Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1892-03-17
some method of taxation by which to col

i SOLIO VI 1oAobAOA W hAASA w NOA-
lect it
The state has granted to her public high
| ways the power to lay rate tax upon the
| traffic of the country for the purpose Of
raising revenue for their legitimate cor-
porate purposes: and it has delegated to the
county, city and town governments t5e
power to tax the people for local pubic
| purposes alone. Without the states CO..
| sent, expressed through soma law, TIE co..
| lection of money by such corporations
| would be unauthorized and illegal. Wien
| ever any of those corporations go beyond
the purposes for which they were crested
in levying taxes or collecting tolls. they
abuse their privileges ana franchises. L
| the state knows this aud fails to apply the
necessary corrective, then she violates her
functions of government, to the injury OF
| the people. That she has, for the Lack OF
proper laws, permitted the extraySgaut.
reckless issuance of fictitious bonds and
stocks by her railroad corporations is g
| matter of public notorie5y. That she has
not been strict enough in keeping cJrntg,
city and town governments within their
proper spheres in respect to the issuance OF
bonds and scrip is equally true and well
known. Her obligations to the people at
home and abroad bind her now 70 check the
growing evil by legislation that will make
its repetition impossible.
Extravaganza in building courthousss
anu ldllS Dy COuuGlOS anu puUllC hd4Ao W
cities and towns beyond the necessities of
the times must be viewed with feelings of
regret by every citizen when he contrasts
them with the educational institutions near
by Taxes, on account Of such eXtravagant
debts, must necessarily be high. Condi-
tions in this respect are becoming burden
some now in some quarters The counties OF
this state now have outstanding ,OOO
and the cities and towns over $10,000,000 in
Understanding bonds against them. While
the state levies 10 cents for general revenue
and 1919 cents for free school purposes, or
the aggregate of 2715 cents, on the 500 val
uation of property, some counties levy and
collect three or four times and several
towns and cities levy and collect six to eight
times more than that amount Many small
towns and so-called cities have issued bonds
far beyond their capacity to pay within the
bounds of legitimate taxation. That repu-
diation will follow or that litigation will be
vexatious and continuous in resistance to
these bonds is inevitable. Many of them
are afoat now in the hands of innocent pur-
chasers who have invested in this class OF
securities upon faith in the credit and honor
of the state. As result they have reaped
no return or reward from the investment
except disappointment and regrets. Moth
ing better could be expected as a result
from a system of laws that
PERMITS ExTRAvAGANcE
The Ol SCCuElllCS u s1tlg
class. 1t has become common thing IN
the past few years for cities, counties and
towns to issue bonds for so-called public
purposes in excess of their ability to pay if
not in violation of the constitution. The
communicating influence of such bonds, with
the name Texas" upon them, though they
may be put forth by one of her small sub
divisions, is felt by every valid public Sc
curity sought by other counties and cities
of the state to be placed on the markets OF
the world In proportion to the suspicion
that may be aroused by a few abuses or
acts of default or reputation, either upon
real or technical grounds the confidence OF
investors in all securities emanating from
any municipality or county within the state
is shaken.
Unless restrictions are placed upon the
issuance of such obligations, so that they
NAV be confined to necessary public pur-
poses within constitutional limits, the peo-
pie may expect to suffer humiliation and
continued loss. No bond should be per-
mitted to issue or circulate BY county, city
or town bearing any doubt as to its valid
ity. When they have the seal of the gov
eminent, or any subdivision thereof upon
them, absolute verify should obtain, and
the faith of the corporation issuing them
should be pledged irrevocably to their pay
ment
At best the issuance of bonds by any sub
DIVISION VI lie SLdDS VI q lu4ulClpdAAtJ - VI
questionable propriety; and If they have to
be issued, they should have the stamp OF
honesty upon them so that reputation
could not follow.
1t would be well, therefore, to strengthen
the law limiting the amount of bonds that
any county or municipality may issue, so
that they cannot under any circumstances
exceed the limits prescribed by the consti-
tuition; and require that all Of them, before
they shall be placed upon the market for
sale, shall have their validity tested and
certified to by the encouragement, and be
duly registered in the comptroller's depart
ment. In addition to this, 1t would De well
to provide that after they had il these re-
spects complied with the terms of the law,
their payment shall become absolute and
shall never be contested. This will immedi-
ately guarantee the unobstructed sale OF
such securities bearing reduced rate OF
interest, and promote economy and justice
as well
While extravaganza exists in the issuance
of county, city and town bonds, It Is quite
insignificant compared 10 the reckless,
profit gate issuance Of bonds and stocks by
our railroad corporations. The railways
in this state have outstanding against
them $40, 0oc, 900 in bonds and stocks, an
amount equal to more than one-hah the
assessed valuation of all the property within
the state, including the railways them
selves, or SIS, 0O0. 900 more than the total
assessed value OF all the lands in the state,
excluding town lots, Many roads have
bands -snd stacks amounting 70 more than