The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-02-16
ANSWER OF COMMISSION
10 ihe Long List Of Questions Which We're
PrOpounded by senalor Potter
AMOUNT OF wAItRtO STOCKS AND BONDS
Texas Are Not known--Pnss sys-
tenn Not So Much Abused.

ruery Senator Poster offered the fol-
lowing resolution, which was adopted:
Whereas. There is large anouna OF
legislation now pending before the le5is-
lature concerning railroad matters that
depend upon facts not accessible to tie
legislature; and.
Whereas. Il IS believed ehat the homer
able railroad commission of Texas is in
can readily obtain the same for the use
Of the legislature; therefore. ne 1t re-
solved By the senate:
First. That the said railroad ccmm.s-
sion be requested, If within its power, TO
furnish the senate with ans er to the
following questions AMI give any a1d-
tional or other nfrmation they may de-
sire or think proper.
A. Are there any fictitious or watered
stocks and bonds on the railways Of
Texas? II so, to what am unit AMI what
roads, and when were they issued?
b Are such fictitious stocks or bonds
taken into consideration by the 60 nnis-
sion in fixing freight rates in this $ ateg
II rot, Why not; and # 50, how, to what
extent so G nsidere3, and why?
C. Are stocks Of railway cons.de-ed
by the commission as an Indebtedness Of
the road and why?
d. II such fictitious stocks ana bo-ds
exist why has not he attorney general
been requested to bring suit to cane Il
them under the provisions Il the consti-
tuition and statutes OF this STATE forbid
ding their Issuance? If ether legislation
is needed. what Is IL?
Second. That the honorable commission
inform the senate how many Statss in
the Union have laws proaib ing fec
passes and what has been the effect upon
the freight and paSisprufr rateSp
r. What p-rticn Il the free pas es
issued by the Texas reads are eXch1n &C
passes issued to officers and employ7s Of
roads outside Cf this Sta q? What Io,-
tion to their own employees?
T. What portion Of said passes are
used by the people # Texas. ami now
does their use effect the freieht rates ia
this State, and TO what extent does it do
So how much would the commission
lower such freight rates If free "a s. 5
were not issued?
Third. That the secretary Of The senate
| Immediately after the passage Of this
| resolution furnish the hon. ra5le railroad
commission with a ccpy thereof.
The answer to the above was received
and read in the senate this no. mag.
To question "a the commas OF re-
plies in effect that it does not possess
| such information as would enable it 10
make an accurate answer thereto. al
Though IL has, In compliance with duties
under section II OF the railroad commls-
sion act. endesvoTed to oStsin deanite
figures relating to the amount Of fictitious
and watered stocks and bonds issued q
the railroads of this Stats. WHAT the
commission knows in a general way on
this subject is given. however. and eg-
ures are produced to JUS .ify the concll-
sion that the Fort Worth and Rio Grande
the International and Great N,rthern
the East Line and Red River. the san
Antonio and Arkansas Pass the Gulf
Western Texas and Pacific, the Texas and
New Orleans and the Weatherford II n
eral Wells and Northwes ern are bon5ei
for much greater sums than the actual
cost of building and equipping them.
In conclusion on this question, tire
commission uses the following language:
The ttregcing instances do net ex-
haust the list of railroad companies in
Texas which have excessive stock and
bonds Outsta hding, bu; as no examina-
ton has been made OF the affairs cf ary
company for the purpose az instiJuticg
suits TO have stocks and bcads deellrel
wild, we prefer to omit a present the
mention Of others until specific inf1rma-
ton has been obtained by careful re-
| search into their earlier records For
this reason some of the most important
roads in Texas are not meatia ed hero
in. Such inf rma ton rs we have given
has been obtained during the course Of
examinations made for ether purposes.
1t is barely possible that as to a few
items the arrangements of the companies
may be able to present satisfactory ex-
plantations though we believe thai the
items which we have omitted to menti-n
VIII much more than Offset these which
may be SO explained
The amount of water. II any. existing
in the greater part of the funded debt
CT the Missouri, Kansas and Texas Rail
road Company OF Texas can not be well
ascertained by US for the reason that the
special act 4 the legislature of Texas an
proved April 16 1891, required thai com
pany 30 assume its mileage pro rata o,
all the obligations and liabilities Of the
Missouri, Kansas and Texas Railway
company (the Kansas corporatlonl and
tbs books of the latter, by which wa
might be able to trace the origin ami
successive changes in such funded debt.
are beyond our jurisdiction
Continuing, the commission saws. "r,
answer 70 question b we have 10 s7y
that we herewith make a statement as
70 the amount of stock and bonds on a
number of railnlads in Texas and refer
70 our last official (the ninth annuaD re-
port for statements as 10 the amount ~
stock and bends issued on many othar ~
me FdllroadS OF thlS state tsee pages 169
lo9 and 1881 and leave Ii to the Iegisla-
lure 10 determine the question as =,
what portion of them are fictitious. The
existence OF stock and bonds issued nv
the railroad companies ab've the valus
OF their property is not taken into con-
sideration by this commission In The az
Ing Of freight rates nor does our y,lna-
ton OF the property of the several rqiI-
roads control the freight rates adopted
by US. "4'F's'
In making freight rates we are larga-
" influenced by the value, weigAt s,1
oulk Of the merchandise. the risk ~
damage. and what rates will move tho
commodity to be carried: ana bv con-
parlsous from day to day Il the raisq n,
alNsrent articles shipped wbh hin. inth ana
from this state; and We hold constantly
IN mind the necessity OF So makfng
rates as TO protect the people agalnst nns
reasonable exactions and to secure -
ne railroads a Just remuneration for the
services rendered by them.
We are obliged 10 be guided Nv such
considerations because there IS no. snS
can not be any fixed rules or s,ien fsc
] t"Stloa Of making freight rates"
IN answer to question &C" the c,nnts
sleA says; Capital stools Of raifwav
esnaanies are considered by us amony
VI liabilities Of such companies IN
useDteaness Is hardly the proper tesm
anolsh when corporation eoss inf
Incubation and all other affsIna 49,. -