The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-04-22

a. could readily be seen how our comuls
sion would be upfettered ana our ovn
merce relieved o: enforced burdens ne
cause of these existing fictitious DEBTS
The good faith creditors OF the railways |
who are the holders Of the first mortsase
bonds. could not suffer In the slghtes'
degree by the adoption OF this amendhcn,'
because they viii not only get tne iuii
value of their debts, but would DC en-
titled to the ownership and the opeIatlon
OF the railways Themselves. Inc poon
ers" and manipuiatus ind STOCK Jopoers
and speculators, who are always ready 10
SANDER Texas and 90 besmlrch her falr
name are the ones alone who Will suHer
loss by this measure. the sooner we
eliminate them from the ahairs OF our
State. from the control OF our railways,
the better IL will lie for ourselves ana
posterity. Their interests are adverse 10
our interests They have no rights except
such az were horn and nurtured In fraud
The State OF Texas gave for the construc-
ton OF these railways territory greatly
In excess OF the combined States OF Con-
necticut Delaware, Maryland Massachu-
sets, New Jersey. Rhode Island and YER
mont. The counties, cities and towns
through which they passed supplemented
these grants by liberal concessions ana
donations. When they were first con-
structed their Indebtedness was compare
lively light. The period Of imitation, how
ever. swept over our State under tho
avaricious manipulations of stock jobbers
and consolldationists. Without the least
return or benefit whatever to the pubic
or to the railways, these knights of fraud
set the printing machine to work and plas-
tered our State over with from $40 100000
to $40 600 900 a year OF these fictitious Sc
curities, and necessarily kept up the VII
famous practice until 1t was made penl-
Tertiary offense by the law OF 1898. Then
AL, r,afn sif.fa- NtHAT
checked. Before the enactment OF this law
on the trial of a case in this State against
railway company 1t was proven that the
original bonds and stock on 1t aggregated
$i2 900 to the mile and that Spectator
bought these securities at 70 cents on the
81, When this was done the railroad was "A
excellent condition, rendered good service
for reasonable charges and kept up full
, force OF employees Oh good pay. dmme-
, diately on taking charge of the railway
! the new owners issued bonds and secured
them by mortgage OH the property Tor
$685. 900 per mile and raised traffic rates,
, cut down the operating and track forces
, and reduced their wages all along the line.
Within seven years thereafter, the prop
. erty became so dlapidated that no trav-
1 eler could procure an accident ticket over
the road. few weeks ago the public
. press announced as a great financial
: achievement that the reorg anizatton com
mittee of the creditors of a certain rail
= way in another state had purchased 1t al
, foreclosure sale for Sl2 100000 and had
l agreed to issue $50, 100000 in bonds anc
stocks against 1t! In this way they make
= from thirty to sixty millionaires and force
the people through eXorbtant traffic
q charges to support them. Banker Clew'
!, says this is the fraudulent way the CO
a lossal fortunes of so-called great tnancler
y, are piled up at the expense OF the public
hot No hnl
a of crime have claims or rights that SHOULD
: be respected any more than penitentiar.
:, convict should be allowed to collect hi
= forged order which forms the ground of "a
|. dictment against him, is to indulge in
y sentiment debasing in conception and con
a temptible to contemplate.
- In discussing this question not long age
- Mr.. Henry Clews. banker on Wall street
$, openly denounced such fictitious securitie
- as frauds in every sense OF the word. II
: his article in the Railway Age he says
z 1.-THE profits realized on the speculativ
= constructions are enormous ana have con
stituted the general source of the innum
= cradle fortunes piled up by the million
a, aires within the last twenty years. 1t
:. no exaggeration to characterize thes
: transactions as direct frauds upon tn
=, public"
y AS they are frauds upon the public,
=, becomes the duty OF the public to corret
- them. II there is any difference In princi
!, pie between a fraud by which the publ
N has fastened on ii over 5000, 900 900 of fl
- tltlous bonds and fraud by which a raj
- way has $50 dollars imposed on 1t by fc
% titious time check | want some phllosc
pher of law to point 1t out. Mark you,
~ do not ask the dilfernce In practice as
u the acts. Every one knew that fello
-, who signed and passed that time chet
~ would go to the pententiary, while Il
~ fellow who signed and passed those fraut
~ uent bonds was being serenaded and bar
VIC quoted as a progressive hnancier or gre
u ability. 1t was time TO stop such glarir
~ distinctions when we did SO by the la
- of 1898. But the question now is wh
~, shall we do with these old fraudulent raj
~ way debts? The remedy offer is Gel; ain
US effective and Just. If the people fail to
- their duty in relation to this question
10 adopting this amendment, they Will II
IL. to reap a harvest of barren regret ov
i their stupid delinquency.
is- LEGISLATIVE LOBBYING.
all The fifth section of this amendment is
d. prohibit the use of corporation funds
Ks The political campaigns and for the pu
a. pose of lobbying. 1t is an undeniable "a
ia that at each session OF our legislature l
nd lobbyists sent there at the expense of
rr corporations in numbers exceed either
10 senate or house of representatives
'as course it is out of question for the
1T knights of Congress Avenue to sway
n influence all the representatives, OF sen
he tors against their public duties. As
las rule II is their intention to do so, a
,er II they fail it is because these public Sc
"a. wants are too strong to yield to seducti
~, Influences While 1t is admitted that
IT, man or set of men should be denied
liz, right to be heard in the protection of IT,
~ interests. vet the use OF corporate funds
~. support a professional lobby, who col
S to Austin before the session opens and
,aN main there until it closes, should be Il
40 ever prohibited in this State. should a
~, 1rm. corporation. town, city or county I
we called upon to protect its interests FRI
10y oppressive legislation this can be done
rs a legitimate way by the discussion OF
'ne ouestion before the committees in eitl
70 or bo.A houses who have the matter
als hand No one can complain at this. Pr
sss tic interest would not suffer by it, but wi
v with each recurring session OF the legis
'he ture the swarm of sbrewd men gait
vi around the capitol. backed by limitl
40 10 funds. to be useC in thwarting the p
iue ples will. the crime is as unmistakable
Ny is the peoples duty to use every leg
az, mate effort to correct 1t. While II is
ieu contended that the remedy here propo
ms viii wholly eradicate the evil. it will, n
aug ertheless, go far toward it by cutting
GsI the supply Of oney which the corpo
! NF M facility