New Britain herald., 1916-02-16
RECEIVER ASKED FOR
 TEXAS AND PACIFIC
Bankers Trust Co. Of New York
 Plaintiff in Suit

today in the federal court here before Judge F. R. Meek. The Bankers Trust company of New York is the plaintiff in the suit. alleging the rail- road had defaulted since 1910 in pay ment of interest on $25,ooO,OOo secord mortage bonds issued in 1888.
 The railroad in it's answer to the petition, denying the allegations. claims the federal court is without jurisdiction to try the case This is the ninth Texas railroad for which receivers have been asked
 Intervening Petition.
 An intervening petition filed by the directors and stockholders of the road alleges that the whole receiver ship proceeding was brought at the instigation of the Missouri Pacific company for the purpose of acauir- ing control of the Texas and Pacific" and that acquisition by the Missouri Pacific of the property of the Texas and Pacific would constitute a con- bination in restraint of trade, as the l roads are "so situated as to be nat urally competitive"
 Filed Dec. 27, 1915.
 The application for receivership
 for the Texas and Pacific railway was 1 filed by the Bankers Trust company
 of New York. Dec. 27, 1915, alleg- | ing default since 1907 on interest on
 the $25, 900, 900 second mortgage. The petition charges that the net income has been diverted to other purposes, l and asks that the road be restrained l from applying to any other purpose
 the net income applicable to these 1 bonds.
 On Dec. 31. at Monroe, La, B. r. Bush for the Missouri Pacific and the
 Iron Mountain lines field suit against
 the Texas & Pacific to enforce pay
 ment of $S42,000 in promissory notes
 Factor in Race
 The Texas &c Pacific railway was
 factor in the race between Jay Gould l and Collis P. Huntington for the first
 southern transcontinental route to the
 Pacific which Huntington won. It figured also in a race between Chi l cago, St. Louis and New Orleans for | commercial supremacy in the south
 west. It's authorized capital stocks is
 $50, 0,00O,00O, of which only $38,764,-
 900 has been issued. The line never
 has paid a stock dividend. It was | chartered in 1871, and reorganized | during a receivership in 1885 to 1898, l when it issued two sets of bonds, one
 a five per cent. first mortgage of
 $25, 100000, and the other $25OOO-
 900 in second mortgage income bonds 1 Upon the second of these bond is- | sues the present receivership applt- l cation was based. The receivershiD l of the sos was the only one in tue l roads history. Its present main lines 1 extend from New Orleans to near
 Ell Paso, making great arc across
 north Louisiana and north Texas,
 with a short mileage also in Arkan-
 sas. It's total main line mileage is
 1852
 The original purpose was a line
 across the southwest to the Pacific
 at San Diego, California, the road re-
 ceiving a federal charter for this ob- 1 ject, under the name Texas Pacific
 Railroad company. The following
 year the name was changed to The 1 Texas & Pacific Railway company. ] Thomas A. Scott, and associates near
 ly all of whom were in Philadelphia,
 were the original promoters. The l new line acquired the rights of the Memphis, Ell Paso and Pacific Rail- 1 road company and of the Southern
 Transcontinental company, and 66 l miles of track, from Shreveport. La. l to Longview Texas. Extension of this l line westward began in 1872, with the
 expectation that it would be rapidly
 pushed to the coast but work was
 halted by the panic of 1873. Scott l and his associates sold their holdings tn l Sage and associates in New York. The Gould interests have controlled the 1 line ever since.
 1 Extension of Line Resumed. Tn 1875 extension of the line was
 resumed. On July 4, 1876 the Texas
 & Pacific reached Fort Worth, Texas, 1 the first railroad into that city. Early l in 1880 there was a period of rapid l extension westward over the great ter
 ritory toward El Paso, but in 1881, at l Sierra Blanca Texas, 90 miles east of
 El Paso, the Texas and Pacific met | the eastbound transcontinental line of 1 the Southern Pacific system, which 1 has pushed across country from the l Pacific, with the backing of Hunting l ton, Hopkins, Crocker and Stanford. 1 The Texas and Pacific already had 1 graded the go miles remaining to El l PasO, but the Southern Pacific inter- 1 ests had beaten them by simultane- l ously grading and laying rails, and had trains running to Sierra Blanca 1 first. At this time, it is said, MT. 1 Huntington called on Jay Gould in 1 New York, asked him whether he had
 seen the barrenness of that particu- l lar 90-nile stretch, and inquired l whether he did not think that one line 1 of rails would carry all the traffic l available for some years. A joint 1 traffic arrangement was made for the 1 Texas & Pacific to use the Southern