The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-03-24
To Governor J. D. sayers. Executive or.

To Governor J. d. Sayers, Executive or
fce.
Austin, Texas. March 16.--Dear Sir: We
are in receipt of your letter OF yesterday
inelosing to us house bill No, 51l and
asking our opinion thereon
The Gulf Beaumont and Kansas City
railway was chartered March "a. 1898,
being before our stock and bond law was
passed. II extends from Beaumont north
ward TO a point in Jasper county, with
lfty-onc miles of its road built. II has
considerable amount of outstanding in
debtedness.
The Gulf Beaumont and Great Northern
railway was chartered on the 9th of Au-
gust, 1898, 1t contemplates the construc-
| ton OF a railway extending from Sabine
| Pass through q number of counties In
| Eastern Texas TO Paris, In Lamar county
| a distance of $50 miles and Is authorized
| to issue s350000 In stock. But this COM
mission has not been called on to author
| izc it to issue any of either stock or bonds
| from which fact We suppose II has none
| of either outstanding. IL has been stated
| in the newspapers that ten miles OF its
| road have been constructed. but this COM
| mission has no official Information as TO
what work has been done, y any, on the
I road.
AS the two roads would occupy. In part
! at least the same territory their .consolld-
ation would seem to be desirable. but the
/ bill should not be allowed 10 become a
! law in its present shape. In Its caption
stating what the corporation may do we
find the following words, And to regulate
the reports of such property and the OPP
Grafton thereof The railroad commission
is authorized and required 10 prescribe the
regulation Of the reports Of railroad COM
panies These words, II would seem, are
intended to confer that authority on this
company and is not permissible ~
In the first section of the bill find
these words, towit: THE Gulf. Beaumont
and Kansas City Railway company, In the
name OF the Gulf. Beaumont and Great
Northern Railway company, shall be and
is hereby authorized to Issue first mortgage
bonds" etc. The corporation could only
issue such bonds as might be authorized
by the railroad commission, and It has no
authority TO authorize the issue OF first
mortgage bonds. The bonds II Is author
lied to issue are all intended to represent
dollars, and are not to be classed as first
or second class. This provision should
not be allowed to became law.
And in the same section we find n pro-
| vision providing that after authorizing the
issue on bonds equal to the value Of the
road the Issue of so per cent OF additional
bonds are to be authorized To do that
would be to violate article H. section 6,
OF the constitution. This could only be
done under the authority of the proviso
TO article 45S4B OF the Revised Statutes,
to meet an emergency which might occur
after the road has been constructed. when
by some casualty-such as the destruction
) of it's property by fire or flood or the like
Il became necessary to renew or to pre-
serve It's property.
On the fourth page Of this bill where 1t
proyides for tho cancellation Of the bonds
! OF the Gulf, Beaumont and Kansas City
= railway, It makes no provision for the
: cancellation Of its stock. II 1t has any
= and if the bill should become law in this
form this corporation might be charged
a with its value IN bonds and stll have out
standing stock which. with the bonds
e would aggregate more than the value o.
I the road its property and franchises ant
{ would violate article IL, section 6, OF th'
constitution.
We do not think this bill should becom'
y a law In It's present form very respect
y fully, John H. Reagan CHAIRMAN