Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1889-08-16
THE RAILRoAD's REPLY {.

ton:
THE RAILROAD 8 REPLY.
DALLAS, Tex, Aug. II. 1889.
To s. D. Blake, Esq, Chairman State Freight
Committee:
DEAR SIR-We have met you here at
your invitation to confer with you in
reference to reduction of Texas rates,
recognizing that you could not justly
claim to represent the whole people OF
Texas, but that you do represent a large
number of the citizens-and feeling that,
owing to the public character of railway
business, any citizen or body of citizens
is entitled to know the railway situation
in Texas, and to make demands for just
rates. We have conferred with you free
ly, and now each road acting for itself
severally, but uniting for the sole pur-
pose of saving time, IN one response,
makes the following reply to your writ
ten proposition:
In order that you might fairly deter
mine the business of any demand which
you might make, and the business of any
response thereto by the railway repre-
sentatives, we consider it of vital I'M
portance that you have full knowledge
of the
PRESENT FINANCIAL CONDITION
of the railways of the state. Hence, we
insisted upon placing you in possession Of
such information, especially in view OF
the fact that it has been hitherto asserted
by public speakers IN the state that the
railway companies were eXacting from
the people a far greater return, in the
shape of freight rates, than the capital
invested in the railways of the state was
justly entitled to earn. These repre-
sensations have been made in part from
data obtained from reports made by the
railway companies to the state comp
troller. In this connection, we viii say
that such reports are merely categorical
answers to certain questions propOunded
by the comptroller or the statutes, and
do not and never did disclose the full con-
ditiOn financially of railway companies.
In brief, we have shown you that one OF
the principal lines of road operating 1O4O
miles, in the year 1888, earned on freight,
passenger, mail and telegraph service,
little less than five thousand dollars
$4,000 over and above the actual ex-
pense of maintaining and operating the
railroad. Five thousand dollars or less
was all that it received from the people
an invested capital of S2I 900 900 in
bonds, without reference to the stock OF
such company; and, but for the fact that
it had outside resources and in part bor-
rowed money to pay interest on its bonds,
it would have defaulted in such pay
ment. We have shown you that another
of the most important railway lines Of
the state, operating 1897 miles of rail-
road, in the year 1888 earned, over and
above its operating expenses, interest at
3 per cent. only on SIG 200 a mile, which
no one, with any reasonable information,
can claim is anywhere near as much as
as a fair return on the capital invested,
taking into consideration the original cost
of the road and the immense amount
spent in the last few years in the way of
permanent Improvements.
We have shown you that the Houston
and Texas Central railway company,
IN the year 1888, earned only an amount
equivalent to One-forth of the interest on
its bonds. 1t is well known that this is
the best railway property in the state.
It is notorious fact that the Interna-
tional and great Northern railway COM
pany Zone of the most important in the
state) not, however, represented at this
meetings. in the hands of a receiver,
unable to earn money to pay interest on
its bonds. The same is the fact with
reference TO the Houston, East and West
Texas railway company.
We have also shown you that the Texas
Central railway company operating over
two hundred miles of road, in the year
1888 fell over seventeen thousand dollars
short of earning its
ACTUAL OPERATING EXPENSES,
and RECEIVERS certificates had to be
issued to cover that amount, the road
being in charge of q receiver. The Hous-
ton and Texas Central and Texas Central
railways have submitted to you sworn
statements of its officers in copies of their
reports made to the court. The report
made to you by the Gulf, Colorado and
Santa Fe railway company (the first line
referred toy was not gotten out for the
purpose of this meeting; buLIpfas a COPY
of a report made by the Auditor of the
road and submitted TO the directors a few
months ago If you doubt the correct
ness of this report, the books of the com
pany are open to examination by anv re-
sponsible citizen whom you may desig-
nate for that purpose. A
Referring again to the Texas and Pa
cific railway company, as we have stat
ed it only earned last year 5 per. cent. on
SIG, 700 q mile, and paid no interest
whatever on its second mortgage bonds
or dividends OH its stock. The books of
the Texas and Pacific railway company
are now in the city of Dallas, and for
verification of the representations made
to the committee, are open to examina-
ton and inspection by any member or
responsible agent that this committee
may designate.
Referring to the Galveston, Harrisburg
and San Antonio railway and other lines
operated in Texas BIZ the Southern Pa
cific company the published statements
OF that company show that it
FAILED TO EARN INTEREST
on its bonds il the year 1888, and that
the Southern Pacific ebmpany had to paw
in interest for such eomEany the. sum of
four hundred and seventy thousand dol
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