The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-12-13

ID. withers versus the New Orleans, jackson
and Grea, Northern Railroad Compsny-No. 6537
in the United States Circuit Court for the Fifth
Circuit and District Of Louisians-ln chancery.
At the last term of this court the above entitled
cause was referred TO the undersigned. masters 10
chancery, with Instructions g. 10 report the cond
ton Of said company, its bonds, coupons. rolling
| stock and other property, and whether the same
| is in any danger Of waste or spoliation.
| Whether there has been any mismsnagement
or Illegal practice and any cause for the interpos
lion OF the process OF the court, by way OF an 10.
junction or for the appointment of a receiver, and
what power should be given to one, and what
| limi alton should be placed on his powers"
| In compliance with the foregoing order, on the
| second Of September last we addressed a note
| covering o copy thereof TO the president of the
| railroad company, informing him that we were
then ready TO proceed to the discharge OF the dd.
| ties imposed upon us. The president. Gen. Be Al.
regard being temporarily absent from the city, Mr..
smith, The acting president. called and gave Us
| assurance that the company would do al In their
| power to facilitate thorough investigation OF the
| whole matter referred to ne.
On the 18th of September Especial car dummy
| was placed at our disposal, and in company with
| the acting president, Mr.. Smith, Superintendent
| Williams and two OF the directors, Messrs. Arm
strong and Fellowes. we proceeded to examine
the road from this city to Canton, In the State
| of Mississippi. distance Of 206 miles. Travel
| ing by easy stages and in daylight, we were en-
sbled TO view every section of the road. and we
have no hesitation in reporting that II Is In excel
lent condition, and that 10 will not suffer by COM
parison with any of the roads of the country.
! ORGANIZATION. .4.i
This company was organized under general
law of the State of Louisiana, passed on the llth
March, 1852 which, in accordance with the Con-
stitution. limited its existence TO Is years. The
| new Constitution, which was adopted the same
| year, abolished this restriction, and on the 22d
| April 1858, special act was passed by the Legis
| lature Incorporating the company with capital
| of eight millions of dollars, exempting its pro-
perry from taxation, and giving to it perpetual
On the iltb March, 1852, the Legislature of Mis-
sissippi passed an act recognizing the company,
giving 10 it the right of way. exempting its pro.
| perry from taxation for the period OF fifteen
| years. etc.
| On the 9th of February, 1850. q supplementary
bill was sssed extending the right in perpetuity.
| upon the condition that the corporation complete
/ 60 miles of the road north of Canton and south of
4 Aberdeen, in that State, by the LIST Of January,
1865. and the remainder Of the line by the LIST Of
| January, 1872. The company proceeded in good
faith TO the performance of the duties thus i'm.
posed on them, and as early as 1863 had expended
| upon the road the sum Of s6O7 1854
| '1be terrible war which broke out In this couu-
try in the spring Of 1861, suspended their opera
tons and rendered 1t impossible to comply with
| the conditions.
The first report made by the president. under
| date Of the 9Th May. 1858. puts the amount Of
| stock subscribed at 81 $4,000. This includes
| 81 600 OOO-subscribed by the State OF Louisiana,
and the sum Of s., 900 0tO-subscribsd by the city
| of New Orleans.
| In August, 1885, the Congress of the United
States donated TO the State of Mississippi, for the
| Use of this company, the alternate sections of
public lands, within Elk miles each side of the
road but, as it is alleged that the lands in the
| immediate vicinity Of the road had chiefly been
| entered by private individuals, and those remote
not being Of quality likely soon TO become valu-
able, the company did not accept the donation
| anff ha hurd uuhf I'M
| principal one was that which compelled them to
| transport the United States mails over the road
at a compensation to be fixed by Congress.
Whether they acted wisely or unwisely in refusing
this donation is a question which We cannot now
| determine. nor is its solution deemed necessary.
The act of the Legislature of Louisiana to
| which we have already referred (22d April 1859
authorized the company, II necessary, in the con-
siructon of the road, to borrow any sum Of
money not exceeding eight millions of dollars,
| uent thereof.
Under the act passed on the ID March, 1856,
they as well as other companies, were authorized
| to issue bonds or other obligations for money
| which they might borrow for 1.-The construction or
| repair of the road.''
ton. In Mississippi, on the 3lst March, 1858, and
| trains commenced running regularly.
Ii Is very rarely that the estimated cost of a
| work Of this character does not fall far short
Of the actual cost, because of unforeseen or
III
| we find that the reverse was the case.
The report of the president, under date of
April IL, lS6s, shows that the road was constructed
for the OF f433 $50 less than the actual cost.
| The estimate per mile was $Z4 SIS, whilst the
| actual cost was s22, 40.
BONDS.
The company 10 the exercise of the power
| vested in them by the acts TO which we have re-
| ferred, proceeded on the 1st july 1856, to issue
| bonds bearing interest at eight per cent. per an
| nun, payable semi-annuslly. and the principal
| falling due in thirty years. To secure the pay.
| ment OF principal and interest a mortgage was
| duly executed to James d. Denegre. to secure him
| and other holders Of the bonds and coupons upon
so much Of the railroad which had been con.
structed from this city to the boundary line sepa-
| rating the state Of Louisiana from the State Of
Mississippi, being lightweight miles. more or less,
with eli the privileges, franchises and property of
| every description then owned or which might be
| subsequently acquired by them. At the same
| cutting an indentare covering the whole road to
| Canton, Mississippi, extending about 2O6 miles
! from New Orleans. with all their ghts, priv.
| leges, property, etc. The bonds thus secured
were issued, amounting to the sum of $1,000 900.
On the 10Th April, 1851, the company created
sinking fund for the payment of the interest and
the gradual extinction of the principal.
The contract which established this fund re-
CURED the treasurer Of the company. on the last
Gay of July. 1857, and the last day of every
month thereafter until the final payment of said
bonds, to deposit In the Citizens Bank of Louisi-
ana two-thlTds of one per cent. then at the time
q the deposit outstanding. il also required the
treasurer, on the last day of March, June. Sep
tember and December, 1850, and each year there
after, until the final extinction of the bonds to
deposit in that fund such sums as would, by accu.
mutation of regular quarterly deposits, without
increase by investment, be sufficient TO pay in full
at maturity all outstanding bonds at the time of
deposit etc. No deposits we're made under this
sPreement until three years afterwards, to wit:
2sth end 30th June, 1850, and none whatever have
been made since. These deposits amount to the
sum OF $50 600, which redeemed outstanding nds
to the smount Of $50 900. This left the amount
Of bonds still outstanding g., 94l 600. of these
blonde o 5000 900 neid by the stste
II Mississippi as security for a loan made TO the
company of what is called the Chickasaw
fund.-"
Tire board Of directors on the llth July. 1850.
authorized the president 20 execute q deed Of
trust or second mortgage for the sum of three
millions Of dollars, payable in thirty years, with
interest at the rate of eight per cent. per
This was duly executed to the same party on the
lst of October, 1860.
The object which they seemed to have had in
view wac to fund the coupons of the first mort
and retain fron he Of