The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-02-01

build nor promote the interests OF rail-
ways nor care for the public veal.
During this mouth railroad presi-
dent received the following letter from
an eminent nonresident lawyer, the
adviser of capitalists having in view
the investment of money in railroad
bonds in this state, which am at
liberty and will read to you for the
purpose of showing this law, once so
disturbing in Texas politics, is grow
ing into popularity among those who
were bitterly opposed TO it. After the
address aud discussion of. other sub
iacts, this gentleman writes to the
railway president as follows;
About railroad matters, would
say that upon my arrival in San An
tonic in the latter ! art of December,
almost every talk or suggestion con
cerning railroads or construction of
railroads was accompanied with q
shurg of the shoulders, followed i'm
mediately by unmrasured denuncia-
ton of what WIS called the obnoxious
laws concerning railroad matters,
espe ciallv the issuing OF construction
bonds, which had been adopted under
the present administration. | deemed
it impossible tnat d state of the vast
resources of Texas, standing so much
in need of railroads in many localities
for their proper development,
could have passed laws
which really amounted, as
was alleged, to an obstruction to such
needed development. therefore pro-
cured copy of the session laws OF
1898, and have read carefully and re-
fected upon all the legislation OF that
session concerning the construction
and bonding of railroads. L also
made minute inquiries concerning the
practices in this respect before the
adoption OF these laws. AS result of
these inquiries, and from a personal
knowledge of the methods of Eastern
CAPITALISTS | came to the conclusion
that the practices heretofore prevail
ing in vour state seemed to be, to bond
the roads under construction for the
the highest possible amount that
could be sold in the Estern money
markets, without any regard what
ever to the actual cost OF construction
and equipment. ] am convinced that
in MANY cases the Amount of bonds
issued against railroads constructed IN
Texas has been several times the cost
of construction and equipment. AS
moral proposition this is dishonest; as
a practical proposition, an enterprise
starting with a dishonest basis is apt
TO be and usually is dIshonesG all
through from cellar to garrett as q
business proposition, roads burdened
wish such heavy fixed charges drlfted
naturally into the hands of receiver;
canital became scared and withdrew
its aid from Texas railroads; the ue-
velopment of the state came TO nav
and great injury to the people OF Cle
state was likely to ensue. tnlnk you;
sir. will bear me out in the statement
that. were it. not for the practlces
above referred to. many OF the roaus
that are now threatened WIN re-
ceiver, or are actually in his hanos OF
have been there, would nave oeeh
having their fixed charges at leasG'
and in many cases. if not in all, nave
been paying dividends upon tnelr
stock.
"Now, if nv conclusions thus far
are correct. it follows as the night the
dav' that som ething should be done to
remedy this The legislation above re-
ferred to was evidently intended for
this purpose. Manv seem to be of
opinion that these laws fail of their
pnrpose. Now it seems to me to rem
edy the evil referred to, and to make
every bond issued for The con-
struction ard equipment of a
railroad in Texas over any reason
able. practicable route as good as
government bond. This law comes
nearer being compete in all its details
than a7v statute have ever read, de-
signed TO accomplish 80 great an ob
iect. No honest railroad protector
wants to bond his road beyond the
fair actual cost Of construction. nor
will he object that those bonds are re-
ouired TO he accurately numbered.
registered and made a public record
that lie who runs may read. !" to the
end that it may be known OF all men
inst what the bonded inGeb edness of
a great public enterprise is On the
other hand, the man who contemplates
purchasing the bonds has the law to
protect him against an over and dis
honest issue of bonds; has public
record founded upon sworn Ftate.
ments made by zen whose position in
life is usually such that they cannot
afford to falsify. as q guarantee that
there is something behind their bonds
to make their investment safe. Il is to
me one Of the inexplicable things Of
life that millions upon millions of dol
lars have been reckIesslv invested in
railroad construction bonds. with
neither law nor custom to which the
inve ,tor might appeal for protection.
The same investors would not purchase
u IN ,rtgaye for $500 under che same
loose conditions upon which they have
invested millions in railroad bonds.
Il did not start out to write thesis
on railroad legislation, and lest my let
ter exhaust your patience. / will only
add that. if you have the honor of the
acquaintance of Governor Hogg, pre-
sent him nv C rmpliments aud assure
him that the legislation herein referred
TO will bde the test of time as long as
wrong is harmful and right beneficial,
or until business men shall become
divided between the classes of knave:
and fools"
With this evidence of satisfaction
added to MANY other proofs that
have in favor of this law, am now led
to predict that no man in the cam
paign this year will revive that issue
nor propose to amend or repeal or dis
| L