The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-05-14

dpOVo rtltlFeu W, Al az i~a-
lows:
Gentlemen: l beg to herewith again
transmit you senate bill No. 1888, and
to invite your attention to page 222
OF the Sixth Annual Report of the Rail
road Commission for tho year 1897
From this report find that there were
issued and outstanding when that re-
port was made, mortgage bonds
amounting to six millions of dollars,
upon the sherman, Shreveport and
Southern railway. Upon inquiry | also
ind that these bonds were issued be-
tween the date at which the stock and
bond law was enacted and the date
at which 1t went into effect. According
to tho report named, only Sl,1O0,0oO or
these bonds are charge upon the rev
enues OF tho company, and it is to be
presumed that thoy represent the cost
OF the construction and equipment OF
the road as actually built
The questions | wish to present for
your consideration and upon which TO
nave your opinion are these:
/. Should the bill under consdera-
ton become law? Is there any provl-
sion in the bill requiring the cancella-
ton OF the s4,9o0,000 OF those bonds
which do not represent the cost OF
construction and equipment OF the
railway as built between Mckinney and
Jefferson?
2 Surprising that the bill should re-
quire the cancellation of the above
amount OF said bonds, would It be
within the power of the Missouri. Kan
sas ard Texas Railway company OF
Texas to assume their payment by the
Issuance of its bonds in lieu OF the
cneS Cancelled?
3. Should there be in your judgment no
provision for the cancellation of said
bonds amounting to S4,s00,000? Can
and will the railroad commission. in
the event OF the bill becoming a law,
require the use Of such bonds in the
further extension OF the said Sher-
man, Shreveport and Southern railway.
or can and Will the commission per-
NIT the issuance OF bonds under the
general law to be used for additional
construction and equipment, leaving
the S49o0.ooo still outstanding?
In order to make this letter intellig,
Bile, deem it proper to give you the iol
lowing information relative to these bonal
which was obtained by me from the rail
road commission. This information
hereto attached and is marked exhibit 4
3 and G. From exhibit c II appears tha
the Missouri, Kansas and Texas railwa
is authorized to issue for constructio
purposes, in stocks and bouds. the sum
$40, 972, 500, this being the difference be
tween what has already been Issued
said railroad company and what it is al
thorzed TO issue under its charter.
also appears that $4,000, 900 OF the bond
OF the Sherman, Shreveport and Souther
Railway company have been deposited wit
the Central Trust company and are hel
as collateral trust to the mort cages OF Ii
Missouri Kansas and Texas railway com
pany OF June /, 1890. The coupons o
these bonds are not payable by the oblige
unless the Missouri, Kansas and Texs
Railway company falls to pay the coupon
on its bonds, and as fast as the Missouri
Kansas and Texas pays It's coupons III
coupons on the bonds OF the Sherman
Shreveport and Southern Railway com
pany are cancelled. We do not know tn
consideration OF these bonds and cannt
say whether they are legal or net Az
cording to exhibit b. II appears tht
81. 900. 600 OF bonds were Issued by Tn
sherman. Shreveport and Southern Raj
vay company for construction purposes an
were delivered to the Central Trust con
many in escrow pending the constructio
nj the road. to be delivered when the roa
was constructed. AS this road has n,
hsen constructed, OF course, these bono
cannot be delivered.
In answering your first questions, I r.
fer YOU to copy OF my letter TO you
date March II, 1899. The present bill, 1
this respect. is identical with the bill vi
der consideration, and consequently thu
letter is applicable.
In regard 10 your second question. sta
that the bill authorizes the Missouri, RaI
sas and Texas Railway company OF Tex
N exchange It's bonds for those OF Il
sherman, Shreveport and Southern Raj
way company and such bonds so exchange
shall be cancelled, but the bonds OF h
Missouri Kansas and Texas Railway con
many Of Texas. SO issued In exchange q
| tbe bonds OF the Sherman. Shreveport al
! southern railway by the railroad commi
sion. OF course, tie former road ia on