Daily camera., 1901-03-16
WITHOUT AN OWNER.
Texas Railway That Is Not Con-
trolled by Capitalists.
Wrecked by Floods and Deserted by
Stockholders since the Calves
ton StOrm-Receiver I'm
able to Vacate.

A railroad without an owner and
without means of support-a railroad
that cannot pay expenses and which
cannot be abandoned-is one of the
novelties presented by Brazoria coun.
ty, Tex, as consequence of the Gal
weston storm, says the Philadelphia
Enquirer. The Ne,asco Terminal rail-
way runs through one of the most fer.
tile valleys in the United States and
enters one of the safest harbors on
the gulf coast, yet there is no one
who wants to buy it. The fact that
the master commissioner offered
the road at public sale at Angleton,
Tex, last September without receiving
one bid for it seems almost incredi-
bic, yet such was the fact.
The Nelasco Terminal Railway com
pany was chartered in 1892. The
charter granted the company the
right to construct a railroad from
Nelasco, on the Mexican gulf coast,
westward through the state. Only
% miles of the road. running from
\elasco to Chenango junction of the
international and Great Northern,
was constructed and put into opera
tion.
Two large hotels, suburban belt
line. an electric light plant. large
warehouses and wharves were con-
structed by company before dissen-
sions began and work was stopped in
1895. Since that time the improve
ments have been allowed to 90 to
ruin. Under the laws of Texas the
stockholders could not abandon the
railroad after it had ceased to pay,
and as long as it remand in their
hands an imperative obligation 20
the state TO maintain operations, al
though they were thereby involved for
the payment of an annual deficit. Up
to the time of TIE storm they had
compiled with this statutory obliga-
tion and annually remitted from the
east the sums necessary to continue
operation, hoping against hope that
some fortuitous circumstance would
revive ACTIVITY AT \elasco.
Unfortunately. the flood which last
year swept down the Brazos valley
practically wrecked the road from end
to end Then the bondholders, who
had received absolutely no interest
upon their investment during all the
eight years, appealed to the courts
and had the road placed in the hands
of a receiver. The receiver was ap-
pointed and authorized by the court
to issue his certificate for the neces-
sary money to rehabilitate the road,
which he accordingly did. and placed
the road in fair condition.
L. c. Aluff was appointed a master
in chancery of the road. and nearly
$500. 600 worth of claims were pre-
sented TO him 10 pass upon, the major
part of which were secured by liens
upon the road. In order to build the
road and place il in operation after
the overflow it was necessary for the
receiver TO issue certificates for Si0,-
O00. At the June term the court fore
closed on all liens, and directed that
the road be sold for their satisfaction,
giving priority in the matter of pay
ment to the certificates, allowances
and cost of court, which aggregated
about $4,000. the minimum price
allowed to receive.
Pursuant to the instructions of the
court, the first Tuesday in Septem-
Der. 1900, the master commissioner
offered the property for sale at public
auction. Negotiations were being
made by one of the large state sys-
tens for it's purchase. but owing to
the failure to obtain certain landed
concessions at Velasco, the directors
declined to buy. and the master COM
missioner received no bids. The sale
was then postponed one week. Four
days later the Galveston storm swept
the gulf coast. carrying death and de-
struction in its path. Still, week aft
er 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 and
economical. has been improbable.
The inability to float certificates is
now exhausted and yet the receiver
is bound under his appointment and
bond to operate the road The courts
order directs the master commission
er to sell the road and yet he cannot
find buyer. The law forbids the
abandonment of the road and dictates
that the rails shall not be removed.
This legal puzzle is now presented to
the court for solution.