San Saba County news. [volume] (San Saba, Tex.) 1874-19??, 1893-01-20
The CURTAIN ON LAND CORPORATIONS
And DeIves DeeP Into all Matters
cOncerEins the Cttizens OF
the Lone star.

] VIII a knowledge OF LncI AullIh. you are mere
I 20 execute their viii and to advance their in
terests. Possessing the unqestioned power,
limited only by the constitution, to pass and
repeal laws at pleasure, your mission at
the capitol, It is confidently trusted. in view OF
the suspicious circumstances surrounding
your selection, cannot fail 10 greatly benefit
the public
tracing public attention in this state are the
several demands made by the state Democratic
party through its platform, on which a large
majority OF each OF your honorable bodies and
the executive were elected. and to which fe-
atty and obedience are due
Nextto the constitutional oath, pledges to
platform demands are the most solemn ohliga-
lions resting upon the public servant. By
party action the people make known their
wishes, which when complied with, must af-
ford them reasonable satisfaction These re-
cent demands IN no way impinge the constitu,
ton, but vitality affect the general welfare
and their enactment into law by this legisls-
ture must deeply impress every fair, thought
ful mind with their efficacy and wisdom.
Railroad bonds and Stocks.
The constitution provides that: "No cor.
poration shall issue stocks or bonds except Tor
money paid. labor done or property actually
received; and all fictitious Increase of stock
aud Indebtedness shall be void Art. II,
The legislature has attempted to give force
to this provision Of the constitution by pro
viding that. no railroad corporation shall
issue any stock or bonds except for money.
labor or property actually received and ap-
piled TO the purposes for which such corpora
ton was organized; nor shall 1t issue any
shares OF stock in said company except at its
par value and 10 actual subscribers who pay
or become liable TO pay the par value thereof"
R s. Ait 4l54-
The only penalty, however tor the violation
Of this provision now prescribed by law is
aimed at the corporate officers and directors.
They are simply made liable to the stOckhold-
ers and creditors thereof for the full par value
OF such illegal stock or Indebtedness as the
case may be.-ld. Art. 4l56 Herein lies the
trouble. The laws are sufficient in declaring
the effect such evil practices, but the public
IS altogether ignored and unprotected from
abuses OF that kind and II is the material SUI
ferer- Bonds in excessive amounts. far beyond
the value OF the property, have been fsss.ed
by many q the railroad companies OF the
state, their payment secured directly by
mortgage upon the several lines, and indi-
rectly by lien upon every article OF com
merco carried by them
To present the enorTnity and the consequent
injustice resulting 10 the public from corporate
abuse by the issuance OF fictitious stocks and
indebtedness. ,: is well 10 take view OF the
condition affecting commerce Throughout the
United States, and then examine II with refer
ence 10 local affairs,
Authentic statistics show that there are now
10000 miles OF railway within the United
States Liabilities on them. including stocks
and bonds the irst day OF January last year.
aggregated over slOle5,OO1 o0l During
from the traffic OF the country tl.i3le00O00.
They mad left from those receipts after paying
al Tue lthNl EXPENSES llC4Acll 10 Id4lEOEu
management including the liberal salaries TO
their army OF officials, total available cash
revenue OF over e3s7 lUg 600 or about Sz6ol FOR
every mile OF railway in the whole govern
ment. AFTER paying interest on bonds and
otherwise due together with rentals, tolls and
mis cellaneous items amounting 70 hundreds Of
millions OF dollars, they also paid over ninety
million dollars as dividends on their stock
This enormous assessment upon the public
sax be hsiiesr j l y ts5lf Whit
the federal government The surplus, after
paying all expenses. interests and dividends
aggregated Tor that period over forty million
dollars. These facts ars taken from the bsst
and most reliable published statistics. The
frequent distressed condition Of the whole re-
lunncr growing out Of the fast recurring
financial depressions, conironts the govern
ment itself and every citizen OF it. II may not.
therefore. be amiss 10 say that while there is
about hsa0D co 400 Of active circulating
medium in The United Stairs the
annual revenue taxes received by the
government, added TO the traffic taxes collected
hy these transportation companies annually,
exceed that amount Doubtless the railway
companies of other states are as free of re
sfralnt In the execution OF their obligations
as tnose Of Texas. II such is the case, they
have but 10 continue to issue their bonds and
keep up the high traffic rates 10 pay tie interest
on them, IN ordir to 20 apace with the increase /
OF me Circulating medium, and 10 finally alb I
soro i all While the Texas legislature cannot |
nope 10 improve the cOudition Of the other I
stat = ~ has the power IS set a wholesome ex- /
ample at home BY protecting the present gener- /
alton and postertty from this method OF confs- /
cation Il here are now within this state about 4
- miles Of railway, rendered under oath for 4
ta1atlon al s61UOO coo The aggregate stocks 4
snd bonds, as shown by their last Official re-
ports under oath, amounted to Si65.O00ouQ To /
assert inAt very large per cent OF these liabili
tes were issued IN violation OF the constitution
and laws IS but TO state a seif-eyident propos
ton They exceed the assessed valuation OF all
the rural lands within the state by S6.,0OJO00
indeed they amount 10 oyer half OF The as
sessed valuation OF all the properly in Texas
including the railways themselves. This state
ment Is simply made TO illustrate, by COMPARE
son, what the people may expect in the future !
from this growing evil unless ample legislative
are adopted as safeguards for their |
protection This question presented by /
message 10 the hrst session Of the Twenty h
second legislature and again called specially /
10 the attention OF Tie extra session, but there
was no law passed on the subject While the
issue Is not CIV. IL was fully and thoroughly !
discussed before the people last year and they
In the exercise Of their sovereign right adopted
he following demand through their said party
platform last August.
IA. We demand law that will ehectually
prevent The issuance OF fictitious and watered
DoLds aud stocks ny railway companies in this
iiaie; believing that these great enterprises
mould be conducted upon commercial prinei-
Pies and not as gambling devices.
Many eminent men have cuutended in the /
last that the public should not interfere with
ne exercise OF mis- privilege by The corpora-
Ions ~ II Is q matter with which the people |
lave 10 concern By this platform demand 1t |
! on-h appear that the people think differently.
governor and legislators on matters OF lesisia- !
ION. a. they are the ones after al who are re- !
ponsible for the government and its affairs. {
LQer tle constitution these public high ! [
rays have been transformed. within I
be last lev decades from plain ,
irt roads leading 10 and IRON the i
aarKeis, mo the present roads laid in rails
nd cfoss-ties and granted special privileges BY 9
be state government To them have been i
elesated the governmental power OF eminent | /
oman and the irat cnise OF collecting Tolls / L
lay be appropriately called traffic taxes from a
be commerce carried by them The extent Of / n
heir authority IN the exercise OF this privilege
a. never gone beyond the power to collect d
sasouable charges for their service They a
ave never had the right 70 collect any mere I,
y carrying the commerce Of the country than n
ie amount suri 3ient after defrayiug aeces- ! 7.
Try expenses Of maintenance and operation h
pay reasonable return on the capital in 4
ested IN them. Il seems thar. Instead OF con- u
ming Themselves 10 The legitimate perform o
nee or tbelr functions as common carritFs the 4
ufroad companies have lost sight OF their OBJ :,
cations 20 the public as commercial agencies 81
nd have entered the stock iobbcrs market Of ! h
lzardous speculation. Instances IN this state III
e common where they have issued both stocS q
40 ponds Tor speculative purposes IN violation IA
me constitution There is no better way TO 81
'HonAtfAlt tns ana 10 verify the assertion ii
an 70 examine their reports 20 the cornptrol | M
annually made under oath showing the | =,
mount Of receipts from The traffic earnings. | q
ID The expenses in operating, improving and | M
aintaining The several lines, compared with | o,
e annual increase Of stocks and bonds. Many m
1tHutea appear NDere there Is 10 report Of r,f
tensions OF the lines. no Improvements made h
yond what ore shown TO have been paid for II,
u OF current revenues. no outstanding obliga- m
lns set ed yet during the same period their re-
creased stocks and bonds amounted u many %
iliiuns OF dollars he contention that The -
bl Is 7 u inter sled in every kind 81 public Ia
eufiiy must he made without mature consid- | -
fflpn- The execution OF fictitious security -,
A fraudulent act for the purpose OF obtaining Il,
lney from some source. Money obtained In I sr
lun mas ever been an Ohensc against good ! H.
'sals, and should be in all respects crime ! re-
iihAt iae laws Of every civilized country. ~
Z Is unnecessary 10 20 any further than this -
oposition 20 point ont tie interest the public M
: In checking the growth OF fictitious secu- m,
les OF every class. II Is the duty Of the gov ~
lment to make the acquisition Of property az
'oagh fraudulent practices a crime. She a 4
IS TINS much 70 good order, fair dealing and an
1esty Aside from this view. considering a Nj
tufe al perhaps more general importance DO
Tact must not be lost sight OF that after all "a
ponds Of railways must be paid or repudi- he
a. Their payment is necessarily confined TO m,
source Of revenue collected through traffic ez
= OF taxes laid on the commerce carried by III,
ways. II may he coltendcd. that as they re,
VOID under the constitution, they cannot be m
lected- This proposition is certainly sound
Ter rea9 n@ble conditions, which nnfortu- Ii,
ely DO not exist under the laws nor in tie do
he % Texas. few men own the stock OF gu
IaiiWsys. Directors and officers are elected :
sfiy OF their VIII A resolution j. passed I err