The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-11-01

expedition. That the said tariffs, schedules,
rates ami charges so established and sought
to be established by said commission have
reduced, and VIII reduce the revenues OF
SAID defendant railrosd Company TO y
greater amount upon the same tonnage OF
freight transported than did the rates, tar
IFS. schedules, circulars and orders in said
causes Nos, 1856, 1877, 1888, 1870 and 100 de-
creed to be unjust, unreasonable. confis-
catory, null and void
That the railways of the defendant upon
which your orator has the lien have no
other or different value or use than as
railway property aus the same is operated
in the carriage Of persons and commodities
for hire; that the value of your orators
lien thereon and its property, rights and
interest therein Is determined and fixed by
the prcductsveress and eMming capacity
thereof. Your orator AYERS uhtit il The
said rates and charges so promulgated and
sought to be enforced by said commission
shall be adopted ard continued in force by
tho satl defendant railroad company, or
shall be enforced by any or either OF the
other defendants hereto. the result Will
be serious ard rreparable reduction OF
tho value OF the railway and property OF
the SAID defendant compHsy and serious
and irreparable reduction OF the earnings
AMI trnome thereof, thereby inpa ring,
taking and destroying your orator 8 pop
erty and interest therein, ana the invest
met under Sid bonds secured by said
mortgage to your orator as trustee, and
your orator fears, appreh Ads aa6 alleges
that the value Of said property hav .uFs h7en
thus corclusively fixed and established,
ard the possibility of any adequate or fair
productiVcneS In the future having been
THUS concluded, the said rail oli company
will be unable to earn or provide fof the
interest upon its prior obligations and the
liens for the security thereon VIII be en-
~ fCr las, 1Sut
foreclosure the said railway properly
would not bring, and by reason OF its arb
trar2ly diminished earning capacity, woula
not be worth, sum equal to the charges
thereon prior to the mortgage indebtedness
represented by your orator ais TRUSTEES. And
so your orator shows that the effect AID
operation OF the said railroad commission
act ard of the sid action of said commits
sioners in allegei pursuance thereof,
threaten to deprive your orator and the
beneficiaraes OF it's trust OF its and their
p!op qty, rights and interests.
Your orator further AYERS, upon informa-
tion and belief, that tina Indebtedness OF
said railway company herein recited. Sc
cured by mortgage or otherwise, and the
stock capitalization Of said company. to-
gether with all the amounts expended by
1t in betterments and Improvements since
1t acquired said railways represent the ac-
t,rs@ and reasonable cost to said railroad
Central Railway company dts predecessor
company of the construction, requirement
and equlpmeEt, betterment ami improve
ment of It's lines of railway ana property
of the said defendant company Is not Gully
the act,rsl arid reasonable cost of Aforesaid
but the said actual cost, together with suth
increase in value as the said properties
have acquired by reason of the growth in
population and prosperity of the country
through which they run; by reason of the
favt rahlo location of said railroads in view
of the advance OF safi country In prosper-
9ty and civilization, and tho Increment 10
said value due to the settling seasoning
and permanent, establishment OF the rail-
ways of the defendant company. and to the
established business ard to the good will
conrectdi with the business of said rail-
ways which have been established through
long serlses of years, and that the rea-
sonable and fair value of the railways OF
the defendant corporation fixed as afore-
said constitutes the capitalization upon
which, at least 1t Is entitled to earn and
should pay full and fair returns by way OF
interest anil dividends. That such returns
should be not less than sum sufficient
to provide for the entire interest on its
bonded debt, arid a reasonable return by
way of dividends on its capital stock, and
said railroad commission may not reasona-
bly o. lawfully establish Or maintain rates
anil charges which will restrict the earn
ings of said company so that 1t Will be un-
able TO meet these requirements, nor rates
ard charges which wJll in amy other man
ner restrict the earnings of said company
so lorg as its rates and charges are just
and reasonable, and SO long as the same
do not provide more than fair compen-
saticn for flhe SERVICES to be rendered by
said company as common carrier to the
public.
Ninth A. That in fixing and determining
The retunns and earnings from the property
ofSsst1 railroad company necessary TO ena-
BILE it to meet the interest ON it's bohiei
dsbi. in addition to many other items to
be considered, are two TO which your ora
tor des.res specially to refer, arll which 1t
Gow ss;s forth MS follows. to-wit:
/. That among the obligations of said
railroad company enjoying, or Claiming to
enjoy, priority over ;he mortgage of your
orator, Is an obligation to the State of
Texas knowp as the school fund loan, the
amount of which Is hereinhefore alleged TO
be in dispute between said railroad COM
psGy and the said State Now your orator
further AYERS that the State has brought
suit against The said railf6ad company to
recover the amount alleged by said State
to be due to her by said railroad company;
th'st In said SUB, Judgment was rendered
in favor of the State OF Texas and against
the said railroad company on the goth of
February, 1896, by the distutct court OF
Travis county for the sum of 1913 10g. so:
that upon appeal by said railrosN company
said Judgment was affirmed and appli
cauoG by sa.1 railroad company 10 thu
supreme court of Texas for a writ of error
to the said court of appeals ITO review sad
Judgment was denied. but said cause has
been carried by said railroad company to
the supreme court OF the United States Oh
writ of error, whore it Is now pending;
that said judgment bears interest at per
cent per anniim from its date until paid,
80 that said Judgment, with interest d
Costs. now amounts 10 very nearly $500 O00
Your orator further ayers that although
1t does not admit, but on the contrary de-
mics, the correctness OF said Judgment still
that the same has heen rendered by court
OF competent jurisdiction has been ar
tirmed upon appeal by said court OF civil
appeals as aforesaid, and relief denied by
the supreme court OF the State OF Texas.
That, under the legislation of the state of
Texas In reference TO said obligation the
said Houston and Texas Central Railway
company was obligated and required Il
provide for said Indebtedness by paying he
annual iutercst upon the same, apd reduc-
ing and extinguishing the same by means
OF a sinking fund OF ? per cent per annam
upon the principal thereof. That said OBJ
legation was therefore by the legislation
OF uhe State CT Texas clearly constituted