San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-23
BOLTON BOONE

Georgetown, Tex, March a2. - \
man who is working his way through
college, studying for the ministry and
who is a non-fraternity man seems to
be in line for honors at the hands OF
students of Southwestern University,
& W. T. and the communities served
by them. The same beneficial result
has followed the bringing together Of
the various lines constituting the pres
ens Santa Fe system in Texas.
No Connectien With Frisco.
SIt has been suggested that the pro-
posed purchase is but a back door
route for the Frisco TO enter Texas
and the territory served by these lines.
Whether such entry would be q good
or bad thing for Texas, we need not
here argue. Those who oppose the
proposal, however, on such ground
may be assured that 1t has no founda-
ton in fact. The Gulf Coast Lines
are independently owned and the
Frisco has no interest. direct or in
direct, in their ownership or manage
ment.
The effect Of bringing together
small systems into unified larger and
stronger systems is not only evidence.
in the financial strength and physical
upbuilding Of the properties involved,
but is evidenced in the uphuilding CT
the communities served by the
strengthened lines. No cities have
been built up in Texas by small in
dependent lines. The character of the
A.
render is not the character of serv-
ice which is most conducive to tie
progress and upbuilding of communi-
ties served by them. Petty jealousies
and rivalries have never developed
cities and communities in this or any
other state. Prompt, efficient and
economical railway transportation has
been, and will continue to be, the
largest factor in the development OF
the country. If the purchase pro-
posed will be conducive to that end il
ought to be approved '3y the public at
large and by the authorities consti.
tuted for that purpose. Otherwise il
should OF course be disapproved.
The International-Great Northern
are essentially north and south lines.
The Gulf Coast are essentially east
and west lines. They come in contact
only at Houston. Their physical 10
cations admirably adept each to aid
and strengthen the other, and each to
make the other of greater service to
the communities served.
Would Strengthen I..G. n.
TT has been the policy of the gov-
eminent, following the most enliSbt.
ened public sentiment, to unity and
bring together the railway systems of
the country into q comparatively small
number OF strong vigorous systems
capable Of financing at reasonable
rate the necessary funds to provide
facilities and equipment required to
meet the development Of the country
and the demands Of the public. Tins
is provided for in the Transportation
Act Of 1920. and in The grouping Of
lines the public authorities have I'M
dertaken to preserve q reasonable ele-
ment of competition TO encourage bet
ter and more efficient transportation.
In the grouping pursuant to this law,
Gulf Coast Lines and lie. n. Lines
have been tentatively placed together
and logically they belong together. II
would be difficult to find lines less
IN competition or more admirably stu
ated each to strengthen and aid the
other in every possible way.
1t should be kept in mind that the
history Of transportation properties
throughout the country establishes
ccnclusiyely that the owners have
profited only by building I'D and
strengthening their properties and
the development of the communities
served by such properties. 1t is but
idle folly to assume in the face If
history that any substantial profit
may come to the owners of railroad
properties in this state or elsewhere
in any other manner. If the Inter
national-Great Northern Railway
Company's capital stock is acquired
by Gulf Coast Lines, it will be al
large cost and they may hope for q
return on their investment in the fu-
ture only by Strengthening the Inter
national-Great Northern, by building
un the. properties, by developing and
strengthening the communities served
and in that manner henefiting them
selves in the end. Every lesson OF
transportation history in the country
conclusively establishes this fact.
improvements on Gulf Coast.
The present stockholders in the
Gulf Coast Lines were the former first
mortgage bondholders. They received
nothing on their investment from
1872 to about the middle Of 1916.
and . per cent on only one-half of
their investment from 1916 TO the lat
ter part of 1920. Under the plan Of
reorganization when the receiversbip
terminated. the bondho.ders received.
IN place of their first mortgage bonds.
0U per cent Of stock and 70 per cent
OF non-cumulative income ) per cent
bonds. Upon this stock no dividends
were paid until September 1920 and
upon these ron-cumulative income
bonds . per cent was paid. From
September 1920 to December 1000. g
per cent was paid on the stock and
thereafterward Z per cent was naid.
AT no time since the reorganization
have the dividends upon stocI; or In
terest upon bonds paid TO these own
ers amounted 10 as much as the NJ.
earnings of the properties. From
March i, 1915 to December 81. 1923
out Of total gross income Of thc
Gulf Coast Lines Of s19.7T1 ,313. 90.
there was naid in dividends 10 stock
holders and an interest n bondhol5-
ers a total of S11.1S1 SIG. 40. leaving
a surplus of $3.50. A77n0. Ont nf
this surplus S6.722. T27O0 has beer
spent in additions and be.tarments
and not one cent of increased obi
m flows cfoci-- ka,,.. L. -. II