The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1889-08-08
GALVESTON.
STATEMENT OF THE FINANCIAL CON
WESTERN r. r. COMPANY.
The Company Fifty Thousand Dollars Ii
Debt-Plan to Increase the Stock by
Forty New Stockholders.
Special to the Statesman.

GALVESTON, August GA review OF
the statement of the financial condi-
tion of the Galveston and Western
Railway company submitted by the
directors at the meeting of the stock
holders last Saturday evening by a
stockholder shows that company to be
over fifty thousand dollars in debt.
Upon the admission of forty additional
stockholders, increasing the number
to eighty, the directors ON the part of
the original stockholders represented
in the interest of the proposed reor-
ganization that $4,000 would be am
pie to equip and rebuild so much of the
road as would be necessary for
the sand business, this to
include the $21,140 paid for the
first 1900 shares of stock.
At this time total of $4,000 had
been realized for 400 shares of stock,
the expenditure of $4,000 would
equip the road for its local business,
and leave surplus of $4,000 in the
treasury. 1t was agreed that by tax
ing in forty additional shareholders
and increasing the capital stock, the
cash available would leave nest-egg
of $4,000 with which to carry out
such plans for the extension of this
road as might be agreed upon by the
stockholders.
The management of the road was
placed in the hands of seven directors,
as follows B. Adoue, w. L. Moody,
F. L. Lee, w. Gresham, w. B. Wallis,
]. G. League and j. N. Burnett.
AS near as can be gathered B.
Adoue took little interest in the man
agement. Mr.. Moody was away, and
of course had practically nothing to
do with the management. Mr..
Gresham was also absent So the
management was left practically to
Mr.. League, the president, and Messrs.
Wallis, Lee and Burnett.
The result has been the rebuilding
and equipping of about fifteen miles
of narrow gauge road, at a total cost
of $156,964.55, or something over
10000 per mile, instead of 10000, or
less than $4,000 per mile.
Under the amended charter OBJ
tanned in June nine directors were
provided for. j. III. Burnett, of the
old board, having resigned, assigning
as a reason that he would not be a
party to such reckless expenditure of
the stockholders money, to fill the
three places on the board A. M. Shan
non, DR.. Z. E. Thompson and julius
Runge were elected
About this time President League
intimated that it was necessary to
have more money. This annoyed the
new directors on the board as $S2,840
in cash had been collected on the
original issue of 400 shares of stock,
and 1920 on the second issue, MAX
ing total cash collection of $97, $40.
1t was evident from the presidents
demand that this amount was ex-
pended and statement demanded.
This was made last Saturday eve, and
developed a more deplorable state of
affairs than was dreamed of. 1t
showed total expenditure of $189,S42
with receipts of $32,620, leaving a
deficit of $56,620. To meet this deficit
there is uncollected on the stock
$64 800, and when paid into the treas
ury, if it ever is, will leave balance
to the credit of the company of $3.50
instead of,$9,005, as it was formerly
believed by the innocents who came
in last on the ground floor at the
June reorganization.
This is not all. Since the full fif-
teen miles of road has been
rebuilt and equipped with steel rails
the old directory discovered that it
would be cheaper to cross the bay for
an outlet several miles further east
than the present terminus. This ex-
hibit has caused intense dissatisfaction,
and while there are no charges of dis
honesty made against the directory,
there is very general desire to get out
and let what once promised TO be a
magnificent and profitable enterprise
fall.
A warm time is anticipated at the
meetingOf stockholders next Tuesday,
o,,I ~ fo A ra ovann4oI