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Galveston, Houston and Henderson Railroad Co. - 1857 dated $100 Uncanceled Texas Railway Bond

Inv# RB7016   Bond
State(s): New York
Years: Oct. 8, 1857

It is particularly interesting to note that most of these bonds have been bought up by speculators. As a result, they are now extremely rare. The railroad operated by the Galveston, Houston and Henderson Railroad Company, hereinafter called the carrier, consists principally of a single-track, steam railroad, located in southeastern Texas, extending from Houston to Galveston. The wholly owned property consists of that portion of the main line projecting from Houston to the beginning of the joint causeway zone at Virginia Point and from the end of the joint causeway zone to Thirty-third Street on Galveston Island, aggregating 46.527 miles of road. The separated sections are connected by means of a concrete causeway with approaches about 2 miles in length across Galveston Bay which in part is jointly owned and used by the carrier, The Galveston, Harrisburg and San Antonio Railway Company, and the Gulf, Colorado and Santa Fe Railway Company.

Located within the joint causeway zone are 2.539 undivided miles of road jointly owned with these same carriers. This company grants to The Missouri, Kansas & Texas Railway Company of Texas and the International and Great Northern Railway Company the joint use of its tracks and facilities between Houston and Galveston, Tex. On the other hand, it uses under agreements, passenger and freight terminals of other carriers at Houston and Galvestion. The carrier wholly owns 125.800 miles of all tracks, all of which it uses. It also wholly uses but does not own 0.378 mile of all tracks owned by an industry, jointly owns and uses with other carriers 7.668 undivided miles of all tracks, and jointly uses but does not own an undivided interest in 0.110 mile of all tracks. The property of the carrier was operated by its own organization from December 1, 1882, to March 6, 1883; from the latter date to December 22, 1895, it was operated by the International and Great Northern Railroad Company under an operating agreement.

During the period from December 23, 1895, to December 31, 1917, it was operated by its own organization. On January 1, 1918, its common-carrier property was taken over for operation by the United States Railroad Administration, which still operates it on date of valuation. As of date of valuation no separation has been made between the corporate accounts and those of the United States Railroad Administration. CORPORATE HISTORY The carrier was organized December 1, 1882, by Russell Sage and Jay Gould and associates under the original charter granted to the Galveston, Houston and Henderson Railroad Company (of 1853), for the purpose of acquiring the property of the Galveston, Houston and Henderson Railroad Company (of 1871). $100 Bond printed by John F. Trow. Several rows of coupons. English at front and French on back. Particularly Choice Condition!

The Galveston, Houston and Henderson Railroad was the first railway to operate between Houston and Galveston. Sometimes known as the "Old Reliable Short Line," service commenced around 1859 and operated for 136 years under its original charter. Later the railroad was acquired by the Missouri Pacific Railroad and part of old right-of-way is operated as part of the Union Pacific Railroad.

The Galveston, Henderson and Houston Railroad was granted its charter on 7 February 1853. Named for its main destinations, Galveston, Houston, and Henderson, construction of the road began in 1857 and service between Virginia Point, Texas and Houston was available about two years later. This section of road over the coastal plain was both flat and straight. The railway was assisted by Galveston County funding, which financed the construction of a causeway of the broad channel between Virginia Point and Galveston Island. The railway started service between Galveston and Houston in 1860. The railway remained mostly under control of the Confederate States of America (CSA) during the American Civil War.

More recently, most of original Galveston, Houston and Henderson right-of-way running between the Island and Bayou cities has been a property of the Union Pacific Railroad known as the Galveston Subdivision. This legacy rail track is 47 miles long and lies just east of I-45 while running parallel to it. The Galveston Subdivision has principal connections to the Houston regional freight network at its junction with the West Belt Subdivision and at its junction with the Union Pacific Railroad Galveston at Virginia Point. Even though it is mostly single-track with occasional sidings, the Union Pacific reported an average of fifteen to twenty-five trains per day in 2005. Read more at,_Houston_and_Henderson_Railroad

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Condition: Excellent

A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.

Item ordered may not be exact piece shown. All original and authentic.