The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1893-01-19
OBSERVATION-DISCLOSURES
AS INTERPRETED BY GOVERNOR J.
S. HoGG IN HIS MESSAGE
10 the Twenty-third Legisiature-RaiI-
road Bonds and stocks, the Commits
sion, Municipal Indebtedness, Land
Corporations, Etc, Dwelt Upon.
ExEcuTIvE OFF1cK.


fure:
The prime object OF a constitutional form Of
government Is the perfection OF human happi
hess. To attain this remote though coveted
end, laws for the just. equal pro section OF lie
liberty and property, aud the o. emotion OF the
general welfare have always been and mus
ever be necessary.
Fresh from the sovereign people. blessed
with knowledge OF their anairs, YOU are here
TO execute their will and to advance their in
1terests. Possessing the unqestioned power
Minated only by the constitution, 10 pass and
repeal laws at pleasure, your mission at
the capitol 1t is confidently trusted In view OF
the suspicious circumstances surrounding
your selection, cannot fail TO greatly benefit
she public.
Paramount 10 all other questions now at
Tracting public attention In this state are the
several demands made by the state Democratic
party through its platform, which large
majority OF each OF your honorable bodies snd
the executive were elected, and TO which fe.
atty and obedience are due.
Next TO the constitutional oath, pledges 81
platform demands are the most solemn oDliga
lions resting upon the public servant. By
party action the people make known their
wishes, which when complied with must must A.
cent demands IN no way impinge the constttu-
ton. but vitality AFFECT the general welfare;
and their into law BY this g
full mind with their efficacy and wisdom.
Railroad Bonds and Stocks.
The constitution provides that: mo cor.
poration shall issue stocks or bonds except for
money paid. labor done or property actually
received; and all fictitious Increase OF stock
Bee 8. ''''''A''' 9A"' ~ 'O'' ~" 49,
The legislature has attempted to give force
20 this provision OF the constitution by pro.
Tiding that, mo railroad corporation shall
Issue any stock or bonds except for money.
labor or property actually received and ap
piled 70 the purposes for which such corpora
tion was organized; nor shall 1t issue any
shares OF stock In said company except at its
par value and to actual subscribers who pay
or become liable TO pay the par value thereof
The only penalty, however, tor the violation
OF this provision now prescribed by law is
fimed ut the corporate oflicers and directors.
They are simply made liable to the stockhOld-
Hers and creditors thereof for the full par value
OF such illegal stock or Indebtedness as the
case may be.-Id. Art. 4lb6 Herein lies the
trouble. The laws are sufficient In declaring
the effect OF such evil practices but the public
~ altogether ignored and unprotected from
abuses OF that Kind and II In the material SUI.
ferer. Bonds in excessive amounts far beyond
the value OF the property, have been issued
~ many u the railroad companies OF the
state, their payment secured directly by
fectly by lien upon every article OF com
merce carried by them.
To present the enormity and the consequent
abuse by the issuance OF fictitious stocks and
indebtedness. 10 is well TO take view OF the
condition affectin commerce throughout the
United states, and then examine II with refer
Authentic statistics show that there are now
10000 miles OF railway within the United
States. Liabilities on them, including stocks
aggregated over Slo,ie5,ooo co6. During
the year 1891 the companies collected
from the trafnc OF the country Sl,l3l0O000O.
They had left from those receipts after paying
AL the heavy expenses incident 10 railroad
management, including the liberal salaries TO
9heir army OF officials, total available cash
revenue OF over @i57 10000 or about 826Sl for
every mile OF railway In the whole govern
ment After paying interest on bonds and
Otherwise due, together with rentals, tolls and
miscellaneous Items amounting To hundreds OF
millions OF dollars, they also paid over ninety
million dollars as dividends on their stock.
Jhis enormous assessment upon the public
may be better illustrated by the statement that
ehe railways for the year 1891 collected over
e ib per cap Ia OF the whole population within
the federal government. The surplus, after
paying all expenses interests and dividends,
aggregated for that period over forty million
dollars. These facts are taken from the best
and most reliable published statistics The
frequent distressed condition OF the whole re
public, growing out OF the fast recurring
financial depressions, confronts the govern
hnent itself and every citizen OF II. IL may not,
therefore, be amiss TO say that while there is
medium In tho United States, the
annual revenue taxes received by, the
government, added TO the traffic taxes collected
exceed that amount. Doubtless the railway
companies OF other states are as free OF re-
Dtrntnt In the execution oil their obligations
% those Of Texas. II such is the case they
pave but TO continue to issue their bonds and
keep up the high traffic rates TO pay tie Interest
ON them, In order to go apace With the Increase
;. OF the circulating medium, and 10 finally alb
Porb II all While the exas Legislature cannot
hope 10 improve the condition OF the other
stats, Is has the power TO set wholesome ex'
ample At home BY protecting the present Ss sener
cation here are now within this state about
600 miles OF railway, rendered under oath for
sAxstion At 100000. The aggregate =, stocks
ports under oath, amounted to tiob,OO,U0 To
Assert that very large per cent OF these liabli-
ties were Issued In violation OF the constitution
and laws Is but TO state u selfevident propose. |
elon. They exceed the assessed valuation OF all |
the rural lands within the state by S6.,0OO,UO.
Indeed, they amount 10 over halt OIL the as |
passed valuation OF all the property In Texas, |
,lncluding the railways themselves. This state
nent IL simply made to illustrate, by COMPARE
Aon, what the people may expect In the future
remedies are adopted as safeguards for their |
protection. This question was presented by |
message ~ the first session OF the twenty |
second legislature. and again called specially |
70 the attention OF the extra session, but there |
was no law passed on the subject While the |
Issue Ia not lew, II was fully and thoroughly |
In the exercise of their sovereign right adopted |
the following demand through their said party |
plntform last August:
IA. We demand law that will effectually |
bonds and stocks by railway companies In this |
state, believing that these great enterprises |
ahould be conducted upon commercial princi- |
pies and not as gambling devices"
: Many eminent men have contended In the |
past that the public should not interfere with |
the exercise OF this privilege by the corpora |
lions; at II 10 n matter with which the people |
have no concern. BY this platform demand II |
would appear that the people think differently. |
They certainly have the right 10 instruct their |
governor and legislators ON matters OF legisla-
Zion, rs they are the ones after all who are re- |
Ejonsible for the government and It's atairS. |
Under the constitution these public high
ways have been transformed, within |
the last few decades from plain |
dirt roads leading to and from the |
markets, into the present roads laid IN rails /
and cross-ties and granted special privileges by |
the state government. To them have been |
delegated the governmental power OF eminent !
domain and the fral chise Il collecting tolls, |
may be approximately called traffic taxes. from |
The commerce carried by them. The extent "f |
&heir authority in the exercise OF this privilege
has never gone beyond the power TO collect 1
Reasonable G iarges for their service They
have never had the right TO collect any more
fof CARRYING Tue commerce of the country thrn
ehe amount sufi aent, after defraying neces-
gary expenses OF maintenance and OPP ration,
10 pay a reas liable return on the capital in
vested in theIa II seems that, Instead OF con- .
dining themselves TO the legitimate prrforln-
ance OF their functions as common carri rs, the
railroad com fanies have lost sight o. their OH
legations ~ the public as CONNIE rcial agencies,
and have entered the stock jobbers market ot ,
speculation. Instance IN this stat