Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1895-04-15
THE MESSAGE OF THE GOVERNOR
vEToING a BILL FOR coNsoLipA-
TIoN OF ROADS.
WHY ir MUST NOT BID BONE,
AND HIS REMARKS AND sTRIC-
TUREs ON THE BILL THAT HAVE
MADE THE LEGISLATORS SOME
WHAT FESTIVE.
AUSTIN, April 12.


senate the following message:
Austin. April 70. lsO5-ro the Senate;
Senate bill No 1877 is herewith returned
without approval.
The object OF the act is to sanction
and ratify the title of the Texas and
New orleans Railroad company to the
railroad ana corporate rights and fran
chlses OF the Sabine and Fast Texas
Railway company and to authorize the
Texas and New orleans Railroad com-
pany to purchase. own and operate the
railroad Of the Louisiana Western TX
tension Railroad company. The three
corporations named were organized
under the laws OF this state The Texas
ana New Orleans railroad extends Lom
Houston to orange, a distance OF 100
miles; the Sabine and East Texas OK
tends from Sabine to RUcklund, "a dis
lance OF l02 miles, and the Louisiana
western Extension railroad extends
from Orange TO the Sabine river, the
state line, distance Of seven miles.
The act presuppuscs purchase OF tne
Sabine ana East Texas road by the
Texas ana New Orleans Railroad COM
pany ana equally implies. what is
clearly the case. that the sale was
without authority Of law. Unless spe-
ciilC legislative authority be given for
the purchase Of the property and fran
chises Of one railroad company BY an
other, whether they be competing or
not, no such power exists ana It's eXer-
else is contrary to law and public
policy.
Railroad company VS.. Morris, IS Tex
AZ. ~.
railroad company VS.. Rushing. SO
Texas, 3O6
The capital stock and bonded ndebt-
odress OF the Louisiana Western Ex-
tension Railway company Is SlSi00O, or
S2Il6l per mile, ana that Of the Texas
ara New Orleans Railway company is
$S,6il,936. or $S2,3Oi per mile. The Sa-
blne ana East Texas Railway company
nas capital stock of S3O0,00O This
o. nlpany, In Its name, II seems has no
bonded debt II was sold In 1852 to the
Texas and New Orlelns company,
which took up It's bonded debt and
issued In lieu thereof bonds to tho
amount Of {g,j7jOOO, which, with the
capital stock, will give a stock and
bonded Indebtedness of S2S, $50 per mile.
IL Is provided by the act (section y
that 1t shall not be construed 10 uu.
tnnrl2e any Increase OF the outstanding
stock, bonds OF other Indebtedness or
sne Texas ana New orleans Railroad
q, mpany or that OF either OF the other
companies named beyond the aggregate
Nl FANNN Nll'l hpIAtA lltltbltuithS OIL
sald companies Ur such two or more
of them as may be purchased. In the
form Of a negative this Is authority for
an Increase Of the stock, bonds ana
other Indebtedness Of the two tNsnpa-
MES to be absorbed to SlG,O72 per mile,
TINS being the aggregate Indebtedness
per mile of the three roads. The total
value Of the Louisiana Western Exten-
sion railroad Is put by the commission
at Sl6.OsG,Sl Kcr mile, and the Sabine
and East Texas railway at SS,7S7.27 per
mile. The law regulating the issuance
Of stock and bonds of railway compa.
MES approved April s, 1893, provides
section y that no bonds or other in
debtedness shall be increased or issued
or executed by any authority whatso-
ever and secured by lien or mortgage
on any railroad or Nrt OF railroad or
the franchises or property uppuGtenant
or belonging thereto, over or above the
reasonable value Of said railroad prop
ctty, ana this Is uuQuestiunably con-
travened by the special law under CON
alteration. nominal organization OF
the two companies To be absorbed still
exists. ana II Is quite easy to increase
the Indebtedness to the aggregate au-
thorlzed before anal nmalgumatlon.
Without such course the same result
may be renched, Tor after consolidation
the commerce Of the two sold out roads
may be taxed to pay interest and dlyl-
dtpds ON the extraordinary and enor-
nous Indebtedness OF tho Texas and
New orleans road, At present. what
ever may be the measure OF Il reason
ahle freight rate, the commerce OF the
SlbIie ana East Texas road may reach
tn gun or a connection at Beaumont
WIN New Orleans OF at CUlme3neil with
other roads with no greater tax than
such MS viii Yield operating expenses
and interest and dividends ON 32S, $50
per mile. Under this act. IL the railway
measurement of rates be 7lbpted. tho
basis of Interest ana DIV a, lg win he
,-,,ol2 per mile. The injustice to the
people along the line Of this road he
therefore plain and will be more so
with time and experience should this
act become a law.
Another objection to the bill is that
the sabine ana East Texas road Ia u
competing line with the Texas and
New Orleans road, and the act is
therefore in conflict with section i
article 40, Of The constitution. which
expressly prohibits the consolidation Of
lines. n these ronds ,yera
operated Independently. fright Skinned
out OF the state eastward over Tho
Sabine and East Texas road Womb
nave two outlets, thereby creating com
peuilon, one Mt Sabine Pass nnd
another by connection at Beaumont
with the Texas and New Orleans rau-
road. With freight shipped oyor tbc
sabine and East Texas road ana de-.
suned westward. through connection Mt
Cpinesncil this road would cumnote
Win the Texas and New Orleans rond
IA the connection at Beaumont Ns
SHOWN by the diagrams which follow,
the case rs similar to the attempted
consolidation OF the East Line nud t5ad
River railroad with the Missouri. Kan
sas ana TeXas road, which the su-
prone court deHbunCed in u. r. "a vs
state 10 Texas, I}i. both because the
latter was foreign Corporation ana
was q competing line %. li9 with the
former. '"e
Hut this hill should not be considered
alone and these roads are competing Ia
broader sense than that ALREADY
noticed The attention Of the IepIsia-
lure was heretofore called to the oner-
atoms in California and this state a,
4 Kentucky corporation known as mo
southern Pacific company. In CsiI-
lornia 1t has grown to be easily Inc
Iuldest and most hurtful monopaiv IN
me history OF the state no srch a.,
ilarming extent has II dominated. ro,nl
peree and imperllled the rlghts ~ tbo
people that the whole state ia nro-
,oundly aroused against It's cornIpf snd
numerous rule. Some idea OF the con
iition OF affairs there may be bad
rom the following, taken from The
'eport Of a special representative os n
great non-partisan Journal ana pnb'
ished In March:
Every railroad in California ia bopd-
I'd for twice or more than twice he
,ost' ana II has been declared again