The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1882-05-04
Alike in the Interest of People ana
Railways.
Interesting, Instructive Comparisons.

Mr. Chairman and Gentlemen OF inc committees
By your courtesy | have the honor, as
enc of the representatives OF very large
railroad properties in your state, to discuss
before you this evening the various pend
ing bills affecting these and other railroads
in Texas. Among the list will be found
some of the pioneer highways of the south
west, which have had long and donb ',"i
strugcles with poverty and financial as
,sters until now their final success seems
reasonably assured unless oycrtaken by
ca,amities unGeseryed or unexpected.
Itwould seem that the history of these
corporations, or the experience OF those m
terested in and identified with them
through their days OF gloom to success,
should furnish information most valuable
to the legislator, in the exercise OF
n lust and enlightened judgment, when
framing laws which must shape the destin-
les of these great corporations for many
wears to come. And not only this, but
policy that must and Will determine the
fate of new enterprises now taking shape,
and upon whose successful execution de-
pends the rapid or tardy development of
the larger proportion of your great empire.
We do not arrogate to ourselves superior
wisdom to you or your associates. we
only claim that our long experience IN
department of business which Is most dill
cult and complex entities our views TO
grave and careful consideration, so far as
You believe they are based upon honest
Convictions and inspired by due regard to
the truth Speaking for myself, the best
assurance / can offer of my purpose to state
unyarnished facts, is a pledge in advance
that stand ready to verify by undoubted
evidence every statement | shall make IN
your presence.
WAYS tor the travel and commerce of the
country owe to the public to fix their pas
seuger and freight tariffs as low as may be
consistent with the maintenance of the
property in safe condition, paying their as
sessments of taxes and the necessary costs
of economical operation, and fair and
reasonable interest on the money invested.
With this the railway corporations OF the
state can subsst and will be satisfied ana
we believe the people of the state do not de-
sire the accommodations furnished and ser
vices performed at q less rate than Will
WELD these results to the investors and own
ers. We therefore desire to call attention
to few facts tending to show that until
the volume of trade and freight shall have
sufficiently increased to justify it, the rail.
roads of the state cannot subsist and pro
tect the. money invested under
or freight tariffs In proof
OF this, attention is called to the last report
of the comptroller ofthis state made to the
legislature. At the date to which that re-
port relates (thirtieth September. 1881
Texas had over - miles OF railroad, COST
ing largely over one hundred and fifty mil
lions ot dollar This report shows 'hc
name. the cmital stock paid in, the ..mount
expended on each, the alIolnt of indebted
sneSs the earnings and rost OF operation
fFs.Hisnauce tfou this 1t Will be
NO RoAr mas VT a"rN ABLE To DECLARE A
DIVIDEND
In the s.UgAnoiders, some of whom paid up
their stock more than twenty years ago.
Some of them have been able, by the
exercise of the greatest economy, topay the
interest on their bonded indebtedness, while
others have not been so fortunate. But
none of them have made any return 10 the
st )ckholders whose money went into
the original enterprise. This bonded
indebtedness is for the money
that went into the construction and equip.
ment of these roads, and enabled the COM
panies to continue their enterprise after ex-
hausting the capital stock paid in; and TO
this we are indebted for the greater part
of the railroads we have now. This in
debtedness has been incurred under the
sanction of the state, by authority given IN
the charters of the several roads The
money was advanced on faith OF that au-
thority, and so long as the net earnings of
the roads fail to meet the interest and pro-
vide a sinking fund for the ultimate pay
Iuent OF the principal the stakeholder can
not hope for dividend on his stock which
originally projected The enterprise. As
stewards of these enterprises, we feel it
duty we owe, alike 10 the people oil the
state and the stockholders, TO call attention
10 these facts when the question is mooted
of reducing the tariff of charges to a lower
standard than that now established by law.
THE PRESENT STANDARD
was established three years ago since then
we have had good crops In the state until
last year, and during that time the coun-
try has oeen rapidly recovering from Imam
cial depression. With these advantages
we believe the present tariff of rates, If not
DISTURBED too soon, will protect the railroad
interest and encourage like enterprises IN
other portions Of the state, until such time
As the increase Of travel and frcights from
the growth Of the country, its productions
and commerce, will enable the railroads to
live aud tie people 10 be served under
tariff equitable 20 the former but cheaper
60 IT, sttef That this must and will be
done. ge admit r only question Of time
bat in determining the proper time We
rubm that yOr Guild be quite as careful
OF Tie inicrsa. as well Of the stockholders as
TIE people and 70 as not TO hasten IL too
ssoyn nor delay 600 long.
We hrd he honor 10 memorable his er-
cefisrH 81 thraa years ago, when we reviewed
fiis question, and you will pardon me
a. -erleating q part Of what we stated on
tina lcasion. The following is an extract
frafn that memorial:
1.-the maximum rate is made at low
figure. those articles which have been here
tofore transported At a Remarkably low rate
must necessarily be raised 70 make the
avprage remunerative. fOr Instance, one
r.rlload N cotton. IN round numbers, is the
product Of the years labor Of i've men and
eighty acres oflaDd. and valued at about
Al al So One carload Of lumher is the
product of one acre and the labor 81 about
one sixteenth OF q man, and valhe1 at
frs dollars. and the cost Of hauling Ncth,
Irrespective Of handling or the r1sk oi I've
efe. nav Be considered AZ nearly the saine.
the low rates charged on lumber
r. only compensated By The charges
made on frsiEhts Of = higher class, 80 that
the average may be q fair comparison
Iumber in Austin. in $50, was worth
ri,ouf SIS per thousand feet. board meas
ure Under the present low rates which
fhe rnarimum permits railroads % Trans
r,o~t. d ESTABLISHES The value % lumber a
a usfin 81 shout ti7 rer thousand feet, but
fbonld the rnariuuin b. reduce1. say one
hall the lUU ne upon Jun Der ana slfui-
lnrlr classsi nriicles must b. raised %
male a rem uuer1flFe sverige rate for the
frfal TONNAGE hauled. and lumber w0uld
fhpn sen e. Austin Or fngre than tEics ne
pressnt value r'ef th0usard- This instance
wouid appiy 20 almosi every point in The
~s~fs aflrfed 81 rEilrrad rates. aud
w~ulf feud. rrt only - double
o. vnlue - lumber. but neueaarilT
l-.---~oe tie crst % The rrn-
- erf rl-rfuaer % eli Strides rhiah
- 49, u ne i0uest rr'es. sd ~ -
~ r-evert ~ t-Husl'1riHti1n 81 sofnt -
"A ~r-er-1 crl-riati1r I'll srhitit- fr
----,s --rrr 49,. fisf q cnr-load q co-,o..