The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1916-02-01
Petition Charges That the Net
Income Has not Been Ap-
piled on the Mortgage.

DALLAS, Tex, Jan, 3,-The ap-
plIcation for a receiyership for the
Texas and Pacific railway was fled by
The Bankers Trust Company Of New
York, Dec. 81, 1915, alleging default
since 1907 on interest Of |26, 6,000,UUC
second mortgages. The petition charg-
es that the net income has been d.
verted to other purposes, ana asks
that the road be restrained from ap-
plying to any other purpose the net
income applicable TO these bonds.
On December 81, at Monroe, La,
B. +. Bush, for the Missouri Pacific
and the Iron Mountain lines filed SUIT
against the Texas and Pacific to en-
force payment of $4,000 in promls-
sorry notes.
Factor in Route Race.
The Texas and Pacific railway was
n factor In the race between Jay
Gould and Coils p. Huntington, fol
the first southern transcontinental
route TO the Pacific, which Hunting
ton won. II figured also in q race
between Chicago, ST. Louis and Ne"
Orleans for commercial supremacy In
the southwest. Its authorized capi'
tai stock is $50, 900, 900, OF which
only 3S,764, 900 has been issued. The
line never has paid stock dividend.
1t was chartered in 1871, and reor-
ganized during receiyership In
1885 to 1888. when 1t issued two sets
of bonds, one a five per cent first
mortgage Of $25, 200, 900. and the
other $25,O00,0O0 in second mort
gage income bonds. Upon the sec
ond of these bond issues the present
receiversii.p application was based.
The receivership OF the eighties was
the only one in the roads history. It's
present main lines extend from New
Orleans to near Ell Pase, making a
great arc across north Louisiana and
North Texas, with short mileage
also in Arkansas. Its total main line
mileage is 1862.
The original purpose was line
across the southwest to the Pacific az
San Diego, Calf, the road receiving
a federal charter for this object, un-
der the name Texas Pacific Railroad
Company. The following year the
name was changed to the Texas and
Pacific Railway Company. Thomas
A. Scott, and associates nearly all OF
whom were In Philadelphia. were the
original promoters. The new line ac-
qulred the rights Of the Memphis, Ell
Paso and Pacific Railroad Company
and Of the Southern Transcontinental
Railroad Company and slxty-six miles
OF track, from Shreveport, La. to
Longyiew, Tey Extension of this
line westward Degain In 1882, with
the expectation that 1t would be rap
idly pushed to the coast, but work
was haletd by the panico Of 1873. Scott
and his associates sold their holdings
to Jay Gould, the elder, and Russell
Sage and associates in New York. The
Gould interests have controlled the
line ever since.
First Road into Fort Worth.
In 1876 extension OF the line was
resumed. On July 4, 1876, the Texas
and Pacific reached Fort Worth, Tex,
the first railroad into that city. Ear
ly in $50 there was period Of rapid
extension westward over the great
territory toward FL Paso, but In 1881
at Sierra Blanca, Tex. ninety miles
east Of FL Paso, the Texas and Pacific
met the eastbound transcontinental
line Of the Southern Pacific system,
which has pushed across country from
the Pacific, with the backing Of Hunt
ington, Hopkins, Crocker and Stan
ford. The Texas and Pacific alreacy
had graded the ninety miles remain
Ing to Ell Paso. but the Southern Pa
cific interests had beaten them by
simultaneously grading and laying
rails, and had trains running to sier-
ra Blanca first. AT this time. 1t Is