The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1896-01-19
IN THE RAILWAY WORLD.
Intervention Suit of Contractor
Smith of the La Porte Road.
BAGGAGE AGENTS ROYAL RECEPTION.
Proceedings of tho Southwestern r.. a.
NEUTRALITY-SUSPICIOUS. on the Sap.
Headlight Flashes.

tomorrow morning before Judge BRYAN,
IN the United States court for the Eaat-
efn district OF Texas at Galveston, MIL
be filed an Intervention in the c,so ., A
% iuiiock VS.. the Galveston, La Porte
houston Railroad company, entitled I.
d. SHllth VIZ. the receivers of the said rail
"aE company Iii which the intervenor
prays Tor recognition as preferred credit
oil The said railway company now In ,be
hands OF Receivers House and Jones' The
PCttlpn VIII be presented by Mr. James
a. HARMLESS OF Kansas City ind Messrs
Ewing Ring of Houston. ATTORNEYS fo,.
lnterveror Smith
Mr smith is the well known railroad
pnlnier ana contractor of Kansas City.
VINO. under contract with the said rail
road company. built the new terminal
road known as the Galveston. La Porte
ana Houston. including the bridge across
Galveston bay and oil work pertaining 10
tho construction, reconstruction, ballasting
and tracking of the entire line. The wori,
was inaugurated last February and sue
cessfully carried almost to the completion
OF the work contracted for. when
under application of A. j. TUT
lock filed two weeks ago for
the appointment OF a receiver the prop
erty was turned over to Receivers House
and Jones. who had been mutually agreed
upon by all parties interested in the prop
erty.
1t is known that Contractor Smith has
expended large sum of money In the ex-
ecution of his contract, which up to the
appointment of the recelvership the work
has all been passed upon and approved by
the officers of the company. Inasmuch
as the lien on the property upon which
the necessary funds are raised for the
completion OF the road rests upon the
work already finished and for which the
company is still indebted to Contractor
Smith, the petitioners contend that the
claims of the contractor should constitute
the first lien on the property and that
the receivers should be ordered to pay off
this Indebtedness out of the first funds
received by them.
Under the present status Of the receiver
ship 1t would seem that the proposed rails
ing of $3.50 900 by the issuance of receivers
certificates petition for which has been
filed with the court, was for the purpose
OF additional construction of new track
for connections with other roads, payment
on rolling stock and debts other than the
claims against the property held by Con-
tractor Smith, preference for no particular
claim or claims having been specified or
ordered
of the 81. 10000 bond issue on the prop
erty authorized by the railroad commission
to the incoI,petion of the road 1t was
found impossible to float the paper and
only a few of bonds. all of which are
registered. etc, have been disposed of as
collateral.
While it Is not anticipated that the in
tervention will be contested Mr. Smith
feels that he Is entitled to preference In
the disbursements of the funds used for
the liquidation of debts outstanding
against the railroad company prior to this
recevership.
There are other important points which
will be set forth in tho petition to tht
court but their nature could not be
learned. as counsel for the petitioner have
declined to discuss the case until the filing
of the papers in court.
1t is said that other claimants Will file
interventions in their own behalf and the
operations OF the terminal road under the
roceivership may involve a complicated
issue before many moro days.