Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-09-09

general attorney, and John +. Praddock.
assistant general attorney of the East Line
and Red River railway, We're in the city to-
day TO hear Judge Keys decision and orders
in the matter of the receivership of the
said railway
The Texas Trunk railway is still tied up,
and Judge Rainey persists in refusing to
place it in the hands Of receivers. About
the last of July the encouragement filed
application before Judge Rainey for a re-
newal of the receivership, which was re-
fused week ago. There was a strike
on the road and the trains were
stopped. Yesterday the encouragement
made second application for the appoint
ment of Il receiver and this morning re
ceived a message of refusal. The suit
brought by Acknowledgement Hogg NoveIn-
Der l, 1889, to forfeit the charter of this
road, has been continued from term 10
term. 1t now stands for trial before Judge
Rainey on Monday next at Waxahachie.
Judge Key of the district court, rendered
his decision to-day, sitting in chambers, in
the application of Receiver Giles of
the East Line and Red River rail
way for permission 10 purchase addi-
tional rolling stock to cost about S+4, 500
and steel rails to cost about Sl1,235, and to
make some minor expenditures. The
stockholders and owners of the first mort
gage bonds resisted the application of Re
ceiver Giles on the ground that the state
having withdrawn the franchise of the
road. ana taken away its corporate life. the
parties interested in the road and its
properties and who are not in possession Of
them. owe no duty to the public, and that
therefore their property should not be sad
died with additional debt which only the
corporation could rightfully incur.
The counsel for the receiver held in
the contrary that a railway continued to be
4 public highway, as well after a Judgment
FORGETTING the charter of the corporation as
before. The right of the state to maintain
and operate the road is paramount TO the
rights of stockholders, mortgages and
other creditors, and the property interests
of the latter may be properly
changed with the expense of maintaining
the railway as to render safe and efficient
service to the public. The court comedies
with the latter view, and holds that when
the state took the life of the corporation it
did not free the road from its obligations
and duties TO the public. II is also
held that liens may be created
by improvements on the road that displace
prior liens. The opinion is quite lengthy
and holds that the expenditures asked tor
by the receivers may in the main be made
to be paid for out of the income Of the ROAD
which is said to be doing profitable bust
ness No receivers certificates were provided
for i'll the decision. An order was issued
III accordance with the opinion, prescrib-
ing and authorizing the items of eXpendi-
ture to be made to-wit: One narrow gauge
passenger coach and one standard gauge
passenger engine, one standard freight
engine, two passenger coaches, one
combination baggage, mail and express
car one caboose, twenty flat cars and ten
box cars; 40 tons of steel rails weighing
ffty-two pounds. with spikes, bolts. etc. TO
be purchased from time to time as the own
ers of the road will warrant, and as the
needs of the road indicate. 1t is directed
that the Williams and the Llewellyn
switches be removed and spur or
switch be built about a mile from Orr's
switch and another between Avenger and
Trenches and third between Lassater and
Kellyville. The court fixed the salary of
the receiver ut 5000 . year and gave $500
for part incidental expenses. The salary of
the master in chancery was fixed al 800
no