Year: 1877

suit was entered IN the Federal Court
at Austin on. Friday last, at the instance
of President W. E, Dodge, and in the
interests of the bondholders, to force
the Central railway and its branches IN
TO the hands of 8 receiver. 1t has been
plain to all observers that some such
tight as this has been one of the early
probabilities for some time. The Cen.
trail is rich corporation, immensely
rich Indeed, but it has been in Just such
condition ever since its completion as
that its resources could not be realized
upon. Its large earnings have gone To
pay interest on bonds for repairs and
Tor current expenses, as well as to pay
taxes on immense tracts of land which
yield the company absolutely nothing,
as income Their sales OF land have not
been sufficient TO add ia any apprecia Die
degree to the revenues of the road. The
Fight evidently j. to be between the
Eastern botidholders and the home
management IN well as home creditors.
and will if persisted in, grow to be one
Of the most important and extensiv
ever adJudicated in our courts. Il is
thought that the step bodies consolda-
tion OF the two most extensive railroad
interests in the State The Internal on
al and Great Northern together with
the Central might, if practically, under
one management, soon gro,s to be a seri-
Gus circumstance for the farmers and
producers generally of Texas. Any cir.
cumstanee of this sort will at once ex.
cite the apprehensions of the people
and the Centrals home management
will not lack for the moral and material
aid Of the people in its struggle with the
New York combination.


Every interest of the State, as con
nected with this subject, centres in the
policy of sustaining the home manage
ment. The road owes to the State the
sum of $3.50 900 in gross II is thought
by well informed people that this sun
is safe. However that may be, it vii
not add to its security to have it ma
nipulated by those whose only Interest
in the road. or the State either, is tC
squeeze every possible dollar out o
them in the shortest possible period o
time


The owners of the road, both in New
York and Texas are rich enough b. pu
the track in tirstrate condition, to max,
all necessary repairs ard additions, I,
increase the effectiveness and efhcienc,
of it. every department out OF thei
private resources, and they should do
without delay. whether the suit of tn
bondholders is successful or no.. Tn
interests Of the State demand this, an
but for the faulty condition of the roa.
to day there would be but one sentimen
among the people regarding this suit
as it is, many people will say it can b
no worse for the people in the hands c
a receiver. Disconnected from tn
large stake the State has in the roac
and the natural sympathy with tn
home management. this is true, bu
then in steps the fear of combir alto
which may grow to be dangerous TO tn
carrying business of the State.


The matter has another feature shic
eommends it to the attention of tn
people. and more especially those {
our western frontier. II has been th
policy ef the home management to pus
its western branches out to the border
as fast as possible. This policy has nc


been in accord with the views Of I'll


New York people interested in the Cel


tral. OF course it follows if this suit


decided in favor of the New York con
bination, the western enterprises Of til


road viii receive serious check. II the
are not suspended forever, Witho,
considering the advantage or disadyai


tage of this effect TO other compaiiis


cities or individuals. It wotill prov


a serious drawback to our ever extern


ing line of frontier settlements.