Fort Worth weekly gazette. [volume] (Fort Worth, Tex.) 1882-1891, 1890-09-11
AFTER THE KATY.
Proceedings for Forfeiture of Missouri,
sKansas and Texas Charter
For Violation of the Laws OF Texas by EK-
ceeding Its Charter Powers In Every
Northumberland in Detail.
Special to the Gazette.

Special to the Gazette.
AUSTIN, Ten, Sept. 5.-Attorney-
General J. S. Hogg to-day filed a highly
important suit in the district court of
Travis county against the Missouri, Kan =
sas and Texas railway for forfeiture Of
charter Among the grounds Is the
allegation by the encouragement that
in 1880 the company began a wilful VIC
lation of the laws of Texas by ex-
ceeding its charter powers in
every particular possible to fraudulent
management, issued bonds tictitiOusly
for its Indebtedness, executed mortgages
TO the amount of S37 200 per mile in
| Texas and demanding high rates of
| freight to pay interest on said debt. The
| Encouragement also alleges that the
Missouri, Kansas and Texas has absorbed
and controls all the property and fran
chises of the following roads IN violation
of the state constitution, viz: The
Trinity and Sabine, the Dallas and
Wichita, the Gainesville, Henrietta and
| Western, the Dallas and GreenviIle, the
| Taylor, Bastrop and Houston, the Deni-
son and Southern, and the East
! Line and Red River. The attorney
| general charges that the Missouri, Kan
sas aud Texas has fictitiously bonded it
| self for S37 200 per mile stock TO the
amount of S35, 900 per mile. He charges
! that the Missouri, Kansas and Texas has
consolidated the railroads mentioned and
| on the property of each has placed mort
| cages to secure the consolidated
bonds issued by it and other
Indebtedness TO the amount OF
$40 ,264 ,O47 payable in New York and
other cities outside of the state, and that
the companies mentioned have been
stripped by the Missouri, Kansas and
Texas and deprived of all their property
by that corporation.
For this and other reasons the state,
by the attorney general, prays for the
forfeiture of the charter of the Missouri,
Kansas and Texas railway.
Attorney General Hogg concludes as
follows: That neither of the last men,
toned railways when taken charge of as
aforesaid by the Missouri, Kansas and
Texas railway company, owed or was liza
BILE to an Indebtedness of more than S10,-
600 to the mile; but that said Missouri,
Kansas and Texas railway company, in
violation of the laws of Texas, invested
its corporate funds in the stock of each
of said railway lines, elected their re-
spectve directors from the members of
its own company, placed its officers in
charge of each of those lines of railway
and absorbed them, combined them into
one system and now operates and con-
trolls them in defiance of the constitution
and laws of Texas.
That it has cautiously and unlawfully,
and without any benefit to the property
of said railway companies or correspond
ing advantage 10 the public, increased
and placed upon each of said lines bonds
to the amount of S37 600 to the mile and
stock to the amount of $50, 600 to the
mile. and mortgaged each of said roads
to secure the amount of bonds so issued
upon each of said roads and the property
belonging thereto.
That said bonds were not
issued for money paid to, labor done for
or material received by the respective
roads on whose property they were fixed
aforesaid,
That for the purpose of settling the an
nual interest, and of paying the afore-
said bonds, the respondent has placed its
own officers in charge of each of said
railway lines, destroyed the identity and
existence of the corporations that by the
laws of Texas were required and obIi-
gated TO operate them respectively, and
has raised the passenger and freight rate
60 per cent. higher than was ever nee
essary to maintain, operate and pay
all the expenses and interest due
by the several companies upon their legal |
Indebtedness from time to time when |
fairly, Iegitimately and honestly oper- |
ated.
That the respondent has by some |
agreement, the particular terms of which |
are unknown to and cannot by reason |
able means be discovered by your re- |
lator, consolidated all the aforesaid COM |
panes and railroads with its own, aud |
has placed upon the property of each of |
the aforesaid railways mortgages to Sc
cure consolidated bonds issued by it, and |
other indebtedness to the amount of |
$40 366 ,047, payable in New York and |
other cities beyond the limits of Texas.
That Dy reason of the aforesaid acts of
said Missouri. Kansas and Texas railway
company each and all of the said railroad
companies are stripped and deprived of
all the property aud franchise necessary
to enable them respectively to discharge
their duties TO the public or to in any way
compete with the respondent for traffic
and trade, and that the rights of the |
patrons, shippers, creditors aud general |
public along the line of said respective
railways are impeded, INSTRUCTED, disre-
spected and destroyed
The premises considered, the state,
through Its attorney general, prays this
court for process for day set 10 try this
action, and on q hearing for a decree
Withdrawing its consent and forfeiting
the licenses and all franchises aforesaid
granted by IT to the said Missouri, Kan
sss and Texas railway company. re-
spondent herein, to do business or to
operate railway in any manner what
ever in this state, and for all the relief
that can be given by this court, either in
law or equity, to prevent said COMPANY
carrying on business as aforesaid in this
state in violation of her constitution and
laws.