The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1881-12-08

The Financial fmbaffassmenis N The com-
many fcnd ~ Attachments, law Suits,
meeting ~ Creditors and The Appcini-
mont ofa Receiver.
For several days past II has been rumofed
that crisis was being reached Ia The affairs
Of the Texas Trunk Railroad Company.
u has been known That ior some
| time past the company has been financially
embarrassed, having iallod In the great
money centres TO negotiate their bonds nnd
| thus llquidate their liabilities. II also be-
came known that recently q sum OF money,
varlously estimated by parties TO whom the
company was indebted at from SiO,U TO
$4,000, had been forwarded from Boston
TO settle claims against the corporation, but
i has been. pretty reliably learned that
600, and that this fund had been placed in
the hands of a banking firm OF tins city to
be paid out to creditors of the road IL Is
asserted that the Boston management OF
the road proiessed belief that this amount
was sufficient to settle the accounts
against them, but that as, soon
as the TACT became known
that funds had arrived the presentation
of claims became so numerous that
those entrusted with the settlement saw
that one-half the Indebtedness could not
be met with the amount on hand,
and so no bills were paid. On
Saturday and Sunday attachments
commenced being. run on. the, prop,
erty of the road, and on Sunday demand
for the appointment of q receiver was being
agitated. Creditors from various directions
begun to arrive Saturday, and in Sunday
mornings HERALD notice appeared calling
meeting of creditors of the road at the
office of A. w. Nowlin, in this city, at
2:30 yesterday afternoon. The Texas
Trunk troubles was the topic Of CONVERSE
| ton in railroad circles and on the streets
owed for grading, track-laying, general
construction work and merchandise, rom
$4,000 to 100000, principally in Dallas
and Kaufman. -,
The meeting referred to was held
as called, about one-half of the indebted
ness being represented. The question
of the appointment of receiver was dis
cussed, and, we are informed the senti-
| ment against pursuing such course was
| unanimous in this meeting. 1t was in
formally determined that if suits were
brought, and the one first disposed or re-
suited in judgment for the creditor, then
| all should pool their interests and pro rata
settlements be made--that is, all should work
| together and endeavor to get their money
from the company with as little litigation
as possible, after test case should have been
made in court. This is substantially
what was done at the meeting, which adj
! ionrned about 4 p. m. to meet at III CLOCK
| this morning, at the same place:
| Representatives of the HERALD interviewed
number of the creditors and other
posted portions. From what could be
gathered, it appears that the company's
| troubles are principally attributable to dis
agreements in the ranks of the manage
ment. One of the heaviest creditors, who
appears to be well informed, characterized
| it as the Graves and Shortwell element
against the Henderson clement. He assert
| ed that Mr.. NJ. Henderson some time ago
perfected negotiations with an English cap
| italist named Dunklin, representing finan-
slal syndicate, for the sale of $2,0OO,00O
| worth of the company's bonds, at gilt
edge figure, and that the money on them
was about to be paid, with which
the Texas Trunk debts would be
settled and the construction of the road
toward Sabine Pass u shed rapidly forward
| This creditor asserts that the success met
with by Mr.. Henderson was making him
too prominent and popular and that Graves
and Shortwell, at the last moment OF the
negotiations, on some technical point,
| stalled Henderson's efforts and the bond
negotiations fell through. He asserts that
1t was the Graves-Shortwell scheme to
get the company as heavily involved
as possible have attachments run, ludg-
ments rendered, receiver appointed, the
road ordered sold, and then their side to bid
il in and freeze the Henderson element out.
All day yesterday papers were being filed
in the various courts In the city
for attachments and suits against the
Texas Trunk, and the clerks
were pinned down to their chairs, so to
speak, copying and recording the docu-
ments Two important suits were filed in
the District Court, by parties who are viz
tually the construction company organized
last summer, the principal members being
Messrs. adams IL Leonard, the Dallas
bankers, and Captain }. II. Brltton'
well-known and heavy railroad con-
tractor. One of these suits was for damages
alleged to have been sustained to the
amount of $40, 600 for alleged breach OF
| C ontract entered into on the 10Th of July,
| 1881, for grading the Texas Trunk road
| from Kaufman to the point of intersection
with the International u Great Northern
damages for alleged violation of
contract to furnish ties. The par
ties suing allege that they have
| spent $4,000 preparing to fulfill these con-
tracts, and ask consequential damages, on
account of being deprived of the benefit OF
the contracts, had they been carried out.
As already stated, about one-half of the in
debtedness of the road was rep
resented at the Dallas meeting yes
terday. BY some of the creditors. present,
il is also asserted that not more than one
third of the Indebtedness, il as much as
that, is held by the kaufman creditors
also, that the kaufman creditors were the
parties to the. movement for receiver
also las before stated, that the creditors
present at the Dallas meeting had expressed
themselves as unanimously opposed. in
the informal discussion of the question,
TO the appointment OF a receiver. But
it will be seen. that on yesterday morning |
NJ Kaufman, Judge Clark, presiding over |
the District Court of that county, as chan |
cellor, and at the instance of Kaufman |
creditors, and Of all such others as might |
desire to join with them, PLACED the Texas |
Trunk Railroad in the hands of a receiver, |
there arresting all attachments and other |
like proceedings. The following decree of
the court more fully explains the situations
THE REcEIvERsHIP DECREE.
,w. X Snow ct al, No. 1924, VS.. Texas Trunk |
Railroad Comply, in District Court Kaufman |
county, Texas. December 9Th, 1851
And, now, on this day, the court being |
sufficiently advised upon the motion OF the \
compliments for the appointment OF
receiver, and the said defendant having |
had due and reasonable notice thereof, II Is
ordered and decreed by the court that |
Thomas NJ. Simpson be appointed, upon |
giving security in the sum OF five hundred |
thousand dollars, receiver herein, 10 take
possession OF the money and assets, real and |
personal, road-bed. road, iron, ties, lands,
right-oi-way, rolling stock, leases and
franchises. and all other rights |
and property whatsoever of the
said Texas Trunk Railroad Company, |
wbereon the same may be found with power
to manage. control and exercise all the
franchises whatsoever Of said railroad com |
pany. and IL need be under the direction OF
lie court TO sell, transfer, and convey the |
whole or any part Of the property OF said
railroad company, and with power to prose. |
cute. defend and continue all suits brought |
bv or against the said railroad company
whether heretofore or hereafter commenced,
and whether in the name Of said railroad
or otherwise: and Il Is further
nrdered that the said defendant, the