The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-07-09

pliance with act OF the legislature an,
proved April 10. 1891, being chapter rs
special laws 1891.
Also certified copy OF the minutes Of IN,
meeting of the stockholders OF the Mis-.
eouri. Kansas and Texas Railway compan,
OF Texas at its office In the city OF Deni.
son OF November 9th. 1891, setting out
that. whereas the Missouri. Kansas anc
Texas Railway company. acting under
thu special act of the legislature, approved
April 18th. 1881, has conveyed. transferred
and sold its lines of read in consideration
OF the settlement and disposition OF Ger.
tain suits brought by the state OF Texal
against the Missouri, Kansas and Texas
Railway company. and also by virtue oi
authority Of said act of 1891. to the Mis-.
souri,, Kansas and Texas Railway company
OF Texas. the said stockholders gave au-
thority for the purchase and acquisitions
of said lines Of road by the Texas COM
pany
Also an affidavit OF james b. Swayne,
jr., together with certificate OF James Ogl-
vie, president of the Union Trust compa-
ny OF New York, and by J. b. Thayei.
assistant secretary OF the Union Trust
company, and certificate Of James Is,
Swayne, assistant secretary OF the Mis-,
souri,. Kansas and Texas Railway com.
pany, showing that on the 9Th day of
January. 1892. he was present and saw
the burning aud destruction of 400 first
mortgage bonds of the Denison and Pacific
Railway company. amounting TO $685.
600 which said bonds had been delivered
by the Union Trust company for destruc-
tion; and also the destruction at the same
time and place OF ALSO shares of the CAPT
tai stock OF the Denison aud Pacific Rail-
way company and twenty-five shares OF
the Denison and Southeastern Railway
company and l95 first mortgage bonds of
the Denison and Southeastern Railway
and seven cancelled bonds OF
said company.
Also certificate OF c. G. Hedge. secretary
OF the Missouri. Kansas and Texas Rail-
way company, from the minutes of said
company. showing a resolution passed on
the 4th day OF January, 1892, that In con-
of the special legislation OF
Texas, in 1891, which took effect April l6,
1891, authority was given for the transfer
of the Missouri, Kansas and Texas Rail-
ways company's property In Texas to
such Texas corporation as may be formed
In said petition, the allegation Is made
OF the diversion of freights and refund
ing Of local charges by the Missouri. Kan
sas and Texas Railway company of Texas
in the interest of the Missouri, Kansas
and Texas Railway company. On this
point the railroad commission expert after
an examination at great length and In
detail shows that said diversion of
freights consisted In refunding by the
Missouri, Kansas and Texas Railway COM
pany of local charges in concentrating cot
ton at Denison and not rebilling against
the Kansas company for its proportionnte
part. These figures show that the Mis-
souri, Kansas and Texas Railway COM
pany OF Texas refunded s14s,23l.5i which
it should have charged to and billed
against the Missouri. Kansas and Texas
Railway company. The defendant In it's
answer proposes to correct this and make
the proper billings against the Missouri.
Kansas and Texas Railway company. II
also proposes, through Mr. Miller, in his
letter, that IL the commission expert will
point out these facts that 1t will bill
against the Kansas company, 1t claiming
that IL was an error in their bookkeeping
and no fact or act had been done to cover
up or conceal the same.
II is also charged in the petition that
the said company has issued stocks and
bonds not authorized by law, and that
it has violated its charter obligations by
Illegal management. and that II is insol-
vent; and the petition refers to The in
junction suits against the commission and
to the affidavits and showings therein
made by the officers Of the company to
show that the rates fixed by the commits
sion were too low. 1t is also charged in
the petition that it has not a majority Of
Its board Of directors residents of the
State OF Texas. bona fide stockholders in
said company. | am advised by the rail-
road commission that upon complaint be-
ing made against said company, long be-
fore the institution of this suit and be-
fore the suits that were brought against
the railroad commission were filed. that
the defendant company had complied with
the requirements of the commission with
reference to keeping its general offices
in the State of Texas.
1t is further charged in the petition
that the Missouri Kansas and Texas Rail-
way company of Texas and the Interna-
tional and Great Northern Railway COM
pany own and control the Galveston. Hous-
ton and Henderson railroad, and that
while the Galveston. Houston and Hen
derson Is being operated by what appears
TO be an Independent organization and in
dependent board Of directors. that the said
managers and board of directors are I'M
der the control of the Missouri Kansas
and Texas Railway company OF Texas and
the International and Great Northern Rail-
road company. My information upon this
point IS that the Missouri. Kansas and
Texas Railway company of Texas and the
International and Great Northern Rail-
way company have Joint trackage rights
over the Galveston. Houston and Hender-
son railway which runs from Houston to
] have not been advised by
the commission that this trackage right
by the Missouri. Kansas and Texas Rail-
way company of Texas Is either contrary
to the laws OF this State or in violation
Of any ruling OF the commission. but on
the contrary. that the agreement between
the Missouri. Kansas and Texas Railway
company OF Texas and International and
Great Northern Railway company TO op-
crate the Galveston. Houston and Hen
derson was approved by the railroad com
respectfully, In addition to the above, |
hand you herewith the original petition
and answer In said cause. together with I
all papers therein; and | hand you for
your inspection and verihcation the sew
ernl patches OF stock which l have above
referred to, and / respectfully ask that
after you have examined the same that
you return all OF The enclosures to me
with your reply to my letter Of June IS. (
am, yours truly, T. s. Smith.
Attorney General.
Hon. T. s. Smith. Attorney General. Aus.
tin
Austin, Texas, June 2e.--Dear Sir: We
are in receipt OF your letter OF yesterday,
with which you enclose a latter and tele- I
gram from 7. 8. Miller, Esq, general at
tornoy 70. the Missouri Kansas and Texas
Hallway company OF Texas, in which he
suggests The propriety Of an agreement
between the State and that company for
the dismissal OF the suit now pending for
the forfeiture NJ tha cornnnny's phlrfar