Fort Worth weekly gazette. [volume] (Fort Worth, Tex.) 1882-1891, 1889-08-22

! few years against corporations in general
| and railroads in particular. And l 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. Que of the mistakes of
railroad managemests that they
have delayed this conference in
and with the people until the almost
| threatened confscation of their proper
| ties has made it necessary. At this late
! hour they find themselves forced to take
| THE GAZETTE s 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 q 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 s, that
the people were being bled to pay
interest 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. I 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 I 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 $50, 900 ,0C0 first mortgage
bonds or It's $50 600, 900 second mort
gage bonds, nor on its capital
stock of S3S 900 900. On the other hand
its net earnings of about two million and
seven hundred thousand dollars, together
with So 900 200 raised by an assessment
of $40 on share, was put into perman-
ent improvements. Since the road
emerged from the receivers hands it has
paid 8 Der cent. interest on its first mort
gage bonds, which represents per cent =
on valuation of SIG 700 to the mile. No
interest has been paid on its secondI
mortgage bonds, which are non accumR3,;
lative, neither have any dividends besF
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 splendid case
against the roads, If interest was
beng 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 receivers certificates.
~
One of the most notable points made
in the Blake conference was
relative to the roads running
through the sparselY settled portions OF
the state. Mr.. Blake thought it unjust
that the people in the thickly settled
districts should pay exorbitant rates to
40 dc
loss entailed in operating roads in the
West. This was by far the most astound-
ing position upon which Mr.. Blake
essayed to make stand. And perhaps
it gave greater emphasis to his oft
repeated assertion that he represented
the whole people of Texas In the
first place Mr.. Blake should have known
that the law would not have permitted
the roads to discriminate against the West
even if they had so desired. But
doubtless the people Of the West Will in
dorse this champion of the people who
would, if he could, double their freights
i'll order to reduce his own. This is, to
say the least, funny position for ''the
representative Of the people.
-
The fact of the matter is this freight
committee was anything but representa-
tive OF Texas. 1t must appear to all that
they assumed much to make such claim.
And / might go further and state that
the subcommittee of seven were by no
means unanimous in this claim. The
gentleman from Laredo0 do not remem-
Der his name) told me that he indorsed
very little, if any. of the chairman's
views. He said further that if the
Blake idea were carried INTO effect his
section of the country would be ruined.
1t would be excluded from the benefits of
competition, and would be forced to buy
in Dallas. He did not want such con-
ditiOn Of affairs, and consequently he
withdrew his support from the commit
tee s movements.
Other gentlemen of the subcommittee
left early in the conference, apparently
Disguised, and along toward the last Mr..
Blake trod the wine press almost alone.
Genial, warm hearted Tom Smith OF
Navarro staid with him throughout, and
the sonorous Kearby raised his mellow
voice to the last. About all the others
fed.
~
I would be doing the city of Dallas an
injustice were | not to correct THE GA
zETTE IN one particular. So generally