The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1877-03-13
TAE CENTRAL RAILROAp,s TROUBLE.

THE CENTRAL RAILROADS TROUBLE.
Suit was entered in the Federal Court
at Austin on Friday last, ut the instance
Of President w L, Dodge, and in the
interests Of the bondholders, to force
the Central railway and its branches in
to the hands Of receiver. 1t has been
plain to all observers that some such
fight as this has been one Of the early
probabilities for some time. The Cen
trail is a rich corporation, immensely
rich indeed, but it has been in just such
a condition ever since its completion as
that its resources could not be realized
upon. Its large earnings have gone to
pay interest on bonds for repairs and |
for current expenses, as well as to pay
taxes on immense tracts OF land which |
yield the company absolutely nothing |
rs income. Their sales of land have not |
been sufficient to add in any appreciate
degree to the revenues Of the road. The
fight evidently is to be between the |
Eastern bondholdcrs and the home
management as well as home creditors,
and will if persisted in, grow to he one
Of the most important and extensive
ever adjudicated in our courts. 1t is
thought that the step bodies consolida-
ton of the two most extensive railroad
interests in the State. The Internation-
al and Great Northern together with
the Central might, practically, under
one management, soon groW to be II seri-
Gus circumstance for the farmers and
producers generally Of Texas. Any cir
cumstunce of this sort will at once OK
cite the apprehensions of the people,
and the Central's home management
will not lack for the moral and material
aid Of the people in its struggle with the
New York combination,
Every interest Of the State, az con-
nected with this subject, centres in the
policy of sustaining the homo manage
ment. The road owes to the State the
sum of $6S0,OOO in gross 1t is thought
by we'll informed people that this sum
is safe However that may be- it viii
not add to its security to have it ma.
nipulated by those whose only interest
in the road, or the State either, is to
squeeze every possible dollar out of
them in the shortest possible period of
time
The owners Of the road, both in New
York and Texas, are rich enough to put
the track in tirstrate condition, to make
all necessary repairs and additions, to
increase the effectiveness and efficiency
of its every department out of their
private resources and they should do it
without delay, whether the suit OF the
bondhoders is successful or no.. The
| lhN'l'olo VI ln' iNliNt utNldllN WIS, anu
but for the faulty condition of the road
to day there would be but one sentiment
among the people regarding this suit
as it u.s. many people will say it can be
no wors, for the people in the hands OF
a receiver Disconnected from the
large stake the state has in the road,
and the natural sympathy with the
home management, this is true, but
then in steps The fear of combination
which may grow to be dangerous to the
carrying business of the State
The matter has another feature which
commends it to the attention of the
people, and more especially those OF
our western frontier. 1t has been the
policy Of the homo management to push
ts western branches out to the borders
as fast as possible, This policy has not
been in accord with the views of the
New York people interested in the Cen.
trail, OF course it follows if this suit is
decided in favor of the New York com.
bination, the western enterprises of the
road will receive a serious check, if they
are not suspended forever, Without
considering the advantage or disadyan.
tage of this effect to other companies
cities or individuals, it would prove
a serious drawback to our ever extend.
ing line Of frontier settlements.