The Galveston Daily News. (Galveston, Tex.), Vol. 53, No. 351, Ed. 1 Sunday, March 10, 1895 Page: 8 of 16
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8
THE GALVESTON DAILY NEWS. SUNDAY. MAKCH 10, 1895.
yiieJhuliuU-uts
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SIXTEEN PAGES
SUNDAY, MARCH 10. 1895.
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March 5,1S95.
THE WORLD'S BURNING PROBLEM OF
TAXATION.
Americans groaning under the terrible
energy of the taxing industry in their
own country may derive some measure
of melancholy consolation in reflecting
how much below the great nations of Eu-
rope they stand in the scale of torment
and misery on the score of relentless tax-
ation. Even in England, whose war
budget in comparison with those of the
continental powers may not appear ex-
cessive, financial statesmanship has been
driven to its wits' end to know how to
avert an annual deficit without intoler-
ably overworking ordinary methods of
raising revenue. This serious exigency
is the occasion of a very interesting ar-
ticle contributed by the Rt. Hon. Lord
Playfair to the March number of the
North American Review. The article is
entitled "A New Departure in English
Taxation." The author notes this new
departure in the present year's
budget of the chancellor of the
exchequer. He notes that the
chancellor, constrained to seek new
sources of revenue to meet a deficit of
over $22,000,000. hit Upon the expedient of
a graduated or progressional tax on all
realized wealth comprised in the category
of estates of decedents. It is a tax in the
nature of a death duty and a final ac-
quittance of the charge of the state
against the late possessor. "It is," as
Lord Playfair describes it, "a deferred
and cumulative income tax charged on
the possessor of an estate and payable at
his death by his executor along with
other debts which the deceased may have
Incurred." In illustration of the pro-
gressive feature of the measure he re-
marks: "An estate worth ilOO at the
death of the owner is taxed 1 per cent, 11
being due to the government, while 199
passes to the heir. But an estate of
£1,000,000 has to pay S per cent, £80,000
being due to the government and £920,000
passing to the heir. The new progressive
tax does not begin until estates have
reached £25,000 in value, although there
are old death duties under the law of
1853 which are payable by all estates; so.
under the old and the new law, estates
worth £1000 have to pay £20; estates val-
ued at £10,000 pay £300; an estate of £100,-
000 is taxed £0500, and one of £1,000,000
pays the highest tax of 8 per cent or
£80,000." Lord Playfair, while looking
with measurable complacency upon the
new departure in question as a financial
expedient to solve the perplexities of an
otherwise desperate situation, does not
Ignore or lightly estimate the danger
which attends such a method of taxation
if incorporated in permanent policy as an
absolute principle. On this point he con-
siderately observes:
No ore* can be blind to the possible dan-
ger of the principle of graduation. A grad-
uated tax on realized wealth has no well-
defined limits, and could be pushed by ir-
responsible power to ihe extent of confis-
cation. Indeed, it has sometimes been
used for this purpose by eastern despotisms
and by revolutionary democracies in Eu-
rope. It is, Uieivfore, the boundeii duty uf
all 'rational merMH to watoh with
great care the growth of progressive taxa-
tion. so that it may not exceed the fair
equities of contribution to the purposes uL'
the state, it is impossible for nations to
blind themselves to the many loose the-
ories of taxation advocated by i he extreme
section of the socialists, or to th" wild rav-
ing of communists and anarchists. The
inequalities in the distribution of wealth
give a color to their theories, and so long
as realized wealth refuses to show willing-
ness to pay according to ability,' in an
equitable way, these theories will become
part of the popular belief and mav lead to
disastrous results. Th- great experiment
now made in England is belie\ e i by the
present government to be a fair concession
to the demands of a reasonable democ-
racy, while it is a barrier to the advance
of unreasonable opinion. The opponents of
the principle look upon it as an inclined
plane to communism, or. at least, as "the
thin edge of the wedge" which may be
driven home so as ■<> disrupt society.* The
liberal party in England. Niwevr. are
practically unanimous that pro-Missive tax-
ation must be adopted as a w,-- . conserva-
tive measure, which will be safeguarded by
the good sense and moderation of tin gr eat
body of the people who may be trusted to
ha v
to co
ulate
protect realized wealth from the attacks
of small, but mischievous, societies of com-
munists and anarchists. The late earl of
Derby was one of the most conservative
and level-headed politicians of this gener-
ation. and has left a record of his public
experience in the following words, pub-
lished since his dear!:: "1 have learned
more and more forcible the uselessncss, to
jar it on no other ground, of attempting to
re- t the progress of popular idea-, and I
ha\ e eomc to think more and more highly
of the mod.-, ration, the fairness and the
general justice with which the masses of
iimi, including all conditions of life, are
di.-Novd to use their power." No words
ould better explain tile reasons which
uduced libera! statesmen in England
cede, and, at the same time, to reg-
the demand for progressional rates
in death duties.
The must, fearful aspect, of the burning
problem «d taxation for Kur-p • and
measurably for this country is seen in
the constant and apparently iirepiv ssible
increase in the national war budgets
from year to year. For some years these
budgets in Europe have Ii'.mi increasing
at ill" annual rate of 23 per cent. It is
plain that this process can not. go on to
extremity without a catastrophe of
financial ruin and political and social
chaos. As if to add to the gloom of the
prospect the .Journal des Esionlmistes,
reviewing the situation of the world at
the close of 1894. sta' s that the total
expenses of government in Europe have
increased 22 per cent and the population
has increased only 10 per c. m, while the
military expenses make 23 per cent of the
whole, including those of the United
States with its unprecedented pension
list. According to ihe same authority in
ten years the public debts of Europe
have increased $5,600,000,000. It is lament-
able in the extreme to observe that these
terrific strides in accumulating charges
of government against the substance of
the taxpayer should be attended by so
large a degree of acquiescence and even
encouragement on the part of the vic-
tims. Almost everywhere there seems to
be fascination for the popular mind in
prodigious naval armaments, gorgeous
military arrays and splendidly extrava-
gant paraphernalia of government. At
last the inexorable rule of reckoning
must assert itself. Those who call for
and delight in the tune must pay for the
performance if it drains them to the
marrow or consigns them to as sad a
fate as overtook the children who madly
followed the strains of the pied piper of
ilanielin town.
working on Sunday. That was a small
thing compared with the numerous insults
offered in the way of not working on many
week days.
Jerry Simpson's recent defeat for re-elec-
tion meant very little as far as the Amer-
ican people are concerned. He is going to
lecture.
Chicago i clamoring for a Lexow com-
mittee, but the Illinois legislature does not
seem to fancy the job.
.Max o*Rell is angry at Mark Twain and
it is aid a duel is imminent. A duel be-
tween two humorists would furnish fun
for the millions.
And come to think about it, Miss Gould
had a right to marry a French count If she
wanted to.
The citizens of Tyler are earnestly at
work on their fruit palace enterprise. Let
the fruit palace be built. Not only Tyler,
but all Texas will be benefited by it.
The Baltimore baseball team Is out on a
strike. Even the best ball players go out
on strikes occasionally.
Mr. Monroe has introduced a bill in the
house "providing that marriage licenses
shall contain a brief biography of the per-
sons applying for them, together with a
biography of their parents, and further,
that persons heretofore married, may sub-
mit for record to the county clerk a written
statement containing the requisites of the
bill." What Mr. Monroe hopes to accom-
plish by such a law does not appear, but
it would enable the country to know just
what a young lover thinks of himself. The
marriage license would gradually become
a marriage lie-cense.
The sound money senators of both polit-
ical parties have come to the conclusion
that it will be necessary for them to com-
bine to prevent the populists and their
western sympathizers from disturbing the
dignity and quietude of the senate. Sup-
pose the senators from forty-three states
should enter the combine, what would they
do with Tillman?
A woman's suffrage bill has passed the
Maine legislature.
North Texas has been visited by a good
soaking rain, all of which is in the pro-
gramme for Texas to have the greatest
small grain crop of its history.
Promising young men receive many calls
from the bill collectors.
Iowa, Ohio and Kentucky elect governors
this year. The democrats hope to hold onto
Kentucky, but are prepared for the worst.
GOVERNOR CL'FJiERSON VS. THE LEG-
ISLATURE.
If the legislature should decide to quar-
rel with the governor about his recent re-
markable message the people will have
to suffer for it. It would be a waste of
time for 159 men to engage in wholesale
speechmaking as to the propriety of the
governor's action. The only possible out-
come would be a loss of temper and a
condition of mind on the part of
each individual member that would
make the exercise of just dis-
cretion an impossibility. Legislation
born of passion rarely proves of
benefit to the masses. History is very-
clear on that point. A careful reading of
the message does not justify the harsh
criticism which some members are dis-
posed to hurl at the governor's head.
The governor was well guarded in his
statement of facts. The "anathemas"
which Senator Dashiell complains of,
and the charge of "unfaithfulness" which
Representative Dlbrell repels, are found
only in the governor's statement that
"no measures of urgency or general im-
portance have been enacted into laws"
during the sixty days the legislature has
been in session. The rest of the message
is a mere reiteration of the recommen-
dations of the inaugural message. As a
matter of fact there has been little done
to enact into laws the fifteen measures
which the governor alluded to in his mes-
sage. It is equally true that some of the
governor's favorite measures should be
radically modified or abandoned alto-
gether. Nevertheless, the legislature can
not expect to escape censure when two
working days, for which the people pay,
are lost in an excursion, while measures
of great moment are lingering indefinitely
in committee rooms. The taxpayers of
Texas are not treating their lawmakers
to Mexican excursions voluntarily. Of
this Mr. Dibrell and Mr. Dashiell may
rest assured. Further, the people feel
that the legislature has given too much
time to small affairs to the exclusion of
matters of pressing importance. To this
extent the governor was but giving ex-
pression to the opinions of the people
formed some time ago. It does not bet-
ter the situation to boast of a diligence
that applies in most instances to small
affairs. There are great questions which
the legislature is expected to dispose of,
and the people respectfully direct legis-
lative attention and industry to them.
So far as The News can see, the gov-
ernor simply charges that the legislature
is wasting too much ammunition on
small game. This appears to be the sit-
uation exactly.
The Tennessee legislature is undertaking
a revision of the election laws of that state.
A very sensible thing. If governors elected
by the free ballots of the people are to be
counted out, in the language of the old
Alcalde, "let it be done according to law."
Chairman Sayers says that Mr. Breckin-
ridge rendered valuable service to his coun-
try. Mr. Breckinridge will still be useful if
congressmen will profit by his example.
The life of debauchery led by many of the
people's representatives is a disgrace to the
country.
They are now proposing in Chicago to tax
Jneycles $2. The time is coming when the
wheels in a man's head will be taxed. No
treasury deficiencies then.
The New Jersey legislature is seriously
considering the advisability of repealing the
New Jersey arbitration law. The law has
been on the statutes for several years, and
the board of arbitration has held many ses-
sions at $10 a day for each member, yet not
one case of dispute between employers and
employes was compromised in 1 si>:i and 1891.
The Texas solons might tlvink.of
they take the arbitration bill under consid-
eration. Texas has about till the boards
and commissions that the people can stand.
The Texas senate has passed a bill to pro-
hibit the sale of tobacco in any of its forms
to minors under Hi years of age.
The Texas house adopted a resolution to
use its influence to raise the price of cot-
ton to ii cents a pound. Now there's a,
chance to test the power of legislative in-
fluence. The farmers of Texas should not
lose hope.
The dentist who lost both arms in an
Ohio railroad wreck has doubtless lost his
pull.
Of course Mr. Kilgore will not kick if he
gets the territory judgeship.
A Pennsylvania church organization
adopted a resolution declaring that con-
gress insulted the American Deonle by
A free silver organ charges the president
with defying the judgment of congress.
What the president defied was congress'
lack of judgment.
The prohibitionists carried Bowie county!
last Tuesday by about 500 majority. The
Texarkana Inter-State News celebrated the
event by issuing an edition in red and an-
nouncing the result under the following
headlines: "Routed! The Minions of Hell
and the Enemies of Home Are Met at Bal-
lot Box and Annihilated! Forced to Stand
Up Before an Outraged People, They Find
Themselves Unable to Withstand Cold
Steel! Cutthroats, Bums, Red-Nosed Devils,
Mobhood, Scoundrelism, Human Hyenas
and All 'de Gang' Crushed in a Common
Mass and Dumped Into the Red Sea!"
Matters appear to have been warm over
there on the border.
THE BRAMLETTE BILL
Committee on Internal Improvements
Divided on Anti-Con-
solidation.
TWO MEMBERS UNSIGNED.
Seven Members Have Signed the Majority
and Six the Minority Report—Full
Text of Minority Report.
t-NAP SHOTS.
Originality is inexhaustible.
The trouble about human nature is that
it is so one-sided.
Some mortals are overloaded with mo-
tives.
Speaks volumes—The talkotive candidate.
Man's heart is the measure of his useful-
ness.
A man's closest friends are sometimes the
most dangerous enemies of his family.
The sage-cock is not necessarily wise.
Justice is kindness that goes all the way
round.
Wanted—A remedy for old age.
When a belle begins to lose her beauty
she does all in her power to make up for it.
What man lacks in wisdom is usually
made up in self-conceit.
TEXAS NEWSPAPER COMMENT.
Temple Triibune: It is a shocking dis-
grace to the fair name of Texas that so
much money can and is annually spent on
railroad commissions, bureaus of informa-
tion and investigation, and still worse yet
'that a hungry horde of officeholders num-
bering 300 have been fed, clothed and fur-
nished carriages and teams free for years,
every county jail in the state is crowded
with suffering, miserable unfortunates who
are insane. God knows Texas is big enough,
has grand resources and ample wealth to
afford the chaplains, pages, splendor 4n
maintenance of its officers, and all the other
accessories that may be desired, and we are
in favor of the entire category being cared
for in good style, but above all-Jfirst In 'the
list—those most entitled to our considera-
tions, are the insane. If it were a capital
offense, then some of the economists at the
legislature this session have in this matter
alone merited Instant death.
Beevilie Bee: The failure of 'the Texas
legislature to pass any measure for the pro-
tection of bona tide taxpaying citizens at
the ballot 'box against a horde of non-tax-
paying, alien citizens only .shows that a ma-
jority of that ibody considers that they hold
office by virtue of the votes of that class.
Why should a man vote in Texas if he is
not a citizen of the United States': and why
should a man who pays no poll tax have
any voice in the government? 'He pays no
'taxes and could possibly have no interest
in the government. If he were unable to
pay a pull tax it might be different, but in
ninety-nine cases out of a hundred he is of
that class that can pay a. poll tax, ibut
will not because they have nothing out of
which a poll tax could ibe collected.
San Antonio Express: Tn February, 1891,
there was a heavy snowstorm throughout
western Texas, the heaviest ever known in
this section until 'tills year, and it was fol-
lowed by seven "fat years"—the most pros-
perous time the country had ever enjoyed,
an abundance of rain falling each year.
But to discourage the people from running
into unwonted extravagance over the pres-
ent bright prospects, and in the bel'ief that
the same conditions will follow our recent
snowstorm, the Express will state that
these seven "fat years" were followed by
the worst drouth ever known. It may be,
however, that we had our siege of drouth
in the lack of adequate rainfall the past
few years.
Caldwell Chronicle: The old-time theory
that cotton is the only crop to 'be raised
with profit has been discarded by hundreds
of the most intelligent farmers of Texas,
and now corn, potatoes, tomatoes, straw-
berries. grapes, fruits, etc., and all the
classes id' products that the truck gardener
can raise are being produced with amazing
success 'in this state. The climate and
heal'thfulness «.f Texas are exceptionally
A ioil, fi'fttf no sta.te h is richer and more va-
ried soil'. It Is wmati!rt*al 'fAt*'•Want''tand (frN-i
treme poverty, so common in the older
.states, to find an abiding place in Texas.
I jet every farmer diversify his crops, and
stop the excessive raising of cotton, and
the grim monster—poverty—will be driven
from our shores.
San Antonio Light: Karnes county re-
ports itself in better crop condition than
ever before since it was settled, and the
cotton growers of that section are whoop-
ing it up for an oil mill at. Kenedy. So
the southwest continues to grow.
Boerne Post: To nimble and to be always
nibbling for a government appointment is
a lowering of one's manhood. Get up and
work, and when your fitness for an office
•becomes apparent, your chances to obtain
one are tenfold.
Uvalde Herald: The shrewd Texas farm-
er will tiiis year make his plans to grow an
abundant supply of all the necessaries of
life, such as food for both man and beast,
and will only plant his surplus land in cot-
ton.
'Sm'ithville Times: A little bonus is some-
time a oowerful hyonotizer*
Austin, Tex.. March 9.—Six of the mem-
bers of the committee on internal improve-
ments have signed the minority report
against the Bramlette bill, while seven of
the members have signed the majority re-
port. Representatives Beaird and Moroney,
who are both out of the city, are the re-
maining members of the committee and ifc
is claimed by the opponents of the measure
that they will also sign the minority re-
port. The following Is the full text of the
minorl'ty report, which will be sent into the
house Monday or Tuesday:
Austin, '.March —, 1895.— Hon. T. -S. Smith,
Speaker: The undersigned members of the
committee on internal improvements dis-
sent from the action of the committee In
favorably reporting substitute bill No. 377,
and respecttujly recommend that for the
following reasons, among others, said "bill
do not pass:
1. While the bill is offered for the supposed
purpose of carrying into effect section t!
of article 10 of the constitution, it extends
■the meaning and effect thereof to an ex-
tent never contemplated by its framers, in
this:
(a.) It prohibits any railroad company or
other corporation of another state or coun-
try from purchasing or owning a majority
of the "stock, bonds or other indebtedness
or any part thereof," of any railroad com-
pany or other corporation organized under
the laws of Texas.
Ob.) It prohibits "-individuals, singly or
collectively, or as agent or trustee, who
manage, direct or control any stock, bonds
or other indebtedness of any railroad or
other corporation organized under the laws
of any other state or country" from pur-
chasing or owning "a majority of the stock,
bonds or other Indebtedness of two or
more railroad companies organized under
•The laws of Texas." That ihe things so
prohibited do not amount to consolidation,
in the meaning of section t! of article 10 of
the consti'tution, is manifest from reading
the same in connection with the preceding
section, 5. Section 5 provides that "No rail-
road corporation shall consolidate the
stock, property or franchises of such cor-
poration with, or lease or purchase the
works or franchises of, or in any way con-
trol any railroad corporation owning of
having under its control a parallel or com-
peting line; nor Shall any officer of such
railroad corporation act as an officer of
any other railroad corporation owning or
having the control of a parallel or compet-
line." Section 0 reads: "No railroad
company organized under the laws of this
state shall consolidate by private or judi-
cial sale or otherwise wit it any railroad or-
ganized under the laws of any other state
or of the United States." It is clear -that 4f
the framers had by section 6 intended to
prohibit a corporation of another state
from owning a majority of the stock or
bonds of a Texas company they would have
used in section 6 the language of section 5:
"Shall consolidate the stock," "lease," "or
in any way control." By omitting in sec-
tion (I the broad language of section 5 it is
evident that the intention of section t> was
only to prohibit, such a permanent union or
merging of two corporations as is em-
braced in the meaning of the word "con-
solidate" as t'he same is understood by the
courts. For several years the county of
Galveston, under legislative authority,
owned two-thiirds of the stock of the Gulf.
Colorado and 'Santa Fe railway company,
yet it was never suggested that the coun-
ty and the railroad company were consol-
idated. If the corporation of Harvard col-
lege owned two-thirds of such stock to-
day, carrying with it the right to vote for
directors, no legal mind would sincerely
think that such was a consolidation, pro-
hibited by section (I, yet t-his bill would so
make it. The college, without consulting
the railroad company or the other stock-
holders, could sell its stock to-morrow and
thereby 'become in a minute "unconsoli-
dated." That such ownership does not con-
stitute "consolidation" seems too plain for
serious argument. (G.. C. & S. F. vs. New-
ell. 73 Tex.. 334; R. K. 'Co. vs. Shirley, 54
Tex., 125; R. Ii. Co. vs. Fryer, 50 Tex.,* 009;
Pullman Car Co. vs. Mo. Pac. Co., 115 U.
S., 587; Railroad vs. Railroad. 136 U. 8., 375;
A.. T. & S. F. vs. Cochran, 23 Pacific Rep..
154; R. R. Co. vs. Davis, 34 Kan., 209.) But
in the effort to aid those members who are
not familiar with legal authorities, we
quote briefly:
"The words 'consolidate' and 'consolida-
tion,' as used in the statutes authorizing
and ratifying the union or combination of
several railroad corporations into one,
have acquired a recognized judicial con-
struction, which imports that all the com-
panies are dissolved and merged into one
new company." (Encyclopaedia of Law,
608.)
"Effect of consolidation in general. The
most obvious effect of the change is the
formation of a new corporate body com-
posed of," etc. Waterman 011 Corporations,
Sec. 154. In Indianola railroad company
vs. Fryer, 5»J Tex., 614, the former com-
panies, the Indianola railroad company
and the San Antonio and Mexican Gulf,
were consolidated under the name of Gulf,
Western Texas and Pacific railway com-
pany, and the court held that thereafter
the "Indianola railroad company" could
not be sued.
"The question presented is, Was there
any such artificial person as the 'indianola
railroad company' at the institution of
this suit, or at any time during the pend-
ency of the same? We are clearly of the
opinion that from and after the passage
of the act of 1871. that company ceased to
exist, that its power to sue and capacity
1o be sued by that name had been extin-
guished, and that there was no such cor-
poration as the 'indianola railroad com-
pany.' All the powers and rights thalt it
had ever enjoyed by virtue of the legis-
lative charter had passed to and vested
in another corporation, with a fixed and
distinctive name, with all the capacities
to sue and be sued that had heretofore
been vested in the two old companies.
This change had been wrought by the
agreement of parties sanctioned by legis-
lative enactment."
The same effect. Stephenson vs. Texas
and Pacific, 12 Tex., 167.
"The purchase at sheriff's sale, set up
in the answer, if it. be conceded that ap-
pellant had power to buy, did not destroy
the corporate existence of t'he Central and
Montgomery railway company, but vested
in appellant the franchise and corporate
property sold, freed from liability for ex-
isting debts not secured by prior liens, and
from all obligations of that company
strictly personal in character.
The appellant at most became the owner
of the corporate franchise of tlhe Central
and Montgomery railway company and
of the property sold, just as would • any
individual who might have purchased at
the sheriff's sale.
Ownership alone does not operate a con-
solidation. for it can not be made without
the consent of the state, which will not be
implied; nor can it be made without the
consent of the stockholders of the com-
panies to be consolidated. (Pearce vs.
Railroad Co.. 21 Howard, 442; State vs.
Bailey, 16 lnd.. 46; Tut'tle vs. Railroad Co.,
35 Micth., 247; Mourey vs. Railroad Co., I
Bisftel. 78; Turnpike Co. vs. Barnes, 42
lull., WSr ttl«hop' ,Vs.' Biralfverd, 28- Conn..
2S8; Taylor's law of corpoVatlollS," 419. ei'
seq.; Mora on corporations, 544; Borer on
railroads, 588; Railroad Co. vs. Shirley, 54
Tex., 125; Railroad Co. vs. Fryer. 56 Tex.,
609; Clinch vs. Corporation, 4 L. R., Ch.
App., 118; Dongan's case, 8 L. R., Ch. App.,
540. Gulf, Colorado and Santa Fe rail-
way company vs. Newell, 73 Tex., 337.)
In P. P. Co. vs. M. P. Co., 115 United
States, 587. it was held that ownership of
the majority of the stock of the St. Louis,
Iron Mountain and Southern railroad com-
pany by the M. P. Co. was not a consolida-
tion, and that the line or road of the Iron
Mountain company was not a part of the
line or road of .the Missouri Pacific com-
pany.
We quote from 13G United States, 375:
"There are many decisions, both in the
federal and state courts, which establish
the rule that however closely two corpo-
rations of different states may unite their
interests, and though even the stockhold-
ers of the one become ttye stockholders of
the other, and their business be conducted
by the same directors, the separate iden-
tity of each, as a corporation of the state
by which it was created, and as a citizen
of that state, is not thereby lost.
"In Farnum vs. Blackstone canal com-
pany, 1 Sumner, 46, we have an instance
of this kind. It there appeared that in Jan-
uary, 182M, the legislature of Massachusetts
created a corporation by the name of the
Blackstone canal company for the purpose
of constructing a'certain canal in that
state. It also appeared that in June of
that year the legislature of Rhode Island
incorporated a company by the same nam",
the Bbukstone canal company, and au-
thorized it to construct a certain canal
within tic limits of that state. In May,
1827, the legislature of Uhode Island de-
clared that the stockholders of the Mas-
sachusetts company should be stockhold-
ers in the Rhode Island company, as If
they had originally subscribed thereto, if
both corporations should agree thereto,
and that the books and proceedings uf the
original and associated stockholders should
be deemed the books of both. And the
court held that though the two corpora-
tions were c reated In adjacent states by
the same name to construct a canal in
each of the states, respectively, and after-
ward by subsequent acts were permitted
to unite their interests, their separate cor-
porate existence was not merged, and that
the legislature only created a unity of
stock ami interest. Tn giving its decision
the court, by Mr. Justice Story, said: 'Al-
though In virtue of these several a«»ts the
corporations (one of Rhode Island and one
of Massachusetts! acquired a unity of in->
terests, it by no means follows that they
ceased to exist as distinct and different
corporations. Their powers, their rights,
their privileges, their duties remained dis-
tinct and several, as before, according to
their respective acts of incorporation.
Neither could exercise the rights, powers
or privileges conferred on the other. There
was 110 corporate identity. Neither was
merged into the other. If it were other-
wise, which became merged? The act of
incorporation created 110 merger, and
neither Is pointed out as a survivor or suc-
cessor. We must treat the case, then, as
one of distinct corporations, acting within
the sphere of their respective charters for
purposes of common interest, and not as a
case, where ail the powers of both were
concentrated in one. The union was of in-
terests and stocks, and no surrender of
personal identity or corporate existence by
either corporation.''
The spirit of said section 6 of the con-
stitution, which was to retain the identity
of the Texas companies, fully subject to
her regulations and police laws, and to
avoid all embarrassing questions of fed-
eral jurisdiction by prohibiting them from
consolidating with outside companies is not
Infringed by the mere ownership of the
stock or bonds of Texas companies, for
in these respects it makes no difference
whether the majority of stocks or bonds
of a Texas company is owned by Sage,
Gould, Vanderbiit. Yale college, or the
New York Central railroad. After what
has been said it would insult your intelli-
gence to argue that the ownership of the
majority of the stock or bonds of two Tex-
as railroads by individuals, singly or col-
lectively, who control a railroad in another
state, is not a "consolidation" of corpora-
tions. prohibited-by section 6.
2. While the presumption is against leg-
islative intent to make a retractive law.
and section 1 of the bill standing alone
would not be so construed, yet considering
the provisions of section :> and the recitals
of section 4, it is plain that the proposed
law is intended to have a retroactive ef-
fect, and so construed we are informed
that it will attack the present ownership
of the stocks or bonds of either or both of
the following railroad companies: The
Chicago, Roek Island.and Texas railroad
ompaiiy; the Fort Worth and Denver
City; the Rio Grande and ill Paso; the
Southern Kansas of Texas; the Paris and
Great Northern; the Gulf, Colorado and
Santa Fe; the International and Great
Northern; the Galveston, Houston and
Henderson; the Missouri, Kansas and
Texas of Texas; 'the Texas and New Or-
leans; Sabipe and East Texas; St. Louis,
Southwestern of Texas; Tyler Southeast-
ern; Galveston, Harrisburg and San An-
tonio; Sherman. Shreveport and Southern;
San Antonio and Aransas Pass; Austin and
North westefn; Gulf, Western Texas and
Pacific; New York. Texas and Mexican,
and probably others. I11 view of the plank
of Wie democratic platform of 1894, as fol-
lows :
"We Congratulate the people of Texas
that the disturbing quest1c* of railway leg-
islation has been definitely and finally set-
tied. and in a manner alike just to the
people and the railways."
The p&r.ty which elected a majority of
this legislature 'hardly contemplated that
In so brief a time a vandal crusade would
be Inaugurated against four-fifths of the
railroad mileage in Texas, involving suits
to forfeit the charter of every important
line in the state and the recovery of mani-
fold penalties, imprisonment of individuals,
the blackening and clouding the titles of
the securities of four-fifths of the Texas-
railroads, and furnishing to the bears of
Wall street, London, Paris and Amsterdam
a magnificent club to beat down their al-
ready depreciated values. Texas authorized
her railroads to issue and sell their stocks
and bonds, and prescribed no qualification
•for the purchasers. They might be Mexi-
cans, Africans or corporations of other
states, whether banks, colleges, hospitals,
insurance companies, railroad companies or
states, if empowered by their own charter
to buy stocks and bonds, is there anything
in the constitution of the state of Texas
which prohibits the state of New York
from buying two-thirds of the stock of a
Texas railroad? Now. this bill, by mak-
ing invalid such purchases heretofore made
by any of such parties of any or all of the
stock and bonds of one or two Texas rail-
roads, would impair the obligations of con-
tracts; in so far as it undertakes to render
the ownership of the proiperty now legal 'il-
legal. it is retroactive and impairs vested
rights, and as it undertakes to punish penal-
ly individuals for owning properly which,
under present law, they 'have, a right to
own, it is ex poM facto and in all other
particulars, -is in violation of plain -provis-
ions of the constitution. We are confirmed
in our construction by legislative and exec-
utive construction.
Section 3, Missouri, Kansas and Texas,
act of 1891 (special laws. 122), provides "the
stock of the purchasing corporation (since
organized under the name of .Missouri. Kan-
saw and Texas railway company of Texas)
* * * may 'be held by the trustee or trus-
tees (which were corporations chartered 'in
New York) of the mortgage bondholders in
trust for the holders of the stocks and
bonds of the Missouri, Kansas and Texas
railway company (a Kansas corporation),
a«3 and with the powers conferred by the
laws of the state 011 an individual stock-
holder."
Judge Brown, now of the supreme court,
was chairman of the committee which re-
ported this bill, and he and other able
lawyers supported it in the house; it was
passed by a senate of which a number of
lawyers of ability were members, and
signed by Governor Hogg. While it has
been assailed on the claim that it infringed
other provisions of the constitution, it has
never been heretofore claimed that this
feature, which practically authorized the
Missouri, Kansas and Texas of Kansas to
own the stock and bonds of the Missouri,
Kansas and Texas of Texas, was in viola-
tion of section G, article 10. If the owner-
ship of a. majority of stocks of Texas com-
panies by outside companies 'is, or has
been, prohibited by that article, the state
through her attorney general has had and
now has a plain and adequate remedy by
injunction,, as was pursued in the case of
the Texas traffic association (G„ C. & S.
F. vs. States, 72 Tex., 104), and by the suit
in which the Missouri. Kansas and Texas,
its receivers and officers, were enjoined
from voting stock in the International and
Great Northern (Records District Court,
Travis Co), it being notorious that the
ownership of the stock above indicated by
outside companies has existed for years
past in several instances, and that such
adequate remedy has existed, and that At-
torneys General Templeton, Hogg and Cul-
berson have taken 110 action, argues that
In their opinion the constitution was not
thereby violated. But if a new and quix-
otic definition of consolidation is to be
adopted, make it apply only to future
transactions, and in the name of common
justice let the present owners of property
have their rights tried by the constitution
and laws as they stood when and upon the
faith of which they made their invest-
ments. When a plain and efficient remedy
already exists against any supposed viola-
tion of tft'd tRo'hst«itiiitJtotb by, 4>homr flt^w/!!4>T
necessary, but barbaric, to invent a new
law under which their rights, acquired in
good faith, will be tried with the guillotine
of death suspended over the corporations
and imprisonment over individuals. It may
be said that if the bill becomes a law and
is unconstitutional as to the past, the
courts will stay the hand of confiscation.
So be it, but this Will not prevent the dis-
astrous depreciation in the value of the
property and the credit of the companies
caused by the state's unwarranted attack.
Moreover, it is our duty under oath to
support the constitution, to examine for
ourselves and reject legislation plainly vio-
lative of it.
3. As to Texas railroads hereafter incor-
porated, the new features of the bill would
be constitutional. It is a serious question
whether it would be constitutional as to
future purchases of bonds and stocks here-
tofore issued, for under the law of their
issue the homers have a right to dell to
whoever has the legal capacity to buy, and
if the legislature may take away such ca-
pacity from a portion of the people and
corporations of the country, it would seem
that they could do tt as to all and there-
by destroy the salable value thereof. Re-
gardless, however, of the validity of the
proposed law, we oppose It because in our
opinion it would seriously retard, if not
wholly prevent, further railroad construc-
tion in Texas by its operation as .here
specified. Any insurance company, savings
bank, trust, company, or other incorporated
concern of another state would not hazard
a large investment in a Texas railroad,
because it might become necessary t<» pro-
tect its interest to acquire a controlling
interest In the stock or bonds or purchase
at foreclosure sale, neither of 'which it
could do if this tall were law. A11 individ-
ual owning with associates a controlling
interest in a New York railroad would hes-
itate before purchasing bonds or stock of
Texas railroads,' for which he might buy
only a few shares, and bonds of two Texas
railroads, while his associates, without his
knowledge, may be investing in the same
two roads, and all of a sudden on a line
morning lie will find that he and his asso-
ciates, each investing 011 his own account,
'have acquired the control of two Texas
roads, and away goes their investment.
No man who owned stock and bonds in a
railroad in another state could safely in-
vest in more than one road in Texas, for It
is impracticable to know who owns all of
the stock and bonds, as the same change
hands from day to day 011 the stock ex-
change, and he might at any time unwit-
tingly become the purchaser of stock
which, in connection with that held by his
: ssoclates in a New York road, would give
them control of two Texas roads. Even
if a 1 arty was interested in no other cor-
poration he could not safely invest in
stock or bonds of a Texas company, for
without bis fault a majority of the same
might be a -quired by "disqualified pur-
chasers," the charter be thereby for-
feited, and a ruinous penalty as-
sessed against the corporation. No one
would look favorably on the purchase of
such stock and bonds, because he might
want to sell again, and the fact that a
large part of the capital of the world is
disqualified from buying, would impair
competition and force him to sell at a sac-
rifice. Suppose the Vanderbllts, who con-
trol the railroads in other states, were in-
duced to build a road from Galveston to
Houston, why should they be prohibited
from building another one from Dallas to
Fort Worth. Mr. Jemlson and his asso-
ciates control a Louisiana road, and also
the Houston East and 'West Texas. Sup-
pose they desire to purchase the stock of
the Texas Western and rehabilitate that
road and extend it westward, why should
the law prohibit it? Why should you pro-
hibit the owners of the stock and bonds
of the Texas railroads, nine-tenths of
whom are interested in railroads out of
the state, from building new roads under
new charters In Texas, if they want to?
With a railroad commission to tlx reason-
able rates, what difference does it make
who owns the stock and bonds of Texas
railroads? It is stated in the morning pa-
per that Mrs. Hetty Green contemplates
buying the Memphis and Little Rock and
extending it from Little Rock to a con-
nection* with her Texas Midland at Green-
ville. With this bill a law. she might not
find It desirable to do so, for it would pro-
hibit her from purchasing the Waco and
Northwestern, in which she is a large
bondholder, and which she may find it
necessary to buy at foreclosure sale to
protect her interest. .No incorporated
bank of the United States or any other
state or country could afford to make 11
large loan to a Texas railroad, because it
would be prohibited from buying the road
at foreclosure saie to protect itself if it
deemed it necessary.
With the examples given in connection
with the well known fact that people as a
rule who invest in railroad enterprises are
already Interested in others, it readily ap-
pears how difficult it would be found under
this proposed law to sell the securities of
new railroad enterprises in Texas.
WARD,
BLAIR,
SMITH,
Of Brazos.
SPILLANE.
HARRISON,
TARVER.
CHRISTIAN ENDEAVOR.
Programme for the Fourteenth Interna-
tional Convention at Boston.
Boston, Mass., Feb. 28.—Press committee
(bulletin No. 2 of the fourteenth Interna-
tional Christian Endeavor convention con-
tains the following information:
The coming Christian Endeavor conven-
tion to ibe held in Boston, Mass., July 10-15,
is arousing great enthusiasm not only in
Boston and the United 'States, but through-
out the Civilized world. Already delegates
are arranging-to come to Boston from Aus-
tralia. and prominent clergymen of Europe,
who have (been invited to address the con-
vention. have accepted, so that the conven-
tion this year will be more international
than any preceding convention. There is
talk of our English and Irish cousins char-
tering a steamer to come to Boston.
As the convention is held 011 the eastern
seatboard, nearer to the old world than any
other since the very earliest days of Chris-
tian Endeavor, "it is but natural that we
Should have a large number from across the
•sea.
An Important change in t.h% programme
has been effected in that, for the first time
in the 'history of Christian Endeavor con-
ventions. there will be no 'Sunday services.
This will necessitate a change in dates from
July 10-14 to July 10-15.
This commendable feature of the conven-
tion will emphasize the stand t'he society
lias always taken in regard to Sunday ob-
servance, anl will avoid the necessity of
Sunday travel of delegates, as many of the
delegates 'w'ill be quartered In Boston's su-
burbs and would otherwise be compelled
to utilize the steam and electric railways
for transportation on 'Sunday. The grand
consecration meetings of the convention
will thus be held on Monday evening in-
stead of Sunday.
An outline of the programme for the con-
vention follows:
Wednesday morning: Trustees and officers
of united society meet at Hotel Brunswick
for conference.
Wednesday evening: Convention opens in
fifteen or twenty <f the largest churches.
Thursday morning: First session in Me-
chanics' building and two tents. Addresses
of welcome. Secretary Baer's annual report.
Presentation of state banners.
Thursday afternoon: Denominational ral-
lies in various churches.
Thursday evening: Mechanics' (building
and two tents. Annual address of President
Clark.
Friday morning: Sessions in Mechanics'
(building and two tents.
Friday afternoon:'Committee conferences.
State, territorial and provincial un'ion con-
ference. Officers and district secretaries'
conferences. Junior conferences.
Friday evening: iSessions in Mechanics'
building and two tents.
Saturday morning; 'Sessions in 'Mechanics'
'building and two tents. Adjourn at 31.30 to
march in a body t.u Boston Common, where
Governor Greenhalge will give an address
on good citizenship.
•Saturday afternoon: Junior rallies.
"Saturday evening: State receptions.
Monday morning: iSessions in /Mechanics'
building and two tents.
Monday afternoon: Pilgrimages to 'histor-
ical spots, where lecturers will address the
delegates.
Monday evening: Convention sermons.
Consecration meetings.
Applications for accommodations and ex-
cursion manager's estimates all point to an
attendance of 00,000 delegates under favor-
able conditions. Twelve states have already
been assigned to hotels, but" the large ma-
. jority uf delegates will be quartered 'in pri-
vate houses in the vicinity of their state
headquarters, Private house assignments
will not be made until delegates arrive,
and they will then be assigned from their
state headquarters.
-State assignments have already been
made by the accommodation committee.
The slate excursion and hotel manager
appointed for Texas is Mr. William G. Bell
Gif Austin.
REVIEW OF THE WEEK.
The Feeling of Perplexity Under
Which the Traders in Cotton
Are Now Laboring-.
REDUCTION OF THE ACREAGE
Last Year's Production Can Scarcely Be
Duplicated—The Advance During the
Latter Part of the Week.
IJAWMAKINO.
(Houston, Tex., IMaroh 8.—To The News:
Your editorial, "Over One (Hundred Laws
?er 'f^Ple to ponder on
the fact that under our 's-fy'Hem* '(jfTUw-
making it is folly for us to say that this
is a government by the people. We elect
anybody to the legislature, no matter how
much he may be wanting in capacity or re-
sponsibility. and allow such persbns to get
up and pass such laws as they please or
which an interested lobbyist may dictate.
The only remedy for the ills complained of
in your editorial is to be found in the initia-
tive and referendum. By this method the
people suggest all measures to the legisla-
tive 'body, which puts them in proper ver-
biage. and then refers them back to the
people to 'be voted 011 before they can be-
come laws. No true republican government
can exist long without the initiative and
referendum. Yours truly,
E. P. ALSBURY.
As a playwright Oscar Wilde's highest
ambition seems to be to capture a large
number of self-evident truths, turn them
upside down and inside out—and dub them
epigrams.
News Office, March 9.—The week just
passed has been without the injection of
any especially new elements Into the cot-,
ton markets, either abroad 01* at home,
and the condition of affairs has beer* well
described by the statement that "110 class
of traders have escaped the feeling of per-
plexity under which they have been so
long laboring." The New York Journal of
Commerce in its review of the situation re-
marks that "the arithmetic has been torn
all to pieces by the chronic statisticians in
working out figures to favor*fneIr respec-
tive Interests, for which computations
were made, and some have gone back over
fifty years for comparisons, but it is ex-
tremely doubtful if any sales or purchases
have been influenced by the statements
put forth."
"All , who thought well of cotton," con-
tinues the Journal of Commerce, "at the
price, appear to have obtained the amount
they desire, the range of value was so
low as to check further selling, and the
market simply drifts, awaiting something
calculated to shape its course upon more
direct and positive lines. As we have
from time to time advised, the most pro-
nounced view of argument has been over
the chances for next planting. Scarcely
any one seems to think that cotton grow-
ing this year can duplicate the production
of the past season in many localities, even
were the seeded area the same, because
it is hardly within reason to expect a re-
petition of the late phenomenally propor-
tions, conditions for germination and
development of seed plant, ami further-
more there is undoubtedly a general belief
that acreage is to be reduced in most
states outside of Texas at; least, but the
extent of the reduction is yet a doubtful
matter, as well as the quantity of cotton
that may be carried over to partially bal-
ance the anticipated shrinkage in the new
yield."
A close perusal of the papers printed in
Georgia develop the fact that the cotton
acreage will be greatly reduced in some
localities in consequence of (he low price
of the staple and that farmers hail de-
cided to dispense with fertilizers. Other
advices say: "farmers have repeatedly
resolved that they would not purchase
any guano this year on account of the low-
price of cotton, but as the time drew near
for planting it bec ame more and more evi-
dent that the resolutions were to be of no
effect. Now they are hauling it off in
large quantities."
The New York Herald of Sunday says:
"Everybody admits that cotton at the
present low level of prices js going to be
exceedingly sensitive to any such favor-
able influence as a marked reduction in
receipts. The international agitation in
favor of silver is tending to increase con-
fidence among all interested in the cotton
trade. But it is mainly to a lessened pro-
duction as a result of smaller acreage
and a largely decreased use of fertilizers,
that the friends of cotton are looking to
give us permanently a higher market.
Until later in the spring prices may con-
tinue to fluctuate without important
change, but in our opinion the chances in
the long run are in favor of the buyer."
In commenting upon the meeting now-
being held by southern farmers to con-
sider the situation and to take steps to-
ward reducing the acreage, and thus im-
prove the price of cotton the New Or-
leans Times-Democrat says: "The sev-
eral meetings agreed that a reduction in
cotton acreage was necessary, 'JO per cent
being generally recommended, although
some farmers signed pledges to reduce it
40 or HO per cent. In most cases pledges
were freely signed. It remains to be seen
hpw tilt pledges will be kept. A circum-
stance which may count in the matter is
the lateness of the spring. The severe
weather has played havoc with the truck
farmers and has made planting late. A
number of farmers who expressed their
desire to plant corn are now afraid that
they will not be able to do so. This is a
distinct element of danger to any scheme
of reduction in cotton acreage, as it will
tempt the farmers to put more land in
cotton than they originally intended."
Colonel K. J. Sledge of Waller county
has issued a circular to cotton growers
which has been sent out to all the coun-
try papers for publication. He advises
farmers to organize by congressional dis-
tricts and select delegates to meet at
Memphis on the lath of May to devise
means "by which we may receive living
prices for our cotton." The circular pro-
nounces overproduction a fallacy and cites
Mr. Atkinson as one of the authorities for
the statement that it will take 20.0(10,000
bales of cotton to supply the civilized
world. He advocates the calling of meet-
ings all over the south "for the purpose
of organizing against a system that will
ultimately ruin the cotton producers," al-
luding to those who manipulate the mar-
ie e I s.
The department of agriculture, through
its Galveston bureau, in its crop bulk-tin,
reports that farm work was retarded dur-
ing the early part of the week in the east-
ern part of the .state in consequence of
t'he ground being too wet for plowing, but
where conditions were favorable agricul-
turists were engaged in planting vege-
tables and other crops. The ground gen-
erally is in exceptionally good condition,
and as a rule farm work has been rushed.
Oat sowing has been pushed, and accord-
ing to reports received a large acreage
will be sown, provided the weather con-
tinues favorable. Some farmers are sow-
ing spring wheat, as very little fall wheat
was sown in consequence of the drouth
during the fall and early winter. Despite
the late cold weather corn planting has
been commenced in the southern and cen-
tral portions of the state. The recent
warm weather has caused vegetation to
start in tin* southern part of the state and
strawberries are now in bloom on the
coast. _ _
Secretary Hester's New Orleans weekly
report indicates a slight decrease in the
receipts as compared with the big crop
year of 1891-92, but as compared with the
seven days ending March 8, last year, the
movement Is 5(1,000 bales in excess. The
amount brought into sight during the
week has been 126,071 bales, against 70.750
for the same period last year. The for-
eign exports since August ;:i show an in-
crease of 1.112,085 bales over the same
period in 1893-5)4. While the takings by
mills in the I'nited States and Canada
Show an increase of 50.206 bales as com-
pared with the same period last season.
inning the latter part of the week there
was quite an improvement in the spot and
future markets, both at home and abroad,
Liverpool marking up spots, and futures
also advancing. The New York and New
Orleans markets were also advanced, the
details of which will be found elsewhere.
The receipts for Monday promise to be of
good volume, tin: combined., estimate for
the ports of New Orleans and Galveston
being 14,750 bales.
BODY UNIDENTIFIED.
1 I&'ZlMrVZnM'l&T! To*1.; Mitfch
physicians held a post mortem examina-
tion last night and. the coroner's inquest
has been completed on the body of the
unknown man who was found dead be-<
tween the depot and the pool yesterday
evening, an account of which appeared in
The News of to-day. The verdict was that
he came to his death from the effects of
morphine. A bottle of alcohol containing
some morphine was found a distance of
twenty or thirty feet from where he stag-
gered and fell. He never spoke after 'he
fell and died in about an hour afterwards.
All efforts to prove his identity has failed
so far, though a number of telegrams
making inquiry were sent over the state.
The remains were interred in the cemetery
this evening by the charitable people of
this place. Deceased is supposed to have
been about 55 or GO years old, about 5 feet
lu inches in height, light red hair, sandy:
Whiskers and was shabbily dressed.
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The Galveston Daily News. (Galveston, Tex.), Vol. 53, No. 351, Ed. 1 Sunday, March 10, 1895, newspaper, March 10, 1895; Galveston, Texas. (https://texashistory.unt.edu/ark:/67531/metapth465641/m1/8/?q=mission+rosario: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Abilene Library Consortium.