| From the Houston Telegraph |
| |
| May 14, 1861 |
| |
| The {Houston &
Texas} Central Road |
| The Corsicana Express speaking
of the late transfer of the Central road, and of the proposition of
the purchasers to revive stock on ten per cent being paid in,
says: |
| Now, is it a matter of
interest to the stockholders to know what amount of indebtedness is
owning by the railroad, and for what purpose is the ten per cent. to
be applied. If the ten per cent. is to be used in merely paying back
to Messrs. Hutchins and Page a proportional part of the purchase money
bid and paid on the sale of the road, we suppose that releases the
road of all debts previously contracted. The Telegraph will confer a
favor on its readers by explaining the matter. |
| The railroad owes, as we
understand it, about a million and a quarter of dollars, mortgage
debt, to which it is subject. Besides that, it owes to laborers, who
ought to be paid, and whom the purchasers are determined shall be
paid, a considerable amount. Money is wanted to pay the interest to
the mortgage debt, and also to add to the equipments of the road. The
purchasers on buying the road were under no legal obligations to pay a
dollar of the floating debt or to revive a dollar of the stock. But
considering that the stockholders, though legally without any right,
had yet a moral and equitable interest in the property, Messrs.
Hutchins and Paige determined to forego their legal advantage and
admit bona fide stockholders to an equal footing with
themselves on their advancing an amount equivalent to what they had
advanced in purchasing the road. |
| This is what they have done.
Of course, it will be much for their interest if the stockholders
stand aloof and let their stock go by the board. We are satisfied that
if stockholders generally do so no one will be better satisfied than
the present owners of the enterprise. Still the proposition is open,
and we are fully justified in saying that they will abide by the terms
they have offered. |
|