The Beginnings of the Texas Railroad System. 
63 
cent, by consent of a majority of its voters. Bonds were authorized 
to be sold, the proceeds of which were to be used to construct the 
road. Under this authority the tax was voted almost unanimously, 
and the road was built during the year 1856. 15 It was sold to the 
Houston Tap & Brazoria Company in 1859 for $172,000, $130,000 of 
which was paid in the stock of the purchasing company, and $42,000 
of which was paid in cash out of the loan from the State. 16 
22. Southern Pacific Railroad. 
The early history of the Texas Western Railroad has already been 
touched upon in connection with the Mississippi & Pacific road. It 
was there stated that the sale of the charter was forced upon the 
Atlantic & Pacific Company by virtue of the Texas Western Com- 
pany’s preemption of the most available route. Failing to carry 
out its contract with the State, the Atlantic & Pacific Company re- 
organized under the Texas Western charter at Montgomery, Ala- 
bama, in 1854, and used this franchise in preventing any other cor- 
poration from building the Mississippi & Pacific road. 
In 1856 the charter was amended, and the name of the company 
was changed to the Southern Pacific. 17 In this year work was be- 
gun on a branch line to Caddo Lake north of Marshall. Over this 
branch the track material for the main line was brought. By Feb- 
ruary 10, 1858, twenty miles were completed. Seven and one-half 
miles were added during the following year, and this marked the 
extent of the work done before the Civil War. 
This company led a checkered existence. A few statements depict- 
ing its financial history will explain the slow progress made in rail- 
road construction in Texas before the Civil War. 
It issued over $14,000,000 in stock. The following were some of 
the purposes for which these enormous fictitious values were created : 
The Sussex Iron Company of New Jersey was bought for $6,000,000 
of the Texas Western stock, worth about $300,000. The Texas Wes- 
tern Company also transferred to Dr. Jeptha Fowlkes $8,000,000 of 
stock for bonds payable in one, two, three, four and five years, and 
secured by mortgages on swamp lands in Arkansas at the rate of 
five dollars an acre. Mr. Edwin Post entered into a contract with the 
Executive Committee by which he was permitted .to subscribe for 
$2,000,000 of stock at any time. In April, 1857, the limit of stock 
sales was fixed at $12,000,000, although some $14,000,000 had al- 
ready been issued. Mr. Post was paid 13,333 shares, worth about 
$66,666.66 to cancel his contract. Many other transactions on a 
smaller scale might be enumerated to illustrate this pernicious prac- 
