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

and benefit of the holders Of these coupons. but
~ this ease, we thinS thar the extiDguishmeut o
that debt was justifsbe; nearly all of it had
assumed The form OF Judgments, md execution
were sbout to he issued, under which the rollins
stock would have been sold indeed il was the
frst duty of the directors TO protecs the properly
of the company from SEIZURE and sale. - -
FIfih-Whether or not it was illegal for the
directors TO issue bonds under the second mort
gage, inasmuch as the Legislature of Louisiana
authorizing them to borrow money "for the con
siructiUp or repairs Of the rosd?
We have TO say that we do not regard the issu'
ance thereof violation of this law.
We believe that, If the directory, 10 conducting
the legitimate business of the corporation, be-
came. through losses or misfortunes embarrassed
10 their pecuniary circumstances, they had the
power 10 borrow money to relieve them. To fund
or retire the coupons of the first ponds. which
they were unable TO meet as they ma,ured, was
not 10 our judgment. an illegal act, and as it was
entirely Discretionary with the holders to come
ia, CT not, into this arrangement, no fraud was
committed.
Inregard to the arrangement ma le with the city
notes issued by the company during the war, we
have to say that the balance still due to the city is
now reduced to SIC, $50 So. for which q note has
been given, maturing 9TH May, 1869.
at first we we're inclined to the opinion that the
road was not economically managed, as the inter-
ets Of the required. The large amount
paid TO employees, simply In running the road, at
uscted our attention and demanded explanation,
in the last annual report under the head Of
"rosd expenses for labor" pay of "agents
and clerks" conductors" and train hands"
"engineers and firemen," an aggregate amount
Of s4s2,S46 81. We therefore called upon the
secretary for statement of the Pay or wages,
and of the number Of employees engaged on the
rosd, from which statement we find that the num-
Der of employ es Is seven hundred and hfty-four,
and their monthly pay about the sum OF $40 600.
We have no means of determining whether or
not such a large number of pe.sons is required to
that the directors consider their labor necessary,
and they are the best judges UPON this point. The
salaries and wages paid are not extravagant.
RECEIVER.
ga receiver is appointed Dy the courts to re-
ceive the rents issues, or profits Of the land or
reasonable to the court that either party to the
suit should do it," Edwards on Rec, 81
I" A receiver is appointed sometimes, but not
usually, before an answer, unless fraud 10 clearly
proved by sfidsvits, or when 1t is shown iumi.
nent danger would ensue If the property were not
taken under the care of the court" Vaughn VS..
Barnett, 2 Brown, ch. c. 49,
" Ii must be. however, a strong special ground
TO induce the court to interfere before answer.
middleton vs.. Dodswell, IL yes. 1861
"a receiver will not be appointed where de-
PENDANT is in possession under legal estate.
sThis is the rule In ordinary cases, and il is only
departed from in cases of fraud clearly proved
and Of imminent danger If the intermediate pos
session should not be taken under the care OF the
court" (-loyd vs.. Passingham, 10 yes. 59.)
This honorable court, in the case Of "Griffin
and Porch ct al VS.. Mark Hoyt ct al, :" used the
following language:
This court is, 10 general, indisposed to appoint
receivers of property involved in litigation. Ii
dsturbs possessions prevents the active admins
tration Of property by those who are interested
in IL, and places property in possession OF officers
of the court, of whom the most that can be re-
Qured is to preserve IL, to abide the final decree
In addition to this we may add, that we consider
the rule well established. that, when there is q
corporation with q large number of stockholders
interested the courts will not take charge of their
franchises and property, unless there is gross
Encouragement. or illegal and improper use Of
the funds.
This is railroad 206 miles in length, and Is the
principal link in the chain connecting New Orleans
with the great cities of the North and West, and
we are satisfied that the interest Of neither bond
holders nor stockholders would be promoted by
the appointment of a receiver. lW /
The present directors and officers are practical
men Of high character and standing and well quail
flied TO manage the affairs of the corporation.
Besides. we do not doubt so far as complainant is
concerned. that decree Of your honor directing
bis coupons 20 be paid in preference to those
;ssued under the second mortgage, would be
promptly obeyed. err-.. rer- 81 re
CONCLUSION.
We are under many obligations 10 the PRESIDENT
and directors for the facilities which they afforded
us In the discharging the duties imposed upon us.
In the course of our examination into the finan-
cial affairs OF the company, we were compelled TO
verify the correctness of the annual reports, and
obtained great amount of information not found
in them and to the able and faithful secretary aud
treasurer, Mr. Charles, who has been identified
with the road from its organization, we are espe-
cialy indebted. The company is certainly for.
tunate in having the books andpspers kept in the
most excellent order. All of which is respectfully
submitted. (Sgned) NJ. NJ. CoHES,
(SiQned) JOHN b. WELLER.
Masters in Chancery.