Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-03-27
MIR. Moore's View Of the wind
and Water" Bill.
A CHECK ON DEVELOPMENT.
Too Much Discretion Lodged, No Thinks,
with The Railroad commissiOn-Tho
Spectator as an Anll-Ths
monopOllsL

and restricting issuance of railroad Stocks
and bonds, just passed by the hOuse,
has caused 50 much comment, CONTINUES
TO hold to his position with persis'eN'
tenacity.
He realizes that he has taken a posi-
ton opposed to the measure, which -
popularity supposed to represent the We've
embodied In his partys platform, Dul
he IL none the less hrm for that. 10
The Gazette corpspondent speaking
20 this subject today, he said;
II opposed the railroad bond ana
stocks bill, generally known as a pll.
10 squeeze the wind aud water out OF
railroad stocks and bonds, as reported
from the committee, because 4 thihh
that IL il becomes law % VIII WORK II
great injury to Texas. The bill vests
In the railroad commission power over
future railroad building equal 10, II nor
exceeding the power of the car Of nus
sia over roads that may be bullt over
his dominiouis. In order TO permit lne
issuance Of indebtedness that viii become
a lien on companys properly lhe con-
mission Us made the judge OF the reaS-
enable value" OF the property OF such
company. la addition TO liking the
reasonable value Of the property OF n
rnilrOud company aaa limiting the bonus
or other evidences OF debt that may 20
issued tothat value, the commission mas
the mower tOauthorize under certain CIR
cumstances, of which the commission rs
fudge. tho issuance Of bonds, or other
evidence OF debt, TO AN amount % per
cent more than the reasonable value
OF said property.
"1he railroads that nre built In Texas
are built with the money procured from
he sale of first mortgage bonds. The
railroad companies have not the money
~ build thcm. In uile cases out oi
ten our roads are built by companies
organized and owned by our own poop
Pile That Is, they are organized ~ our
own citizens, but upon compleution OF
tho roads arc turned over TO the Chpl-
tnlists whose money build them. Ihey
are unable 70 raise more money, as
rule. than enough 20 procure n survey
OF tho route proposed the right-ot-Way
and depot grounds, prepare q prospectus
aud arrange such preliminarcs as may
be necessary 20 put In tngiblc form
the Inducements the projected road OF
fers ns IN Investment TO capital. II the
first mortagage bonds can not be sold
at par under this bill such companies
would never be able TO build any road.
IL Is sadly true, too that none OF the
first mortgage bonds OF newly, project
ed railroads In TeXus have sold above
so cents ON the dollar when first Heated.
II the bonds of a company could only
be sold at 50 cents. md a mile OF It's
road should cost $4,000 IL could only IS.
Rue $4,000 I'm bonds, on which II would
derive only 5000. and OF course nav
ing but 5000 IL could not build the
mile Of road hence It would be an i'm
possibility for It TO build any road at
''But It Is contended by the friends Of
the measure that II u becomes u law II
will guarantee such projections 10 cap
itnl invested in railroad bonds that the
bonds can DE readily sold at pnr. What
do YOU think of this argumentF
"Ihis argument Is tallacous. First
MORTGAGE bonds, tho source from which
cOmcs the money that builds this road,
are as secure now az they can, be made
by any legislation short of the state
guaranteeing their payment. They have
q lien on al the property OF the com
pnny, and come In FIRST of everything
Tor payment. They can no more be made
better property by legislation than a
horse can be made u better PAGER 10y
statutory enactment
'lhen there is no way 70 prevent rail
road companies from watering their
boudsF
"Thorc Is no way TO control or limit
the profits 70 be made ont of the build
ing of railroads cNaCted by the agents OF
the capitalists whose money purchase the
first mortgage lords without prohibiting
further railroad building. One OF the
conditions upon which the broker controls
nu Investment IN such bonds ~ That hS
be allowed 10 build or construct the road
Money Is not coming here In any very
great quantities, oven with this induce
ment. How can we expect u TO come Il
the state takes from the railroad com
pnnies this privilege, which Is so valuable
that IL has become n species Of prop
erty?
'Aenin. when we go 10 legislatlng II
regard 10 first mortgage bonds we try
10 control something we have not. III,
money h not In Texas for Investment
in railroads. II vs. principally In I'm
gland. We have 10 get 1t here before W.
ear control H. We can control the Is
sunncc Of indebtedness after the road
have boon built, except as 90 the In
dehtedness Incurred In building, such al
hrst mortgage bonds
'Ihe first mortgage bonds run nbou
$4,000 or Nl0,OOO per mile on rO0,
first projected, II they were graatc
capital would not invest In them Thu
great Indebtedness Of railroads " In
CURED after they are built by fupdnii
debts, issuing second mortgage bonds
etc, ostendhly for bctterments, improve
mcnts, etc, ana the issuance of bond
IN all such eases Gnu ho controlled"
what IL your position Ia regard &
this bill resulting Ia benefit 90 the pres
ent great railroad systems of the statcy
This hill win cut on the Spectator
profit In railroad building and leave us n
ANt ih'lNe va AAN NV NANAh ANNtNAN NNH
tens that now own and control neNrll
every nile of road Ia the state. II ha
been the case for years, In fact eve
since the abandonment Of the policy o
making land grants 70 railroads, that tn
roads have had an agreement anon
themselves that a certain territory o
the state belonged 10 each company nn
that no new line wond be built withou
the consent OF all the roads. This m
rangemont cut OF an hope for new rail
roads except those thnt might be bull
by the speculatOr Through the specu
latOr the home companies such as III
q. A. 4 A. r., have been able 20 hull
new lines which after heing built, hay
been absorbed by some Of the big sys
TENS
III the chance FOR speculation Is wipe
ont, will not these five great railroad
systems Of which you speak build line
wherever iemhmnte Investment viii rea
n fair prOhtW
mo These great systems get ever
dollar that n paid ont by rhe people q
Texas for transportation md traffic owe
railfoads. A route that under ordinar
circumstances would offer induccment
for legitimate inyestment would not b
M iuduceneut 20 them, becnuse they 50
the revenue to be derived from the pe,
pie NlonB tlat route without buildin
any new rogd, IL all speculative prof
Ia railroad building Is cut of, our presou
railroad sys,emg win be left with Tcxa
all 10 themselves
what would have been the effect q
your amendments II they had Doe