The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-02-01
Governors Message ON the special
gehsel Fund Loaned TO Rail-
Fond Companies.
. sTATr OF TEXAS, EXECUTIVE 0FFIcE.
January IL, 1851.

Representatives, Ia the Legislature AS
sembled
The subject 10 which your attentl,n IL
herein called, / the Indebtedness from certain
railroad c1mpauies 10 tho public free ,ohool
fund, arising upon the loan made by the
state from that fund TO said companies, under
the Get ct August 10, 1886, and To the Disagree
ment existing between the officers of The state
treasury and thebfiCors Of said companies in
regarii TO the an9uht 0rAaid Indebtedness. and
especially 10 Toe actio& OF tho Houston q
Central re a. railway c0mpahy, IN having
failed 10 continue 20 pay the intorast ON tho
debt claimed TO be due upon the indebtedness
OF the WsAhiagtga County railroad company,
now con.olidated with the said Houston &
Central Tex railroad company
On the 18th dag OF November, 1879 the
comptroller cent TO me the following letter
and statement Of account, showing the state
of the indebtedness of SGid com pauy and
The iai ure TO pay the interest and sinking
fnnd ON ths sane.
CoMPTRoLLER's OFFICE.
AUSTIN, Nov II, 1879
His Excellcncy, o. NJ Roberts. Governor;
Sul-Tke Houston s. Toxas Central railway
company having failed 10 pay within tho time
prescribed by act OF August ~ the interest and
SINKING iund Que by them ON account Of the
Washnetnn Comfy railroad. ! beg 10 hand
you herewith a abatement OF the account of
washington County railway company, as 10
appears irOm the iles anu records Of this de-
p9rtment, for such action as you may deem
advisable TO be taken Very respectfully,
srEpERN 4 DAUDEH,
Comptroller.
Washington county railway company In &C
count WIFE the sLn te Of Texas:
certify the within 10 be q correct statement
OF The account Of the sta pf Texas against
the Washington County railway company az
appears from the fies and records Of THIS de-
parlment
enth Gay Of NOveubcr, 1873
LIS STEPH. III DAHDEN, Comptroller.
Vho rag ef,,, Of e. a. ,,.t .t.aa
ment WAS the eX'HiCnGn Of u law, under which
the .oan Wph made. requiring the governor,
upon default Of the payment Of principal and
In crest. as rqulrCd by The aCi, 20 sdycftigc
and efll the rod for the payment thereof, and
to bid In the road, If necessary, for the state
ard In thut event o ap Oint receiver to aEd
charge Of the roBd and manage II. upder he
direatlon Of the governor, until otherwise dis
posed ot by law. (Act &C AuguM ID 1876; Pos-
ohal's digeAt, articles $500, 80, 3jll)
In orier To PLAIN why did not regard Il Ga
be for the Interest Of thr gtgie To advertise and
sell said road A. t3e time this communication
WAS nude TO me by the comptroller, notifying
me OF Tie default, II ~ rcc0 -sary TO exhibit the
laws relatlng 10 the suuIecs, ~ q the records
and facts pertaining toll.
BY tre preceding statement Of account II
VIII be seen that the loan that Was made In
June, lS ., WAS 2GG coo, and there wsg no siHk.
Ing fund nor interest paid on u after tho pay
mtnt on tho6ih Of June, 1850, until Julv II
1861. when There was payment Of Interest OF
$l2 ,755 I and also gimilar pynment fiuter-
est on tho 18th Of August, leRi, OF 8a7gO 80 both
of said pnymnut- hetuE IN VsYsggtrts trsasti-,.
warrants. They were made under the act of M,
Legislature OF the .sth Of May 1854 Paechalis
Digest, articles 3jA- .2G-2T), which ucrmittpd
that COM pany, ard others th0t bad received
such loans to pay The interest Ia stat, ,,ur.
rents, and required tho comptroller 10 receive
the same, unless upon satisfactory esidence
IL was Shown to him hat said 4 ads failed or
refused to take said warrants 'at par for
irelsht or passoge at the price or rates pra.
Beribed by law. ~
On the nth of Nay, 1865, as shown ia sald
statement, there was Paid Ia state TREASURY
warranta, principal S2iGjj, aud interest So
That payment wsamado under tho act oftb,
18TH of November 1851, when authorized said
compartment pay the prucipai mud interest n
htaIe warrsnts, upon sau;fyinE the c1H1 ptrul-
Ter that they ''gre received BY Them AT MR..
with specie for freight and passenger travail -
tPaechals Digest articles 3b2S-al Under
Doth oil SUD acts upon such payments being
na0e, The comptroller WGa required to have
executed slHilar RmOuHts OF six per cent
bonds foi the school fund, which we're duly is-
adgl, and are siill In the uflce Of the comp
trOll0r, aa we'll rs oil Of the To- an bonde orini
nally executed by the cora pan es for said lOsN.
U. II, J0hna was comptroller at the time
these paymenia were made IN state warrants
add RON the credit thea given Tor them IN
me books OF TIE Office u may DO presumed
that he was satisfied that the forms aud con-
uil3on6 prescribed In the law had been com
plisd W'th The entries are in ledger 3, page
The statement shows said debt TO be on the
lst day OF May leGG, principal S3f OH, aud in
teTesl t2i05 These payments IN Btat1 wac
Inhlb CONSTITUTE he matter IN controversy, and
the company claims that they should be al |
lowed, and lfalluwed, that The ~ ymerts of the
Interest that have bcen made as Interest under
pr test W sufficient 20 eXtngulah both the
ntere ahu me principal OF the deb, Of the
washington county railroad company Tho
aGthOrilies IN control Of the state Government
IN la'O ueclncl TO recognize them as valid nay
menls, which Is dcduclblc from tho records Of
the cOmptfOllcrs oillce after the Tp-Ornzniza-
ton OF the state government In lS5O Ia 1874
rms account w ~ transferred from Ictlrer n IN |
Ledger ., and entries therein nude. pnrilv
Mhiie lion Morgan Hamilton was comptroller
aud partly while Hon. A. Bodsoe wfs CONN
troller, IN which 10 appears that the amount
OF Inc prlpcipal OF the debt rs footed mn in
Ledger y, Is not changed, but Is still put down
as SaiO7. III was again transferred nnd re-.
stated during the time Hon A. Bledsoe was
comptroller, In Ledger ID, In which statement
theie Is no amount of princlpsl stated
Ihere was Indeed no re-charge of the prin-
cipal aud interest, paid in treasury warrants
IN 1854 ana 1868, IN the record books of the |
once sntil u was made when Hon S, H. BAR
zen became comptroller In 1874 when 1t was
uoue as SHOWN Ia tne hrst statement VI tho ac-
count, which puts down the princlpal of ina
ueOt ~ having been on the list day of Nav |
1910, SllS,slO OIL, IL being the principal and H.
tereat due up to that time, The payments made |
IN state treasury warrants, both of princinl
aud interest, being excluded. and unt heinz !
me amount claimed 20 be due by tl,o comm, |
uoneri as shown by the payment of Ir,sfaF, :
Hna SINKING innd IRON November !, $50 IN
november l. 1873, While Hon A pledso,' 49,, ~ |
comptroller. 1hls 10 charge 10 IND ,,I'rc, '"G
was mhde as above stated. In l.,lger n M Ns
6l', Tor the purpo3e Of making the prIIcinssI
Ia Ia ihe DOORS correspond with the interest ,bat
hau neeh paid previously undgr tho Ia,, 81 tguh
~ August, in,9, There ia, however. In a meno'
orauduin book, found la the comptrslIeijs
once, without signature ard without dale, |