Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1892-03-17

| SOO.UUU 10 JIie l1lie, WHEN Luey COSG less LQdu
| % per cent of that amount.
When it is known that in her munifcence
/ the state of Texas granted railway compa-
! MES about 5000, 600 acres of land, besides
| other valuable privileges, and that the peo-
| pie were liberal in granting them rights of
way and generously contributing of their
| private means to aid them. it does seem
that such attempted encumbrance of our
| commerce is unjust and displays bad faith,
| to express it mildly. These bonds are is
F.; sued recklessly without restriction, and in
| most instance fctitiously and without
| consid grafton, and are foated on the mar
| kets of the world bearing on their face
i the supposed authority of the state. They
i are sold and the money obtained for them
IS DIVERTED
to other THAI corporate purposes. They
must either ne paid or repudiated. If the
former, the people are to be crushed; if the
latter, they will be scandalized and held up
IN scorn to the people Of the world as dis
horaat. 1.-THE payment of these bends i'm
Ucses such burdens upon commerce as to
destroy the traits Of labor and the just
p,ofit due 10 capital for its legitimate use.
Fer The past seven years there has been
issued On an average annually over SO, 000,
600 of thsss pon3s and stocks. During the
past year, without much improvement or
extension Of the roads, there was issued
over 10000, go of them. 1t may be con-
G6uuSl LlaG WIN SUCH OodiA15S JslS plOtiC Is
not concerned. This is fallacicUs and I'M
tenable for the reasons: l. That the public
is always concerned in fair dealing; 2, that
these corporations arg creatures Of the law
and it is the duty OF the a.aJe 20 keep them
within their Charter limits; 3, If these Sc
curities are paid il must ae ous Of the reye-
nue. derived from traffic charges collected
from the conmsrce OF our country
To contend that mortgages placed upon
the railway property OF this state to secure
interest bearing bonds issued and sold by
the corporations in no way concerns the
public can have no less purpose in view
than deception. Are they ever to be paid7
If not why are they issued and sod! Il
they are to be paid, how and from what
source must the money therefor be rai5sGl
BY traffic rates levied On the commerce
hauled by the railways, Of course. BSfare
the present railway commission had pre-
pared or proposed schedule OF rates to
govern the railroads an elaborate argument
was printed and filed before it by cor
porate representative protesting against the
reduction of transportation charges upon
grounds that plainly show the necessity of
the state protecting the people while it can
against fictitious issuance Of SIci bonds.
He commended for and submitted decisions
of high courts in support OF the following
proposition:
1.-The commission cannot constitutionally
establish a tariff of rates which will de-
prive the railway companies of the power
of earning their operating expenses, inter
est on bonds legally issued and some diVi-
dend on their stock"
Suppose this rule should be established
by the highest court of our state or of the
United States, in what condition would
Texas be placed with the enormous amount
of $40, 600, 900 of railway bonds and stocks
to be paid or supported by revenue collected
from the traffic of the country by trans
oh holt
Is called by just laws, will it be until the
railw1y will have $1,000. 100000 of stock
and bonds isSuedl As there is now no
legal check on them, the pleasure and con-
venience of their owners and directors
can alone be consulted and their answer
given or refused to the question. If the
companies can, without restraint, issue mil
lions, what prevents them at pleasure issu-
ing billionsl Nothing; they are absolutely
free in this respect. Since they have been
deprived of maintaining the highest rates
which the traffic could bear, under the old
method, they will resort TO the convenient
plan of issuing bonds and demanding rates
of the commission high enough to pay the
interest on them. Further liberation Of
this course presents forecast Of the fut-
ure of Texas that,can not be misunderstood
by the most ignorant. While the constitu-
ton provides that mo corporation shall is
sue bonds or stock except for money paid,
and all fictitious increase of stock or indebt-
edness shall be void" and while statutes
have been passed substantially in the same
language, yet no method has been pre-
scribed by which a violation Of the consti-
tuition may be exposed or prevented. As
remedy for the evil
embodying the following features is hereby
respectfully recommended to your honor
able bodies:
l. That no bonds or stock shall be issued
for other than the purposes mentioned in
the constitution, and the amount thereof
limited.
q That they shall not be negotiated or
sold until the railway commission or the
attorney general has certified that they
have been issued for the purposes and in
obedience to the provisions Of the constitu-
ton and law, and then have them regis
tered by the comptroller.
3. That all railway property placed IN the
hands OF receivers under foreclosure pro
ceedings shall be sold to satisfy the debts
within given time.
1 That the charter of any corporation
violating any Of the provisions OF the law
by issuing fictitious bonds or stocks or
otherwise fraudulently incumbering its
property shall be forfeited.
5. That it shall be the duty OF the state,
acting through the attorney general, TO
enter any court of justice having Jurisdic-
g.. ,v,d r1lfdi4rr ~