Galveston, Houston and Henderson Rail Road Co. (Uncanceled) - 1855 dated $200 Land & Railway Bond
Inv# RB7021
Bond
$200 10% Interest Uncanceled Land Bond The Galveston, Houston and Henderson Railroad Company was established on February 7, 1853, with the objective of constructing a railway from Galveston through Houston to Henderson. Among the initial incorporators were W. C. Lacy, T. P. Anderson, R. A. Harris, and William M. Tuck. This company played a crucial role in transportation, serving as Galveston's sole rail link to the Texas railroad network centered in Houston for several years. While it received support from both Galveston and Houston, a significant portion of its early funding came from investors in the Netherlands and France, as evidenced by a related certificate. The construction of the railway, later referred to as the "Old Reliable Short Line," commenced in 1854 at Virginia Point, located on the mainland opposite Galveston Island. However, the initial rail was not laid until 1857, and it was not until 1859 that the line reached Houston, terminating at the intersection of Main and McKinney streets.
The route required only two curves, one on each side of Harrisburg, between Virginia Point and Houston. A trestle bridge spanning Galveston Bay, financed through a bond issue from Galveston County, was completed in 1860, thereby finalizing the rail connection between the two cities. The original company was sold in 1860, leading to the formation of a new Galveston, Houston and Henderson under the existing charter. Throughout the Civil War, the railroad remained operational, facilitating the movement of goods to and from blockade runners arriving in Galveston. General John B. Magruder utilized the tracks and the Galveston Bay bridge during his recapture of Galveston on January 1, 1863. In 1867, the bondholders of the original company compelled the railroad into receivership. This initiated a contentious four-year legal dispute between stockholders and bondholders, culminating in the order for the sale of the Galveston, Houston and Henderson under foreclosure on December 15, 1871.
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.
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