Staunton spectator and vindicator. [volume] (Staunton, Va.) 1896-1916, 1901-02-01
RAILROAD WITHOUT An OWNER
A Texas LIne That No One Seems to
Want.

l
A railroad without an owner ant
without means of support-a railroad
that cannot pay expenses and which
cannot be abandoned-is one of tn,
novelties presented by Brszoria coun
| ty. Texas. as consequence OF the Gal
weston etorm. The Velasco Termina
railway runs throughsons OF the mos
fertile valleys in the United States arlt
enters one OF the safest harbors on thu
gulf coast, yet there 10 no one who
wants to buy it. The fact that ths
master commissioner offered the roac
at public sale ut Angleton, Texas, las1
September without receiving one bic
for it seems almost incredible, yet such
was the fact.
The Velasco Terminal Railroad
Company was chartered In 1892 The
charter granted the company the right
to construct q railroad from Velasco,
on tho Mexican gulf coast, westward
through the State. Only twenty-five
miles of the road, running from Vel
asco to Chenango junction Of the In
ternational and Great Northern was
constructed and put into operation.
Two large hotels, suburban belt
line. an electric light plant, large ware
houses and wharyes were constructed
by company before dissensions be
gan aud work was stopped in 1885.
Since that time the improvements have
besn allowed to 60 to ruin. Under the
laws of Texas the stockholders could
not abandon the railroad after 1t had
ceased to pay, and as long as it remain
ed In their hands an imperative obliga-
tion to the State to maintain opera
tlons, although they were thereby
involved for the payment Of an annual
deficit. Up to the time Of the storm
had compiled with this statutory abl1
CATION and annually remitted from
the East the sums necessary to con
tinue operation, hoping against hope
that some fortuitous circumstance
would revive activity st 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 absolutely nointerest up
on their Investment during all the
eight years. appealed to the courts.
and had the road placed in the hands
of receiver. The receiver was ap-
pointed and authorized by the court to
issue bis certificate for the necessary
money to rehabilitate the road, which
be accordingly did, and placed the road
In fair condition.
r. G. Aluff was appointed master In
chancery of the road. and nearly $500,
600 worth of claims were presented to
him to pass upon, the major part OF
which were secured by liens upon the
road. In order to build the road and
place it in operation after the overflow,
it was necessary for the receiver to is-
sue certificates for SAC. 900. At the June
term the court foreclosed on all liens
and directed that the road he sold for
their satisfaction, giving priority in
the matter of payment to the certifiea-
tions, allowances and cost OF court,
which aggregated about $50. 900, the
minimum price which the master com
missioner was allowed to receive,
Pursuant to the instructions OF the
court the first Tuesday in September,
1900, the master commissioner offered
the property for sale atpublic auction.
Negotiations were being made by one
of the large State systems for its pur-
chase, but. owing to the failure to OBJ
tain certain landed concessions at
Velasco, the directors declined to buy,
and the master commissioner received
no bids. The sale was then postponed
one week. Four days later the Gal
weston storm swept the gulf coast, car
rying death and destruction in iti
path. Still, week after week. for two
months, the road was publicly criet
for sale, and no one was found to take
| it at price, one.fourth the valuation
fixed by the State railroad commission
and less than the actual cost OF th'
steel
The road under the management o
the receiver, which has been able ant
economical, has been Improbable
The ability to float certificates il
now exhausted and yet the receiver Il
bound under his appointment ant
bond to operate the roac. The court
order directs the master commissions
| to sell the road. and yet he cannot fin'
q buyer. The law forbids the aban
donment of the road and dictates tina
the rails shall not be removed. Thi
legal puzzle is now presented to tn
court for Observation-Disclosures In
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