New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-06-14
JACKSON RAILROAD CASE
DECISION AGAINST BEAUREGARD
EIGHTH DISTRICT, JUDGE DIBBLE

! The State of Louisiana on the relation OF
Henry S. McComb and others vs.. G. T.
Beauregard and Others.-This is q proceed
| ing by the writ of quo acG,rdnto to determine
Jackson and Great Northern Railroad Com
pany.
The REALTORS. Henry S. McComb. Joseph
H. Oglesby. Richard Pritchard, Goodwin h.
Summers. and ten others aver that, on Mon.
day, the 25th of April, 1870. at an election
held according to law, in the Office of the
company, they were duly chosen directors of
said company tor the ensuing year, by a
large , majority a ha OF 1.-THE the u.iOpits votes
of the votes of The stocksand stockholders
present and represented at said election; and
that together with E. J. Forstall. W. A.
Gordon. A. Schriber and Williamson Smith,
acting as directors at said election, then re-
elected and now acting, are duly qualified
persons under the charter OF said company
to act as directors thereof. They aver that
said Forstall, Gordon, schriber AM Smith
are in peaceable possession Of their offices
of directors, but that T. G. Beauregard, c.
Fellowes and eleven others, predecessors OF
REALTORS and whose terms have expired,
nevertheless hold peaceable possession OF
and usurp the said Office of directors OF
said company and the administration OF Its
affairs.
The petition prays that a writ of quo ,odr'
rdntO may issue to inquire by what author-
ity the said Beauregard and others nold ana
exercise the Office and franchise OF directors.
"a aforesaid. and as such administer the al
fairs of said company; that said Beauregard
and others be cited to appear and answer
the said charge of usurpation; that curator
ad hoe be appointed to represent the absent
directors, and that after due PROCEEDINGS
the said Beauregsrd and others be ousted,
and relators installed as directors aforesaid.
The responpents appear and answer; tnose
q curatur dd hoe. They allege that prior to
the eighteenth day of April. 1870, they were
dnly elected and were qualified as directors
of said railroad company; that by the
charter, Monday, the said eighteenth day
of April, was the day fixed for the ano1al
election of new directors; that due notice
had been given as provided BY the charter,
and on said eighteenth day of April ma
ior;tv of the stockholders were present,
commissioners had been appointed, and the
| election was about to proceed with. but
| that they were enioined not to hold the
election. by process issuing from this court,
at the suit of H. S. McComb, one OF those
REALTORS, and that the meeting of stock
| holders was then dissolved sine die, to abide
| the result of the said injunction suit. They
| fnrther aver that on Monday, the twenty
|
missed his Injunction, and without notice
| met at the Office of the company, with other
| nprsons. clai the right to represent
| stock. aud bod pretended election, which
| was and is wholly void and of no effect.
| Reference is made at length, in this return,
| to proceedings pending in this court between
| the said McComb and the said railroad com
| pany. which will hereinafter be noticed.
| ALLEGATIONS OF illegal, fraudulent and mali.
cious combinations, are charged against
| the relators. and large damages claimed in
reconvention. Upon motion Of relators, the
reconyentional demand was stricken out
upon the ground that there is no warrant IN
| law for such demand in proceedings OF
| this kind.
This is but one phase Of series of re-
markable cases pending in this Court, in
| volying the direction and control OF the
New Orleans. Jackson and Great Northern
Railroad Company. The pleadings in the
| several cases were offered in eviderce, and
| are made part of the record in this case.
| From all these proceedings l shall gather
| the history of the corporation and seek to
throw what light can upon the way to
| lust decision between these contestants.
| The evidence before me is full; the case has
| been presented upon both sides with great
| clearness and marked ability.
This CORPORATION WAS created by the Legls.
Iature in 1853, with capltai stock of So, 600,
| O0O. The shares are S25 each. In order to
| aid the said road the city subscribed to
GA, 600 shares, 35, $50 of which were paid Tor
under the terms of the subscription. The
CITY of New Orleans was authorized by law.
| and took and paid for $4,000 shares, while
the State of Mississippi became the owner
| of Il, ,935 shares. These magnificent dona-
tions-for they proved to be little else-were
| in process of time responded to by full paid
| private subscriptions to the amount OF
&c ,954 shares. With the money thus rea
| lized, and with the aid of three or four mil
| lions of first and second mortgage bonds,
the road was built. These facts are ELECTED
| from the testimony OF Il. b. Charies, Secre'
tary.
| For reasons which have become apparent
! in the progress of this litigation, the State
| government determined to dispose Of the
| stock owned by the State. Accordingly an
act was passed by the Legislature, and
approved April l, 1870 to authorize the sale
of the stock in the company owned by the
Orleans, Acts 1s70 No. rs. This act d.
rected the Governor to dispose of the State
stock, and authorized the city of New
| Orleans to sell its eighty thousand shares.
| The act was approved about the time that
a new charter for the said city went into
effect. The officials under the old govern
| ment, IN haste to effect the sale before sur
| rendering their offices, passed an ordinance
with great hurry and some informality, di
recting the Treasurer to sell the stock. Ac.
cordingly he disposed of it to 81. s.
| McComb, one of these REALTORS, for the sum
| of three hundred thousand dollars $500,
| OOO). The certificates were delivered tC
McComb, who appeared at the Office of the
| company and requested that they be trans
ferred to his name upon the stock transfer
books. The president and secretary o
! IN %
| transfer.
The stock owned by the State was alst
adiudicated to McComb, after ten days pub
lie notice, by the Governor of the State, fo1
| the sum Of one hundred and fortv Thousand
six hundred and forty dollars (Sl4o,64O).
A demand was made for the transfer o
this stock, with the same result as IN th'
| other instance.
| McComb then sought the intervention O
| this court in order to compel the transfer o
| the stock to his name by the writ OF man
damus. An exciting contest arose. Th
! officers Of the company, as well as seyera
| intervenors with fancied interests. came
| into court with wild and incoherent charges
of unconstitutionality, illegality, conspiracy
! fraud. combination and corruption.
| Sweeping this chaff aside the cases presen
| this state Of facts: McComb had bought and
psid for the stock as aforesaid. The Presi
| dent and Secretary of the corporation haC
refused to transfer the stock on the books o
the company or to recognize McComb a.
having the right to rep resent it. The lega
contest presented the single question OF law
| Could the State sell the stock owned by 1t
! and authorize the city to SELF
Thus matters stood On the third Monda,
of April, the day fixed By the charter fo
the annual meeting of stockholders to elec
| directors for the ensuing year.
| McComb states in his testimony that ~