Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-01-13

Ina
baud has ever been an olense araipsi eoe5
morals, and should be in All fespectge cTifne
against the laws Of every civilized country
IL r. unnecessary to 80 any further than fhis
propagation 70 point out the interest Tho rotNS
has In checking the growth OF Artltious eee-,-
mites OF every cinsg y j. The duty Of the gov.
ernment % mako tha acquisition of propsrtv
through fraudulent practices 4 crime sbs
owes this much 70 good order fair doaiinrrnA 2,
honesty. Aside from this view, conNdaringa
feature Of perhaps more SEVERAL imuorisres
the fact inustuct be lost sight ~ tint after AZ
tho bonds Of railways must 30 paid an rers,5f
ated. Their payment Is necessarily confined 10
thc source ot revenue collected through fre M
tolls or taxes laid on fho commerce ~5,ri,5 Ky
railways. II may b. contended that az tbry
are VOID undei the constitution they cannot bo
under reasonable Condition. Tbieb sn forsu
nhtely DO pot exist under the laws nor IN the
ecourts q Ie1es A few men own the stock OF
70 carry out their viii. resolution AZ nsssrd
IN pursuance Of which interest. bearing bonds
are issued and the railway property mortRaeed
90 pay them They are foatcd sold. an bv.
pothecated for cRsh. Neither the prcpert, mn.
tho public receives dollar OF tnis money tot
the stocSnolder9 OF the owners Of tho road ap.
proprHte " ~ q line continues 20 be oporatss
by such stockholders and owners. 10 rneet tbe
interest on such fictitious bonds train forced
and section gangs must be reduced wages oil
employees decreased, and traffic charges raised
60 the highest point PERM ted by law or hat
tho trafhc Will bear. Within few voara Nv
this process tho property becomes improvof.
high expense; default of interest follows. AMI
a foreclosure Of the inOrtgnre givon 10 a.,-ttro
theso bonds the result Under the laws and
Jurisprudence OF this state * would bo auite
Impossible Tor the Incorporation. composed OF
the directors stockholders and oaicers
who psrpetr5ted the fraud. TO en-.
ment on the bonds II not ostopped ~
lnches they could not be permitted 20 take al.
vantage OF their own wrong. 80 tho process
Of toreclosing the mortgage aud establishing
the amount Of tho fictitious Indebtedness upon
the road by Judgment OF The court proceeds
pnobstructed, IL is strange enough 10 cay, bat
70 Is nevertheless true, thRt the state govern.
mont is now. uudor the present lava unable 10
appear ~ suoh case or rllao ~ voice araiuat
the fraud. socaled reorganization genor.
ally follows such judicial proceedings. None
OF the bonds or stocks are cancelled but are
generally increased, sometimes 10 double or
quadruple the former amount, by continued
abuse 81 corporate franchises. Thus the prop.
erty OF the people Is threatened with ultimate
conhscstiun, and their liberties imporlled
no question now eonirontg your honorable
state within the next fifty years that can
promise more interesting consequences TO the
people than this one. II & IS iudicously set
tled, 70 VIII take but short time FOR the na.
teriol interest8 81 thls state TO bear the whole.
some fruits IN great abundance ON tho other
hano n ~ ~ eNoiaed or temporzed with its
hnnetul eject will IN time be visited upon every
neutrality-suspicious. cltzeu OF this slate. It's mo.
mtntous importance certainly cannot 30 do.
niea now ny any Intelligent man, since the for.
elgn nondholders, through federal court have
obtained temporary Injunction gunpouding
the rates nNed by the railway commission, upon
the complaint, emong other things, that they
We're nOt hlgh enough, aitor paying he *
pensOs OF the reads 10 meet the Interest upon
tneT 6onds many millions OF which with
t hg nght q truth shed on them, would up
abuse IN violation Of the express provisions OF
tho state constitution BY that action the
point 80 boldly, sharply made, and tho tronlc
rnto9 Ia this country must be maintained 20
pay interest on n tho railway bones 10 b
material 70 the public, therefore. that none but
honest bonds, issued IN pursuance Rud within
tho limite oi me constitution directly, shall BE
permitted.
10 correct this evil and to prevent IS con
tinuauce 4 law Oh DOdying the Following feat
ures ~ hereby respectfully recommended 10
your honorable bOdles;
I. That under The direction OF the railway
commission, experts shall examine aud report
under oath the fair valuation OF the railroads
In this state, which when approved by the com
mission shall b. alec Ia the once Of secretary
OF state az tue ofioial standard FOR the Issue Of
bonds ana stocks In the future
.. That NO railway bonds or stocks shall be
authorized Or executed, except Tor limited
amount. for The PURPOSES mentioned la the con-
G0tutlon. and then only AZ the railway general
3 That they shall not be negotiated. hypoth.
ocatod or sold until after the railway cominis.
SION shall have glyGn a certificate that they
have been Issued within the NWit for the pur
poses ana IN obedience 70 the provisions OF the
constitution aud laws, and not thon until they
have be duly registered by the secretary OF
state In a record kept for that purpose
4, lhat al 90 tracts With construction or
improvement com pauies shall be fair and res.
f0nAblo nnd be submitted 20 the railway com
mission for inspection and approval baiorc any
honqt Or stocks over m amount prescribed by
the law shall b. authorized,
3. That all railway property placed IN the
hands OF roe lYerf under foreclosure proceed.
ings shall 10 sold TO satisfy the debts OF tho
company within given limo. The purchss-
ers 20 take thc property clear OF membranes.
o. That the charter Of any company yioiat.
ing any provision OF the law, by Issuing. hypO.
theuating or selling fictitious bonds or stocks,
or otherwise ILLEGALLY inoumbeHng rs property,
shall le forfeited
e. That every director GtoCkholder and on.
Ger agreeing 70 " participating IN such illegal
act, " whOHhall divert any bond or st0rk or
the proceeds thereof from its legal purpose,
shall be- guilty OF and punished Tor penal
oiieufe defined IN The law.
g That it shall be tho duty Of the state. as
plantih or inteVenor acting through the nt-
turney general, or such an attorney as the gov
elnor especially employ therefor TO tuter any
court having iuasdictiOu Of tho case and ~
challenge OF contest tho validity OF such stocks
Or bonds and 70 eniorcethe laws vita respect
70 them.
A bill embodying substantially these proyls-
ions passed The house 40 the special session of
the twenty. second legislature, but did moi pass
the senate since then the fictitious increase
OF bonds and stocks has continued without
check, aud viii 80 ON az a lively rate until log
islHtlye action ia tGken. Gathering ar und tie
capitol Will be many Lobbyists against tha
measure, who will try 10 Tighten he peoples
representatives. OUT on llelalhE nDeuleuNr 70 lht
demands OF their constituents upon the pretext
ana plea, as specipuB ~ II Is, chat such a coarse
will deter capital from Investing ~ Texas ana
III vent The further building OF railroads IN the
state. Is might A well B said here that X tie
advent or continuance OF new capital, or the
further building Of railroads IN ioNhs, depends
upon the absolute surrender ~ the rightF OIL the
people ~ this respect 70 would be We'll now 70
let IA m pnrt with un forever Fictitious bonds
nro not capital nor the Representatives OF eepl-
tai They are tho fruits OF crlfie, ihrealemnglO
sap the M OF commerce, ana TO create IN
this government irGmps aud milionalres at
the expense OF the liberties on the people
Texas mas granted to her railway companies
$4,000 acres, or q territory auniclent 70 make
a number Oi rOtpectnl.o plnteh, 5lt mas -
acted less OF them, and has conferred no
privileges franchises ana W0altn upcA lheul
imam perhaps any other state in the American
union She has taxed them Lighter thah lhVet
any other country, and stands reRdy yet W
encourage them by every legitimate measure
consistent with lair deahug ana lusuce 20 noF
people The law uuder consideration X care
July aud strongly Drawn ana passed Wll Pre-.
vent the prao cl6e OF such frnnds ana sWlhlleH
SO long pcrperated through this abuse ol cor
poralA franz hiH2e, and VIII encourage lhe lu'
venment OF honest capital IN railway ln.
provemeht, 10 WIN prorect commerce iINn
Unjust burdens guard the people from pank'
ruptcy and servllity, and add strength ano 70,
HpeCtabiity to the independent autonomy on
tie state government which must ~ une
command the approval of All impartial CIR
cunspect men.
Municipal Indebtedness
The state has not escaped the mania prpya
lent thrOuQhout tho United States tor loading
proaterlty with debts they do not oWo ny we
Issuance az intorestbeanng pQnaA 70 et.ttiy
All best public bonds, as a rlle, are not IN
mixed with evil County and municipal Dohph