NP, HT 5/14A/1861

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.

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