Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-07-13

| The evil does not stop here. Inc innc
cent holders Of these excessive ISSUES o
sucks aud bonds defnaud rates OF trans
portaiion sufficient 10 pay dividends ani
| fbe interest on such bonds. IL the rate
! M. allowed, commerce Is injured and tn
| u,5ple Oppressed; II denied, the road 4
| rriiu forced INTO The hands OF re
| raiyer. and again sold 20 the loss of tn
! innocent holders Such a failure j. th'
| result, not of small tonnage and low
/ rates. but Of false capitalization:
This evil. which seems 10 be inheren
| Ia our railway system. has become ;,
| frequent aud enormous, with tue sam'
results Of loss TO the people and wealtl
10 the wreckers, that n remedy j. seriously
demanded. and while the wrong, lik,
many others. may not be entirely re-
novel, Il can undoubtedly be modified
aud held In check By proper legislation.
"In our opinion these quasi public cor
poratiOns should only be- allowed 10 issue
siveks aud bonds with such legal pub
licity aud under such legal restraints as
20 protect minority shareholders against
over-lssues and the public against vicious
speculation. The law should require that
the principal offices of railroads incor-
pofaied by Georgia shall be located IN
the state; that the President and ma
jority Of the board Of directors shall be
Georgia citizens ami residents; that 4
competent b0arl shall make an honest
valuation Of the railroads 10 the state,
20 be sworn 20 and filed with the secre-
tary Of state, and TO stand a. the official
standard for the ISSUES Of stocks and
bonds by railroads Ia this state 10 the
future; that no stocks or bonds shall be
issued by any railroad incorporated by
this state without the certificate Of the
secretary Of state ON them under his
seal " office, giving the valuation Of
said road, tho amount Of said issue and
the amount Of an former issues rs 10 ap-
Pears on the records Of bis office, and
maj al issues Of ans stocks or bonds Ia
violation OF the provisions Of the law
shan Ice unll and void. with PROPER penal.
ties against The president and board Of
directors Tor the violation OF the law"
In addition TO what Mr.. Hudson In
bls work on the railways and the re-
pnAle says IN answer % the suggestion
that the issuance Of fictitious stocks aud
ndd that since Mr.. Hudsou's book has
been published the contention has been
SET M hy the railroads iu the federal
courts that they have a legal right 10
earn interest nu al outstanding bonds,
operating expense, and something as q
dividend for stockholders, before the
states either directly or through
the agency Of commissions can reduce
freight charges. 50 far only one cOnrt
has sustained this view, but 10 Is clnesi-
j. urged 100 the litigation now pending
between the railroads and the commits.
Sion 10 this state. The mere fact that
such contention has been made. cn-
pha-itrs the Importance and necessity
iut legislation restricting aud limiting
tlie issuance of railroad stocks aud bonds
sneh is has just been enacted IN this
state, otherwise when the growth and
Developments ot the country become such
as 90 yield all that The roads demand IN
dividends and interest Ou 0utstaudin.
stocks and bonds, additional securities
coul1 be Heated as means Of absorb
lns any surplus and preventing any re-
duriiun in rates,
II would seem that such facts as those
here presented ought TO arrest the at
ieniion Of all classes of our people and
OF railroad capitalists and stock and
hondhollrrs as well as Of the patrons Of
The road, aud the productive classes Of
the people. And that there Ought 10 be-
statesman ship and Integrity and courage
enough In the lawmakers ~ the country
10 pat a stop to the Preparation Of such
CRIMES against the public and to provide
for the punishment Of the criminals.
). VIII next call attention 10 the
necessity for adequate provisions OF law
to prevent traffic managers. freight
agents and other railroad officials from
being 10 any way Interested In business
they serve
We now have laws in most Of the
states prohibiting railroads from making
excessive charges. from discriminating
between shippgrs In tlcir charges, aud
generally regulating thlir action In The
discharge Of their lutles to the bubble
Bni we have no laws. at least In Ills
STATE, which prevent them from being
lnlergsird iu branches of business de-
pending on transportation over the roads
they serve. Such, for instance. ay being
interested IN Hour mills, saw mills. cot
loh congresses, cotton seed oil mills.
coal mines and the like. II Is reality
seen that for them to own or he inter
Gsled IN such establishments is to place
before them the temptation 10 discrini-
nate in their own favor and against nor
sous owning or interested in like estab-
lmhmcuts, and dependent for transporta.
u3n on the railroads they serve.
IL also puts q in the power of officials
go situated 10 levy blackmnil on ali nor.
sons dependent On the road they serve
Tor transportation. compelling them 4,
give or sell 10 them AT a nominal prlre
~ interest In their business. Surh nr1c.
ices Ike the allowance OF rebates or
Special privileges 10 favored shippers are
n9th h'lhoFulHing and corrnpting in their
cu'et on merchants. manufacturers. and
"n an classes OF shippers Each simmer
cllher Knows or fears that His nelvhbnr
or rival in business Is getting some secret
IchAlc or advantage operating 10 his dis
auNaulNge or injury, and this induces
MN 10 sock like secret ADVANTAGE ar
privilege for himself And In this woy
secrecy, inlsehood and fraud nrc In mani
eases rcsortod TO, aud those so acting
manage 10 satisfy their cnnscienccs mai
tnehgh they are doing wrong thev ara
u9lhg 10 ~ seli-defcnse against others
VINO arr, doing or who are supposed Ia I,r
uolhE me same sort OF wrongs Snci
rpuutilon oil things not only produces
gG',iur;H,l.ai'oh and fraud, but Il produces
w, s,ulu9,ll'e, uncertainty aud unrest
among business mon and shinncrs
me great railroad cnrpofntinns has,
ing each q monopoly of The hiain,ss ~,
transportation over Its line ,of rad
lhNc great power over not only the ri,i,fi,
anu interests of their patrons hut oIs,
over Their morals, And no ono sbn',lJ
y, surprised that these officers. possnss'
gu as !ley they are Of 50 much newer
ana subject as they are to so rreat AMI
'unSAnuN recurring temptations. ara ~
zen found increasing their private for
tunes by the wrongful employwnnt 40
Tue trust rcposcd In them for The nnIlic
good railroad officials / rotor ia tbns',
VI positions which enable tbem Ia con.
Tol questions OF transportation M,
uohht when they enter on these Jnties
rs honest ANA conscientious MS nthcr
men, but ike other men they pceI "a
pe prNteeied against temptation. AMI
'u'S V.h nc uone by the ennctment az
sugh JAWS as VIII prevent them from
any business which may denrnd nn I'll ~
portatiOn over the limos Of tln - ~ runs
serve. This anl thu rt,.il - N"N tHtA