Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1920-07-07
HEAR PLAN FOR
STANDARDIZINC
R. CRANDE Line
Would Rebuild Present Line
for Light Traffic Sale
of Bonds Proposed.

Plans for the sale of $50. 900 of
the second mortgage bonds Of the
Rio Grandc railway from 'Brownsvili.
to Isabel. sale Of which would assure
the opening of brazos de Santiago
haibor 10 water tr; nsporiation. were
outlined before a meeting of reprcsen-
tatives from all parts of the Valley,
held at Harlingen today. The propo-
sition contemplatcs complete financ-
ing in this section, and the use of the
present line. which would be rebuilt
and standardized.
With c. II. Pease of Raymondville
acting as chairman Of the meeting.
and w. G. Whitman of Brownsville.
secretary, motion was made and
passed that the $l90,000 worth of
bonds be apportioned and sold in the
various communities in the Valley
along the same lines rs the funds for
channel. $l25. 900. were raised. The
value Of the bonds as an investment.
and the plan for Valley ownership of
the railroad were facts stressed as an
incentive To purchase. The bonds
bear six per cent.
The chairman was authorized to
appoint committee on the PROPOSE
tion, with representative from each
town in the Valley, and plans were
also outlined for the appointment OF
a boari'of five trustees under whose
supervision the money will be expend-
ed on the railroad, with direct manage
merit and full voting power by ID. A.
O'Brien, president of the railroad and
owner Of its capital stock of S25 900.
Colonel Alba Hevwood Of San Ben
ito opened the meeting with the state
ment that its purpose was Ito get ac-
tion on the Rio Grande railway and
the harbcr proposition at Point lsa
bel" Next came the election of the
chairman ard the secretary, after
which A. b. Jacobs Of Donna stated
the purpose Of the gathering. He
pointed TO the necessity of an early
opening of water transportation of the
Valley and urged that there be no de
lay.
=. NJ. Lamberton Of Brownsville
outlined the plan in mind for early
starting of the actual work. Mr. Lam
berton said that it had been found
that it would. cost '$600.o0 to bull
n standard guage line to Point Isabel
and that il was not possible to raise
this amount at this time. He read the
report of c. 5. Hobbs. engineer. ana
his estimates on the cost of standard
izing the present road so that It can
handle light traffic.
Mr.. Lambc rton said that the road j.
capitalized al $4,000. which stock
is held by ID. A. O'Bricn. Sixty per
cent of this amount. or $4,000, will
go with the sale of bonds. but by
agreement voting power i retained
by Mr.. O'Brien fer period Of five
years. After that time. the railroad
will have the option of purchase of
the remainder of Mr.. O'Brien's stock,
40 per cent. for price of $4,000.
The 100000 in bonds. h explain
cd. is what remains Of an authorize
$2l5.000 bond issue. by the state
railroad commission. the remainder
nslNlnG OtSt uStl ~ Stkuilt. ANt ipst.iS.
The money will be spent under the su
pervision Of the trustees. as follows
I-.erest ard taxes. $1,000; rebuIldin.
&C -, ~-rl 500 onn. ir,rrcvN~,nnt oi
terminals, S35, 1000; sundry obligation.
S.s,vuo; iuuidation of outst; ndin's
WI indebtedness. $4,000.
Mr.. Iamberton. in the course Of hi,
talk, stated that Mr.. O'Brien had hat
an opportunity 10 sell the rail to
outside interests, hut that he had not
done so because he feared il will fall
into the hands of persons or concerns
not friendly to the harbor movement
The valuation of the present read
he rlaced at s320,000, with only $65.-
600 i'm first mortgage bonds against
il. thestotal outstanding obligations
of about $50 600
C. L. Jessup explained the raising
of the channel fund, stating that prac-