New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1867-06-04
STATE OF LOUISIANA VERSUS LOU
IsIANA STATE BANK.
william Bailey, Intervenor.


Attorney General Lynch, Honorable Pierre Sou6,
and Honorable Andrew Heron. for the state
Ghrsep Rpssss nna H. ng hi i8T agbss Shs and
Stone, for the intervenor.
After the arrival of the federal feet in
New Orleans in April 1862, the Louisiana,
State bank, which had been for years be-
fore the depositary of the funds of the State
showed by its books balance due by it to
the State amounting to $4,000 in round
Numbers.
Military Governor George +. Shepley
made demand on the bank for that amount,
and directed it to be turned over to State
treasurer T. C. A. Dexter. There
was no money with which to pay
this except Confederate money, which,
of course, General Shepley refused to &C
cept Tie bank urged that if compelled to
pay that amount in current money it would
be ruined. The bank proposed, through its
officers, to the military authorities to send
| that sum, with other Confederate money, in
| all amounting to 81 900, ,000 inside the Con.
federate lines to invest it in cotton, bring
the cotton when purchased back TO this
| city, sell it, and pay the State in good
money the aforesaid sum due the latter.
Permission was granted by General Butler
and by General Shepley. An agent was dis.
! patched by the bank, with the 81, COO, ,OOO
| to effect its Investment in cotton. Safe con-
| duct was given by the commanding general
| to Stevenson, the agent of the Bank, who
| had charge of the money. The money was
put up in sealed packet. The permission
| to take it inside the Confederate lines was
| indorsed on the outside, and the command
| ing officers of the Federal military posts
| were directed to facilitate the removal of
the cotton after its purchase, to point
within the Union lines. Stevenson pur-
| chased some eleven thousand bales. por-
| tion of this was burned, and a portion cap
4 tured by the Confederates. About seven
| thousand bales, however, reached New
Orleans some time about June, 1865.
The cotton was on sixty-seven steamers.
Governor Wells got information that the
| cotton was on its way to New Orleans.
He directed B. L. Lynch, the attorney
| general, TO take prompt steps to sequester
the cotton on its arrival at New Orleans.
The attorney general accordingly sc
uuestered it, and simultaneously flied his
suit for the amount afore- aid, due to the
State. The cotton was in the hands OF the
sheriff for several days, but it was released
by an order from General Candy, the bank
giving security, If allowed to sell the cot
ton, the bank agreed to hold the proceeds
subject to the disposition made of it
by the courts. The cotton was sold by the
bank, and realized about S572, 900, after the
payment to Stevenson, the agent of his
commission. amounting to Sl43,000.
Governor Wells, before the trial, employ
ed Mr.. Soule to act in the matter, with the
attorney general as counsel. Mr.. Heron
having superseded Mr.. Lynch, became ex-
officio leading counsel in the case. Mr..
: Lynch having been thoroughly conversant
with the facts of the case, was retained
specially by Governor Wells, to prosecute
the case to its termination, in connection
with Msssrs. Heron and Soule. These
three gentlemen acted in the matter
until after the trial of the case in the
Fourth district court some time in March
! last. Mr.. Heron having been super.
seeded by Mr., Lynch, and having
, retained as special counsel to act with
the present attorney general and MIR. Soule.
Mr. Bailey came in as intervenOr, and
/ claimed the cotton as his own. The bank
plead a unconventional demand against the
State of 81 ,075, 900 for bonds which the bank
purchased from the State, and which were
issued to carry on the war against the
I United States. The trial occupied several
weeks. The testimony Is very voluminous.
Judgment was rendered IN favor the bank
for the sam. of S6l2,000 thereby giving
the bank credit. for the amount OF
| tne Donusi out ulhut less uy tno SUN Oh
$462, 600 aforesaid, credited to the State
From the Judgment of the Fourth district
court, both the State and the intervenor
have Appealed.
Il 1t was on trial yesterday in the Louisiana
J supreme court. The attorney general
= opened the case for the State.
The court was asked for two hours time
: for each lawyer engaged in the suit; but il
was unwilling TO grant over one hour and
a half, there being six attorneys engaged
! Ii required the most of this time for Mr.
Lynch to lay the facts of the case before
. the court, a synopsis of which we have
above gwen. The case will be argued al
length to-day by the other gentleman
named above.