The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-05-20

tion b, Congress berore Ala l. Granted.
WAsuINGrON May 10. The Texas and Pa
rn. Railway Company desires the Cnitcd States
toguarantrc the interest upon its bonds to the
nnount of about S33OOOOOO. As security for
the guaranty. it proposes to execute mortgage
upon ii4 road. to- be constructed from Fort
Worth westward. 10y the way ol III paso. to Tho
Pacific Ocean. on behalf of the French bond
holders Of the Memphis. II Paso. and Pacific
Railroad Company. Mr.. Douglass Campbell of
Now York claimed before the committee that
thc Texas and paci1r could not execute valid
mortgage upon the limo from Fort Worth 70 III
paso. and that in addition it has no title to a
large portion Of lts completed line cast Of Fort
Worth. The argument upon this subject can
BE- reduced to a nutshell.
The Memphis. II paso and Pacific Railroad
Company was organized under the laws of
Texas to build road from the eastern border
OF the State. 10y the way of Fort Worth. to III
Paso ON the west In 1869 this company sold
over 80 ono 900 II bonds in France. The next
year proceedings were begun 10 wreck the COM
Aany. Int these proceedings. although they
resulted In the appointment of receiver were
nttory y0il for want IL jurisdiction OF the court.
Thec0mpany was "A resident ~ ToNas, and
,rcrey"r could only hc appointed in that state;
but i'm ti,i. case the order appointing receiver
was made In New Jersey. without service
'ipon the corporation. and without any valid
appearance. The rc'civcr. whose appointment
was utterly void, made pretended sale of the
charter ~ IN Memphis and II pasoto the Texas
an1 paiafin 1873 Thcrcupon the laiier corpo-
ration proceeded to construct about 800 miles Of
H., road on the line Of the Memphis and III Paso
and. ~ Nr. Campbell argues. now proposes to
cnnstrurt under thu same charter thc rest ~ its
road from Fort Worth to III Paso. The bonds
sold in France are by their terms now due. and
aludemrnt can bc recovered against them any
day. under which. according to the law of Tex
~. the charter. franchise and all other property
Of the Memphis and l. paso can be sold. Some
Of the hondholders have, under msrcprescn'a
tions taken quantity Of wild lands for tholr
bonds. hut they now unite with those who have
refused the land in protesting against the exc
cuion Of mortgage which would cucumber the
Iroucity to which they make n claim.
1t s substantially admitted on all hands that
the proceedings by which the charter OF the
Memphis and II Paso WIS transferred were ir
regular and that the subject should be invcst-
ga,el. II it were material but the Texas and
Pacihr claims that it has a right TO build its road
entirely outside ~ this charter. Prior 10 the
purchase from the receiver o; the Memphis and
L Paso. ia 1915 it hal bought two other char
ters-tho-e OF the southern Pacific and the
Southern Trausroutinen,al-ea Of which had
ihe right to constru q road ross the State of
Texas by the way of Fort Worth and VI Pnso
mud one OF which contalnedn no Limitation oitme
within which the line was to be CONSTRUCTED. II
the evidence stopped here the case would hc
clear enough. and IN" report = the sub,
committee would be correct. hut Mr. & tmphsll
produred an act Of the Texas Iesslaturc.
passed in 1873, which putt IN entirely different
rights and dutios of tho Texns and Pacific ms
su,crssor 10 tn southern Pacific ana southern
TrHn- .pntinenial. II repealed all former Is
nnOn tine subject of those chntt"rS nud con-