The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-12-04

| tDe sulct oennluon which the Louisiana statute
has made for its own State, and with reference Il
its own State proceedings; and that definition IN
doubtedly is that IL q debtors assets are equal Il
his liabilities, he is not insovent. But what ha
that to do with this question! The question is
What did Congress mean by the term " insol
vency!" and the fact that the Legislature o.
Louisiana has by an arbitrary definition fixed the
meaning of the word 10 contradistinction and
contrary TO the opinion of the jurisprudents oil
the world can avail but little. If we were talkins
would, of course, be conclusive; but when we
are talking about the definition OF terms, the
statutes Of this State the decisions of this State
are only one element, among numerous and con
trolling elements, from which Congress derived
their definition and settled the meaning of the
word.
If Mr.. Taylor's argument is true, there would be
one definition of insolvency for Louisiana sand
another for Massachusetts, under the administra
ton of this law and instead of having uniform
| system OF bankrupty-which the constitution rem
ders imperative-we should have one as multiform
and dissmiar as the different shades of judicial
and legislative opinion In the various States. When
Congress used this term Z" insolvency." they meant
insolvency as the Jurisprudence of the world,
the day they passed it, bad defined that
werd, and that definition, with the single excep-
ton of the statute of louisiana is such as have
| given 1t. That disposes of the question; for il
| will not be contepded that this corporation has
ever been able TO meet its liabilities in the ordi-
nary course of business.
But go further; say not only is this corpora.
on iDsolvent in the legal sense of the word. butt
IL hopetesSy, remedilessly insolvent according to
any practical definition which can be given, and
with reference to any action that men of sense
must take, and that upon their own testimony.
Now, the liabilities of this corporation are be.
tween twenty-six hundred and twenty-seven hun.
dred thousand acknowledgment hundred
thousand dollars we will say, in round numbers.
That is admitted; it is not matter of estimate
but 1t is conceded fact-a matter OF bond and
Nh ~l,e -
BY the evidence in this case, the company has not
In Its possession twenty-seven hundred thousand
dollars worth Of property. The only evidence
which has been introduced as to the value of the
property. Is that OF estimates. They have intro
d1ced evidence of estimates; we have intro
duced the same, and they are before you.
What are these evidences in the way OF esti-
mates? They produced Mr.. Segar, they produced
Judge Robertson, they produced Mr.. Bailey.
Both OF the former witnesses based their opinion
as TO the value of this property upon the estimate
OF Mr.. Bailey. But suppose all three had said
or, In the view that take of it. II thirty men, in
stead OF one, had come forward and said that the
value OF that property was thirty eight hundred
sraS sntf 1s vast 9Ro:s thirty men shall
be competent men-as competent as believe Mr.
Bailey to be-and have the profoundest admi-
ration for him; believe he has been true and
faithful and devoted servant of that road. and
that he gave his testimony with honesty that no
man ought to question; but it unfortunately hap
pens, as my friend Mr.. Cohen remarked, that this
road is the child of Mr.. Bailey, and when we re-
member the feeling that parents have to ward their
children, when we remember the long years that
Mr.. Bailey has devoted to the service of this
road, hoping against hope and working for il in
cessantly, we can well understand why 1t is he
clipgs TO the fond deusion that the road is solvent
and beeves-biased, prejudiced by that strong
impulse which he would not be human if he did
not have-believes that the road is of the value
a % Qta Rnfx rha&
mates against Mr.. Bsiley's testimony? We have
it from Mr.. Segar and we have it from one other
witness Of the defense-Mr. Squires, the score.
tary-and we have IL as an admitted fact that the
first mortgage bonds of that road have been
selling for the last year for from forty to fifty
cents, and that they are to-day sold for 46E.
Now here are bonds covering everything that
this company has or ever can have, except its
right 10 extend the franchise beyond Berwick's
Bay. These bonds bear eight per cent. interest:
they have twenty-cne years TO run and it is a
great object with the capitalist when he Is invest
Ing his money at eight per cent, to have the in
vestment long; and If that road were solvent even
according to the definition which they have sought
to enforce, If that property were worth thirty
eight hundred thousand dollars, can il be that
those bonds would sell for 46t! Is the capital of
this country asleep! Is the capital of New York of
Lcndon-for these coupons and bonds are payable
10 London rs well as New York and New Orleans
and is the capital of New Orleans asleep? Not
at all and by virtue of every sale of those bonds
at 46! per cent, the sagacty the business intell-
gence of those who have thus parted with them
testify that the road is worth but 46t per cent. of
Its first mortgage debt There is no answer to it,
Say that that road is solvent and you impeach the
business sagacity Of the whole country.
But what else do we find? There is the evi.
dence OF record in the Sixth District Court be.
fore your honor. That record shows that proceed.
ings were taken for executory process, for seiz.
ure and sale OF all the property of this road for
the sum Of about two hundred thousand dollars. |
and that no answer was put In, and but for the |
inluncuon, the mandate issued byyour honor. this |
road would now be In the hands of that mortgage
creditor Nine witnesses have said that the ac- |
ton OF that mortgage creditor was precipitated-
by the efforts of these petitioners to bring these
parties INTO bankruptcy. Suppose 1t was, here |
very mortgage creditor who Is said to be the |
moving spirit, who is to relieve them, takes them |
INTO court; takes possession-unless interrupted |
by the mandate of your hopor-of all the property |
they nave. Can that be true, and this company |
have thirty-eight hundred thousand dollars worth |
OF property say it is impossible, if that road |
was not insolvent in every conceivable sense of
me term that the effort of Mr.. Morgan to forecose
that mortgage should not have been resisted.
Now then that is the evidence on the question
OF insolvency, coupled with which there Is another
series OF facts to which wish to call your honor's
attention. Here is a road chartered in 1853
ouiidng somewhere prior to 1859 eighty-one and
half miles of its road, the part beyond that being
all that gentlemen have painted before your honor
fertile beyond expression, flowing with milk
and honey and everything that railroad would
IKE to carry; and they have sat down quietly, and
SINCE the year 1859 have not struck blow have
not had spade at work there-have done nothing
70 extend that road are deing nothing to-day-I
mean directly; will speak about the negotiations
they themselves are not to-day and
we're not in February, when the petition was filed.
IN the line which the Legislature gave them
light to extend. they were not even preparing the
way for its extension and when asked Mr.. Bal.
ey what was the reason, he said, " The want of
money" he could not and did no. desire to saw
nything else. Now Isay that by virtue ofeverye Gu.
ogism they have passed upon the fertility of Texas
land do not think they over-did it-by virtue of
very advantage which this road would derive
rom an extension-and they did not over-state
hat either-but by virtue of everything they have
ala On that subject taken in ton with their
lone legal insolvency, not alone insolvency ac-
ording to their own definition, but utter, hope.
ess. remedies insolvency.
Now, If the court please, on this question of in
olvency as on all Others that discuss, wish to |
reat this company with entire fairness. The d.
ectors are gentlemen, every one of them, whom |
respect, and towards every one of them have
othing but the kindest feelings but wish to |
zee what method they themselves can resort to
or not only have / said that they are insolvent.
ut now say they are nsovent 10 such a degree |
bat nothing but bankruptcy can relieve them,
T ever enable blow TO be struck beyond this