Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-08-27
|. & G. N. REPORT.
The Joint investigating Com
mittee Heard From.
IT ACQUITS JUDGE M'C0RD
And the Receivers of Official Misconduct.
Garwood Agrees in the Main with
the Majority, But INDUCES in
Little Criticism
Majority Report.

majority Report.
Special to the Gazette.
AUSTIN, TEX, Aug. 26.-The report Of
the Iteruational and Great Northern joint
investigation committee has come at last,
with small minority annex therto, signed
BY Senator Garwood. The report proper
is signed by Representatives Mckinney,
Gresham, Briet2 and Grain. and acquits
Judge AicCord and the receivers of any
thing involving Official misconduct or
wrong-doing.
1t was fled at 80 to-day with the secre-
tary Of state, and IS in the main record of
the facts in the case as developed by
the investigation, together with
some recommendations governing the
laws as 10 receiverShips, which are
said TO be defective. The prosecuting evil
dence in the case is filed also, and made
part of the report. The report begins with
the filing of Jay Gould's suit February 4,
yer Neral. on behalf of the Inter
national and Great Northern, offered
= to confess judgement in open court the
same day. The several intervenings that
were made by the Tyler attorneys and by
the Missouri, Kansas and Texas, are re-
cited in the order OF their filing, with
which the public is already acquainted. The
appointment of the receivers. the general
solicitor and the attorneys with their sal
ries. with which no fault is found, are de-
tailed. Receiver finley's resignation
March TO- 1889, is noted, and fol
lowed with the statement that i'm
mediately thereafter on that day
it was suggested by the counsel for tho
parties at interest who We're present that Il
suitable allowance should 90 made Mr.
Finley and that $4,000 would be a proper
amount, and it was ordered by the court
that $1,000 be paid him on account and the
balance was paid him thereafter .Iudg-
ment was allowed Gould on his claim and
the receivcrship was charged with the
liquidation OF it, as also OF the claims sued
for by the Farmers loan and trust COM
pany and Kennedy " Sloan subsequently.
The report goes over the leading features
OF the case, making a number of findings OF
a6acts in the successive stages of the re
ownership, none of which ara of any
moment and all are familiar to the reading
public.
Coming to the question of the continu-
ance of the reccivership and the effect
thereon of the attorney generals interven-
ton suit, the report says that the suit in no
manner affected the receivership.
The report finds that until October. 1880.
the date OF dismissal of the bond cases
against the road, the receivership had been
continued for the reason of the appoint
ment and qualification of the receivers
in said cases as they came up in succession
with the duties accompanying them. Since
that date it is claimed, the principal cause
of the continuance has been the
non-payment of the Gould judg-
mcnt. Another cause of continuance
was the indiSpoSition OF the parties at in
terest to terminate the same, who, for
reasons satisfactory to themselves, APP
peared TO favor continuance. Another
cause Of continuance was the policy OF the
court of making extensive improvements of
the property, as duty to the public required.
But the committee think that, all things
considered, the Gould debt could have been
paid without adversely affecting the capac
4ty of the road for the satisfactory per
fformance of its duties TO the public.
Adverting to the injunction suit at Austin
against the International and Great North
,ssrand the Missouri, Kansas and Texas,
The report says that without assuming
to state definitely its effect on the
continuance Of the receivership under
the circumstances of the case, it is
perhaps sufficient to say that the defend
an issue the matters in controversy be-
tween themselves and the state
in that case, and that enc of the
principal objects OF the suit Of
the state has been accomplished by prevent
ing, through the injunction yet in
force, one Of the defendant rail
ways from controlling the other and
that said stock IS partly fictitious, and that
said roads are parallel and competing lines;
which, If true. are plainly in violation of the
constitution and laws of the state.
II is not found that either Judge A1cCord
or the officers of the receivership have acted
corruptly or with intent 10 violate their
Official duties either in the procure
ment, administration or continuation
of said receivership. The committee does
not feel called on 10 approve or criticise
adversely the Judgment exercised in the
management of the receivership. To do so
would involve disregard OF the recognized
limits Of legislative authority
1t is found that the laws regulating re-
ceiverShips are defective in many particu-
lars. Much is left to construction and much
TO the discretion of the court in the absence
of statutory regulations and with conflicting
precedents it is not always easy for a court
to determine what is best to be done in par
ticular cases.
Several recommendations for amending
the laws on that subject are made:
!. That no receiver shall have any inter-
est in banks designated as repositories.
? That banks designated shall give ample
bond
g. That the necessity for improvements
and renewals, except in an emergency,
shall be ascertained and fixed by the court,
due notice having been given to the parties
1t interest
l. The same care shall be exercised in
fixing the salaries Of receivers and others.
5. That receivers be permitted to
make no expenditures for re-
newals except such as the
court may deem necessary, and that the
proceeds of the business be applied to the
debts of the property as speedily as posi-
BILE.
The report states that the commit
tee was embarrassed BY the re-
fusal of Messrs. Whitaker s. Bon.
ner to answer certain questions, which ciS>i
cumstance is referred to the legislature for !
such action in the premises as may be
deemed advisable.
Garwood's Minority Report.