The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-06-03
BY THE SOUTHERN MAIL.
Important from New Orleans-Financial
Intrawnea.

AA'PoHtont nom New Orlenns-Ftnancia
Intrigues.
we received by last evenings mail the following
.'ipor'aht despatch from our private correspondent
IN New Orleans, disclosing the progress of certain
curious financial negotiations in that capital.-
New ORLEANS, Nav Is. 1892
ur. Jdudon iH Netc OTgedns-P roposed settlement ar
the detf due the U. s Bank blythe ~ o. Gas Bank.
I.ar.up boueen Mr.. Cald.cea, Presidenf Of the
Gas Bank, and the Board Of Directors
DEAR Sm:-
Sam Jaudon come out last month to settle the
debt due by the Gas Bank to the old United States
Bank, Of Ss2,3OOO,0 900, with interest The evidences
81 that debt were transferred to the Morrsons of
London, IN the days of the United States Banks
death struggles tor few short months Of further ex-
lstence.
In day or two after the said Jaudon's appearance
in these "dggings," Mr. ]. Erwin, Clay's son-in-
law, was on the qui pipe to know whether the notes
given by the Gas Bank were in the loan negotator's
possession ltseems they were not, and SO Mr..
Erwln's searches Ruthless as his object was TO
attach them for debt due by the United States
Bank
Shortly after this episode, Mr.. Jaudon addressed
note to MIR. Caldwell, the President Of the Gas
Bank, respecting his mission, the debts, &C. Presi-
Dent Caldwell had an interview with him, and
found that the spound of flesh was demanded by
the Jew. The fact was reported to the board of d.
rectors, who consisted off,
JAMES II. CALDWELL President.
Glcndy Burke j. n Hawthorn,
w. Mclean s.ndersor Rohert
James Robb 7 Wh;,rev
Robinson 'TY sssman. S J., E h sssssi
Alter due dehberation the board decided solemn
a An .hsy would not pay more than $500 900 for
It, the Morrlsons Various propositions were then
made by the committee of four to Mr.. Jaudon
Ina. committee ona m.s. consisted Of Caldwell Burke, Me-
defeat, and the committee reported, and the board
decided again to adhere to their original purpose.
Mr. Jaudon then drew of and wrote to Philadel-
g.. L.
negotiation was opened BY him with Burke, Nc
Lean, Magofiin and Robb All on sudden. Mr..
saul, formerly notorious among us a cashier of
the old United States branch in this city, made his
appearance. The waters began to be disturbed, and
at a meeting Of the board, present CALDWELL Burke,
Mclean, Magoffin and Robb motion was made
that proposition be submitted TO Mr.. Jaudon for
settlement of the debt in question. Mr. Caldwell who
is the largest stockholder in the bank, demonstrated
and asked for full board to consider so remarkable
q change in the policy of the institution. But the
four others thought differently, and decided to sub
nit proposition, which, evidently, had been pre-
pared outdoors. 1t was, TO give the Morrisons:-
The bonds of the bank for million of dollars
bearing five per cent. interest, and payable in from
8 to rs years.
The cash on hand, 100000
Assets to the amount of $500 coo, considered as
cash.
Twelve thousand shares of stock belonging to
the Bank, at $50 per share.
Thirty thousand shares OF the capital stock of the
Bank at 500 share.
A mortgage on the gas works as security for pay
ment OF the interest and principal of the bonds.
Mr. Jaudon accepted the proposition, of course
and when 1t came before the Board, Mr. Caldwell
protested in the name of the stockholders and him.
self against the sale of the institution to the cred-
tors of the Bank, without the of the stock
holders, &c.
A preliminary meeting of the stockholders was
then called by Mr. Caldwell, and they ordered the
Board to call them formally together to consider o!
the proposition made to MIR. Jaudon. The Board did
so, and liked the meeting in july.
The next step taken was for the stockholders to
proest-whch they did before Notary, but the
Board refused to enterit upon their minutes aver
ring that they were the sole masters Of the Bank.
The Board then proceeded to perfect the agree
ment, and Mr. Caldwell refusing to sign the article
retired from the chair Previous to his doing so,
to sign the instruments, but they appealed from his
decision, and he then left his place They then
had every thing their own way, and closed the sale
Morrisons Mr. Yeatman, director, protested as
well as Mr.. Caldwell, against the contamination of
the act.
Mr.. Caldwell has enjoined the whole proceed
ings, and here will be good cause for law suit.
1t is believed that Burton, Robb Mclean, and
Magoifin,. as well some others of the directors
united with Mr.. Jaudon to get possession Of the
tor all their stock, well as heavy bonus for this
wanton betrayal of the interests of the stockholders
entrusted to their care. This is common open re-
port, and no one contradicts it,
Caldwell proposed TO yield his rights if they would
pay him and the other stockholders twenty dollars
share cash for their stock and submit the whole for
The approval of The proprietors. 1t is believed that
the next step will be to appoint Mr.. Conrey, rca-
ton of Jaudon, director, and this Mr.. Saul, who
contcmplates remaining here this summer. This
done, call will be made upon the stockholders
having loans upon their stock, TO pay up, thing i'm
probable now, and in default thereof legal proceed
ings will be had against said holders, to compel pay
men or forfeiture of stock. 1t is in this way that
they contemplate to get the thirty thousand shares OF
stock proposed tobe given the Morrisons
assure you, sir, that the Northern stockholders
who have given their proxies to such men as Burke
and his associates have been shamefully cheated
out OF their property They have been sold, body
and soal.
The men at the head Of this scheme are none to
good for bandti. They the remains ofthc 1887
clique that failed SO signally, and ruined so many
innocent men, that gued SO many of our banks,
and the Gas Bank in particular.
will not comment further on this remarkable
transaction. 1t is true, every word of it, for have
It from several stockholders. Draw your own in
ferences.
But be assured of one thing. The men who have
helped to get this institution from the stockholders
by wrong MEANS by exceeding their rights as direct
ors, and the Morrisons and their (cent per cent?
agent will not long reap the reward of their scheme
ing: The Legislature will annul the privilege Of
making gas next winter, as sure as DR.. Springs
church stands where ii is.