The Present Texas Railway System. 
63 
ling any railway company to a loan of $6,000 per mile of constructed line 
from the public school fund. Interest at the rate of 6 per cent, per 
annum was charged on these loans and the railway companies besides 
paying the interest were required to provide for a sinking fund. At 
the time this legislation was regarded as being wise, for in addition to 
materially assisting in the development of the country by aiding the rail- 
ways, it offered a fair and apparently secure means of investing the 
dormant permanent public school fund. Tinder the provisions of this act 
$1,816,000 were loaned to several railways of the state as follows: 
Houston Tap and Brazoria, (I. and G. H.) $ 300,000 
Houston and Texas Central 450,000 
Washington County, (H. & T. C.) 66,000 
Buffalo Bayou, Brazos and Colorado, (G. H. & S. A.) 420,000 
Texas and Hew Orleans 430,500 
Southern Pacific, (T. & P.) 150,000 
Total $1,816,500 
A considerable amount of this loan with interest was paid back into 
the school fund, but in several instances the lines upon which money 
had been loaned, failed to pay their interest and when foreclosure was 
made and the roads sold, the proceeds rarely sufficed to pay, the amounts 
originally loaned. This method of investing the school fund, after these 
experiences, was regarded by both the people and the legislature as being 
unsafe and unsatisfactory and the privilege was withdrawn. Suits are 
now pending in the Supreme Court of the United States involving 
$1,120,677, principal and accrued interest, for the recovery of part of 
this fund loaned to the railways. 
RAILWAY BUILDING IN TEXAS. 
Rivalry between cities situated at or near the coast for the rich and 
valuable trade of the interior, early determined the loci for railway 
projection. These cities were seats of political influence and could 
in a measure control legislation in favor of certain railways, which were 
projected in territory favorable to them. The interior towns were rivals 
in securing for themselves the favor of being made the objective points 
of these lines. 
The first railway charter in Texas was granted by Congress on Decem- 
ber 16, 1836, to the Texas Railroad and navigation Company, who pro- 
posed to connect the Sabine river with the Rio Grande and construct 
branch lines to different parts of the state. The charter of the Galveston 
and Brazos Railroad was approved May 24, 1838. A number of other 
lines were chartered up to 1 848, all of which were forfeited, including the 
