The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-07-08
THE KATYCHARTER SUIT
Governor Sayers Recommends that Il Be
Dismissed.
CERTAIN CONDITIONS TO BE IMPOSED
Money Must he Repaid 10 the Texas
Cittxcns aud Promises
he Given.

Austin, Texas, July THE correspond
ence which has recently passed between
counsel for the Missouri. Kansas and Texas
railway, the attorney general. the gov
ernor and the railroad commissioners rela-
tive to the dismissal of the suit pending
in the district court OF Dallas county fol
forfeiture OF the Katy's charter was made
| pl bile today. First. there is a letter from
4. S. Miller, general attorney for tho de-
PENDANT corporation, stating that the pen
deIcy of the suit will, interfere with the
| extensions TO be made under the sherman.
Shreveport and Southern consolidation act
passed by the Twenty sixth legislature, at
the securities that mus; necessarily be
toatcd to complete said extensions VIII
not he negotiable as long rs there Is a
possibility of judicial dissolution of the
Missouri, Kansas and Texas corporation,
further than this MIR. Miller promises a
rectihcation of the alleged irregular book
keeping charged by the State In the matter
OF separating the accounts OF the Texas
aud Kansas Katy corporations.
Attached to the above are copies OF notes
addressed by the attorney general TO the
railroad commissioners and tho governor
in calling IL to their attention. Next comes
the reply OF Commissioners Reagan and
dismissed as some of the grounds on
which the forfeiture is asked are untenable,
while the principal allegation relied on TO
work said forfeiture can only be invoked
al the risk of impairing the states good
faith and honor
Commissioner Mayneld's reply, which IL
also given. Is TO the effect that the suit
was demanded by every consideration OF
common justice to the people of Texas. and
~ tnI To thn and -
the defendant does not come forward with
clean hands to ask for Its dismissal.
In addition to the communications al
ready referred TO, there is one from the at
torney general to the governor giving the
latter. at his request. synopsis Of the pc
titlon filed by ex-Attorney General Crane
in the suit under consideration The whole
closes with the following, addressed to the
attorney general:
Executive Office. July 6,-~Dear Sir; Re-
plying to yours of the 2Sth ultimo, have
to express the opinion that the suit pend
ing In the district court for Dallas county
and involving the forfeiture of the charter
OF the Missouri Kansas and Texas Rail-
way company of Texas should be dis"
missed at the cost of the defendant and
without prejudice to the State when tho
Missouri. Kansas and Texas Railway COM
pany shall have refunded 10 the Missouri,
Kansas and Texas Railway company or
Texas the freight money, amounting 10
S14S, 23i 81 as stated in your letter TO me Of
the 4th instant, and any other charges that
may be found TO be due the Texas COM
pany and, further, when the Missouri
Kansas and Texas Railway company 81
Texas shall have fully satisfied you as TO
It's entire compliance with the laws re-
garding railway regulation in this State,
and shall also have In every respect COM
nj led with the conditions and requirements
of the special act OF the legislature APP
proved May 16. 1899, and known as the
act permitting the purchase by the Mis-
souri, Kansas and Texas Railway BON
pany of Texas of the Sherman Shreveport
and Southern railway.
The opinion herein given is predicated
upon the letter to you from 7. S. Miller
general attorney of the Missouri, Kansas
and Texas company, of the 22d ultmo,
and of your letter TO me of the ith instant,
copies OF which letter are hereto attached
and made a part of this communication.
Yours truly, Joseph ID. Sayers,
Governor.
When asked this evening what steps he
would take in the suit in question. Attor
ney General Smith said he would decide |
1t may be safely stated IN nd |
vance however. that an amicabIe settle |
ment thereof will be reached on the basis |
suggested by the governor.
General Manager Allen and General At
torney Miller Of the Katy. both of whom |
are here tonight, state that the Katy cor
stands ready to accept the gov
ernor's terms, and that, according to their
work will begin on the San
inionio and Shreveport extensions very
soon after an understanding in the pending
suit Is arrived OF with she State.