The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-12-16
RAILROAD HAS No OWNER
THE LAWS OF TEXAS, HOWEVER,
FORBID IFS BEING ABAN-
DONED
PREDIcAMENT FOR RECEIVER
Must Operate the Line Every Day,
Although Every Day He Does,
1t Is q Loss to the
Property.

beaumont (Tex.9 Cor. Chi. Inter-Ocean.
"A railroad without an owner and with
out means of support-a railroad that
cannot pay expenses and which cannot
be aboEshed-is one of the novelties pre-
scented by Brazoria county, Texas. as a
consequence Of the Galveston storm. The
NelascO Terminal railway runs through
one of the most fertile valleys in the
United States, ard enters one of tie
safest harbors on the Gulf coast, yet
there is no one who wants to buy It,
/ ne fact that the master commissioner
offered the road at public sale at An
Sleton, Eek, last September, without
receiving one bid for it, seems almost
Incredible, yet such was the fact.
Inc NelaSco Terminal Railway COM
pany was chartered in 1892 The charter
granted the company the right to con-
struct a railroad from Velasco, on the
Mexican Gulf coast westward through
the state. Only twenty-five miles of the
read, running from Felasco to Chenango
junction of the International and Great
Northern, was constructed and put into
operation. The Brazos River Channel
and Dock company developed VeIasco so
that it enjoyed a brief season of pros
pellty, which inadc the road a paying
Investment fer short time
Two large hotels, a suburban belt line
an electric light plant, large warehouses
and MlarVes were constructed by the
company before dissensions began and
work mas stopped in 1885. Since That time
the improvements have been allowed to
so to ruin,
PAID DEFICIT ANNUALLY.
Under the laws of Texas the stockhold-
ers could not abandon the railroad after
1t had ceased to pay, and as long as it re-
manned in their hands they owed an i'm
peratlVe obligation to the state to main
tain operations, although thew were
thereby involved for the payment of an
annual deficit. Up to the time of the
storm they had complied with the statu-
tory obligation, and annually RENTED
from the East the sums necessary to
continue operation, hoping against hone
that some fortuitous circumstance would
revive activity in Velasco.
Unfortunately, the food which last year
swept down the Brazos Valley practically
wrecked the road from end to end Then
the bondholders who had received abso-
lutely no interest upon their investment
during all the eight years, appealed TO the
courts, and had the road placer in the
nahas OIL receiver. The receiver was APP
pointed and authorized by the court to is
sue his certificate for thc& necessary
money to rehabilitate the road, which he
accordingly did, and placed the road in
a fair condition.
X. c. Aluff was appointed master ~,
chancery Of the road, and nearly $6OO.0o0
worth OF claims We're presented to him to
pass upon the major part of which were
secured by liens upon the road In or
der to build the road and place IT in onar-
alton after the overflow it was necessary
Tor the receiver to issue certificates for
S4O,OOO. At the June term the court fore
closed on all liens and directed that the
road be sold for their satisfaction. piv-
ing priority IN the matter of payment
10 the certlfleates, allowances and costs
or court which aggregated about $5D.0N
the minimum price which the master
commissioner was allowed to receive
COULDN'T FIND A BUYER.
Pursuant to the instructions of the
court, the hrst Tuesday in September
l9Oo, the master commissioner offered the
property for sale at public auction Ne
EQUATIONS We're being made by one Of
the large state systems for it's purchase
but, owing to the failure to obtain GER
taln-tanded concessions at Velasco, the
directors declined to buy. and the mas
ter commissioner received no bids.
Inc sale was then postponed one week
-Four days later the Galveston storm
swept the gulf coast, carrying death and
destruction in its path. Still, week after
week, for two months, the road was
publicly cried for sale and no one was
found to take it at a price one-fourth
the valuation fixed by the state railroad
commission, and less than the actual cost
of the steel.
The road. under the management of
the receiver, which has been able ana
economical, has been Improbable. The
ability to float certificates is now ex-
hausted, and yet the receiver is bound
under his appointment and bond to oper-
ate the road. The courts order d.
reefs the master commissioner to sell
the road, and yet he cannot find a. buv-
er. The law forbids the abandonment
Of the road and directs that the rails
shall not be removed. This legal puzzle
is now presented to the court for solu-