The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1890-08-28
ANOTHER PROTEST.
From Eastern Bankers Relative to the Street
Car Matter.

From Eastern Bankers Relative to the Street
Car Matter.
Boston, Aug. %, 1890.
To the Editor of The Austin Statesman;
We have read with interest and
establishment the account of the pro-
ceedings of your board of alderman
with reference to the Austin city rail
road. We are interested in the secu-
rites OF this corporation, and heard
with indignation the substance of
some Of the remarks OF member Of
your municipal government, and are
surprised at the expression of their
views, without protest from some
one in the board, especially as your
city is on the eve, we understand, Of
offering large loan to Sthe public.
VIII are already interested in the
securities which the city government
is apparently so willing to wipe out.
AS we are the bankers who offered the
! securities of the Austin city railroad
to the public, it is with reference to-
that corporation that we would call
the attention Of all the fair-minded7
men OF your city.
Your board OF alderman granted q.
charter for the operation OF the street
railroad by electricity to this corpora
ton, in addition to the company
having a charter from the State
which covers every street in the city.
Hon. T. j. Hurley, who asked us
to place the securities in the
Austin city railroad, has
already discussed electricity as o.
motor power for his railroad, and we
are informed that he had about ar
ranged for it, Now your board Of
alderman gave to corporation the
right to string wires and lay tracks in
streets already occupied by the old
corporation. Your alderman must, or
should, know that only one line OF
wires can be strung in one street:
therefore should the new company
get their wire strung, it will OF course
ruin the prospect Of the old corpora
ton. 'ftr
We ask if this is fair treatment of
those who have already invested in
the securities OF the old company. Is
it justiceY Your citizens, who are
about to offer their bonds to the
Northern and Eastern public, would
doubtless feel aggrievcd should the
bankers who handle the bonds OF the
railroad tell the public Of your board
Of aldermen doing thing so mani
testify wrong.
MIR. Hurley has worked hard to
build up the reputation of Texas,-he
has caused to be distributed more lit
erature on the subject here than has
ever been received from any other
source. We have been led by him to
have strong confidence in the credit Of
your city and the justice Of her citi-
zens. 1t would, however, seem, that
Eastern investors have no rights
which the citizens of Austin are
bound to respect. Some of the pro-
visions in the charter of the new
company, seem incredible,-surely if
they are true it is the only charter of
its kind ever granted. II it is true
that thu charter of the new company
stipulates that holders Of the stock OF
the old corporation can not be stock
holders in the new, not only should
we doubt the legality of such pro-
ceeding, but it would look like an at
tempt to ruin the stockholders OF the
old company,
We think if some decided action is
not shortly taken to put stop to such
proceedings, the citizens Of Austin
will some day have cause to regret not
having acted in fair and equitable
manner to those who are interested in
her good name and success
Yours respectfully,
PEARMAIN & Brooks.