New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1859-02-16
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l6, 1859.
Nth @rltaus 9ailg Grtsftut.
SOUTHERN PACIFIC RAILROAD MEETING.
There was large gathering at the adjourned Pa
cic Railroad meeting at the Lecture Room Of o id
Fellows Hall. Thomas K. Price, Esq, presided.
General Richardson was requested by the presiding
officer to make statement of the legal position OF the
contendng companies.
General Richardson stated that he regretted to an
nounce the failure Of all efforts OF compromise be-
tween the Old and New Companies
In 1857 the Company found itself much embarrass-
ed and executed deed Of trust on the road it's fran
chises, etc. The first question was can road exc
cute deed Of trust on its franchises? 1t was his
opinion that it could not and he advanced number
of arguments to prove that it could not and that the
deed Of trust was nullity. But, admitting that it
was not the mode Of sale and the action of the pur
chasers in violating the understanding under which
sale was made, the question was left in allegiance for
the courts OF law to decide between the two Com
panies, or to be settled by compromise committee
Of arbitrament was appointed to examine matters and
to agree on basis of adjustment. This committee
uy,90 0O,lU
doing 80, exceeded its powers. No such thing was
entrusted to it, and their award therefore illegal
and binding one, because it touched matters in
which it had no jurisdiction. To rescue their road
money was raised and sent to Marshall, but the effort
failed, for those to whom the mission was confided
were ettered by the restrictions that stockholders
had put upon them, and unanticpated obstruc tions
were raised by the New Company.
ILoa fnolr fho nd lind fn kho
failure of the efforts to compromise Litigation be-
tween the two Companies would prove extremely
disastrous, and he had hoped that the difficulties
would be adjusted. He held in his hand documents
which showed the measures he contemplated to re-
lieve the (Old) Company and stated the means that
he had in hand to devote to the purpose which state
ments would be published in regular form by himself
He was delayed two days by fog in going up the
river to Marshall, but did not suppose that would
make any difference, but he was held down to tech
nicaltes Of date by the New Company, who had said
that "they only wanted their money" The entire
narrative of what occurred at Marshall prepared by
himself, would be published. Compromise seemed to
be useless for he had made every effort that he could
to that end. There recourse but litigation, or
the surrender Of the rights of the stock. holders
He now to speak of the matters to which he had
referred in his card and to make the statement show
ing that there was defalcation of over 100000
while the road was managed in this city. This be
did at great length, but in manner which rendered
itimpossible to make comprehensive report, as he
read from miscellaneous accounts and documents
dealing in figures, statements of figures, etc.
He alluded to the difficulties thrown in the way of
negotiation at Marshall and the refusal of officers
there to show the books of the Company. There
were proper means to disprove the claims of cred-
tors, which were immensely over stated. He emu
merated the gentlemen whom he entitled "the clam
orous of the New Company" Among these he
named Col. Hall, who arose and stated that DR.
Fowkes was mistaken, and that he would reply to
him directly. 4s.I.5 5,s.+.
The Doctor continued, stating figures of what he
reckoned to be real Indebtedness, and what was
claimed The real indebtedness was but about 20 PEI
cent. of the amount of claims presented. As to tht
matter of bogus stock about which the hue and CRY
was raised he only had to repeat what he had Otter
previously He referred to the personal abuse which
had been heaped upon himself as the representative
of rival interests. He had expected it when he wen
into the war, and cared not button for it.
He called on the meeting of stockholders, and all
stockholders of both Companies, to appoint gentle
men on each side, gentlemen of worth, of standing
and of property, and to turn to them the bust
ness of building the road. He would retire f; he
wanted nothing to do with it he only wanted the
road built that he might secure his own, for he had
large interests at stake in it, If it could not be be
would consent to tear up every certificate of stoci
which he held, rather than by his holding it i'm
pediment should be offered to the work. He depre
Gated litigation, and prayed that the matter be com
promised. The whole country was disguised with
the way in which the affairs of the Company hat
been conducted and with its conductors, with non,
perhaps more than himself. Why could not the
troubles be ended by compromise, by turning th
business to third partes selected from both sides, t
look after the interests of both.
Mr.. Chiffon rose to ask DR.. Fowlkes what was tn,
reason the compromise failed? He would ask Mr.
Price, because he knew that he could get the trutl
from him.
Mr.. Price said he was not member of the com
mttee, but Mr.. Yerger would give the information
Mr.. Yerger said that in answering the question hi
would state all points Of adjustment were agreed Il
by the representatives of the Old and New Company
but that in consequence of the State Of Texas hay
ing suit against the Road, there were consequence
pending upon its decision, which induced the Oh
Company to decline binding itself to certain payment
demanded by the New. This circumstance prevented
the negotiations being consummated. As to the de
falcations charged at this Office Mr.. Yerger showe'
that they did not occur while he was President l
may have occurred in the New York office, but it d
not occur at this, during his administration.
Col. Hall stated that he was on committee witt
Mr.. Post and Col Archer, to examine the books @
the New Orleans Office. This committee reporte
the accounts of the Office as perfectly correct-a
moneys accounted for-and that report was sprea
upon the minutes.
DR.. Fowlkes rejoned that the mistake was appal
emily at this office. He then reverted to the falur
of adjustment, saying that it was impossible for hin
to agree to the terms proposed while the State sui
was yet hanging over the Company. He never woul
do it. If stockholders wished to have the none
paid with that suit pending they must elect some
body else to do it; he would not pay it while be wa
President.
Col. Hall took the floor to reply to portions of Dl
S Fowlkes remarks He was struck with astonisf
ment that DR.. Fowlkes had failed to state why th
terms of compromise agreed to by his own committe
had not been carried out by him in October, 1856
! The award of the committee was signed by him O