The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-12-08

other interest paid to the 'systems which
dominate them TO a considerable extent
yer ana did so to greater extent In tine
past, deficits produced by extrayagant maui
aVements az times and by errors IN iudg-
,nent ~ selecting the wrong locations for
lines, and the millions of dollars paid to-
ward finishing the construction and eduip-
ment OF lines after they had been received
from mo construction companies in an IN.
hlnsshhed ana poorly equipped condition
The net deilch, therefore for the roads
listed In the table June 80 lN01. was
~ 4,u4b.ep6pu, which is sos, 3TSlA less than
the amount shown for these properties
twelve months previously The reduction
OF the deficit for the twelve mouths would
nave exceeded three millions Of dollars hut
Tor tue fact that during the year the Gull.
Colorado aud Santa Ee RAILWAY company
charged It's income account and credited
the Atchlson. Topeka and Santa Fe Railway
company with interest on Indebtedness Of
@,2Tn122 06 Interest from january !.
iSs6. TO June 30, 1900. -four years six
months, at per cent, S2,oSi SCI a. or
NE aggregate deficit Of sl4,Bl6, 1855 O8,
shown for all Of the Texas railroads ltst.d
ln the table, Stl,ST3. lG1 80 Is shown by one
company, the Gulf, Colorado aud Santa Fe
notwithstanding its lines traverse the rich
est agricultural sections of the Stntc aud
reach such cities as Galveston. Houston
DALLAS aud Fort Worth and others nearly
as Important, The fact that the Atchisou
Topeka aud Santa Fc Railway company
owns nll OF the stock and bonds Uhe hody
and soul, us u WCrcl Of the Gulf. Colorado
ana Santa Fe and through that ownership
exercises complete control Of the latter, Is
u SUFFICIENT explanation why the Gait,
Colorado and Santa Fc makes such an en-
ccnhonally bad showing among the Texas
Railroads"
~
Since the organization Of the ralrcad
| commission II has approved railroad bonds
10 the amount Of SlO.5is, 600, Of which sS5.
600 were afterward cancelled SSOBN0 arc
U I'D.
/ certain other bonds are surrendered for eau.
collation., For the year cudiug June 80
1901, he following bonds were approved
! Cane Belt $GnS000; Gulf Beaumont ana
900.
with reference to the law governing the
Issuance Of railroad stocks aud bonds the
| commission, In its report for this year.
snys.
The net Of the Legislature Of the state
approved April S. 1898, and effective August
!. 1888 prescribing rules and regulations
Tor the issuance, approval and registration
of an railroad stocks and bonds, has been
In effect eight years, and We think it can
ho said with assurance that even ITS
former opponents viii not deny the Justice
and wisdom Of It's provisions and thai their
vigorous and judicouS enforcement by the
commission has resulted TO the beurat aud
advantage OF not only lue people ANA com
mcrce Of the state. but to the railroads
themselves Whatever circumstance affects
the railroads affects the people, IN That ID
affects the character and ctnriCnvy of the
service which the railroads perform for the
people
iii can not be denied that the stock mud
bond law has had this eject. New railroad
enterprises have not been permitted under
IT'S provisions To load themselves with cN-
'esSlYc issues of stocks and bonds. upon
which dividends aud interest would lie de
! unnded lay the Investors These have been
limited by law to a reasonable amount, ap.
pfoNlmauug In an instances 20 their actual
cost aud value.
Tho stock and bond law has affected not
only the new roads, hut the old ones, con
struCted and mortgUgcd prior TO it's pas
sage, ps we'll with Increased earnings the
Indebtedness uf the roHds could not be In
/ creased pruportionUtely 10 absorb same, us
/ exception In every State in the Union As
| tho matter now stands no railroad In the
I State Cuu lawfully Increase It's amount OF
! atneks and bonds without he consent OF the
railroad commission. and 10y them only In
accordance with the basis laid down In
the stock and bond law, with few or no
exceptions the stocks and bonds Of the old
roads aggregate more than the commits
sion's valuations. and nntil the properties
are improved ia the point where their
values 10 be nscertalned by the cosgmls
SION exceed their present indebtedness, no
further issues can lawfully be charged
against them II is sufc to say that n
viii DO some wears before this condition can
De obtained md in the meanwhile surplus
earnings I'm excess Of tiNod charges nud OPP
Grating expenses shoud be expended IN
hcttcrmen of roadbcd. structures ana
Cnuipnont"
The commission Furthermore points out
the effect the law has bad ugou The aver
age amount Of railroad securities operat
ing IS n does to diminish same and Induce
The burden IF interest and dividend charges
ossessss ,sssssosssssssssOSssSs