Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-05-06


validity. and IL legally issued he shall
attach TO them certificate 20 that
eject. and when such certificate II
given the only defense which can be
offered against the bonds shall be for
forgery or fraud or that they were Is
sued In excess OF The limit fixed by the
constitution. Each OF these require
menta subserves wholesome purpose,
Municipal ana Hallway Bonds.
Provision for the levy OF the neces-
sary tax calls attention not only to
the creation OF the debt but 10 the
rate Of taxation pledged 10 discharge
n and thus exncts the closest scrutiny
OF the public. The httorney-gencral ID
disinterestod and free from local In
fluenccs ana the provisions against
technical defense Will relieve our inu-
inequalities Of all charges OF repudla-
tion and do more than all other laws
TO induce the Investment OF both for
eign and omestlc capital In such se-
curitieg. For the advancement and
betterment OF our towns and cltleH and
the construction within them Of nccea-
snry and useful works OF Internal inn
provement such as city halls, light
and water plants aud rystams OF sew
oraRe. and the building by counties OF
court houses. Jalls and bridges, thus
contributing 10 the wants OF the pco-
pie and tho material growth and pros
perity OF the state, our necessities COM
pei us to look to foreign capital. When
II becomes generally known, as II soon
Will DO, that we have established here
the highest grade OF municipal In
tegrity, the influx OF cheap money VIII
supply every honest and legitimate
demand. and when 30 invited, the
pledge and faith that Investors viii be
protected IN the use and enjoyment
OF their property should be fully and
Baeredly kept. The law regulating the
Issuance OF stock and honda OF rail-
way companies Ia even more wido
reaching In It's beneficial purposes and
operation. Its requirements are that
stock and bonds OF such companies
shall each be limited to tho reasonable
value OF the railway property. except
that In certain emergencies bonds may
be Issued for 30 per cent over such
value. and all Issues shall be under the
authority ana direction OF the railroad
commission. Although railroads are
public highways and their construction
was primarily Intended for public con-
venienee and To furnish facilities FOR
commercial intercourse, they have Of
ten been used TO further tho aims OF
spectators and wrcclkors who were
unmlndful OF public intoreats. Stock
ana bonds we're Issued without regard
20 the value OF the property ana large
" for purposes OF manipulation On the
stock exchange. often their values
were dvHlgnedly depressed by permit
tinE tile physical properties OF the COM
pnnicA to become Impaired IN order TO
buy them at reduced prices, ana after
warda were inflated by tho declaration
nf fictitious diVldcnda and other well
known methods. IN order to Hcll them
ut the enhanced value. Ia large de-
Eree they were the mere pluythlnga OF
stock gamblers and The fraudulent in
strumcnta by which railway CombiuHt-
uunu were affected and maintained, AH
consequence tho public suffered from
poor service ON the roads and the 80
curiticB were without integrity ur tlNcd
value. hut this wna not the only in
Jury to the public. The companies In
uist that they are entitled to
establish and collect freight aud
passenger rates suincleut to pay
roHds. Interest on these bonds nnd In
addition dividends on the stock. The
grona injustice OF the propagation Is
manifest ANA has not beon more broad
ly and strongly denounced than by
Hon, William II. Morrison of the In
tcrrtatu commerce Comiulssion' when
freight rates ON agricultural products
are demanded" he said, (which Will.
under all circumstances, pay opcrut-
inR expenses Interest ON bonded debt
or fixed charges, aud In addition "A
dividend ON the capital stock ana the
shipper may not question the extent
and good faith Of such debt.
stock and obligations. he does
not recognize the Justice uf the de-
mand, nor W hil respect for such rule
OF compensation increased by the fact
that Il may have hlHh judicial sane
ton Plain people believe that In no
far aa reasonable rates are measured
by fixed charges obligations aud rail.
road Investments these should be actual
and IN good faith Some iden OF the
fictitious Issue OF stock aud bonds In
this state may be had from the fact
that IN 1891 the face value OF those So-
curitles IN ilvt companies alone OK
ceedcd tho Rsnesacd value Of all their
properties, $4,000. 900 Since 1876 our
constitution has provided that "No cor
poration shall issue stock OF bonds OK
Dept Tor money paid, labor done, on
property actually received, aud an tlt-
tluouA increase of stock or indebtedness
shall be void" and this statute n tho
first rfocual attempt which has been
made to execute and give practical ef-
feet to lts provisions, That Il VIII uc-
compllah the purpose lnteudcu does
not seem 10 admit 90 qucHtion, Tho
honda and stock issued unuur II win
have commercially nNed values and a
better standing IN nnUucnu circles, and
whatever the courts may Ghmily de-
tcrmlnc to be the loBul measure OF
rates the companies may charge for
the carrlagc Of freight, Il Va clear that
as fnr M these chnrgcS arc 10 he based
on stock and bonds they must be bona
tide and not largely fictitious and fraud
ulcnt "a heretofore. suck law will
moi cmharrlas any logltimptc railway
enterprise. un the contrary even now
evidence "a multiplying OF tho favor
with which IL II btlug received by vail
way protectors and capitalists Hold
Ing theae Views " these statements
believe the people should give cm-
phatic notice that no atCpB backward
win be takun In The reforns which
they inaugurated,
The Railway SommiasioH.
untn lis legal status has been thor
ougaly established by tho courts and
hands raised agalnat It In anger are
lowered the railroad commission should
romR'u the supreme ana paramount H..
sue In state politics Having, after Rn
exhaustive debate. adopted this system
of regulation hy majority OF more
than 10000 votes the people are de-
tetminod that the fruItA of tho victory
shall be enjoyed In lta operation FOR
only one year, when restrained hy the
federal circuit Judge, It saved to the
paopie more than ss,00O,O0O la freight
charges and Its usefulness and cnicicu-
~ nre not questions OF debate or OF
trial. As an agency 10 tx lust and
equitable rates between shippers ana
the companies, stimulate the movement
OF commerce and destroy the hnurful
practices OF rebates, special rates and
fayaritioun Ia pat.anuu mad t,tn... A., n