The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-03-17
CONSOLIDATION BILL VETOED.
Governor Savers Gives Reasons at Length
for Not Permitting Absorption.
A MOST IMPORTANT MATTER AFFEcTED BY IT
Suit Forfeit the Charter of
the Right of the Southern Pacific Company
trolling of Stock Roads,

I heretofore mentioned. that the Southern
Pacific company is really the owner there
OF. and that II Is only permitted to stand
In the names OF the above mentioned par
ties In order that they may be elected d.
reotors and officers OF said railroad. but
that they really have no pccunlary inter-
est in 'the said stock" and that this may
have to be proven by circumstances.
After as careful an examination OF the
autho-itics as tho time has permitted my
assistants and myself to make, we con-
clude that tho authorities will sustain tho
proposition; that the purchase and owner,
ship by the Southern Pacific company Ca
railway company Of practically all the
stock of tho Austin and Northwestern
Railroad company. with the consent and
acquescence OF tho latter company, the
latter company being a railroad company
organized under the laws OF this State.
and the Southern Pacific company being a
railroad company organized under the laws
OF another State. Is a consolidation OF tho
two railroad companies within the mean
ing of article 10. section 6. OF our consti-
tuition. And | beg to respectfully advise
you that / believe the above suit can now
be successfully maintained
While there Is some conflict OF authors
ties upon the proposition involved In this
ties support my conclusion.
The questions involved In this suit are
| OF great Importance to this State. and
| each OF our railroad commissioners has ex-
pressed TO me his desire TO have these
questions settled by a judicial decision and
determination of this suit. Yours truly,
T. 5. Smith, Attorney General.
State OF Texas. county of Travis, In tho
! district court OF Travis county. Texas,
| Twenty sixth judicial district:
| To the Honorable District Court OF Said
District
The State Of Texas. plaintiff. by its at
torney general, complaining OF the Austin
| and Northwestern Railroad company,
| would respectfully show to the court
|. That the Austin and Northwestern
| Railroad company Is a railroad corpora
| ton organized and existing under the
laws OF the State OF Texas. for the purpose
OF owning and operating line of railroad
| from the city OF Austin. in Travis county,
Texas, through the counties OF Williamson
and Burnett TO the city OF Llano, in Llano
| county, Texas, and is common carrier OF
| freight and passengers between all points
| on Its line in Texas. That A. N. Leitnaker,
who resides In Travis county. Texas, is It's
| vice president. general superintendent and
! treasurer.
! 2. That the Southern Pacific company Is
| a railroad corporation organized and exist.
| ing under and by virtue of the laws oil
| the State OF Kentucky That said South
ern Pacific company has no permit to dc
| business In tho State OF Texas, That II
| has power by the terms OF It's charter To
own and operate railroads.
| 2. That the Austin and Northwestern
! Railroad company and the Southern Pacific
company have consolidated. That th'
| Southern Pacific company, with tho con.
sent of the defendant company, now reall,
| owns and operates the lines OF RAILROAD
colorabiy owned and operated by the AUG
tin and Northwestern Railroad company
that Ii to say, that the said Austin ant
J Northwestern Railroad company has TO-
! sued and now has outstanding stock TO the
amount OF $1,016000, OF which the said
| Southern Pacific company is the undis-
| guised owner of $l,00S,000, and that the
| ownership and acquisition Of this stock
| was agreed to by the said Austin and
Northwestern Railroad company at tbs
time the same was acquired by tho said
Southern Pacific company. and said defend
, ant still consents to and acquiescos ir
| said ownership. That said stock was sc
acquired by said Southern Pacific company
aud said acquisition was so agreed TO BY
said defendant for the purpose OF effectine
and did effect an unlawful consolidation
| of said two companies.
That this remaining $4,000 OF stock Is held
! by A. N. Leitnahcr, G. q. Gibbs. y. w,
Cave. ]. II. Gates. G.. a, Quinlan. Thomas
1 u. Hubbard. ]. M. Lee and G. r. Hunt
ington. the said G. r. Huntington being
the president OF the Southern Pacific conf
puny.
That plaintiff Is informed and believes
and upon information and belief charges
! the fact to be- that while the $4,000 Of stock
] last mentioned stands In the name OF the
parties heretofore mentioned. that the
! Southern Pacific company Is really the
l. As.ls
mtted TO stand in the names OF the above
mentioned parties in order that they may
be elected directors and officers OF saic
railroad but that they really have no pc.
cuniary interest in the said stock.
T. Wherefore plaintiff says that thu
Austin and Northwestern Railroad com
pany and the Southern Pacific compan!
have consolidated within the meaning o
the laws Of Texas. contrary TO and In oper
violation OF section 6. article X. OF tn
constitution of the State OF Texas. ant
in violation of the statutes OF the Stat
which deny TO all corporations organized
under the laws of States other than Texa
tho right TO do business In Texas wltnou
first obtaining permit.
Wherefore plaintiff says that the Austin
and Northwestern Railroad company ha
forfeited it's rights 20 exist as railroad
corporation; that its charter and tran
ohises granted by the State OF Texas ouRh
! 10 ne NiLn0FdNDt NbhSVtu'
and a receiver appointed to operate sal
road, to the end that It be no longer oper
ated and controlled by a corporation or
ganized under the laws OF another state
and which la not permitted to do bushes
IN Texas.
3. Wherefore plaintiff prays that III
defendant company be cited to answer thi
petition: that on final hearing hereof Tx
charter OF the Austin and Northwestern
Railroad company be withdrawn. nnnulle
and cancelled. and that a receiver be ap
pointed to take charge OF and operat
said road, and for such other and turtle
relief both legal and equitable, As th
facts may warrant. for which II will eve
pray, etc.
NJ M. Crane, Attorney General.
T. A. Fuller. Assistant.
Attorneys for the State OF Texas. Plain
tiff
Governor Joseph d. sayers. Executive or
nee. Austin, Texas.
Attorney Generals oofnce. Austin Tex