The Waco evening news. [volume] (Waco, Tex.) 1891-1894, 1893-01-12

! 10 pay reast ueble return IN The capital n
| ve.ied in then. li.eerrs thai j. stead o. CON
| fning theus.l I've. to he legitimate p-rforIp-
snte Of their iunciiuus con-. mon CARR rs The
/ isiroed npsiiies h t.e !rsi .zii o. their OBJ
legations = the pLiiilc Hinln.rria! agenci =
si.d have ef tered the TO s-jpair-- market q
lazAfdors .feculsilon. iisiiiee> in ihis -tate
arr so mon HERE they have i'srea oaih stock
ana bonds i"' srecu. awe ptfiosss IN violation
OF the constitution. h ~ J. liz letter wy TO
demonstrate This sd 10 verify the assert II
tn. II 70 examine ihciF reports - the coup,r l.
am luni II r-c-ipis fre m the tfsffc earnings
and The expenses Ia oieEatiugi improving aud
ta!niug ihe several liue-. compared with
tbs animal increase OF stocks and bonds. Many
instances appear where there j. 10 report Il
extensions % ihe line 10 improvements md
teyJnl VIVA are SHOWN to have te.-ii PAID Tor
OF % curreni revenues no Outstanding nbliga.
'!on- - t. ei yet during the sane psrIoi ,hrir
increased stocks and bonds amounted q many
mi i rs of dollars. 2 he contentiou til t the
publ Is 10, inter s,ed in every KIND Of public
securty mus, be made without mature consid-
eraii n The ., ecution 81 n fciItions security
Is 4 fraudulent sci the purpose OF Obtaining
money from ne -purce Money obtained Ia
fraud nas ever ~ az ostu.e aga iist god
morals aud should b. in al respects u crime
against TIE aws %! every civ iDef county
II i unne '-saary . 90 any further han 'hs
proposition 20 ont ont tie interest thu public
has IN checking the growth OF fictitious secu.
r3tles Of every class. Il Is the duiy Ot the gov
ernmcu. To MAKE the acquisition Of property
through fraudulent practices a crime. She
owes this much - good order. fair dealing and
honesty Aside from his view. considering
feature Of perhaps more general Importance,
the fact mus nc, De lost sigh, 0. that after all
the bonds u railways must be pad or repud!-
ated. Their payment is necessarily confined %
the source OF revenue collected through traffic
tolls OF taxes laid on the commerce carried by
railways II may te coatended. tnat a. they
are void under TIL constitution. they cannot Je
collected TAis proposition is certainly sound
under reasc nabe conditions which unfOrtJ.-
nately do not exist under the laws nor IN the
eourts Of Texas. A few men own the stock OF
the railways Directors and officers elected
10 carry out their viii. a resolution is passed
IN pursuance of which interest bearing bonds
are issued and tn railway property mortgagei
the public rrceiyes dollar Of this money: but
the stockholders or the owners of the road an.
propriate 1t II a line continues TO be operates
by such stockholders and owners, TO meet the
interest on such fictitious bonds. train forced
and section gangs IN list be re- ID wages Of
employees decreased. AMI traffic charges riis d
10 the highest point pc, IN tied y law or that
the traffic w bear. Within a few years ny
TINS process the property becomes iinproyor
high expense a default Of interest follows, and
a foreclosure of the mortgage given to secure
these bonds he result. Under the laws and
Jurisprudence OF this state it would be quite
Impossible for the incorporation. composed Of
the directors, stockholders and officer,
who perpetrated the fraud, to a
ment on the bonds If not estopped Nv
laches, they could not be permitted to take ad-
vantage OF their own wrong. So the pro S.
OF forecosing the mortgage and establishing
the amount OF the fic;i ious Indebtedness upon
the road by judgment Of the court proceeds
ni 10 1t is srahge enough to say but
ment is now, under the present laws, unable to
appear IN such case or raise its voice agai, at
the fraud. A so-c,lled reorganization genor-
ally follows such judicial proceedings None
OF the bonds or stocks cancelled but are
generally increased. sometimes to double or
quadruple the former amount, by continued
abuse OF corporate franchises. Thus the prop
erty OF the people is threatened with ultimate
coHhscation. and their berries imperiled
NO question now confronts your honorable
bodies, or that may probably arise In this
state within the next fifty years. that can
promise more Interesting consequences to the
people than this one. II it is judiciousy set.
tied. II Will take but short time for the ma
terial interests OF this state to bear the whole.
some fruits in great abundance on the other
hand II it is avOiGei or temporzed with its |
baneful effect will in time be VISITED upon every
"etlth producing citizen OF this $ ate. Its mo
mtntouS in purtance certainly cannot be- de |
nltd now by any lnteliigen man since the for |
elgn bondholders, through a federal court have |
obta ned temporary injunction suspending
the rates fixed by the ra ay commission. upon |
me comp amt, among other tn ms. that they |
were not high enough, after laying he x |
penses OF the roads, to meet the interest upon |
their bonds, many millions of which With
tn light OF truth shed on them. would so |
pear 10 he the depra, ed offspring OF corpor e |
the state constitution. BY that action the |
point Is boldly, sharply made. and the ira &c |
rates IN inns country must be maintained to |
pay interest on all the railway BONDS 1t is |
material TO the public. therefore, that none but |
h nest bonds, issued IN pursuance and within |
the limits of the constituta N DIRECTLY shall he
permitted.
To corr ect this evil and to prevent its con
anua- ce a law Ell bodyinp the following feat
ures is hereby respectfully recommended to |
your honorable bodies:
!. That under the direction OF the railway
commission, experts shall xamine and report |
uncer oath the lair valuation OF the railrosd ia
in this state, which when approved by the com.
mission shall be flied in the office OF secretary
OF state as tue onicial standard for the issue OF
bonus and stocks i'll the future.
y That no railway bonds stocks shall be |
authorized or executed, except Tor limited
amount, for the purposes mentioned in the COZ
and then only ut the railway genera
office in Texas.
. That they shall not be negotiated, hypoth
ecated or sold until after the railway commits. |
sion snail nave given certificate that thev |
have been issued within the limit, for the pur
poses ana In obedience to.the provisions of tue
nave be n duiy registered by the secretary OF
state IN reco kept Tor that purpose.
a. That all co tracts with construction or
com panies shall be fair and rea-
sonable aud b. submitted 10 the railway com
mission Tor inspection and approval before any
20. or STOCK, over an amount prescribed by
the law shall be authorized.
D. hat all railway property placed in the
ha1us OF receivers under foreclosure proceed
MS shall De sold 10 satisfy the debts OF the
Smpany within given time The purchas-
-rs t. take the property clear of membranes
g. That the charter of any company violat-
ng any provision OF the law. by issuing. hypo-
hecating, or sc ling fictitious bonds or stocks
y otherwise legally incumbering its property,
hall lie forfeited
z. That every director stakeholder, and Off.
'er agreeing TO or participating in such illegal
let, or who shall divert any bond or stock or
he proceeds thereof from its legal purpose.
hall be guilty OF and punished for u penal
,ffense defined in the law.
s, That II shall be the duty of the state, as
'la MIN or intervenor: acting through the at
orney general, or such an attorney us the gov
inor especially employ therefor to enter any
ourt having iurisd elton of the case and to |
hallenge or contest the validity of such stocks
n bonds nd a q m fnrcp he la,vs Wit, raS0.nt |