The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-09-07

tered on the 5th day OF March, 1898. The
lncorporators were William Dunovant, w
T. Eidridge. Thomas T. Boulder, j. w
Thatcher. Perry CLARK. o. Green. T. p
Newsom, Rudolph Grecnbaum. william
Jasper Magee and Y r. Herbert. The az
rectors FOR the first year were the FIRST
seven names above mentoncd Il was chat
tered to run from Eagle Lake ia Bonus a
distance supposed then 70 be about fifteen
miles, but which proved to be hut eleven
miles. The capital stock provided for by
the Garter was $4,000. practically two.
thirds Of this stock was allotted to Cap
tain Dunovant and one-thlrd 10 w. I. Ed
ridge. Only per cent OF this stock was
paid In 10 the treasury, or $3.50 In all TN
der this charter eleven miles OF road was
constructed, aud the equipments consisted
Of one second hand locomotive All the
parties, except William Dunoyant and w.
I. Eidridge, Joined In the charter nomlnaliy
20 enable them 10 comply with the law
and In the interest Of Dnnovant & Ildfiagc
The $3.50 was paid by the Arm OF Dunovant
Eldrldge. and the road was built and
locomotive bought by Dunovant s Ed
ridge the railroad company being
charged on the books OF Dunovant & Ed
ridge with the expenditures therefor Some
time In Nay, 1890, my connection with The
Cane Belt Railroad company first began.
was then employed by Dunovant & Ed
ridge in behalf Of the railroad company
10 prepare and secure au amendment TO
its charter so as 70 authorize construction
north from Eagle Lake TO sealy. a dis
lance of seventeen and one-half miles. and
south from Bonus to tide water on the
Gulf of Mexico between the mouths Of the
Brazos and Colorado rivers. an additional
mileage, supposed 20 be. of eighty nve
miles. The amended charter was filed and
approved on June .. 1899. The amended
charter provided for additional stock OF
$4,000 which was allotted practically two
thirds to William Dnovant and one-third
TO W. L. Eldridge. Just prior to filing the
amended charter the balance Of the orig
lnal $4,000 In stock was paid, this being
necessary before the charter could be
amended. Ii was paid by the firm OF Duno-
want & Eldrdge by credlting the amount
to the railroad company opou the books OF
Dunovant & Eldridge ae, inst It's indebted
ness TO the Arm and likewise per cent
Of the $4,000, agsregating $3.50 was paid;
this leaving $1,000 original stock fully paid
and per cent OF the $4,000 new stock
paid, making total Investment Of 49,,
$50. all paid by the tirm of Dunovsnt &
Eldrldge My contract was to do all the
law work and. such other work as l saw
proper and as was needed In promotion OF
the enterprise for salary afterward slip
ulated, but payment to be deferred until
the railroad company should be IN funds
and one-third Of the profits that might be
realized ultimately as result Of the en-
terprlse. With this understanding and
agreement the work OF construction began;
we borrowed from Lincoln Trust COM
pany $4,000 and the firm of Dunovant *
Edrldge had advanced ln constructing the
old track about $4,000 which advance by
Dunovant & Eldridge was subsequently In
creased so that the whole aggregated about
100000 BY the time we had flushed con-
struction to Lane City, distance of about
nfty-one miles, the company owed Lin
coin Trust company about $4,000 and
Dunovant & Eldridge about 100000 We
were then out Of money and owed consid.
cradle sums TO outside parties for ties,
timber, Steel cars, etc. We had then
bought several locomotives cars and
coaches. The advance made by Dunovant
& Eldridge consisted of labor Of teams,
ties, supplies. etc, upon which there was
good profit to Dunovant & Eldridge.
After reaching Lane city. then being ont
OF funds, we needed more money to fin
fish construction TO Bay City. where we
had contracted to go. Much Of the money
obtained from the Lincoln Trust company
was then due, because neither the railroad
company nor Dunovant s. Eldridge were
able to comply with their contract with
the Lincoln Trust company. Dunoyant &
Eldridge were unable to make any further
advance or TO get any more money to COM
plete the construction, a large bonus was
dependent upon the road reaching Bay
city by June 1, 1901. While in this condi-
tion, on October 1900, eight of the notes
due the Lincoln Trust company, aggre-
eating $225,0O0, went to protest for non
payment Of interest. and the company re.
fused to advance any more money. We
had up TO this time registered 1872 bonds
Of $1,000 each, which were held by the Lin
coin Trust company to secure its loan, and
the notes due the lincoln Trust company
by the Cane Belt Railroad company were
Endorsed by William Dunovant md W. T.
Eldrldge. For the purpose OF trying to adj
just matters l went to st. Louis. While
there / made arrangements for some more
money and secured a proposition to pur-
chase the bonds then registered and others
Thereafter 10 De Registered ana Teiufueu
home. Afterward Mr.. Eldridge went to
st. Louis and several of the directors OF
the Lincoln Trust company returned here
with him to look over the property. After
looking over the property and proposed
route OF the road, It being constructed
then only to Lane City. and this being In
February. 1901. Mr.. Eldridge and myself,
with the consent OF Captain Dunovant,
succeeded In selling to the Lincoln Trust
company $50 bonds Of $1,000 each. then reg
istered ana to be registered upon the road
up to Bay City. which Captain Dunovant
pronounced most excellent sale under
the circumstances. The Lincoln Trust com
pany to advance the money to complete the
construction 10 Bay City. TO buy equip
ments. 10 pay all debts. including the debt
10 tine lincoln Trust company and the debt
70 Dunovant g. Eidridge. which was
promptly done Dunovant Eldridge re
celyed the cash for every dollar due then
ny the Cane Belt Railroad company, upor
which they realized handsome proAt. II
this deal William Dunovant and w. n
Eldridge agreed to transfer to the LIN
coin Trust company 20 per cent Of th'
stock OF the railroad company. which wal
afterward done, construction was thei