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

ernor hQgg, ana the annual report be-
Tore us Is interesting. Thor rulings AS U
rates has been aftrmcd BY the supreme
court; but the chief point in this connection
y their function In reference to the pronio-
lion OF lines and the issue OF bonds, Rail-
way companies have o happy way OF meet
ing liabilities by the Issue OF bonds In ex-
cess OF the worth OF their property, and
one duty OF the commission Is to value. tho
property aud franchises. aud thus deter
mine the maximum amount Of bonds that
may be issued. The estimate Is based on
the cost OF construction plus u reasonable
/ profit TO constructors. Thus 5000 miles Of
20 have already been valued. and the av-
craze worth Is EsiSs per mile. beyond
which the property can not he bonded.
With this restriction there Is greater
chance of profit to the share or bond
holders. Again. the commission have
1 power over new railways The route pro-
posed is considered In the light OF p oh
uolc traffic, and Is laid out also TO invoke
the least difficulties II Is suggested thar
otherwise the Interested promoter and con.
structcr would map out the most dliisult
route, SO that his profit ON construction
might be the greater. bonds Tor new lines
In Texas can only be authorized on tho
basis OF the cost or constructing the road OF
! a certain grade. With u certain kind OF mae
tcrial and OF n certain standard OF excel
lcncc TO insure the minimum expense OF
opposed on the plea that the effect is to
discourage the construction OF railways ana
the investment OF capital in this class u
security. But as matter OF fact the leg
islation, which has been In force four wears,
tends 10 encourage Investment. rs II In.
surcs the carrying forward Of lines which
have a prospect Of traffic and at a fair cost
OF construction, discouiaging speculative
lines such us we have Incidentally referred
TO- Moreover, Il tnsurcs very reasonable
rates of freight. II Is the guarantee which
is given by this legislation That is neces-
sary TO reassure The Investing public In ail
the States railways. ,--lsngincoring
EMPRESS COMPANIES AND EXPRESS
RATES.
THE writing OF this portion or our re-
| port was deferred until February IA. 1928.
the day that our express tariTf becomes
effective without further opposition on thu
part OF the cypress companies.
In 1928, while tho commission WAS under
Injunction restraining IL from making rail-
road freight rates, 1t called Two Hearings
| on the matter of making rates In Texas
TO be observed by the express companies,
At both hearings representatives Of the
express companies We're present with aiale-
mcnts showing that their net revenues
| would not admit OF their rates being low
cred at that time. No shippers appeared
to contest these statements aud there be-
| 'uS nv SNitutt tutu rIcuulTlue OF
| ices OF express companies 10 be kept In
Texas the commission was not in posi-
| ton TO examine the accounts from which
| said statements were derived AZ Il result
OF these conditions no express taritf wax
made in that year.
After the dissolution OF the railroad In
junction suits because or there still Ne
ing no law requiring express companies
TO Keep their accounts in Texas, but maia;y
because our entire time was needed FOR
the moro important work Of fixing freight
| rates on the railroads. nothing was done
by us in tho matter OF fixing freight rates
The Twenty fifth legislature OF Texas
passed an act, which was approved March
IL, 1897 land became effective about Au-
gust 90 1890, TO require every express
company to keep a general office Ia the
State. and to furnish such information IN
relation 10 its property. Indebtedness and
business, as may be required by the rail-
road commission OF Texas. and to provide
penalty for violation OF such require
ments." by the date that this law became
effective we had been notified by tho
American. the Pacific, the United States
| and the Wells, Fargo & CO. express com
panies OF the establishment by thom Of
general offices in the StHte, at the places
stated in their reports hereinafter referred
to- In further pursuance OF this law. the
commission prepared a form OF report and
by an order dated September A. 1897. re-
CURED eanh express company doing bUsi-
ness In Texas to make report to IL within
thirty days thereafter OF it's property, in
debiedness aud business for the year end
Ing June 30, 1897. IL was found TO be
necessary to extend the time for filing
these reports. and the additional time
granted was also awaited of 10 secure nd
dltional and explanatory Information not
provided for In the forms MS at hrst pre-
pared. The Pacific and the Wells. Fargo
a. Co. express companies rendered answers
10 quito all the questions asked. but the
American and the United States express
companies each declined to answer several
questions necessary TO determine their
profits on business done in Texas. aud
the attorney generals attention was called
TO their refusal and his action requested,
as far as the facts and the law would
warrant
On April 2s. 1897, the commission FORM
ally assumed jurisdiction, by its circular
No APP, over the rates, classiildations, rates
and regulations applying on freight trans
ported by express companies In Texas, and
directed that no changes therein be male
unless by order or authority OF this ctm-
mission; and on May 10. 1887 express com
panies doing business In Texas were RI
quired by our order 10 furnish us with
copies of all contracts then In force. OF all
tariff sheets then In force.
On May o. 1897. notice was given Of
session OF the commission TO be held on
June T. 1887. to take up and consider n
schedule Of express rates classification.
rules and regulations. The time for this
meeting was postponed to June ~, ~
which time the matter was considered, ~
siilting In the Issuance by us. on June
~ OF our express torlff No. !. 10 become
effective on July IL. 1897 a rebenring WIS
deemed advisable end Iuiy 10 was the Gate
sci for that purpose. This resulted IN the
cancellation OF express tariff No. J THE
operation OF which had been suspended for
len days. and the PRONUNCIATION OF express
tariff No. IA 10 become effective August .,
1897
On August 2. 1897. The American, the
Pacific and the Wells, Fargo e. Co, EXPRESS
companies obtained from A.. y. Mccor-
mick. Federal judge Of tho Fifth circuit
United States court nm Injunction restrain
ing this commission from putting or con-
tinuing IN force mud effect" express tariff
No. IA, and a little utter this commission
and Individual members were subpoenaed
to appear before the United States court
for the Western district OF Texas. on he
A.,t Anndav IN f-oisrtfafyt 1888 m qhDW