The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-11-24

| 80 " iaiiure OF property to earn suffiojen,
~ pay opeHsuns expenses, interest ON bond.
anu aAes tniANng no allowance for per-
manent aduprovenenss), sS.els'sso 81. sn,l
deficit for year ending June 90 1SaS. IA,
pest year Ia the history Of the road. ss7s..
$500. owing 10 suca failure 10 earn ~
penses. interest and taxes ami auopnr
expended in Improvements ami better.
nients, the company owed on June 80. lsas
. Heating debt OF Sl2, yie i2s6S. fron, wh,ch
after dcducting all available asses l.sft
=. ~ chargeable 10 profit and loss q
Valuation BY commission on estimate 81
reproducing physical property in lsa5
sls,ois IiS.1l, or sle,s6s per mile.
Sinlisr estimate by ccmpany's engineer.
suPporeed by atiidavit, s20.gs4, So6l2; since
| When there aas been expedited ST. 500 .00o in
| improvements, making d total OF SO hi :.
s0s,l2. sN''' - ssS's's'-
In this estimate no allowance is made far
an old season road over nav one whi3sh
| Ia the opinion or the compauy's engineer
should be az leist SS,o0o,0oO, making TOT d,
| OF S25,4S3,306ls.
This estimate does not include such
items as loss of Interest on Investment
Wnle and cost OF building up traffic, Iay-
| CRADLE iocstion OF properly, ote
An expenditure OF about $1,000, 900 DER
annum Is necessary Tor the next ihree
years 10 complete the process OF requisite
iiipi oNttLelftS OF the propcrty.
for the year ending June 80, 1898 after
! ueIuclns operating expenses and taxes.
and without making any allowance wat.
e,er Tor improvements. the COMPANY
earned on the commission valuation "a
per cent per annum.
All revenue prlcticable Is obtained from
all sources. ''''
,, ~ an average, the companys charges on
Interstate tlGtric are higner than for thr
satse services performed under co.n,nisgfoa
i@ses and tt deily9s mora revenue from
PERFORMING the same service in fnterstate
coRtmerce tiran ut does performing the
same or similar service under tiha comn1is.
sion rates.
Details given by affidavlts ,st l.. i. Polk
aid r. *. Parks: Commission tariffs applied
TO the business for the year ending June 30
lseS, reduce the revenue of the coupany
below what 1t woaii have earned unler
its FORMER rates, AT least 100000 The
eompany's former rates We're reasonable to
the public; too low Tor it. own good; not
repressivs to tariff, as tariff as
under for several years prior 10 the
commission traffic constantly and radically
increased.
The property has been operated as cheap
ly as practicable.
On any basis of calculation that can be
adopted, the State traffic unier the com
mission rates, after paying $ proportion
- the Operating expenses leaves only a
nominal sum applicable towards the pay
ment of taxes and intsrest.
There has been no increase in business
caused by commission rates to compensate
for loss In revenues.
In the case of the San Antonio and Aran-
eas Pass rail3pad company
l. This company owns sS7.67 miles of
road. 1t is bonded for sl7 800 900.
Its bonds bear interest at 4 per cent, so
that the fixed annual interest charge upon
1NS rf no ~,
SIl600o. It's capital sto,N amounts to
s4,972,900. The investment on IT'S bonds
and stocks, together with permanent Inn
provements added, amount to a value OF
$23, 422, 900.
THE cost of replacing it's physical prop
erty alone is admitted and alleged by the
commission to be $S,677 ,6sS.S7, or $l2,6l9
per mile.
For the year ending June go 1898, this
company required sIl6000, as aforesaid, to
pay interest on its bonds. 1t earned $685.
Gal ST, thus leaving a deficit in the amount
required to pay interest ON its bonds of
$500, 35S.43.
The amount required 10 pay 6 per cent
interest even on the commissions valla-
zion of its property was S520,6lS 1t earned
as aforesaid only SS46,6il.5T, leaving a
s,hartage even On the commissions valua
ton of I3,976.43.
The losses suffered by this company
through the application to its intrastate
business for the year ending June 30, 1898,
and O, the. tariffs established by the Texa.
railroad commission, and in force during
the whole, or during part OF the year
ending June 80, 1898. amounted to Sl93,-
700 76--that rs to say, that II the tariffs in
force August TO- 1894 had been allowed to
contirue the company would have earned
$l94.T00T6 more than it did earn.
The tariff on cotton promulgated by the
commission and stayei by the restraining
order heretofore issued In this cause, would,
If applied to the traffic OF that year, have
caused an additional loss on intrastate
businefs of $2S,549.60.
In addition to the above, it is estimated
that the company lost $4,000 on It's inter-
state business for the year ending June
3O 1928. as the result of the application
to that busiress of the commission tariffs.
instead of the railroad tariffs which were
by the commission tariffs.
The railroad OF the defendant company
starts in urgent need of repairs ana bet
In order to place It N proper con-
dition to meet this demands OF its patrons,
and the interests of all parties concerned.
1t is estimated by its officials that the sum
Of Sc, 26S. 1929 is needed for this purpose,
Upon the above facts. our right 10 an
lrjunction in this cause is so clear that We
deem 1t unnecessary to enter into any
further discussion of the evidence or into
any greater detail.