(_c_) No deduction was made on account of depreciation, as it was considered that all structures must be maintained in first-class, serviceable value, and renewed when necessary, and no allowance was made for appreciation of roadbed. (_d_) No allowance was made for franchise values of any kind, except track rights in streets. (_e_) No allowance was made for contingencies, except as made in prices or quantities. Their practice was in accord with the Michigan appraisal, in allowing from 5 to 6% to cover legal and engineering expenses and superintendence, and from 5 to 6% to cover interest during construction. _The Result of the Texas Work._—The object sought in Texas was to secure a capitalization in harmony with the actual investment in the physical property; in short, to "squeeze out water." Of course, all stock and bond issues outstanding in 1894 are still in existence, except as a few roads have been sold out or re-organized. No new issues of stock or bonds may be made on roads in excess of the valuation. Consequently, new roads are limited to issues of bonds not far from $15,000 per mile. The effect is shown by Table 8, from the Railroad Commission's Report. TABLE 8.—MILES OF RAILWAY IN OPERATION IN TEXAS, 1894 TO 1908, WITH OUTSTANDING STOCKS AND BONDS. ═══════╤═══════════════╤═══════════════╤═══════════════╤═══════════════ On June│ Miles of │ Stocks │ Bonds │Total stock and 30th. │ railway in │ outstanding, │ outstanding, │ bonds │ operation. │ per mile. │ per mile. │ outstanding, │ │ │ │ per mile. ───────┼───────────────┼───────────────┼───────────────┼─────────────── 1894│ 9,154│ $15,076│ $25,726│ $40,802 1895│ 9,291│ 14,874│ 25,420│ 40,294 1896│ 9,437│ 14,647│ 25,302│ 39,949 1897│ 9,484│ 14,320│ 24,793│ 39,113 1898│ 9,540│ 14,205│ 24,036│ 38,241 1899│ 9,702│ 13,997│ 23,562│ 37,559 1900│ 9,867│ 13,724│ 23,202│ 36,926 1901│ 10,154│ 12,922│ 22,649│ 35,571 1902│ 10,617│ 12,388│ 21,779│ 34,167 1903│ 11,029│ 11,971│ 21,464│ 33,435 1904│ 11,495│ │ │ 32,400 1905│ 11,662│ │ │ 33,418 1906│ 12,056│ │ │ 32,886 1907│ 12,577│ │ │ 32,142 1908│ 12,830│ │ │ 32,305 ═══════╧═══════════════╧═══════════════╧═══════════════╧═══════════════