The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1896-01-08
IN THE RAILWAY WORLD.
Receivership Created for the Calves
ton, La Porte and Houston.
T.W. HOUSE, M. 7. JONES, RECEIVERS.
Friendly and Voluntary Action Of Stock
holders and Creditors.- Receivers
Assume Charge.

phcatlon Tor the appointment of a receiver
Tor the Galveston. La Porte and Houston
railway company would be made, the Of
fcial announcement of the action of the
Federal court was given out yesterday
morning confirming the news advanced in
The Post and ordering the transfer of
the company's property to the manage
ment or the two receivers selected Mr.
Thomas w. House, president of the Hous-
ton Gaslight company, and Mr.. Martin n.
Jones, president of the NJ. T. Jones Lum-
Der company of this city
The information anticipating the action
OF the railway company, presented by The
Post, was greeted with surprise by many
not familiar with the history of the new
road and formed the chief theme of dis
crssion and conversation In local railway
circles yesterday. The significance of the
action of the st. Charles Car company
In collecting its l25 cars recently built for
The Galveston. La Porte and Houston
company vas apparent. The railroad
company, having dcfaulted in it's pay
menis and the present adverse circum-
stances compelling the utilization of CAPT
tai for construction purposes willingly cen
scented to the return of the new rolling
stock until such time as the company
affairs are in shape to admit of the com
pletion of its payments. The cars have
not left the city, however, and there is
probability that the receivers may decide
TO retain the cars should an amicablc
agreement be reached between them and
the car company.
1t having been decided to present the
case before Federal court, a party of
| representatives. of the various interests
involved, headed by Judge T. w. Ford,
vice president and general counsel for the
railway company, left this city Monday
night for Tyler, where the United States
count for the Eastern district of Texas is
now in session. Judge David Il. Bryant
presiding.
Upon the converting of court yesterday
morning 1t required but a few moments
to present TO the court the petition, pre-
viously filed, praying for the placing of
the property under the control of a re-
ceiverahip and the appointment OF the
parties agreed upon by the stockholders
10 act in the CAPACITY of receivers. The
petitioner was Mr.. A. j. Tullock of Leav-
enworth, KAN, Il stakeholder. The action
| being friendly one there was no con-
test. and at the conclusion of the formal
procedure usual in such cases Judge Bry-
ant granted the prayer of the petitioner
and approved the selection of Messrs.
| House and Jones as co-receivers of the
entire property owned and operated by
the new terminal line company.
While the present able officials exerted
every power to tide over the embarrass-
| ment until the completion of the new
road, there We're many difficulties TO CON
tend with, and with the road imperative
owing TO the building of its new bridge
across Galveston bay, Il was found i'm
possible to raise enough money on its
| bonds TO satisfy The demands. Al a meet
| ing of the stockholders recently held the
| affairs Of the company were, thoroughly
was that IT was finally agreed to place the
property in the hands of a receiver for
! The protection Of the creditors and stoci.-
holders. The action in the United States
court which eliminated yesterday in the
change of management of the company
was not brought by any one or two dis
satisfied stockholders. or any particular
creditor, but was the result of a mutual
agreement of all interested parties as the
safest and most expeditions solution of the
problem confronting the management.
That this line. wplh tifty-s.x miles of
main line track, thirteen miles belt line
in Galveston and excellent terminal facili-
property is conceded by every one with
any knowledge of railroad valuation. That
the State railroad commission after a
thorough inspection of the property. has
authorized the issuance of bonds to the
amounl of 100000, Is in itself evidence
enough that the company VIII not nave
the present step creating the receivership'
| the general offices of the company yester-
| day evening and met President j. Waldo,
Treasurer. T. ]. Boyles and Receivers
| directed The receivers TO take immediate
possession of the property and Messrs-
| House and Jones spent the greater portion
| of the day looking over the accounts ana
familiariZing themselves with the property
whose management they have been en-
trusted with until such time as the affairs
are in shape to return u 10 the oWners,
| Messrs Jones and House politely re-
uuested to be excused from an interview,
on the ground that they had not yet g2'', y,
| make a statement. They were well salts
fed with their limited investigation, now
ever, and annonnced tnai d she &c nnpdiy os
| possible. They had not selecten theii stan
of assistants and would hardy pe pre-
pared 10 announce their appointments LOT
| Major Waldo. precedent of the company,
when called upon for statement was IN
| excellent spirits under the CIRCUMSTANCES
and remarked that considering the conui-
| ton of the company, the placing o. tne
| property in the hands Of two sunh aoIe
| ests. and that the property would not In
| the least suffer. ,,, 5 oil
"The action of the stockholders anu a., ~
arties Interested in bringing about Sne
| change of management OF the Propethy
was purely voluntary and ir,emdly on i,, tnS
part of every person ehgasSGii ot;on of the
! The president land the compleuon VI .ie
| road is assured. II was solely l9r Iiie PA PA
lection and benefit of the creditots ' ln'
stockholders and all interests iir'o o en- or
! and tho affairs of the company WIN ~ ~, pli
| The same as before. The finishing 9i tme
new bridge win continue without fa ihy wiII
ruptlon; the grading and track i opfeS miv
proceed as at present, ana IL IS ead arS
eexnected to have the line completed ah M
in operation by the middle of Nay i u, or Of
very latest. As to liabilities ana nss syeees
| of the liabilities We have no BONDS, CON- IN
FOUND Interest, etc. outstanding. ana nrs mi
ond criticai Investigation of the properly
and examination of the finished ana ,i pro.
posed road has aphorIzed the iIss" are
iass than one-half OF the assets II IS
hoped to retain the present star OF o, EN- n
ployes although, of course ! am care re' for
the property and its interests to me gooa
OF ali concerned. The formal pro r.seivers
attending the appointment OF we , reue' now
| nave been compiled with. ana from NV Nv
ia - esrnrvthinr viii run smoothly and me