New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-02-26
RAILROAD INTERESTS
THE TEXAS CENTRAL DEFAULT.
ADDRESsns TO THE BoNDH0LDERs BY THE rRuss
TEHa on THE FIRST MORTGAGES.

ADnREssns TO THE BoNDHoLDERs BY THE rRus.
TEES or THE FIRST MORTGAGES.
N. g. Easton and James Rintoul, trustees Of
the first mortgages of the Houston and Texas Central
Railway Company main limo and western division, yes
to-day issued On address the bondhode IN regard u
the default In the January interest After demanding
the Interest from the company tho trustees made an L.
vestsssien in behalf Of the beudhoders. end Mt Esoe
has just returned where tho have
begun suit In equity to protect the interest Of IL
bondholders In their report the trustees say:
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pany and It's counsel no doubt or anxiety
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that respect The officers admitted that tho company
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time had been giving warranty deeds to moro than ve
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purchaser and receiving the full thsrsos
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acre The deed in that case was made subject to ihs
reference to the rights Of trustees and bondhode
but purport to convey absolute title and warrant thu
same ANA are hostile 70 the title created By tho truse
The officers stated that the cash proceeds Of these sass
in trust but declined to state the names OF such tr,steeS
or to furnish information to the terms Of snch
The company announced is Denomination 70 continue
s az had
beiectlDY the JANUS cOuVeycu Dy
trust deeds being the accumulation Of such expenses
since the creation Of the trusts VIC advised that
no theory Is this charge justihable.
They also refused TO give any reason for the action Of
the company In making such sales instead OF pursuing
the course plainly prescribed by the deeds OF trust;
namely, that the sales should be made an the whole
consideration received by the trustees Of the sinking
fund The company has not yet furnished us with do
tailed statement OF such pretended sales although we
have duly requested the same
We advised that all these acts of the company with
respect to the land In clear contradiction OF the
terms and intent Of the trust deeds and 10 evteRt
that Is only question OF time when II the contnr
Of this Is permitted tho bondhOlders will 10
entirely stripped Of the landed security
Upon these Facts and under the advice OF counsel
and OF Judge Bangsr OF the leading lawyers oe
Texas. flied bill In equity under each decd OF trust
asking in brief for the following relief
That 10 be deereed that the two cent sinking fun1
must be paid out OF the earnings before expenditures for
betternents interest upon subsequently created In.
debtedncss aud for injunction TO THIS effect also hae
the due account Of the sinking fund be ascer
tanned. and for judgment that such amount 10
due aud payable The bill also aaks that the CON-
pany be restrained from continuing its course
with regard to the lands that an accounting
be had as to the sales by tho company AMI the
To affirm dsairm the sales that the company be
Joined from dspOsny OF such proceeds Of sales and as
custodian receiver be appointed by the court pend.
ing the suit; and that OF the default In the
sinking fund and the deficiency due on that account and
the neglect OF the company maxi sales OF land through
the trustees the trustees be authorized to sell the lands
and apply the proceeds deficiency I'm the sinking fund
and the redemption and cancellation OF bonds.
We have just learned that in the suit OF the Southern
Developments Company two receivers Of the company
have been appointed 1t Is needless to tina. this
action has connection with that taken By us.