New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1868-11-26
THE OPELOUSAS RAILROAD SUIT.
TESTIMONY OF q. W. R. BAYLEY.
WHY MORGAN MADE ADVANCES.

As The State of Louisiana and the city of
New Orleans have a very large interest
/ (fnlIy two-thirds of the whole stock) in the
New Orleans, Opelousas and Great Wes-
tern Railroad, the reporter of the Times
continues his account of the suit of James
| 7. Tucker against the road, by publishing
the testimony given by G. W. K. Bayley, or
the substance of the same.
| mr. Bayley is the present Chief Engineer
and Superintendent OF the company; has
been Superintendent since April 1866, and
| Chief Engineer since 1856 or 1856. Vas
/ in charge of the location of the road in
| 1852 and 1858, and is familiar with the
whole subject of location, construction and
maintenance of this road. The road be-
! tween Algiers and Brashear, now ir opera
! ton, eighty miles, was difficult to construct,
| expensive, and equal 10 these respects to
1 the average of railroads in this country.
, Nine and half miles of marshy prairie,
( or prairie trembldnte, and fifteen and half
miles OF cypress swamp, or twenty five
miles in all, had to be built across in this
eighty miles. The average cost per mile
1 Of railroads is about $50,000 in thi
country. His estimates of the value Of
| the whole road and equipments now is
| 50, $40 GOO, and be considers the estimate a
| low one. The condition of the road now
| is equal to what it was in 1862, when taken
possession of by the United States Govern
ment. He says the reason why the com
| pany has been unable, thus far, to pay of
the roads Indebtedness for intesest on its
bonds, and to go on with its construction
toward Texas, is that the whole or nearly
all OF its earnings had to be used to restore
the road to its former good condition.
| hn to bnr
| sion of it in 1862 the road was in excellent
condition, well equipped with locomotives,
cars, etc, and provided with wharves, de-
pots, station buildings, and all the requi-
site appurtenances for the transaction OF its
business. When returned to the COM
| pany in 1866, it was in a dilapidated
| condition, and but the wrecks of its
rolling stock and appurtenances remained.
The Government authorities had sen
away to other railroads, in Arkansas and
| Texas, three of its locomotives and many
OF its passenger, baggage and freight cars,
and the engines and cars returned were in
bad order, mostly unfit for use, while the
! large drawbridges had been destroyed as
well as many of its buildings. wharves,
platforms, etc. Notwithstanding this re-
moVal and destruction of property, amount
| ing in all to fully $360000, the Govern
| ment compelled the company to pay SI13,-
| 773, with interest from the date of transfer
at 7-3O per cent for property put on the
road by the Government, though paid for
out Of the roads earnings, from private
passengers and freight while in
Its possession. He said that it
was indispensibly necessary for the
safe transportation of passengers and
freight, that the road should be restored
tn lie tNpTy1 g, IL
| its wharves, bridges and buildings should
be reconstructed; that new new cars shoul
be built, and the old ones repaired. All OF
! this had been done, and the road now. in
all Of its departments, was in good condi-
ton, and the working expenses had been
| reduced to so small an amount that, in the
| future, the surplus earnings would be suff-
| clent to pay the current interest or its
| bonded debt and on the amount due on
| matured coupons, If funded in second mort
| gage bonds. In addition TO recoustructiag
the road, and re-equipping it, be said that
the entire floating debt of the company,
| including balance of about $50, 900 vet
due the United States government, had
been reduced to less than $4,000. He
said that this had been accomplished during
time, from 1866 until now, when the bu
| slness OF the country tributary to the road
was IN nearly a ruined condition, and in
| 1867 several months of overflow, followed
by epidemies, had occurred. Now, the
condition of the country tributary to the
road was rapidly improving; the roads
business was increasing and, in his opinion.
| If but few months time was extended to
the company to realize from its assets and
to foster its rapidly increasing business,
the entire stock of the State, city and pri-
vate stockholders could be saved, and salts
| factory arrangements could be made for the
speedy completion of the road to Texas.
He stated that the United States Govern
ment was indebted to the company for
surplus earnings of the road up to July
l, 1868, to the amount of S12S 900; and for
| properly removed and destroyed, $3.50 900.
| Also, that General Banks had acknowledged
a surplus of $65,000 after 1868, besides a
large reserve fund for contingencies. That
the State yet owed the company, for un-
paid balance of her stock subscription.
now due, according to existing laws.
10000, and that the balance due on par
lsh and city subscription was about
Sl36O00 The United States land grant
to the road of 1000 acres, he believed
would be renewed. In the case of rail-
roads in Arkansas it had not only been re-
newed, but extended from six to ten sec
tions of $40 acres each per mile of road.
He had had conversations with Mr..
/ Morgan and believed that be al
ways had been willing, and was
still willing, to aid in completing the road
to Texas; that the suit against the road on
his bonded interest debt had been precipi-
iated by the suit in bankruptcy of Mr..
Tucker; that he understood Mr.. Morgan to
contemplate with parties to be associated
with him, to extend the road to Texas, even
if sold out under bis snit
When Mr.. Morgan loaned his money to
the Opelousas Company before the war il
was 10 aid in building the road beyond
Brashear to Texas, and loaned DURING the
the progress of the work beyond Bras6ear.
The development OF Texas b. means of
this road, when completed, will increase
MT. Morgan's business undoubtedly, and
1t is fair TO believe that he is able TO see it.
General Granite Opinions
A correspondent of the New York Times,
who recently visited General Grant at
Gslena, reports the latter as saying;
The morning that Lee surrendered he
rode out between tbs lines and went out