Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1889-08-18

nStHef or not tDe dlTecLlng power OF
| the committee had a motive in the man
| ipulation of the press, it is safe to say
| that in case of another conference the
railroad representatives viii not trust the
press feature to Mr.. Blake When they
learned that only one paper had been in
yited, they were indignant and felt that
they had been played with, that they had
not been accorded the courtesy which
they had been led to expect.
After the press matter had been dis
posed of, came another wrangle. This
was caused by the Blake committee as
Stunning arbitrary power, strictly in
the name of the people, and
| demanding to know if the traffic
men were going to grant the re-
auctions asked. This appeared to be o
strange conception of true courtesy. The
traffic men had been invited to a confer
enoe regarding the reduction of
rates, and when they appeared in
response to the invitation, they had
a demand hurled in their teeth;
not even the courtesy of a request. If
the traffic men had recognized the COM
| mittee as an authoritative body, they
would doubtless have trembled in their
boots But they managed their case
of the conference Chairman Blake and
the sonorous Kearby must have felt that
! the dear people had failed to convey to
them the power to deal summarily with
the railroads or anything else. AT any
rate, while the argument on this vicious
demand was III progress, an outsider like
the writer could not repress genuine con-
sternatiOn that seven men, purporting to
represent the 2 800 900 population of
Texas, could make an arbitrary demand
of men representing an aggregate invest
ment of 5000, ZOO 200 without hearing
their side of the case, or the conditions
which bound them to whatever course
they might take.
-.
No one will deny that it was of the
greatest Importance that the railroad
men should produce their facts and fig
ures relative to the condition of their
properties. This ignorance on the part
of the public concerning the internal
condition, or rather the financial condi-
ton of Texas railroads has had not a
little to do with the great prejudice
which has been amassing within the past
few years against corporations in general
and railroads in particular. And 1 be-
lieve that the railroad problem would
have been much nearer solution now If
the railroads had adopted an open policy
several years ago. 1t has surely
been one of the mistakes of
railroad arrangements that they
have delayed this conference in
and with the people until the almost
threatened confiscatiOn of their proper
ties has made it necessary. At this late
hour they find themselves forced to take
THE GAZETTE IS advice to the roads and
people, viz: ''Get together. -
To repeat, it was of the greatest i'm
portance that the railroads should give
forth facts and figures concerning their
present condition, and now that the con-
ference is at an end, it is the writer's
opinion, given tor what it is worth, that
the best result of the conference
was it's tendency to give the
people an insight into the case.
The people generally know very
little about the railroads. The great
mass of the body polite is swayed in its
opinions and prejudices by the dangerous
and reckless statements of politicians
and demagogues, who know just as little
of the subject. 1t is very popular nova
days to say that the railroads are suck
ing the life out of Texas commerce, that
the railroads buy legislation, and that
they engage in a nefarious robbery of
the people who sustain them by collect
ing tariffs which are levied to pay inter
est on fictitious bonds and watered
stocks.
1 myself heard Col. Tom Brown say,
in his speech in this city July 8, that
the people were being bled to pay
interes st on bonds that far eX-
ceeded the actual capital invested in
railway properties. In his excellent
speech Tuesday afternoon Mr.. Lovett
threw great deal of light on this sub
ject. had long been under the i'm
preston and rightly that the Texas and
Pacific was bonded for great deal more
than was actually invested in the prop
erty, and l also believed that the Texas
and Pacific was paying interest on such
bonds. But what are the facts? The
Texas and Pacific went into the hands of
the receivers in December, 1885, and re-
manned there until October, 1888. Dur
ing that time not cent was paid in IN
terest on its S25 900 ,0C0 first mortgage
bonds or It's S25, 200 200 second mort
gage bonds, nor on its capital
stock of S3S ZOO ,00O On the other hand
its net earnings of about two million and
seven hundred thousand dollars, together
with So 200 900 raised by an assessment
of $40 on a share, was put into perman-
ent improvements. Since the road
emerged from the receiver IS hands it has
paid per cent. interest on its first mort
gage bonds, which represents 5 per cent.
on a valuation of SIG 700 to the mile. No
interest has been paid on its second
mortgage bonds, which are non-accumu-
lative, neither have any dividends been
declared on its stock.
If these figures are true, and there is
no reason to doubt them, they change
the aspect of the case considerably.
1t would be a splendid case
against the roads, If interest was
being paid on the fictitious bonds and
dividends on the watered stock. But
what difference does it make to the
Blakeites and Brownies or the public
generally so long as the roads are not
paying interest on these bonds or declar-
ing dividends on their stock.
1t Is not necessary to mention the re-
ports of the other roads, for they are in
worse condition than the Texas and Pa
cific. They have paid absolutely no div
Idends at all, and some of them have
paid operating expenses only by the issu-
ance of receiver g certificates.