The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-05-29
APPOINTED A RECEIVER.
Court Granted Petition Of the Inter.
national Trust Company.
Il. }. RICE GIVEN THE APPOINTMENT
He WIN Conduct the Affairs Of the Hous-
ton Electric Street Railway Com
pany Under Courts Orders.

As stated In The Post yesterday, the suit
Alcd against the Houston Electric Street
Railway company by the international
Trust company was a suit for the appoint
ment OF a receiver TO take the Houston
Electric street railw system IN hand
That fact developed publicly about 6 o'clock
yesterday afternoon in the Fifty-hfth civil
/, district court, when Judge II. $. Lovett, of
the law firm OF Baker, Bolts, Baker a.
Lovett representing the Trust company, In
open court, asked Judge Wilson for an or
der appointing the receiver.
Mr.. H. Il. MacGregor, the general mana
ger Of the company, was present in the
court room, and he with the officers Of
the company, the newspaper reporters and
two OF three disintercsted attorneys, were
all the persons present. The street railway
company admitted all the allegations In the
petition of the Trust company aud consent
ed to the appointment of the receiver.
Judge Wilson announced the appointment
Of Mr.. H. Baldwin Rice Of Houston as re.
ceIvcr and stated that his bond would be
fixed at $4,000 and on the recommendation
of the attorney for the plaintiffs he was
authorized to pay, without the necessity OF
an order from the court, all current wages
TO employees of the company for the period
of the three months just passed.
The international Trust company Is the
trustee for security holders or the street
railway system to the extent OF SSJo'"u
bonds that have been issued by the com
pany. There are also SOME income bonds
from the former organization outstanding
but they were not represented In the sNt
OF the International Trust company.
The Houston Electric street railway sys-
tenn includes thrty-seyen miles of city ana
suburban lines and about fifty cars, twenty
seven of which are In regular operation.
The income of the system from all sources
last year amounted to $4,000, aud the pp-
Grating expense, not Including Interest on
bonds and the tax for municipal Improve
ments, amounts, approximately, to SlJ,OW
per month.
Tho heavy drains mnde on the corpora
ton for municipal improvements Is given
as the cause which led TO the appointment
of receiver. II is said hy the officials OF
the company that in the ncghborhood of
$2oo,OOQ has been charged against II Tor
street paving, and there Is stlll due the
city a considerable portion of this amount.
II is stated that about thrce.fourthS of the
amount had been paid ana the. payment OF
that money had prevented the company
from paying the interest on the outstanding
bonds, thus bringing OGt-thC action In the
court that eliminated In the appointment
of receiver yesterday afternoon, While
the interest on the bonds has not been paid,
the company has kept mp TO date on the
payment OF the wages Of IFS employees,
paying each man twice month.
As stated In The Post yesterday. the re-
Ceivershp will result In the reorganization
of the company or The organization of
new one. The security holders have al
ready appointed reorganization commit
toe, which is even now considerlng the
movement.
When Judge Wilson made the appoint
ment OF Mr., Rice as receiver yesterday. he
stated that he would appoint the master
In chancery and attorney mt o'clock this
morning. Mr.. Rice, II win be remembered.
is also the administrator of the William NJ.
Rice estate, having been appointed by
County Judge Vasmer several weeks ago,
his bond In that capacity being $1,000 900.