The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1886-10-28

dollars in first mortgage bonds and in stocks Nu
an ms was piece OF credit mobelier fnancierin1
perfectly understood by all parties before the cns
tract 10 Dulld the road was taken. Thus Won see
! twentyfour thousand dollars of stocks and honJs
! secured by mortgage on the road were issued for
! eight thousand dollars in money If we were 70
stop here, no one would complain, except the nar
| ties. nut to pay interest and dividend on those
twenty-tour thousand dollars of bonds and stocL
freight rates are established by the road lust three
times as high would lie necessary to nav n fai =
dividend on its actual value, which shou d be est;
mated at eight thousand dollars mile, actually re-
9uired to build it, and the cost of equipment his
freight rate three times high as it should ha
the productive energies of the people are taxed 10
pay on roads, which, from heiDg convenience.
have become necessity. The first eight thonsanT
dollars of bonds represents honest investment or
that much money per mile, which the road cost "
the other sixteen thousand dollars in stocks and
bonds are watered stocks and bonds end renra
sent neither labor or capital, they represent moth
ing but the devices by which Incorporated roads
burthen the industries OF the country in high freight
rates.
This bond and stock watering was done in oman
defiance of our state constitution, which provides.
Art MI. No corporation shall issue STOCK
or bonds, except for money paid labor done, or pro-
perry actually received and all fictitious increase of
stock or indebtedness shall be void =" To the same
effect our statute law which declares that corpo
ration shall not issue any stock "except at bar
value, and to actual subscribers, who paw or he
come liable to pay, the par value thereof.
Remember that the three thousand seven hun
bred millions Of watered stocks and bonds is and in
in freight rates each year over six times as much
as the general government collects from the people
to pay interest on the entire national debtor the
gross earnings of the railway system of the United
States last year were 1256S, 1873.
PROTEST OF TEXAs DEMOCRACY.
to show you why our last democratic state conyen-
ton protested in its platform "against the methods
by which railroads are being operated. and why it
pledged the Legislature "to pass laws to correct
abuses want you to remember that while the
sworn reports OF railway officers in Texas for 1885
placed the valuation of the Texas railway system
at S4G,35O,36, on which they paid taxes, yet dur
ing that year they collected from Texas people in
money, on freight and passenger raes S25, 81, 404
or more than one-half the sworn value of their
roads, They swore that their net earnings that
year were S9,93O,93S after paying all expenses and
repairs, which would still leave profit of over
20 per cent upon their sworn values. High rates
were forced to pay dividends on watered bonds, to
the oppression of our producing classes Pause
moment and reflect, that our farmers and our pas
ture men must pay this freight tax; for its amount
Is known in advance, before tale of cotton, sack
of wool, or beef is purchased, and it reduces by
that much the home price of our products
The report of the NJ. X. IL 4 and the East Line
" Red River road, consolidated with it, showed
for 1885 net earning, above all expenses, that YEAR
of S2,S0l 734, which, if the road be valued at $40
900 per mile, was just 239-ll per cent on that
value collected in one year. Remember that the
average valuation, sworn TO by the roads that year,
was little over $4,000 per mile. SO, that if we
estimate the profit OF the NJ X. Il T., load by the
sworn valuation of the road by its own officers, it.
collected from the people, in net earn ng, over 55
per cent. OF its valuation in one year. Remember,
also, that this immense profit was made on the
low rates charged by that road on its long hauls,
while other roads united, now in the came pool,
load the commerce passing through our home sea-
port at Galveston with charges from two to five.
times as high as those charged in northern states
When,' once before, stated this fact, 1 was re-
minded in a newspaper how that road had
bonded debt, in 1854, of about $40 OOOOJ, and how
it had cost SG6,C00000. What of that: We have.
seen how waeIed bonds. and stocks enter into the
cost of railroad construction; aud do the apologies
for this organized plumber pretend that the
of tn s country should be burthened to
pay interest on improWdent and speculative debts.
created by public transpUrta' ion companies?
Mr.. Gould settled this question of cost not three
weeks ago. when he told the reporter of the New
York Herald that he would extend one of his
roads, this year. one hundrt mile, which would
have the best steel rails and the best oak ties, and
would cost twelve thousand dollars per mile.
THE TRAFFIC AGENT.
Not three weeks ago it was published that Il c,
pool or traffic agent for Texas roads had ordered tie
Missouri Pacinc road out of the cotton trade at
Dallas until other roads had rec 1lyed their pro-
portion of the crop This means, that citizen
If Texas cannot selo ct a road, over which his pro-
ucts may pass at air rate without the consent of
me man, exercising the powers of an autocrat
ways. The effect of these combinations is de-
tructve to our prosperity. Freight rates are
liked so high on short haHls here in Texas that our
cereals cannot he transported, and Kansas corn,
y hen our crop is short in western Texas, shuts
rom that market our own grain grown in other
portions of the state The directors of your blind
isylum here are compelled, on account of freight
ates, to go TO St LOlis To get broom corn of which
he blind children make brooms whenthey desire
o buy It in Hill county, Texas, Thus, while the
,rite of our farming lands is diminished by high
reight rates on farm products, our Texas roads,
,uit with Texas lands, are made to enhance the
alue OF farm lands in distant state.
MANUFACTURING IN TEXAS IMPOSSIBLE.
Nor is this all. Farm implements are brought
ere from northern states at the same freight rate
harged for conveying the same article any dis
ance over one hundred miles from point to
mother in Texas. Not ten days ago Gen. Ross
I'D myself We're told by a wagOn-maler in eastern
Texas that he could not compete with northern
Nagon-makers on account of freight rates, dis
in favor of northern factories, and
which kept him from selling his wagons over
hundred miles from the shop. The average freight
ate of all the other states, where there is water
way competition, is but little over five cents per
hundred pounds for each hundred miles; here our
Dads are permitted to charge fifty cents for the
anne service, as maximum rate. The result is,
hat they fluctuate their charges below that at
leasure and reimburse themselves from arbitrary
reght taxes on the people for all 10, ses, from the
mounts they lose on verdicts for damages up to
he loss they incurred from the strike of laborers
ist spring.
The railway manager is the one irresponsible
over in Texas, defyiog law, and fixing in his own
secretion the toll rates paid by the people.
How can manufacturers, so much desired by some
eople, flourish in Texas, when this high price on
lie short haul is charged, and discrimination is
lade against home freight destined for a home
larket! Thus the uncontrolled methods of our
Dads have solidihed northern capital and mort
ages all our industries to New York and New
ngland.
THE FREIGHT MONEY PAID NEVER RETURNS.
The worst feature yet remains, when we con-
der that the millions of money, paid to feed these
altered bonds, 90 north, where all those securities
re held, and never returns to us. Thus the rail-.
BAD magnate and the protective manufacturer of
lew England, living in the same state, and banded
Igether by mutual interest join hands, and with
le centralized power of their incorporated capital
X freight rates, which practically mortgage us TO
le manufacturing states.
What shall we say of dem
cratic candidate for legislative
Onors, who will not pledge himself, in the Ian
lage OF our last state platform, "tO (help) pass
ws that will correct abuses and prevent unjust
THE STANDARD OIL COMPANY.
How rapidly fortunes have been made, also, by
iway di elimination, is shown by the progress
the Standard oil company 1t started with a
pital of 100000, which, in eight years, had in
eased to S30,0O,O05, and in eight more years to
OO; OO,OOO. This great wealth was chiefly created
conspiracy with railways, which paid back to
at company in rebates during that period ten
illions of money, as stated by Mr. Hudson, in
8 work railways. Thus, while it destroyed
competition and monopolized petroleum oil
brother, the American oil company, by like
'actices. now owns every cotton seed oil mill in