The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-08-11

nent.
existence involved also the contract on
your part that they should be pernltted
TO charge such rates for the transportation
az freight and passengers as would ehaole
them 70 pay fair wages TO their empio .i
meet their operating expenses, keep their
roads IN proper repair, pay the interest on
their bonded Indebtedness and earn II pos
sible sufficient In excess TO pay reason
able return on the capital Invested In their
properties. These obligations were not
only mutual and reciprocal but fair, reason
able and just.
1t is not my purpose to discuss or argus
before YOU whether or not these obliga'
lions have been kept altogether upon either
side. but there are certain suggestions
which | desire TO submit for your consld-
GRAFTON In this connection.
Some twelve or more years ago, comp ainr
was made, and In n large measure with jus
tiea. that the railroads Iates were exces-
slYe. aud that the roads were guilty Of acts
VI discrimination In favor Of certain per
sons. places aud enterprises. to the Injury
OF other persons. places and enterprises
equally entitled 70 fair rates aud just
treatment.
This complaint soon became widespread
and rnblc dissatisfaction rapidly brought
about legislative action, and found crysta =
lizcd expression In an amendment to the
constitution and the law based there on
creating tie railroad commission. In com
mon with many others. ! did not favor
such Il law, but | believe now that 1t is best
10th for the railroads ana the people.
There is no doubt that the railroads were
responsible for the public sentiment which
brought about the law Of its creation, but
do not agree with the oft made assertion
that the railroads deliberately used their
powec TO fix rates and discriminate in q
spirit Of reckless disregard Of the rights OF
the public. | believe that their acts which
aroused public feeling, were rather the re-
suit of necessity and competition, and des
perate financial conditions, which causes
while legally lnexcusable, were not so cul-
pable MS would have been the sheer exer-
else Of arbitrary power for the mere sake
Of profit
The railroads Of Texas. construction OF
which were begun thirty years ng7, or even
d shorter length Of time, we're organized
md built with a view 10 the vast future de-
veiopment Of this State, which the far-see-
ing mon who projected them knew was In
evitnl le
These men knew that for many years they
could not expect to earn enough In excess
of operating expenses 20 secure any return
upon the capital invested IN the roads, be-
cause many limos were built through vir-
g.n forests. over mountain ges and
across traCkloss plains, where for scores If
miles the territory did not furnish passcn.
ger or pound of freight. end the IN
roads were operated at a loss.
RAILROADS NOW PROsPERING.
was standing in the senate chamber Of
Texas some nineteen years ago, discussing
with a senator bill which provided that
every railroad should at certain stated
times make sworn return and exhibit Of
It's receipts and disbursements. The sena-
tor remarked to me- Il Shall oppose that
bill. | know a road which while it would
ordinarily have no objection to making
such report does object to doing so now,
because 1t Is building through a territory
where for hundreds Of miles it earns moth
Ing, aud must depend upon the sale Of
bonds to raise money TO construct the line
ana such report would disclose that it
was actually borrowing money to pay cur
rent expenses In other words, the road
was not earning the actual cost Of eCOnom
lcal operation. That roud today is one OF
the most prosperous and profitable III
Texas.
Notwithstanding such conditions. and
that the builders Of the roads knew the
DAY was yet distant when the roads would
become paving properties, yet they mad sub
jme confidence in the future Of Texus and
booked TO that. future for a return upon
thor porey, hence lnes we're built In
number faI beyond the then needs of the
people and far more than could make
money at reasonable rates Of charges.
me roads, III many Instances. We're con
tronted AT the end Of each month with a
dehcit and they ware obliged to raise their
rates or go Into speedy bankruptcy, and
through the expensive mill of a receiver
snip fate which at last bcfelI q number
of the largest companies. some nfteen
years ago one line Of road. whose officers
aud managers were men OK the highest
character and VINO had been conspicuously
successful In the field OF finance was sold
On October /, 10 be delivered on january l.
the sellers OF the stock thereof agreeing 70
% or such loss in operation as 1t might suf-
Ief IL Inc meantime, and the loss for the
three months on something like 900 milcs
OF runway was ever uiluTtpr gf n mil
dollars
When so confronted with continual loss
prompted by the Instinct Of self. preserva.
ton, always stronger than law, the roads
fesorted to discrimination and raising OF
rates which was unjust. md which IN.
named the popular mind with the result
stated. "'''"N'
Those who built roads when they knew
mat the population and products of the
state Mt that time would make It I'm
10 repay the cost Of their construction and
interest thereon. were tempted to make
money out Of the building and there being
no legal limit then to the Issue OF bonds
ON railroad ms there now is the ronds
were bonded for an amount per mile
!4fgey IN excess of their cost and that
c eno VINO built them prohted by the ex-
am not here to condemn or defend such
acuon out accepting conditions as they
alre VIII only say let him among yon who
~ ti'N nvtu III IOelf places, would not
nave done the same. cast the first stone
Sucn excessive bonded indebtedness
plaoed unon the roads before there was any
NV 10 prevent such action became mn o6
nRaIion which had to be met. ne every
Do9d was a contract bstween the railroad
muH me holders of the bond which could
not he consttutionally impaired by nnv
acuoh or the state; therefore when thu
people, who complained NJ what th%v
uuVu,'u excessive rates Of freight sought
!suet 1t could not he granted. bacaIise
mere was no power In the state which
,"u'a SO reduce the freight rates as that
nc roads could not pay the operative ev
ptnses ana meet the interest on thelr |
u"u1s' Tor the reason that such action |
WOULD nave been vlolative Of the consti |
iutsun OF the united States. aud Therefore |
..,hoper1tNe, and void. Then the holders NJ |
eu.eSs n3nds In many instances have M !
LUX Whatever In the roads and never
nn", out nave bought bonds In good foitb |
- an INVESTMENT, and the interest mon
rr IS IN many Instances the sole snn'
n the Issue Of bonds was oVoo,a,ro
p.rSslNe ana unjust the payment therebg |
os s no more be defended against than one
81 YOU could defend against the pavmcnt
VI your promsSory note in the hands ~ |
an Innocent holder because Won MAJ OF [
tN,Windled IN the trade in which You gave
BONDED DBBT REMOVED
The fact that In the past the railroad
lines have been burdened with an excess,ra
bonded debt intorns+ ,,ro, IT., i, 'N