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

to us; tine cost OF laying down the rvtss
ties and laying the rails and surtacin3 :be
road In like manner We proceed TO ctl-
leci and place In our files the evlden.'e OF
the value of engines. cars OF all Kinds ana
OF every other item which enters Into TIE
construction, rolling stock and equl )inent
Of railroad Where there were conflict
ing statements as to the value OF any par
Siculur things we make CUT valuation
little higher than the average OF the state
merts so made.
Htrvlng thus ascertained the cost OF con-
struclhon, I'm order to avoid the posss pity
of Injustice TO the railroads, we have made,
in each case, an arbitrary allowance OF
about per cent OF the sscertained value
OF the road, to meet the expense OF charter
fees, engineering service and fees OF coun-
sci. And in each case We adopted second
arbitrary allowance, on the ascertalned
value OF the road, OF about per cent 10
cover the interest on the money invested
i'm the construction OF the road. The result
of this is shown In our appended statistical
tnble No. IL OF Appendix II 10 this report.
The railroad commission adopted the
| foregoing as The best plan which occurred
| to 10 of complying with the requirement
| that 1t should ascertain and fix the value
| OF the railroads Of Texas. and We hazard
| tho expression of cur BELIEF that there Is
not IA road which has been valued by this
| commission but that could be duplicated
| for less than our valuation. Our system
| OF valuation has at least tho advantage Of
! being made ON am Ineligible basis, deter
mined by known facts and not dependent
| on vague speculation.
| AS we understand the expressions o. the
supreme court Of the United States, II holds
| that the railroads are only entitled TO re-
| Enumeration on the value OF their properly
There could be no other just conclusion
But the question is still open as to how
the value of their property is to be ascer-
tanned We submit our views on thi:
question, which We recognize as a very i'm
portant one. This Is antagonized In tn.
bills filed by the trust companies, and IN
the cross bills flied by the railroad COM
pan.es In the injunction suits now pending
by the claim made by them thai they art
entitled to revenues, from the operations
OF their roads, which will enable them e
pay for the management and repairs o
their roads. to pay interest ON their bonded
indebtedness, and a Just interest on TIT
stock OF the roads. And they go beyont
this and demand rates which will enabl,
them to make many millions of dollar
worth OF contemplated Improvements OF
their roads not yet begun. Let us illus
trate the effect OF this position by calling
attention ~ the case OF tho Houston ant
Texas Central railroad. The length Q
that road. including its Austin branch, u
452 miles. 1t has outstanding stock ana
bonds s25, 442 900 $3.50. 2l9 per mile 1t
valued by the railroad commission a
50, SIS, 903. 2S, being s2i,1s6 per mile, AM
this railroad property was rendered 70
taxaItion by the company at $l0.7i9 pc
mile. The question Is, does Justice an
fair dealing make II right that peopl
should pay am annual tax DO meet the On
terest and dividends on s26.20i, 420, o
should they pay interest ON thevalue OF th'
property, s9.5Ss,sos'
4 For further illustration on this point.
few years back Poors Railroad Manuel
which is certainly not unfriendly to III
railroads stated the amount OF the stool
and bonds OF the railroads Of the Opdte
states to be about 81 900 10000. and tina
OF this sum more than $4,000, 900 wa
4 fraudulent From the opinion Of the Ell
preme court of the United Ststes in Ia
Nebraska case. ana from expression mad
BY that court In other cases. II is manifes
that that great tribunal does not mean I
sanction policy which would put an an
nual tax on the people to pay interest an
DIVIDENDS on the "a 900. 000.0 900 OF fraudu.en
etock and bonds above referred to- or o.
j the excess ct stock and bonds over I'd
value OF the Houston and Texas centrs
5Sat Il nsy y uaassstesa tAas ~ ri