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Transactions Texas Academy of Science. 
structures of all kinds. These exhibits can be filed in advance of the 
actual construction of a railroad, as soon as its location has been com- 
pleted and right of way and depot and terminal grounds secured, and 
upon the estimate of the cost of the proposed road, the Commission will 
enter an order authorizing the issuance of bonds to the amount of the 
estimated cost and value, less the stock which has been issued, which 
must be not less than $1000 per mile. This order does not carry with it 
any obligation on the part of the Commission, except to guarantee that 
it will approve and direct their registration in the office of the Secretary of 
State, the bonds that have been authorized issued, as soon as the road has 
been completed in accordance with the plans, specifications and exhibits 
filed. However, as sections of the road are completed and ready for the 
operation of trains, upon application the Commission will direct its 
engineer to inspect the completed portions and value same in accordance 
with the former estimates upon which issuance of bonds was authorized, 
and so much of said bonds as will represent the value of the completed 
property will be approved and directed registered. As other sections 
are completed, additional bonds will be approved and directed registered, 
to the value of the property. 
Any railroad company can at any time, upon filing the exhibits 
required, make application to the Commission for approval and authority 
to register in the office of the Secretary of State bonds to the actual 
physical value of its property, to be determined by the Commission, less 
the capital stock which has been issued and less any previous bonds or 
other indebtedness that may be outstanding and which is regarded as a 
lien on the property. After the bonds have been duly registered, then, 
and then only, do they constitute a lien on the railroad property. As 
provided in the statute, which was quoted above, the total sum of the 
stocks and bonds must not exceed the value of the road, except in cases 
of emergency, when the Commission has power to authorize additional 
stocks and bonds to an amount not exceeding fifty (50) per cent of its 
estimated value. However, in no case up to this time has the Com- 
mission considered this emergency provision ruling that it was the inten- 
tion of the law that same should be invoked only to cover losses from 
extraordinary causes, such as storms, fire, etc. 
The Stock and Bond law further provides for the issuance of certifi- 
cates and shares of stock, complete statements of which must be duly 
certified to and filed with the Commission. It also provides severe and 
drastic penalties for the fraudulent issue of any stocks, bonds or other 
indebtedness in violation of its provisions and for the making of any 
false statements in regard to same by railroad companies thereby secur- 
ing the Commission’s sanction of fraudulent securities. That the law 
only contemplates the regulation of the issuance of stocks and bonds and 
