§ 64.035.Deposit of Certain Railroad Funds

A provision written for a specific industry in a specific era, and it still says something about how receiverships work.

Where a receiver operates a railroad that lies wholly within this state, the receiver shall deposit all money that comes into his hands, from operation of the railroad or otherwise, in a place in this state directed by the court, and the money shall remain on deposit until properly disbursed.

Railroads dominated the receivership docket for decades, and this chapter shows it — separate sections on railroad funds, on suing a railroad receiver, and on terminating a receivership that has run more than fifty years.

The concern the section addresses is control over the money. A railroad in receivership generates continuous revenue, and funds deposited out of state are beyond the reach of the court administering the estate and of Texas claimants.

The court directs the place of deposit, which is a further measure of how closely a receiver’s handling of money is supervised.

"From operation of the railroad or otherwise" leaves no category out — every dollar reaching the receiver’s hands.

The interstate rule is proportional: where any portion of the railroad lies in another state, the court shall require the receiver to deposit in this state a share at least proportionate to the value of the company’s property in this state.

That is a workable compromise. Texas cannot demand all the funds of a system crossing several states, and it does not — it claims a share matching the assets located here.

The principle behind the section outlives the railroads: money belonging to a receivership should be held where the court supervising it can reach it.