| From the Tri-Weekly Galveston News |
| April 6, 1861 |
| |
| The {Houston &} Texas
Central Railroad |
| On the 2d. inst., at Houston,
as we see by a circular and by an editorial in the Houston Telegraph,
the "Road-bed, track, franchises, chartered rights and
privileges," and other appurtenances of the Houston & Texas
Central Railroad Company, were sold, under execution, by the Sheriff,
and Messrs. W. J. Hutchins and David H. Paige, who claim to be large
stockholders and creditors, became the purchasers. The execution was
on a judgment for $10,000, obtained at the last term of the District
Court, and the sale was made "after due advertisement." Yet,
it is stated, "some surprise was manifested" in Houston on
the morning of the 3d, when it was reported that the sale had been
quietly made. The surprise, we understand, was much greater here,
among some of the stockholders, and the quiet way in which the affair
took place did not quiet their feelings so speedily as might be
imagined. |
| The statement is, that the
Company were unable to meet their liabilities, their floating debts
and the interest on the permanent debt being the embarrassing cause. |
| Messrs. Hutchins and Page
state that they purchased, subject to mortgage and liens on the road,
to the State and others, amounting to $1,175,000, besides the interest
accrued and due -- and also for their own protection and benefit. They
are, they say, the lawful owners of the Road, and are desirous that
all their late associates, who were bone fide holders of paid
up stock, shall be entitled to equal advantages in it with them,
"if any (advantages) there are." The enterprise must be in
as unenviable position, indeed, when such a doubt is published,
concerning it, by large stockholders and creditors, and now its lawful
owners. |
| Messrs. Hutchins and Page say,
in their circular to their former associates stockholders: |
| "We have advanced in our
purchase more than ten per cent. on the amount of our stock, and
propose that you and such Stockholders shall be associated with us on
equal terms, by paying ten per centum on the amount of your stock
within six months from this date. This fund is needed to pay the
interest, due on the State Loan and other mortgage debts on the road,
now pressing, subject to which we purchased; and also that class of
debts to road laborers, which ought to be met promptly. The land and
other assets of the old Company, ought to be, if prudently managed,
sufficient to pay their general debts, not secured on the road. If it
should be otherwise, then we desire to pay the deficiency, whenever
the earnings of the road will justify, but assume no obligations to
that effect, without the consent of the Stockholders who may unite
with us. |
| "It is our earnest desire
and intention to place the road on a firm and reliable foundation to
conduct its business on a cash basis; to revive public confidence and
faith, and to urge on the completion of the road as rapidly as
prudence and fair dealing will enable us. |
| "Desiring your
co-operation, and that you will notify us whether you accept our
proposition." |
| The last official report of
the condition and prospects of this road, as made to the State
Department, was as follows: |
| Stock issued and fully paid,
to June 1st, 1860, $458,200; Stock paid but not issued, $320,475; due
for Stock, in bills receivable, $261,124 -- total, $1,042,800. |
| Construction Accounts,
buildings at Courtney and Navisota, etc., since last report, $19,514;
Right of Way, $167 51 {as in original};
Land from State, $1608; three Locomotives, $30,000; Cars and
materials, $14,815; Amount of Bonds to State, $450,000; do., second
mortgage, $125,000; Amount of Construction, $400,000; Amount of bills
payable, $224,430; Due to the Company, over and above debts due by it,
$44,562; Freight, Passenger and Mail receipts, from 1st September,
1859, to June 1st, 1860, $270,150; Repairs of all kinds, $58,666;
Buildings and platforms, $14,289; Engines, $30,000; Cars, $14,315;
Salaries, $10,866; Transportation expenses, $31,890; Wood, including
stock on hand $3013. |
| No dividends made; no sales of
land. The report embraces 75 miles of road and operations for 70
miles. |
| Freight carried from Houston
to Cypress, Hockley, Hempstead, Courtney, Navisota and Brazos, from
Oct. 1st, 1859, to June 1st, 1860, 14,573 tons, omitting horses,
carriages, sheep, machinery. Freight received at Houston by the road,
in the time specified, 69,022 bales cotton, 24,619 beef hides, 33
buggies, 359 burros, 1300 sacks wool, 131 bales Texas Lowells. |
| The Road is finished to
Millican's, and the Washington County Road, connecting it with Brenham
via Hempstead, is completed by this time. |
| The Telegraph says the market
value of the shares in the Road has been from $25 to $35 for a year or
so, according to the state of the money market; the full price for the
past six months being $25. |
| The Telegraph says: |
| That the lands and other
assets of the old company will be sufficient, if used with prudence,
to pay the floating debt, not secured by liens on the road, there can
be little doubt; but if they are not, it is the desire of the new
company to settle the deficiency as soon as practicable, from the
earnings of the road. Whether this can be done, however, depends on
future contingencies. Certainly they are under no obligation to do it.
We have the best reasons for knowing that the objects and designs of
the new proprietors are honorable and laudable. As a creditor of the
company to a small amount, we are satisfied with what has been done.
The restoration of confidence will place the enterprise on a good
foundation, and this will satisfy the people. |
|