The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-04-22
sreet to the proylalon. q ais amend-


| electors OF the State at the next general
| election to be held throughout the State in
| 1901, at which election a II voters favoring
said proposed amendment shall write or
have written or printed upon their ball
lots the words For the amendment TO
the constitution by adding article la and
| the several sections thereof relating to-
corporations" and those opposed thereto
shall write or have printed on their ball
lots the words: Against the amendment
| to tho constitution which proposes 10 add
thereto article ia and the several sec
tions thereof relating to corporations.
The governor OF the State Is hereby di-
rected to issue the necessary proclamation
| for said election, and TO have the same
published as required by the constitution
and existing laws OF the State
The purpose OF section /, is to define Il
| franchise mentioned In the present con-
stitution, so that all bubble on that sub
ject in which any court may wish TO In
dulge may be removed 1t simply means
as constitutional definition, that the ex-
ecution OF a bond or share of stock by a
railway company is franchise, which the
people in adopting their organic law, re-
served the right and power to control and
regulate.
Section means what 1t says and say
ing 1t means 1t. that no inGovent cor
poration shall do business in this State.
As the government is responsible for the
creation OF corporations the obligation
rests upon the government to protect the
public from the swlndles which insolvent
ones usually perpetrate.
Sections and 4 define what are in
solvent corporations and are intended 10
be liberal and reasonable toward the crea-
lures dealt with. For instance, II a rail-
way company, through its agents, renders
its property under oath for taxation at
the valuation of three times less than its
indebtedness, 1t certainly is insolvent and
should quit business. Or, If 1t owes rs
per cent more than the valuation hx5d to
its property by the railway commission, 1t
is insolvent and should be so declared by
a court of competent jurisdiction. Ger
tainly no citizen who Is la debt very much
more than his capital and assets could ex-
peCt to continue in business, except
through the indulgence of his cre1lto, 8.
Under the Federal bankrupt law he would
, be forced Into dissolution without his
, consent at the instance of others. He
could not help himself from this fate. As
this bankrupt law, adopted by the United
States congress recently eXempts corpof-
2 atons from It's provisions, the time has
= come when our State should cover this
/ ground by defining what is an inso.veni
: corporation and making 1t the duty of the
| state to wind 1t up. This becomes tht
. | ulolb ludttlldl MS an ObliShAloH upOH Wv
. State government, when we consider tax
!. facts under the light of truth which sur.
u round corporations In Texas, especially
those engaged in the transportation bust
>, ness.
d General stated the facts are true tina
l. the 5000 miles Of railway in this State an
1T worth S73, 603 406 according to the valu
l. alton at which they assessed their owl
" property last year for taxation or Sl4i
J. 069, SOL as valued by the railway commits
sion; whereas, their outstanding bona
ot and stocks aggregate $685., S,54l. 70
D. viii see according to their own vsluat Of
III that their property amounts to 1924, 6l5,
= 1856 less than their stocks and hoads or t
10 S2l7,14S,740 less than the valuation whic
- the railway commission fixed on all tn ii
y property in the State. These facts sup
ot port the proposition that every railwl
In the State, except those c0nstructe
i, since the adoption of the stock and bon
- law in 1898, is now and has been for man
- years absolutely insolvent when teste
~ by the most generous rules that court {
~ equity could be expected to supply TO ali
~ debtor. This statement can not fall
-" engender bitter feeling, but IL Is tru
NJ Any man is too obtuse, too bluntsd TO HI
"a man sensibIl.ties to understand the az
~ proach of nightmare, II he can MT sc
No ahead the stubborn relentless opposite
ID which this position must arouse, Il Tia
M people, for the protection OF their intel
w. eets and the establishment of justic
,ia should become alive to their duty In tn
p. campaign.
'ad At the threshold, the inquiry arises an
no The questions Will be seriously aske,
What concern has the public In such
,,r question? Why should the public care
~, long as the railways keep up good ser,
49, Ice and obey the rates fixed by the con
or mission? My purpose is to answer the
or. questions and throw some light arou'
cso them, so that the people may SEQ ana n
co. misunderstood nor overlook their duty
N. dealing with them.
~ The railways can not operate or p;
ons their debts without revenue. They g
an, their money from the people who tyay
tIv or ship freight over their roads. +
er. finest railway in the State would grow
=, in weeds and brush, and its ties and ra
nv would erumble into dust as a. worthle
nm cash across the bosom of the earth u
No less II should receive patronage from I
, ~ people. The obligations therefore b
,ro- tween the railways and their patro
ion should be, and are essentially reciproc
90 The one should not wrong the other.
her the railways are to pay the principal,
Of the interest on their inilated debts
,ght dividends on the watered stock, th
/ ar must do SO by collecting the mon
ann through what may be termed traffic ta'
led AAOlh tHS lpNhNkS % NlaNtAtAo UT Tia
rtn- makers. In other words, those who ira
'eot or ship over the railways must pay tbs
i'm obligations.
nrry The membranes of the railways
lion generally divided into four classes; 81
.eed as first mortgage bonds. second mortga
ON bonds preferred stock and common sto
free About all the money that was ever
rec vested In the construction OF any re-
hen way In this State was procured from 81
rev sides given by the people and the s
she'd OF the land grants and from the hypotl
a Of cation OF the first mortgage bonds. As
ON from what the state and the people q
rtic TO the companies, the first MORTGAGE Dol
hfch represent all the money that was e
ON put into the roads, except what has b
are expended from their annual traffic ca
iags. Those who hold the second me
, of gage bonds are generally trust campau
ann acting for the spectators who cont
hi and manipulate the corporation IN
the, who own the stock place very little va
md upon it, except in so far as II may Z
40, them control OF the corporate affairs
,iss as means OF enforcing high traffic I
cor, upon the commerce of the country.
Re- the use OF this stock which as rule d
mn not represent a dollar honestly inyes