The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1893-03-16

ClTCles, lney anu tHo-r assoCIatos III
time became the owners of all the
compress property. That they forced
the citizen to sell his stock at SO l 3
DER cent of its face value; and after
they got possession OF il, the proof
shows that it increased to twice its
face value, to be worth 200 cents on
the dollar, and paid IA per cent divi-
dend to them. That on $l5O,0OO OF
stock of the compress property, which
cost only $4,000, the public, through
the oppression of the federal court
officers in the abuse of corporate fran
chises, was forced TO pay q dividend
of IA per cent. That when the citizen
refused to pay money TO the receiver,
the compress was operated at a loss;
but when he paid his eXactions, the
compress paid 28 per cent dividend on
the cost of the property. That in last
November the facts showing the cor
ruption of the federal court receiver
and officers were filed on affidavit be-
fore the United States circuit court
Judge for Texas, at New Orleans; and,
in the language of the witness, the
judge assured him that he would have
NOTHING TO DO WITH THE CASE,
that he "would transfer the whole
matter to the other circuit Judge for
such action as he might see proper.n
The witness states that the matter has
not been investigated so far as he
knows by the federal court; but that
the receiver ''resigned" the next day
after the said exposure by complaint
was made, but that he yet operates
the properly. He also shows that
these federal court officers owned an
interest in other congresses in the
state. The witness is prominent,
Uniformed business man,
and swears that he be-
lievos an examination of the
different stock books of the congresses
in the state twill show that one.half
or more of the whole property is
owned by or held for railway off Gals"
and that cit is prevalent belief that
a compress cannot succeed unless the
railway officials are interested, aud in
the light OF his personal experience
would deem it an act of idiocy for any
one to invest in cotton compress prop
erty without first satisfying the greed
OF the railway officials of the line on
which it was to be located.u In jus
tice to the public it may be Iroper to
state that the federal officials named
by the witness as owning and control
ling the compress stock are Chas Dill
lingham, then receiver, and Daniel
Ripley, then general traffic manager,
ana a. Faulkner, then general pass
enger agent, of the said Houston and
Texas Central railway, appointed by
and under the authority of the federal
circuit court.
In connection with these important
dispositions, given in answer to ques-
lions asked. to refute the charge that
the traffic rates fixed by the commits
sion are confiscatory of the railroad
property, it is well to take a view of
the history, record and reports of this
public highway. 1t is one of the
oldest railways, and traverses the
richest, most productive and best
settled portions of the state. For its
main line and branches, (about $50
miles long, the company received in
grants from the state AGO, $50 res of
fine land, besides a free right-of. way
over public domain, together with
other privileges and franchises of rare
value. During period of over thirty
years it was permitted, without re-
strailt, to levy and collect traffic
charges, and manage its own affairs
at will In every way it was in
duiged and encouraged by o generous
public. Notwithstanding this, the
complaint became general, though
false, that "the property was not
paying" and in 1885 the credi-
tors had it placed in he hands of re-
ceiver in the federal court. The year
before this property went into the re-
Ownership, its stock amounted to ST.
700, 900; and the outstanding bonds
against it amounted 10 SIG 800 900; as-
gregating, in stocks and bonds, S24,-
500, 900, large portion of which being
certainly fictitious. This railway
property, and the lands worth proba-
bly, $4,000, 900, were sold under decree
of said federal court in 1888 for the al
legged sum of $10,000,000. After
the hands of the federal court
before and after said sale for about
eight years, this rail way is minus its
vast landed property, in acl cage larger
Rhode Island, and would be supposed
to stand clear of debt. Regretful such
is not the condition. The bonds and
stocks on it today aggregate S26,973,-
900. On this point the public is GER
tainly interested, for the federal court
the commission from enforc-
ing rates which it holds are not high
enough to pay interest on railroad
bonds. AS said before, these lands
and the entire railroad property sold
out five years ago for $4,000 900;
and the railroad of itself, without
the land TO help hear it, now star Dis
for over $26, 900 600, in stock and bonds
over $50 900 to the mile---and the rail-
road is yet in the hands of the federal
court, demanding that traffic rates be
maintained high enough to pay in
terest on those bonds.
The traffic receipts of this property
in 1881 we're S2,752,000; and in 1885
they decreased and amounted to ST.
739, 915. While the expenses of 1884 |
were reported to be $685., 900, they ran
up in 1885 to S2,052. 377, or an increase
Of expenses of the latter over the for
mer year of 81, 1897, 377. So it will be
seen that during the first year of
his federal court control the traffic
earnings of the road decreaged, while
The expenses increased over 300 per