The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1883-03-01
TEXAS CENTRAL RAILWAY.
Reported Sale to Huntington Denied
Some Items in the History of
a Great Rail Route.
New Orleans Picayune.]

In reference to a telegram from
New York, in Thursday mornings
Ficayune, to the effect that c. p.
Huntington had purchased the stock
of the Morgan heirs in the Houston
and Texas Central railway, Plea
yune reporter yesterday saw Mr.. \.
Z. Hutchinson, president of the road,
and inquired as to the truth OF the
statement.
Mr.. Hutchinson said in substance
that the statement was entirely erro-
neouS; that his system of railway was
working in the utmost harmony with
the Huntington-Pierce roads, and
Mr.. Huntington had no necessity
to desire to purchase it. Reports
of the selling of the Morgan roads TO
one party or other had several times
before been telegraphed from New
York, but they had always been I'M
founded.
Last year the Texas legislature had
enacted some very stringent and OPP
pressive regulations upon railways in
that state. One of these was the re-
stricting of local passenger fares to
maximum of three cents a mile, the
same rate us was current for through
fares. This had greatly cut down
the earnings of Texas railways and
had put a stop to railroad eXpan-
sion in the state, but the Texas
Central, penetrating as IL did the
heart of the richest and most
populus and progressive section of
Texas, was better enabled to endure
the hardships of the existing laws
against railways than other lines.
In connection with the telegram
above mentioned, the reporter recall
ed to Mr.. Hutchinson the circum-
stances under which the Morgan CON-
pany acquired the Texas Central.
They are briefly these: Mr.. VIM. E.
Dodge, of New York, whose death
in that city was telegraphed to the
press here few days ago. was
stockholder IN the Central, as he was
also in the International and Great
Northern, another Texas railway
leading to Houston.
In the spring OF 1877, on the ap-
proach OF the annual election Of direc-
tors for the Central, Mr.. Dodge, sup
posing he controlled a majority of the
company'S stock, came to Houston to
make arrangements to re-organiZe the
company on basis of his own. The
people of Houston, believing that his
policy was unfriendly to the interests
of their city-wheTe much, but not
majority. of the stock was owned
were greatly dismayed at the prospect
of having their great railway fall into
the hands of strangers whose interests
lay in other directions. They were
powerleSs, however, to interfere effect
ually, and were about, as they be-
lieved, to see themselves engulfed by
adverse forces, when, at the last mo-
ment, Mr.. Charles Morgan, at that
time alive and full of energy
and resource. made his appear
ance in the meeting of the stockhol-
ders as owner of three-ifths of the
entire stock, and the controlling
spirit of the occasion. The Houston
stockholders quickly rallied to him,
and Mr.. Dodge retired, astoniShed and
wholly vanquished, while Mr.. Morgan
organized the directory of the road to
suit himself ane the Houston people.
He had in the meantime opened
channel for his steamships from the
sea to Houston by way of Buffalo
Bayou, and thus gained control of the
vast commerce of the interior of
L cActS, dn 1l1AOAALdAOC 1CSclkhC0 bO-OhS
by his heirs.
The Central railroad with its 600
miles of trunk lines and branches
ontrols access the rich heart of
Texas and connects it by the Gulf
of Mexico with the rest of the
world. 1t handles the bulk of the
cotton crop of Texas and much of the
merchandise going in and out of the
state. It's gross earnings for the year
are nearly $4OO0,OO0, and its bonded
Indebtedness is about $16.800,000.
The road is entirely independent of
the Huntington-Pierce line. but would
be, and is now W lie they are operated
in harmony, a magnificent feeder to
their system of roads. By the terms
of the agreement on which they are
now operated the Morgan ships from
Houston and New Orleans pro-rate
with the Huntington-Pierce line for
freights.