Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-01-07
STATE Of TEXAS AS
HORRIBLE EXAMPLE,
Editorial from the beaumont Daily
journal T. BEING Circulated
Among Citizens Of Utah.

Copies of the Beaumont Crcxas) Daily
journal Of date Monday. Aus. 10. 1905.
are being circulated In large numbers
among the citizens OF the state. Every
member OF the legislature ls TO receive
sample. The Journal contains an
editorial covering most Of the page de-
voted to- that department giving q
resume OF the railroad situation obtain
ing at that date IN Texas. and OF the
remarkable condition OF Affairs brought
about by the enforcement OF the man-
dates OF the railroad commission In the
Lone Star State.
Tho article has TO do with the pro-
posed increase OF 10 per cent on inter-
state rates. on traffic originating I'm the
state OF Texas The increase went into
effect on Aug. 10, and. according % the
editorial quoted. was the only means
left by which the railroads Of that
state could be resuscltated from the
prospect OF death or dissolution. de-
creed by the laws Of Texas which the
railroads OF the state could not live up
TO- on account Of the reduction In rates
authorized by the Texas railroad COM
mission. and sanctioned By the law
making bodies Of the state
The article enters into the history OF
the railroad situation. stating the total
amount OF mileage IN the state and to-
tai amount of obligations outstanding
against such mileage. The average
amount Of such stocks and bonds on
mileage Of ll.G44 footed up S34.S22 per
mile which the railroads. in their
sworn statement to the railroad com
mission. said had cost S454.54S.s69 TO
build and equip. The railroad commits
SION however would only admit a val
uation OF the railroad property Of $751;
O63. 10S As 70 the real value OF the
property In question. the Journal states
that the Texas tax board on oath
values the property at s420. 900 900.
Tho railroad commission began maxi
ing sweeping reductions in railroad
rates taking the greatest shipping sta
pies Of the cOuntry-cotton and lumber
las the especial objects OF reduction.
The rate on cotton was reduced By the
commission to 8 cents per hundred
pounds Many heated sessions weie
held between the commission and rail-
road representatives. The latter rep
resented that they could not exist and
haul freight shipments at the rate fixed
for them by the commission. They
pointed out that the laws OF Texas
sounded the death knell Of any corpora
ton within the borders Of the state
which could not meet all OF its obliga-
lions and each OF them. and that Il
was running the business Of the roads
and plunging them into bankruptcy to
take away their chief source OF reve-
nue.. The commission was implOred 70
let the rates remain where they were,
but without avail When the results
OF the year 1905 appeared, they showed
earnings OF only 4 per cent on the rail-
road securities outstanding.
Things went on az such a rate that
in 1906 when the commission proposed
TO take Off 80 per cent OF the passenger
rates being charged by the railroads,
that the officials OF the roads filed
suits In the courts OF the state, asking
that all the rates established by the
Texas railroad commission be set aside.
The panic was on. The cotton ship
ments for the year had fallen off IS
per cent from the previous year. and
the grain crop was even shorter Sheer
ruin stared the roads I'm the face. The
last straw was about TO fall, when the
good judgment Of the commission as
serted itself and the proposed reduction
In passenger rates was Withdrawn
But what Of the results which actual
ly followed the wholesale reductions In
rates enforced by the Texas commits
sion? In 1907 the commission ordered
the railroads OF the state 10 purchase
SO, 900 worth Of new equipment. The
gross revenues OF the roads fell of last
year more than Sl0.000.000. Operating
expenses increased three quarters OF a
million dollars. The income fell of
with such slump that Instead OF hav-
ing over six millions I'm excess Of fixed
charges, as In the year previous, the
fixed charges against income on May 81,
1905, exceeded the income By s.. 430.572.
In other words. the principal railroads
OF Texas IN 1918 failed to earn enough
by Ss,4S0572 to pay their honest debts
The roads were IN the shadow OF
death, according to Texas laws. Some
thing had to be done. Either the wages
OF the men must be cut down. or the
rates increased. The railroad officials
chose the latter course. and announced
an increase OF 10 per cent on interstate
rates. The question Is now up before
the people OF Texas. and on the out
come hangs the fate OF the railroads OF
the Lone Star state.