The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1889-04-04
A BIG SUIT.
The State runs an Injunction on
. the NJ, X. & It. R'y.


Judge Key of the district court of
Travis county has, at the prayer of the
state of Texas, issued an INDUCTION against
the above railway, it's officers, agents or
attorneys, restraining them from voting
the stock owned by the road in the Inter
national and Great Northern Railway
company for the purpose of consolidating
the two companies.
The petition of the attorney general is
lengthy. The following extracts will
show the nature of the suit.
After preliminary statement the
attorney general says:
That the International and Great
Northern Railway company, and the
Missouri, Kansas and Texas Railway COM
pany are parallel and competing lines
for Texas traffic and trade; that they
intersect and are competing for the traffic
at Mineola in Wood county, and at Taylor
in Williamson county, and for all other
traffic and trade contiguous or accessible
to the two railways. That George A.
Eddy and H. @. Gross are the general
managers, directors and officers for the
Missouri, Kansas and Texas Railway COM
pany, and G. @. Slaughter, R. @. Foster,
Samuel Hannah, s. II. H. Clark, d. s. 81.
Smith, and 1. d. Evans are directors,
a O ,kho d rs and officers therein.
That for the considerations hereinafter
set forth the state of Texas donate to
the said International and Great Northern
Railway company 3,353,690 acres of land,
which it accepted, and which in the aggre-
gate we're and are worth $1O,061 ,040, and
exempted all of it's property from taxa
ton for twenty-five years, which has been
accented by and is worth to saId company
up to this time the sum of 100000.
That it granted to each of said railway
defendants separate charter, together
with valuable franchises and immunities
therein set forth, on the condition and
understanding that they were 10 forever
act and operate as competing lines OF
railway, and to remain independent OF
each other in all respects; that no direc-
tor, officer or manager of the one should
be director, officer or manager of the
other; that the one should not act for or
in any manner control the 9TH r; that they
would not consolidate their stock, prop
erty or franchises; that neither should
use any of its funds for the purpose of
bnvipg its own stock or the stock of the
other, or to permit any Of its officers or
directors to use any of it's funds for other
than the Legitimate purposes of the cor
| poratioD.
A statement is then made of the lands
donated the International by the state and
the purposes thereof, and then the attor-
ney-peneral goes on to say:
| Acting in behalf of itself and the pub
lie for the purposes afol esaid, and for the
further purpose to procure low rates for
carving commerce, the state of Texas,
on the conditions and stipulaticns afore
said. granted the said charters to the said
railway defendants, which they accepted.
Totally disregarding and in violation of
the obligations entered into with the state
aforesaid, the Missouri, Kansas and Texas
Railway company is now the owner OF
nlpety-seven thousand, two hundred and
eiphty-four and one-half (97,2841a) shares
of the capital stock of said international
and Great Northern Railway company,
which shares are for one hundred dollars
(S1OO) each, and amount in the aggregate
To the sum of nine million, seven hundred
and twenty-eight Thousand four hundred
and fifty dollars ($9, 1928, 450), which il
nrocured from the International and
Great Northern Railway company without
authority of law, and by the use OF iti
own stock and funds, which the law re-
quired it to apply for other and legitl
mate purposes of its own corporation.
That all of the stock, IN March, 6oO
that had been issued by or was then out
standing against the International ano
, Great Northern Railway company con
sisted only of fifty-five thousand 10000
shares of one hundred dollars ($100) each
= That without any lawful meeting therefor
: without notice of, and without recording
8 anv resolution in the Office of the score
tarv Of state for said purpose, and with
0 ont any legitimate corporate interest Of
il obiact therefor, the said Internationa
and Great Northern Railway company, o.
eome one pretending to be its officers
,, directors and stockholders, unknown Il
, the netitioper, increased its capitol stool
= above the said $4,000 shares of 500 eacl
= 70 100 600 shares of 500 each, thereby in
cressinp the capital stock $4,000 shares
, the same being fictitious and amounting il
, the aggregate to four million five hundre'
a thonsand dollars (S4,500,000) over ant
!, above the legitimate stock against it.
q That on December l, 1879, the total in
}, debtedness of the said International EN-
{ Great Northern Railway company, includ
= ing all outstanding bonds, mortgages an'
n stock against it, aggregated less than tel
a millions OF dollars, which was 81
a that the property and franchises OF sal
: company could reasonably bear.
@ without publishing any notice as re
Il ouired by law, and without recording an