Annual Address by the President. 
15 
tion outstanding at the time of its passage remained in effect, no new 
indebtedness has been authorized created on the old roads, and all new 
lines constructed have had their issues limited to approximately the 
actual cost and physical value of the properties. The old roads that have 
been sold out at receiver’s or other sale have also come under the Act, 
and their securities were limited by the same basis. As all of the old 
mortgages now outstanding expire, and when new mortgages are made to 
retire them, the latter will be limited according to the provisions of the 
law. Thus we have the paradoxical situation in Texas of the railroad 
properties continually increasing in value and their earnings constantly 
increasing, while the securities which represent their value in the mar- 
kets are constantly diminishing. And this will continue, as to the rail- 
roads of Texas, so long as the present Stock and Bond law remains in 
effect until their capitalization approaches their actual physical value, 
as it is determined by the Commission. 
The following table, compiled from the annual statistical reports 
issued by the Commission, will indicate the reduction per mile, on the 
average, of the indebtedness of the railroads of Texas, above mentioned, 
from June 30, 1894, approximately the date of the going into effect of 
the Stock and Bond law, until June 30, 1902: 
On June 30th. 
Miles of 
railway in 
operation. 
Stocks out- 
standing 
per mile. 
Bonds out- 
standing 
per mile. 
Total 
stocks and 
bonds out- 
standing 
per mile. 
1894 
9,154 
9,291 
9,437 
9,484 
9.540 
9,702 
9,867 
10,154 
10.617 
$15,076 00 
14,874 00 
14,647 00 
14,320 00 
14,205 00 
13.997 00 
13,724 00 
12.922 00 
12,388 00 
$25,726 00 
25,420 00 
25,302 00 
24,793 00 
24,036 00 
23,562 00 
23,202 00 
22.649 00 
21,779 00 
$40,802 00 
40,294 OO 
39,949 OO 
39,113 00 
38,241 00 
37,559 00 
36,926 OO 
35,571 OO 
34,167 00 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
Total reduction for eight years 
$ 2,688 00 
336 00 
$ 3,947 00 
493 37 
$ 6,635 00 
829 37 
Average reduction per year for eight years. 
Receivers of railroads have been practically unknown in Texas since 
the passage of the Stock and Bond law. In 1891 there were approxi- 
mately 3357 miles of railroad in the hands of receivers, or about 39 per 
cent of the total mileage, while today there is only one road of about 
seventy miles in length, and this because it was almost entirely wrecked 
during the terrible storm at Galveston in 1899 and dismantled. The 
chief reason for this dearth of receivers is because of the fact that the 
principal railroads of the State were stocked and bonded at the time of 
