The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-12-01
THE COURTS.
The Uaites states District Cosrt, Judge
Dureil Presiding.


porter prevented our obtaining a report OF the
proceedings in the United States District Court on
Saturday last while this case was being argued oy
the counsel Of the company, M. NJ. Cohen, Esq.
We understand that, in an argument OF great
ability and learning, which lasted for three hours,
Mr.. Cohen enforced the following points,
l. That a railroad company Is not embraced 10
the bankrupt law of 1867, and that TINS act OF
Congress does not apply and was not INTENDED 10
apply 10 a railroad company.
2. That the New Orleans, Opelousas anq utes'
Western Railroad Company is not and was no. 10.
solvent, and therefore its acts are not SUBJECT
for judicial inquiry.
of bankruptcy and never made a voluntary pay
men fraudulently or with the intention 20 give
preference TO any one creditor over another
A. That petitioners have no equity and no right
to institute this suit and are not entitled to the
process of this court its aid to force defeRda2ts
into the bankrupt court.
Yesterday the case was opened by Judge John
B. Robertson, he speaking for the State and re-
presenting her interest In the road. which is large
one He stated first the reasons why the road had
never been completed. Ii had been destroyed by
the events of the its rails had been torn up,
lis crossties and bridges burned its stock destroy
ed. Then the evees had been cut and vast ds
images had been done to the embankments and
cuts Of the road by the water; the road had oeeh
held in possession of the government, and from
1862 till the close of the war the revenues OF the
war had been cut off; during 1866 and 1851 the
damage was being repaired, and all the profits OF
that time were thus swallowed up. The interest
account had been accommodating since 1862, be-
| cause since that time there mad been no profits
made by the company which could be appropriat-
| ed TO taking up the coupons, and that lack OF
money was due to no fault Of the company, but
| TO the peculiar turn Of events, beyond the com
psny's control, which for so long shat II on from
all profits. Since the company has been in posi-
| ton to make money it has gradually extingushed
| its ordinary debts, and now it owes nothing but
$4,000 to the United States and its coupons. The
| coupons were not paid because they were held by
| bondhOlders and we're well secured. From Wnat
| he had learned he was justified in saying that the
prosecution had been undertaken by attor
| neys who had before prosecuted the road In
| other courts; the coupons sued for had been
| bought for the express purpose OF foro-
| ing the road into bankruptcy. that it might
| be sold out. 1t was conspiracy against
| the road. The ordinary debts OF the company have
| been paid the bondholders have declared their
| willingness to sustain the company some cou'
poDs have been paid, but only under pressure OF
| judgments obtained in various courts, frona -
| tees ND. The company intend 70 extend tho
| road. In the past the times have not peeh pro
| pitious. The land Of the r0ud, ana tnst aoJa-
\ Cent has been overlooked. There has been no
| commerce, no trade 10 warrant the extension.
| Governments have varied amongst us. We have
had temporary, provisional. trsnsitory and per.
| manent ones. None have been able to assist
| the road. The Banks regime would not trust
| the road. the others could not assist II. But
now we have something permanent, we have
| stable government and are on hrm basis; so
| now we can hope for something substantial !;
| not until Grant was elected was there any
| stability here; but now we can get capital Z;
| offers 10 buy and lease are pouring IN upon the
company. Capital is coming out Of its hiding
| places: even men of the South are investing.
The road must be completed. The road iotH be
be completed, now that il is possible to do it.
What is the object of this suity To force the
road into bankruptcy. And is this done Dy tue
parties sueing to obtain their money! NO. For
| - so.I aro Cd fhan m "a m
was offered them-but they declined the proiier,
| and insisted that the company was bankrupt. such
| conduct was irreconclable with itself. Could the
company be declared bankrupt when il had offered
to pay its debts? Judge Robertson here brongui
up the law of Louisiana to prove that legal ten.
| der may be made at any stage of bankruptcy pro-
| ceedipes. The plaintiffs then have no right to
| appear in court. Mr.. Morgan, owning over $780,
900 worth of bonds, other parties owning over
| $500 600 of bonds, are unwilling to proceed
/ against the road, and yet here stands creditors
whose debts are legally psd-legal tender of then
| amount having been made-and 10 the names OF
other creditors, who do not want the thing done
demand that the road be declared an involuntary
bankrupt. Why, the court uld not entertain
such thing for moment.
| The assets OF the road are as follows:
TIE road from Alsiers to Berwich's Bay with ooo ~
. eu E"n Is g sss s, sG States sio0
Net earnings from the United States due up to ,, =
rsr SSY from The Uniied ii.ie; since july s. sSS
Deb,s due By the city ....''....''''..''' esySS
Debts due by the State. eoO0
IS l94 90
| In the opinion of the speaker the debt OF tn
United States IL good one. Ii can surely bs
| collected. II would have been collected some
time ago, but the speaker, who was then Il
, | Washington, lacked the proper authority to re
} | ceive IT, The city debt is also good, and vii
| ultimately be collected. The $50 900 due by tn
parishes are due principally by parishes on tn
other side of Berwicks Bay. This could not b
| collected Just after the war because the Legs
lature then meeting forbade such thing. The det
: | due by the State-$55O 000-is also good. Tn
| act of 1862 was quoted to show the appropriation
| made, and the Constitution OF 1865 TO snow tna
the law was still in force The liabilities OF tn
[, | road are as follows:
First mortgage bonds 81 9s7 900
.econd mortgage bOnds...... ............... t9S9
Due The United STATES sOoOV
Other liabilities. SOoV
J, Total
( Now with this exhibit, with IS 100000 asse
| and 81 500 coo liabilities, shall Mr. Tucker wli
sum less than cents on the $1,000, be allowe
to force this great corporation in which the VINO
/ community are so much interested, aud which
!. | now ready to fulfill its contract to build throuR
the road, into involuntary bankruptcy! why u
idea is monstrous. On such principle Mr.. Tucst
himself notwithstanding his property, might
forced into bankruptcy on washerwomans Oh
Is the company amenable to the bankrupt law'
q | IL il not q trader, but corporation.
|. If this bankruptcy is ordered the road will new
be built through. If it is let alone work on u
> extension will commence by July l, next. II
r belief of the speaker, the solemn, honest belle
II il that if the road gets into the hands OF Il
Western men who back Mr.. Tucker, il will be ~
to the injury of the city and State and not to the
benefit. The company will shortly. If they a
u released from these proceedings, dispose OF u
ID road TO men who will build it through, and wi
" will also, in time, guarantee to pay Z per eer
m interest annually on the stock. The Western ms
= who have inaugurated suit to sell out the ro'
say mt
e. transportation from Texas 30 New Orleans OF &C
a. tie. This is blind. There Is now before Co
- gress a bill sppropriating large sums towsr
NJ building a road from Cairo through Missouri, A
e. kansas, Louisiana and Texas to the Rio Grand
e. thence to the Pacific ocean at san Bias. maxi
no the route from Cairo TO San Bias 1900 miles. Ov
"a this road would pass the cattle of Texas, and {
Az Opelousas Railroad would thus lose the ra'
which, but for the road, it would have; and
men who back Mr.. Tucker are the men who a
e, putting this bill through Congress. These m
be want TO buy the 0pelousas Railroad so they c
ss stop il at Brsshesr City, and thus cut OF forey
ne from New Orleans that trade which they want
X. the new road, and which would otherwise col
rs. | here. 1t was plot to shut the road mp forev
~, | and the cattle idea Is only a blind and sha