New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1858-11-25
New Orleans. jackson aud Great Northern
railroad Company.


10 he Council Of he City Of Neo Orleans on The
Condition of The NetC Orleans, Jackson ana
t1reak Northern Railroad Company, By The Direc-
tors representing The City "a the board OF Dtrect'
0rs Of That Company.
n III Honorable Council Of the City Of New Orleans
Gentlemen - The undersigned, appointed by
your honorable body to represent the interest Of the
city Of New Orleans in the Board Of Directors of the
New Orleans jackson and Great Northern Railroad
! Company feeling it to be their duty to advise the
Council Of its present condition prospects and policy
respectfully submit the following report:
On the first of April, 1885, trial trip was sue.
cessully performed from this city to Canton, Miss
few days afterwards, daily train was established
| from New Orleans to Canton. In reaching this
| point, the Company achieved great and decisive
success. The Importance of the enterprise as OTig
nally conceived, was no longer predetermined Rela
tons were at once established with other routes that
secured the certainty Of travel and freight, whose
| value exceeded expectation. By the Mississippi
| Central Road speedy steam communication was
made with Cairo and all the western lines while by
| the Memphis and Charleston route eastYardy, a
union was effected with the Tennessee, Georgia and
East Virginia improvements. Nearer the city, on
the East the Southern read promised access TO Ala
! bama and the South Atlantic coasts and on the
West, established connections with the Mississippi
river, and with the yicksburg and Shreveport line
/ which stretches out ultimately to blend with the
| Southern Pacific, across the continent ~ mus PC
came the great trunk road OF the country gathering
in contributions Of travel and traffic from lnnumer
BILE quarters.
But the first step in these results, the most difficult
one to accomplish, was not made without creating
serious embarrassments and seeming to leopard the
future progress OF the great enterprise. When we
entered upon the discharge of our new duties, the
affairs of the Company were in critical condition.
| The stock was offered at discount of upwards OF
eighty per cent It's creditors Clam0red for payment,
while the Company was without credit and could not
use its actual resources without serious loss No dis
/ position existed among the people of Louisiana to
contribute means forfurther construction, and neither
the city the State could be called upon, with any
hope of success for additional aid. AT that period,
the debt Of the Company, not including the bonded
| debt was 81 1888 49,. 80.
Scarcely had the new direction had time to survey
the prospect before tdem, when suit was commenced
by Messrs. George Peabody & Co., for the sum due
them in addition to which suits had been previously
instituted by Messrs Dent Hudson & Co., I. @.
Bates & o., and Others for sums amounting, in the
aggregate, to upwards of two hundred Thousand dol
lars. The difficulties which harrassed the Board
were thus increased and the task of restoring credit
and advantaFeously using its resources, was made
still more difficult The predictions Of failure ut
tered at the excited election for directors, by those
who ID view Of the embarrassments Of the Company
had become convinced the road must finally stop at
Canton, seemed to the public apprehension about to
be verified
Assuming so responsible trust, under such cir
cnmstances the first duty that pressed upon the
Board was the speedy arrangement, on the most ad
vantageous terms possible, of the debt that threat
ened the very existence OF the Company. Had not
the new Board, from the beginning, determined in
accordance with the views of the stockholders
whose oninions thew more esnecially renresented f0
disembarrass the Company OF its pressing debt and
restore ii possible its lost vitality, its financial GOnd
ton here family described, would have suggested
roey, If safety and of nrooress An aGent tba Han
]. X Egee was therefore sent to London to attempt
to arrange its foreign debt He succeeded in paying
Hsssrs IAN Hanrv schTodar 4 AZ 9th acn '1T
lions If interest Tntasts o1d costs The snttIarap+
mada Il narfaat and Anal ma obirations IF IN
COMPANY which thew held have been cancelled by
IN them nf hands
M camnanT II savanty ga canfs /" fba dalar
I and interest paSgbe IN ' New York pseaJ
cent HAT would have bean last bv aTcbango etc If
thew had been nlnde navnble in london
claim os 4 q Rofes y O. Vas settled in III b son-
nromep and after the settlement fha rirrnt Court
If the limited states qaye Indictment in favor Of the
=cornor9tion in fhp ait of Denf Hudson 4 "a and
the Board wa relieved from fhe odur1 If pin cfqd
before The courts Of the country as dernauent in
oatng debt The directors determined at an early day
5oadopt new policy The practce bad pregaSed fS e
nledging bonds rs collateral security The nTactica
Affect IF tbis course was Ia comnoGnd interest nnon
he loans which in The large oDerotions necessary to
meet nressng demands moved sprinng drain a1d 4
constant loss The nav n0Iicv has bann n rnoI-a 4
final sale of the honds instead Of attemnting 10 Moro
tiafe short loans AMI with Tie proceeds If tbesa
sales to take mn the floating debt as rapdlv as pract
cable The UNDERSIGNED have reason to c6uri1tplate
tlte ConneI ana tbe friends ar tha road ,Inor Inc
suecess which has attended the efforts Of tbe Board
MA dH3rnfv bas benn exnariancnd n Rpdnr mn
rboserg of the bonds al favorable nricps B0st If
those sold have passed into The hands of ar avn citi
zpns showing 4 decree Of confidence in tbp srcress
of our great Enterprise and of the nolev adonted nv
Tie Roard that II trnly gratifying Wben the nndeT
signed entered upon the DISCHARGE of their duties
the debit of tbe CDmnanv other fhan handed debt
IA ner last annual report Of frat 4nril 1888
was al .333 raj "a
THE obipations issned from TINT neriod
To tbe present fine have been 7l9 no4 On
Making total Indebtedness Of 40 o4e 735 40
Paid since lat April i6I6gII "a
--
Balance running to maturity. ....=..... 429823 II
OF this sum the amount due to the State
If MisssaiDnf NOT canning IN rnatur.
itv until ls6A can SCARCELY he called
~ aLt4 t3vt' N"u , 'esiS53 y eallSa
Luhtus utDli uuu Is bieEtlpFe uS-
Quoted. 205, COG 90
ana the true u0atlng debt Of the Com
49,. 4221 S23 II
======
nL;., ..u,,.-,l #=z.zz, r - ~ , n
Lhls amouIV' composed OF many small sums, lalls
oo1n ana # t ~ us t a@ss " y ~ Ga
pany it could at once he redeemed.
Besides this lonting debt the Counany has issued
two thousand four hundred and ninetysiE first mort
gage bonds for one thousand dollars each at thirty
years from Jny lst 1856 bearing interest nj the ra
of eight per cent. per annum payable semiannually
The undersigned cannot but pause here to contrast
A. 49, ;.T. ....ItLs- ri -