Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1889-08-26
whether the sovereignty claimed by the
state or the sovereignty claimed by the
nation is to be upheld.
Texas and the Railways.
Denver Republican

Denver Republican.
The News remarked editorIally some
weeks ago that the railway question was
liable to come to a focus in Texas sooner
than in any other state. Events now IN
progress still further justify the assertion.
To the legislation which has already been
placed on the statute book, some OF
which was characterized as Oppressive,
and calculated to iniure the railways and
not benefit the people it is now proposed
to add an amendment to the constitution
creating a railway commission with arbi-
trary powers. In the present temper of
the people this amendment is more than
liable to be adopted
Asa part of this anti-railway move
ment q committee of representative busi-
ness men of the state was last week in
session at Dallas, and was in conference
with the leading managers of the leading
Texas railways. 4 demand was made
by the business men for reduction or
rates on various commodities varying
from 1913 to so per cent. The reply or
the general freight agents to this demand
is a remarkable document-remarkaOl
Tor its evident truthfuldess and candor,
as well as for the facts which 1t presents.
1t shows that there is not profitable or
paying line within the state, unless 1t be
the Denver, Texas and Fort Worth,
regarding which no figures are given.
In fact the statements are startling
and will do more to discourage the in
vestment of capital in Texas railroads
than all the hostile legislation ever en-
acted It is shown that the Gulf, Colo
RADIO and Santa Fe, with 104O miles OF
road earned only $4,000 IN 1883 over and
above its operating and maintaining ex-
penses. The Texas and Pacific, with
1897 miles of road, earned 8 per cent. on
SIG 700 a mile above its operating eX-
penses, and paid no interest on its second
mortgage bonds or dividend on its stock.
The Houston and Texas Central earned
only one-fourth the interest on its
bonds. The international and Great
Northern and the Houston,
East and West Texas, and the
Missouri, Kansas and Texas are all in
the hands of receivers and unable to earn
interest on their bonds. The Texas Cen
trail fell Sl7 600 short of paying its actual
operating expenses. On the Galveston,
Harrisburg and San Antonio and other
roads operated by the Southern Pacific
that company had TO pay $40 200 de-
faulted interest. The St. Louis, Ar
kansas and Texas, with a mileage of 1880
miles, earned only a surplus above Oper-
ating expenses of S22 900 with which to
pay interest on the capital invested in
| that much line. Concluding this fright
full summary the freight agents say
Whatever NAV be said about watered
stock or bonds, so long as the railway
companies of the state are earning no IN
| terest whatever on their investment or
are not earning interest on the actual
| cost of the roads, and hence cannot pos
! sibly pay interest on any watered stocks
or bonds Gf any there beg, we cannot see
| that the people Of the state can complain
! that they are being charged more i'll the
way of railway freights than they should
| be charged, or that the roads are
| earning more than they are justly enti-
| tied to earn.
! The freight agents then enter into an
! elaborate comparison of Texas rates with
! rates of many of the other Southern
states, showing that on the same articles
| and for the same distance Texas rates
| are the lowest. The letter concludes as
| follows:
! We now trust that this committee, and
| through them the people of Texas, will
! understand our situation; that in view OF
! present and past earnings 1t is impossible
for the railways of the state to make any
general reduction in present rates,
! but that still we have always
been and now are willing to
make such rates on particular articles
as are necessary to foster and secure that
production in the state, while we can
not, as often urged upon you, make re-
| auctions Ill rates upon articles and pro-
| ducts generally which result in any ma
terial decrease in the present earnings Of
the roads. We recognize thai
| orr interests are identical with the inter
I ests of the people of the state at large
and we desire by this means to come il
| closer communication with them, and
as far as lies in our power, promote har-
mony and cooperation between the rail
way companies and their patrons-tht
! people of the state.
In this connection an exceedingly able
| letter from General Manager Meek of the
Denver, Texas and Fort Worth deserves
mention as very important part of the
| literature of this discussion. Mr.. Meel
takes up the relation of the railways t
! the state, shows the interest which they
! have in the development of Industries anC
of production in general, demonstrates
that his own line has added S170 900 ,00t
in land values alone to the taxable
wealth of the state, and pledges hjmsel
to do whatever is within his power to pro
mote the prosperity of the people as con
tributing to the business of his own line
It cannot be denied that the railway
have presented a state of facts which
will be difficult to answer or explain
away. These statements may not satisf.
the Dallas commercial men, or proven
additional hostile legislation, but the,
will put stop to railway building il
Texas with promptitude that will be
serious drawback to many sections Of tn
state.