by
Jere Black that railroads are public prop
erty'' and subject to the absolute and UNI
limited control of the legislature; or the
other equally absurd proposition of Mr..
Crittenuen, the mouthpiecc OF the antl-mo-
nopoly league of the state of New
York when he says: ~ Is
primarily due to the state to furnish pub
tic highways but if the state has not the
money for that purpose, it has the power
to borrow it from the railroad corporations;
the corporations it creates aud from when IL
thus borrows money stand eXactly III lhe
position of the state and are obliged TO adj
lust their tariff with the view OF collecting
the annual interest on the investment, and
such additional amount as may be neccs-
sary to create sinking 1und TO repay the
original investment" The absurd part OF
this proposition is, that the state is put in
the light of the borrower of money from the
railroad companies but it does admit a
proposition that we say IS cminently true.
That the tariffs must be adjusted with a
view Of collecting the annual interest on
theinyestment and such additional amount
as may be necessary to create SINKING
fund to repay the original Investment.
This of course implies the earning OF the
, necessary money TO maintain and operate
b grower of the money, would not
the state have to guarantee the interest and
refund the capital invested in roads that
did not earn sufficient money TO reimburse
n their owners? ,
The editor of the Railway and Farmer"
Commenting upon this, says: There are
SOME INSTANCES where the state has Dor
rowed money to ouiiu highways. The state
of n w York built the canal, but the state
is the owner of it, because it has assumed
all the Obligation Of refunding the money,
Georgia and Massachusetts have built rail-
roads with borrowed money and arc respon.
sible for the payment OF the interest ana
the refunding OF the principal, whether the
roads earn money or not. The railroads OF
this country, with few exceptions, have
becn built with the money of the rail
road companies, and at their sold
risk and these roads are as much
the property of railroad corporations as
the Erie canal is the property OF New
York. -
lie saws further, that the state, IN au-
thorizing companies to build railroads, says
To the railroads, 1--WE expect you to furnish
all the necessary means and take all inc
risks; and this entities you TO receive all
the profit you can legally obtain, under GER
tain restrictions, upon which we may agree
as to maximum charges
And again he says: 1.-The only condition
that can be enforced uyon the railroads IS
that their rates of transportation shall be
reasonable and just"
ask what are the extent of your powers;
The constitution says you can regulate
the maximum of freight" but you
must not overlook the fact that every
special charter granted by the sta'e
Of Texas, as well as article 1919, of the Re
yised Statutes, provides that every rail
road has the right from time to time, ic
borrow such sums OF money as may bt
necessary for constructing, completing, I'M
proving, or operating its railway, anu tC
issue ard dispose of its bonds Tor any
amount so borrowed, and to mortgage ii'
corn crate property aid franchises, and t6
secirre the PAYMENT of any debt contracted
byspcb corporation for the purpose aiore
said. ..
torsw who built the railroads in your state
! have yoneto the capitalists and have said
"Here are our franchises; this is the exist
ing law; we desire to borrow money"
The capitalist, .eeing the max mum i rs,f
allowed for passenger and commercial trai
fic makes his calculation that the rapidly
- growing prosperity of the state Will Justly
him in the belief that, under the rates
traffic allowed he Can realize lar return
upOn his money. nc inhhes wv iNe'
the light Of the law as II exists, ana ll'
railroad is built. We maintain that upoi
the very highest ground OF good ialtn,
not upon solemn legal obligation, III
state cannot diminish, in justice 10 IN
lender of the money, one fartbing of tn
rate allowed when the money was borrowe.
in This state, until such time as the busl
ness of the road will, at a lower rate o
traffic. make a tsir return to the lender
who has authorized the loan under tn
laws OF Texas, and under the same la'
took a mortgage upon the property anC
franchises for the repayment OF his money
Eminent law writers have sai'
that contracts are 10 be governe'
Inv the law in force at the time OF their exc
.c2tion. This Is the fundamental principle
Of iurisprudence Of all enlightened nations
Isay when a legislature authorizes con
tract 10 be made and the contract IS sub
seouently made in accordance with IN
legislative authority, no subsequent iegisis
zion can effect the validity Of such contract
And il is fairly TO be desuced from TIL
nripcjple that contract Is always 20 D
Considered and construed with reference y
tbe law under which IL is made. rs mucn >
as iftbe law was inserted Yerbaum in W
contract And 80 far as the parties 70 ~ ~
concerned, IL is unalterable. Ihe paftle
are bound n act As u the law, 81 Wv.
,nsda vas enforced Therefore, when
Iegisiature authorizes a railroad 20 Dor
NV money or hypOthecate its franchise
or rr0pertv, tor this purpose, 10 The eNieii
of The value Of such franchises ana sue
ur0pertv the stale cannot inyalidaie the =
1uritv by subsequent legislation. IL
80. uofd 20 the cauitallst =" Lena lul