The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-03-25

Southeastern company and the property
formerly owned by the St Louis Arkan-
SIS aud Texas railway company in TeXas
20 the ST. Louis Southwestern railway
company OF Texas but the stock OF these
two ncw companies was then and is now
owned by tho same parties in The Same
proportion. SAID lines connect nniy at
Tyler, and arc not over their own rails
competitive between any two points But
they do compete az Tyler with the Inter-
national and Great Northern railroad for
business AZ some local points and with
the International aud Great Northern road
the Tyler Sou,heastcru may compete for
Houston business in connection With the
Houston East and West Texas railroad
The International and Great Northern
road and the 81 Louis Southwestern RAFT
way of Texas are under dIstinc, and dit.
ferent managcments and are competitors
for business az Tyler
Tho ST. Louis Southwestern Railway
company OF TcSas and the Tyler South
eastern road are not competitors Tor bust
ness. but arc operated practically in the
same interest.
The two last companies do not competu
al Tyler or elsewhere for any character
of business
?. AS to the objection 10 said hill on
the grounds Of the Increase az the mort
gage Indebtedness Of the property owned
nv the Tyler Southeastern company, we
would suggest that tho facts as shown by
the records and reports OF the railroad
commission are in brief as follows;
The Tyler Southeastern railway com
pany has a mileage OF $3.50 lta out
standing stock Is S250,0q0 tts outstand-
ing bonds are $9e0,0o making an aggre.
gate Of stock and bonds Of $3.50 600. which
Is 996 per mile.
The ST Louis Southwestern railway
company OF Texas has mileage OF 55l 20
nail tf. a. z N nm 4...
Its bonded Indebtedness is s4,16J500,
making 3 total OF stock aud bonds OF
SIG, 1851 500, which IL Sso,2l per mile. The
two lines have total mileage OF 5000
miles and total OF outstanding stock and
bonds OF si7a07 ,500-see seventh annual
report, railroad commission OF Texas. page
1856
The property OF the Tyler Southeastern
Railway company has heen valued by the
railroad commission Of Texas at Sal4-
7iS,9S-see seventh annual report railroad
commission ot Texas, page poi.
Under the provisions of section Of sen
ate bill No 1913 tho ST. Louis Southwestern
Railway company Of Texas il only per
mitted to Issue bonds or stock and bonds
for the purchase OF the property Of said
Tyler Southeastern company MS fixed by
the railroad commission of Texas, and said
additional bonds or stock and bonds s1
issued can he used by N only for the pur-
pose OF taking up The outstanding stoaks
and bonds Of the Tyler southeastern com-
pany All railroad bonds under the stock
| and bond law must he Issued with the
| approval az the railroad commission OF
| Texas The commission before approving
| such bonds can sec that the provisions ot
| this bill are properly complied with and
the outstanding stock and bonds Of the
| Tyler Southeastern company cancelled 50
| that the state VIII he properly protected
! II this ~ done the stock and bonds Of the
| 81. Louis Southwestern company Of Texas
after II purchases the property OF the Tyler
Southeastern will be increased by SnlA.-
| 1895. and viii thereafter aggregate ST.
| $50, 24seS on total mileage Of 6t0.30
! miles. This would be an actual decrease
| In the capitalization OF the two companies
OF s32S 25l.02 below what It Is at present
This being true. and the other facts
| being as hereinafter stated, we are OF the
| opinion that from tho standpoint ri the
| States interest Il As desirable that the
| bill become law because the burdens on
| the commerce OF the State In the way OF
| interest charges and the right, II such
| right exists to earn any return from the
| outstanding stock OF the railway com
pany would be lessened, and no material
! interest of the state or any portion thereof
| would be injured by such consolidation.
| Your committee has heretofore given
| due consideration 10 these matters, aud
after carefully reviewing the same arc Of
the opinion that the bill should be passed.
Notwithstanding the objections urged by
| the governor
In making this recommendation We are
not unmindful OF the constitutional provi-
| sion prohibiting the consolidation OF par
allel or competing lines but we under
! stand that prohibition To be against lines
which are In fact competitive and these
! line. not being in fact competitive, we
recommend that the bill DO pass
Stafford, Chairman.