The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-12-18

road commission has acted fairly and
Justly towards the railroads of Texas, we
make the following statements, based on
The sworn reports OF the officers OF the
railroads. The net earnings from opera
ton OF the railroads OF Texas, for the year
ended June 80, 1896, was 1921. 54b13 Tor
thh year ended June 80. 1897. 1t was $S,-
1866. 1885, being an increase over the
former year Of $894,7l.l2; and for the
year ended June 30. 1898, 1t was SlO5S6,-
290.l2, showing an increase OF $2,53o, l0Z.o2
Taking the year 1896 as IL basis, the in
crease of net earnings for the two sue
ceeding years was in the aggregate $3.50
$3.50 The percentage OF the net earnings
OF the railroads of TEXAS, upon their value
as fixed by the commission for the year
1896. YVES 5.U7, Tor the year 1897. 6.Gy per
cent, and for the year 1885. IL was 'd9 per
cent; this upon the aggregate OF all the
roads. some earning more and some less
than these averages.
And to still further illustrate this view,
the freight rate established by this COM
mission on cotton, and which we have been
enjoined from enforcing, Is for our maxi
mum mileage distance 1865 miles 81 cents
or the 100 pounds, and after reaching that
distance the rates on the greater distances
are no more. The officual reports OF the
railroad commission of the States OF Gcor-
gia and North Carolr for this year show
that their standard rates per 100 pounds
ON cotton for that distance is 80 cents. and
as the distances increases the rates become
higher than our maximum rate.
And the suggestion that the value OF Il
| railroad should be determined by the cost
of construction is not lass monstr0us than
that their value should be measured by
the amount OF their fraudulent and over
valued stock and bonds. On account of
tho increased facilities for their construc-
ton. and because OF the great reduction in
| the cost OF material and labor within the
| last twenty or thirty years. railroad II
built with money and not with bonds sold
at q ruinous discount. can be built proba-
bly, for one-thlrd of what II would have
| cost to build 1t thirty years ago. To make
| this view plain. let us suppose that ten
ant leased farm ten or twenty years ago
at rental of $1,000 year, aud that On
account OF the reduction OF the reduced
value OF farm products its rental is not
now worth $500 a year, should he still be
required to pay a rental OF $1,000 year
If not. Is it not because the rent OF the
| premises Is no. longer worth that sum? Is
there any reason why when the property
OF a railroad has been reduced in value
| Nike other property. tina revenue derived
from It's property should not be correspond
| ingly decreased? Is 1t to be assumed that
| the property in railroads should stand upoa
higher and different ground than ali otner
property? And that the state must insure
|
amount OF their original inveslm fraud
| and all. while all other property Is forced
10 accept the general decline in prices
| Surely no Just government or court would
| wish to enforce such policy The gen.
enaa fall OF prices has been so great and
Ia SO notorious as to render illustration
OF this view unnecessary.
| The fact that some OF the railroads al
this State do not yield as much net rev
craze as Ia desirable Is readily accounted
for, and arises from causes which neither
the railroad companies nor this commits
sion can control until the population and
business on them increases. The 'errlt. rial
extent OF Texas is very great. and IN much
Of 1t the population is sparce and the
movement OF merchandise limited. We
have less than 10000 miles OF railroad IN
this State and some OF the railroads pass
through parts OF the country In which the
carriage OF merchsndise ~ so limited
that they can not for the present be mads
payrrg roafos without making freight rates
so high as to cause the people on them
to adopt other means OF transportation
than by rail. And the revenue of the
Texas roads Is largely derived from the
carriage Of merchandise from the interior
and distant parts OF the State TO and from
the oltleo Of Houet0a and 0a9veoton, 40