Shiner gazette. [volume] (Shiner, Tex.) 1893-current, 1905-07-19
RAILwAY erocks ANp BONDS.
Governor sayers Tells Some Thln17
Not Generally Known.

In the reports of the Railroad Com
mission Of Texas 1t is shown that tho
average annual capital stock of tho
railways Of Texas during the five
years ending June 80, 1904 aggregate
ing $131 ,sO1,77C, upon which were paiJ
dividends amounting to 81 1929 G9s--
that is. percentage on $131 ,SO1 ZIG OF
one dollar and forty six cents on thu
one hundred dollars, or an annual per.
centage of twenty nine cents on thu
one hundred dollars. The dlvidend1
so paid, however were not on the en-.
tire capital stock of all the railways,
but only on that of four roads in 1900,
five in 1901, three in 1902, six In 1903,
and six in 1904; five of the roads pay.
ing dividends were not bonded 1t,
therefore, seems quite certain that
the capital stock Of the railway COM
panies in Texas, with but rare ex-
ception, is altogether valueless for any
purpose other than to give to its hold
ers the control of the properties; and
that the only profit which went to
the owners Of the railways from their
operation during the past five years
was the amount applied to dividends,
and whatever enhanced value that
may have resulted from the improve.
ment of the properties in the way OF
betterments.
The number of roads showing de.
ficits during that period were nine
teen in 1900, thirteen in 1901, twenty.
three in 1902, twenty-four in 1903 and
twenty-four in 1904.
The average of bonds outstanding
on an average of 1O,54S miles of rail-.
way during the period of five years
amounted to s234O92,547, an average
of $22,247 per mile. Deducting bet.
terments, rents and taxes, the net rev.
enue to the roads was $49,785,5 66
The interest accruing upon the bonds
amounted to s57,59S,786 which ex
ceeded the net revenue, as found, by
$7SOS,22O, to say nothing of the de
finiency that existed prior to July /
1899, which was S14,O74,455. The
bonded Indebtedness of the railroads
of Texas is not so heavy per mile as
that of other States, The last report
of the Interstate Commerce Commits
sion is that for the year 1903, accord.
ing to which the average in bonds for
the United States for that year was
ss2,317 per mile. Comparing Texas
with Group ". which consists of East
Louisiana, Florida, Alabama, Georgia,
Mississippi, Kentucky and Tennessee,
we find that Of those States the aver
age bonded indebtedness of the roads
for 1903 amounted to s25, 1896 per mile.
while that Of Texas for the same year
amounted to s21,54S per mile. and for
the year 1904 to O21.191 per mile. All
of the States named, it will be observ-
ed, have had for years Railroad Com
missions. If space would permit it
would be easy to show like favorable
comparison in respect to railway
bonds with the other states OF the
Union.
So, it would seem, that the railway
companies were, during the period
named altogether unable out of their
earnings to pay the interest on their
bonded Indebtedness, unpaid deficits
and floating Indebtedness not being
considered. 1t may be urged that this
deficiency may have been partly, If
not entirely met by postponing the ex-
penditures for improvements and bet
trements. To have done this would,
1t must be apparent to ALL have been
detrimental to the character of the
service which the roads owe to the
public asswell as to their own preser.
vation
It is a fact, well known to every
one, that railways in this State have
been constructed with funds derived
from the sale of stocks or bonds, or by
both, and with such assistance as has
been given them in some Instance by
the State and the communities
through which they run, in the way of
lands, rights of way and depot grounds
When constructed, 1t is insisted that
they should be allowed to earn fair
return upon the value of the proper
ties, unless exorbitant or excessive
rates be required; and, further, that
In the matter of taxation they should
be dealt with as are other properties.