The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-02-21

hv our expert civil custncer. aad exprndi-
lures amounting to more taan four msllicns
OF dollars have been estimated and reported
upon for our action in the matter Of APP
IpGoval OF bonds.
During tho same period the follow VS.
additional mileage fas boon constructed
(which did not come within the provts,tns
OF the stock and bond laws
Denison Pacific and snhurts1 :, -. Z. r
Texarkans and Fort sni,h......... 20. 3
Texas Midland. ....... ...u......., .l(S St
Total. 49,. ms. IS
Making a total Of as1.ii miles, or say ssr
miles OF main line Constructed dlrins the
last four wears; oerisd OF eencral business
| depression. The consideration OF the fore
going figures will show the saving in inter :
est charges TO the people OF this State.
| IL all the sccurities-stocks and bonds OF
the lines which have been constructed uu-
der the provisions OF tho law regulating
their Issue bore the legal rate lim. of 8
per cent interest. and IL must Tic remeri-
berrd that many OF the bonds bear only 3
per cent. then the interest charAo pcr miie
would be only about $500 per annuln.
| The Same test applied TO tho pre-
| tected construction would give ahcnt
si2oo pcr mile, but the average cAisiing
Indebtedness OF Texas lines. Including stock
and bonds. amounts to more than 81, 900
per mile. hence on the above mentions
basis the interest burden would represent
a sum Of $246o per mile. or SAY twice as
much as on the work projected slnce tho
passage OF the stock and bond law. or three
times as much as that Of the work actually
constructed under its provisions.
Doubtless the law has prevented the con-
struction OF some speculative mil 9aSe, that
Is to say, lines built for the ostenstbie rur-
pose of developing the country. but really
for the profits formerly inherent IN the
promotion and construction of such schemes
or for the purpose OF forcing existing lines
to purchase undesirable property IN sell
ldesense. With a consequent Increase III
bonded Indebtedness out of all proportion
to tho value OF the property. either TO the
company or to the public.
Notwithstanding the depression OF the
times and the obvious effect OF the law 10
discourage speculative building. 1t APP
pears from the Interstate commerce COM
mission report that at is a significant fact
that the States of Florida. Georgia. LOUIS
lana and Texas--all Southern States are
included In the list showing any consid-
cradle railway constructions.
1T is a further significant fact that al
though s0.i15S9 miles OF railway In the
United States we're in the hands OF receiV-
ers on June so, $50. no important Texas
line was In that condition, except the Fort
Worth and Denver City, the receivershtps Ot
which has terminated since that date
Before leaving this subject. it may be
interesting to note the opinion OF the tech-
meal press as to our Texas lines, etc, in
Standardization TO the attitude OF Jour
nails which. on the one hand. express the
views of people whose manifest interest IT
is to prevent the building or new lines IN
certain territory, and on the other. that
of spectators who conceive themselves
thwarted and imposed upon by II conditioh
which prevents the building OF railroads bv
the issuance OF securities on fictitious
values.
nj -fana fxvn
ma,sy which have appeared In responsible
and independent Journals. As many lines
are financed in Europe. the second eS-
tract is taken from an article on the IAN
road situation in tho United states. wnich
appeared February II, 1895 in Engineering,
a London Journal OF repute md information
on all that relates to public works, The
first extract Is from an exhaustive review
OF the work of the Texas railroad commits
sion in tho Engineering News and Ameri-
can Railway Journal for Aprii -. lsNo,
This journal IS or an equally high standing
In New York and throughout tlSs country,
and 1t may be said that the advertisers IN
and subscribers to these two periodicais
design, estimate upon and build by far
the greater part Of the railway and other
important constructions throughout the
world:
AS matter Of fact, after careful ex-
animation Of the last report Of the Texas
railway commission, we are constrained to
believe That this bad name is undsseiyed
If the attitude OF the State toward rail-
ways is correctly set forth In the COM
missions report we are free TO say tnat
the position is economically and politically
correct, and that other States and rail-
way commissions can protitably study the
work that has been done in Texas.
II may be said al the outset, that the
Texas commission has attempted task
which has never been, attempted before
anywhere. and that is to base railway
rates upon the cost OF service. The posi-
ton OF the commission Is That the ran
ways are entitled to charge rates high
enough To return fair rate of interest ON
the actual value of their property, and no
higher BY value Is meant not the par
value Of outstanding stocks and bonds. nor
the amount of money which has been actu-
ally spent and charged to capital account,
but II is what the entire plant OF the rail-
way company could be duplicated LOT NJ
the present time.
That this principle is safe ana SOUND
one. and equitable 10 both the railways and
the public, all careful students OF the rail-
way problem will generally agree Ihat
the Texas commission IN willing TO adhere
TO II and carry It out impartially, the foi-
lowing extract from its report bears wit
ness.
While 1t is the duty OF this commission.
as far as II has authority TO do SO. by lis
rates and rulings, 10 protect the public
against determinations IN rates and service
between shippers, and against excessive
freight charges ii Is equally It's duty 10
establish and maintain such rates Us VIII
secure TO the railway corporations proper
return OF interest on the oaoital Invested.
If the condition OF the roads with refer
ence TO population and business wiz enable
IL 10 do so Aud II would not hesitate, u
IL should be shown to be necessary, 70 IN
orease rates for this purpose. This commits
sion has often stated to the frelsht agents
and traffic managers In its meetings with
them that IL the railway companies en-
gaged in interstate shipment would make
aud maintain rates which would be fairly
compensatory TO them on such shipments,
this commission would do all in ~ POWER
by its rates. 10 secure them reasonable
revenue on their railway investments In
this State And we now repeat that state
mcnt. But this suggestion conteppates
good faith on both sides In the making and
maintenance OF rates
That the principles above stated have
been carried out in practice. as far as TIE