The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-01-17

said: "This can be done by proVlulng
that no member of the commission shell
be eligible to any other position of emolu-
ment or trust for the period of two years
after the expiration of his term as COM
missioner. One of the great
achievements of the commission, desir-
able by all classes, should be the removal
| of the railways from politics. With the
feature of disqualification as suggested,
| it is not impossible for this result to be
fully attained. /" By this meth
cd the biennial political agitations and
corrupting influence, of corporate power
| in the elections, always productive of
among the just people, will be at an end"
| Every word of this l repeat
now. There is serious danger to result
| if the railway commission is permitted
to engage in politics. Their election,
with all the legislative restrictions that
may be placed around them, will pro-
duce much trouble anyway. To permit
them to use their powers for political
advantage in seeking offices, will, in
time, greatly impair, if not destroy, the
efficacy of the law. 1t cannot be objec-
tionable to any man in public life, who
prefers a line record to political promo
! ton, to know that the law forbids his
becoming candidate for another Office
for named period of years. His an
swer to the frequent opportunities to
run for Office will be sufficient when he
replies that the law forbids it. Thus his
great public life will go on undisturbed,
to the honor of himself and benefit to
the people. The law needs no amend
ment. A simple act, providing for the
election of the commissioners in obed-
fence to the late constitutional amend
ment, and declaring their ineligility to
other Office for a short period of years,
will be sufficient.
That the commission case is settled,
and there is peace between the railways
and the people, is blessing to the whole
state; and the law executed clear of
political design, on the one hand to pre-
vent the confiscation of the peoples prop
erty by excessive traffic rates or taxes,
and on the other so as to insure to the
railway companies just rates that will
afford them a reasonable return upon
their investment, will be productive of
untold benefit that must in time rebound
to the prosperity of every legitimate
interest within the state.
THE STOCK AND BOND LAW.
AS comparison to the commission act.
the railway stock and bond law" may
be next considered. This law. among
other things, defines corporate fran
| chise, provides for making public the
value of railroads, and limits the aggre-
gate amount of stock and bonds to be
executed by them to the value of the
property to be affected thereby. This
| rule can not be relaxed except by the
| consent of the commission, and then
only. in case of an emergency on con-
elusive proof shown that public inter
| ests or the preservation of the property
of the company demand it; in which event
| the stock and bonds in the aggregate
may exceed, by consent of the commits
sion, the value of the road to the limit
| of 30 per cent.
Clearly this law settles the following
| essential propositions
First-That except on the conditions
of emergency named, no railroad con-
structed before the act took effect, can
excess of the value of the property as
established by the commissions experts,
under the provisions of the law.
SecOnd-That no railway company can
execute bonds on unfinished road, and
must expose to the commission its prop
erty rights and construction contracts
to insure fairness to the public in the
transaction.
Third-That in the construction of new
roads, and in the execution of all in
debtedness to be secured by lien on the
ample security to the creditor are the
prime factors that the commission must
jealousy guard.
Fourth-Ihat to guarantee good faith
| and fair dealing in the execution of rail
way bonds, the penalties inflicted for
violation of the law are: First, for
feiture of the corporations charter; sec
ond, the particular act is made void
third, each director and the president,
IA al H..
knowingly takes part in the illegal trans
action is made felon, and subject to
Imprisonment i'll the state penitentiary
for the offense.
Before the enactment of this law it
was the custom of railroad companies
to add millions upon millions of dollars
to their bonded Indebtedness annually.
For many years the records show an
annual increase of from S10.0O0,O00 to
$30.000,000 to their interest bearing
bonds. without any corresponding benefit
70 the property or the public. They
were simply issued for speculative pur-
poses, and then foated in the markets of
the country as the professed work of good
faith. Thus railway securities became SO
mingled with wind and water" fraud
and rascality, that the best of them were
under more or less suspicion. Now such
is not the case. Henceforth every such
bond will have the stamp of honesty on it.
1t is a matter of congratulatiOn and free
comment, that though the law has been
operative for about eight months, there
have been no bonds issued by old roads
since it took effect; and that for the con-
struction of new roads, the per cent
bonds now being issued under it are in
demand at par. Instead of the effect of
| the law being to prevent the construction
| of railways, it is pleasing to note that to-