The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1870-05-26
N ths Senate and House
Of Representatives Of

GENTLEMEN The general meeting OF the
.,ocFhoIders of the New Orleans, jackson
snJ Great Northern Railroad Company
hsTing been fixed for the inst l
Commissioned Judge G. c. Shackleford and
~ Nj B. Iiewson TO represent at the meet
~. tie stock OF Mississippi.
Mr.. Hewson vas appointed. chairman OF
--.nuittee TO investigate the report of the
prs.ident and Board of Directors. l sub
~ herewith for your consideration copy
VIZ. report. His examInation of the affairs
" me company brought out facts which
oOaavinced him that the company can afford
- buiId the road between Canton and Aber-
sasn In constant communication with me.
10 accordingly opened correspondence ON
~ sulyiecG of the claims of Mississippi on
ne company with President Beauregard.
Tie accom- panying letters will give you the
,ith and upshot of the negotiation.
The only proceeding open to us now to
ate good the rights of our people is. /
mar Summary. / shall show you. how
Ser. before proposing Ii, how very amply,
novg that fOrbeaFance with the New Or
isans. Jackson and Great Northern Railroad
IA become feebleDess, that summary pro :
ceeJing finds justification in the facts:
In an act approved May z, 1856. the State
Liant monies to the New Orleans, Jackson
md Great orthern Railroad Company from
me ..three per cent" fund. In an act dated
Voyenber Is, 1851. the State made another
Loan 10 the New Orleans. jackson and g rear
Northern Railroad Company from the three
nor cent fund. The loan in each case was
PIo.de on the condition that the monies were
"a he repaid in seven years, with eight per
cont per annum interest payable in the
meantime semi-aunually- In both of those
rases the company stands before the State,
IN reference To its contract to pay her the
nrincipal as well as in reference TO its con-
rfrart 10 nay her the interest, an old default
One of "the three per cent" leans thus
made. was made, by a proviso in the law.
subject only to investment in iron for the
nurpose Of giving the State the equivalent
afan advance toward the accomplishment
Of her great aim in all her transactions with
the pany-the branch to Aberdeen. And
here again the New Orleans, Jackson and
Great Northern Railroad Gompany stands
. before the State an old defaulter.
Under the act of May 18th, 1856, the State
made loan TO the New Orleans, jackson
and Great Northern Railroad Company, OF
monies of the Chickasaw School Fund. In
having disregarded the contract on which
that loan was made-a contract binding the
Company to pay the interest semi-annually,
and the principal in seven years the COmpa-
NJ stands before the State an old defaulter.
The franchises of the New Orleans, Jack
son and Great Northern Railroad Company
we're granted in the act of March 1lth. 1882.
The preamble of the act states that the con-
sderation for the grant, is the construction
Of the road throughout the whole extent OF
the State. And that grant is made subject
emphatically to the rights, powers, immu-
mites and conditions hereinafter recited.'
One of these conditions runs as follows:
"And if the railroad by this act authorized
shall not be completed in all its extent a.
contemplated, within this State so far as To
trans port freight and passengers, within the
space of ten years from the passage of this
act and its acceptance by the said Company,
then this act shall be null and void" And
| arraign the New Orleans, jackson and
Great Northern Railroad, under this very
positive contract, as standing before the
State subject in this case to the penalty OF
default.
In the act of February 9th, 1860, the Com
pany received, it is true, an extension OF
time for completing the branch to Aberdeen.
1t received in that act further grace to the
extent of a confirmation OF its charter il
terms making it perpetual. But these fdvors
are conferred in that law subject to certain
conditions. The first of these runs as fol-
lows: That the said Company shall com
plete at least sixty miles of said railroad.
North and est above the town of Canton.
and for further distance of about nine miles
from the town of Aberdeen to the crossing
Of the Mobile and Ohio Railroad, so as To
transport freight and passengers on the
same on or before the LIST day of January
1860 And in this the New Orleans, Jack
son aud Great Northern Railroad Company
depriving itself of the benefit of the extern
sion of time and the saving of its charter.
stands before the people of Mississippi, i'm
another instance, detaulter.
Add the extension of time obtained for
constructing the branch 10 Aberdeen in or
der TO save the Charter, was made subject
TO another condition. 1t runs thus: 'Provi
ded further, that, if after the said LIST of
January, 1865, said Company do not com
plete said railroad in all its extent within
m mr. baf ha LET flax .Nf To
~, 1874 as contemplated by the above reel
ted act the 18th of March, 1852, then said
company shall incur all the forteitures and
penalties of said Act. the for
fixture and penalty that the original Char
ter ofthe Company shall be null and void"
And under this proviso, the New Orleans,
Jackson and Great Northern Railroad Com
pany stands before the people OF Mississippi
in the position of a defaulter.
The New Orleans, jackson and Great
Northern Railroad Company has broken
faith with this State in every instance OF
their mutual contracts. We have fOrbornt
10 enforce the penalty. and now are entitled
TO tie confession of having granted the
company years of indulgence in vain Our
recent attempt to bring the Directors 10 a
discharge of their duty to us by Cancellation.
has been declared by our agent hopeless
Though the report of Mr.. Hewson's Com
mittee was received without objection, as
can testify personally, by the stockholders
Of the late General Meeting, in New Or
leans. no practical attention was paid TO its
recommendations. And we are thus called
on to originate new course of policy for
the enforcement of the obligations due us
BY the New Orleans, jackson and Great
Northern Railroad; aud are so called on at
moment when we find that Rail- road about
70 be committed to the HANDS of receiver
IN bankruptcy, as Indicated in the aecompa-
91yng order, issued in New Orleans, by
Judge Durell.
The New Orleans, Jackson and Great
Northern Railroad Company ignores our
IoAn from the three per cent. fund to the
amount of $4,000. with interest at the rate
OF eight per cent. per annum, for many
years; while on the other hand, it continues
% pay on year after year, large amounts of
interest and arrears of interest, to its bond |
noiuers, and large sums under the head of
noating debt. 1t ignores our loan from the |
ChlckaSaw school fund to the amount of
SzVoOOO with au amount of interest that |
aggregates already over 100000; and while |
meeting other liabilities to a gross total |
last year OF nearly 100000, throws on the |
people OF this State in even this time of ex- |
tiaorulnary demands upon their industry, |
sle burden Of making good its defaults of |
interest on that school fund! The New Or |
1eahs' jackson and Great Northern Railroad |
company, while regarding with virtual in |
ul1erenee, its solemn obligation to the State |
" oulld the extension from Canton TO Aber- |
deen, and while hopelessly deaf to every /
pea pea LOT contribution to that work of even /
S@VO'OVV year, has actually expended. du- /
[Ilg the past year, as if in derision Of that /
ooilgatlon TO Mississippi, a sum amounting |
so ,oI me purchase of real estate alone, to /
SIoO'UOo on an extension from the depot, in |
New orleans, to the riverl And not only |
uoes Tue company treat thus, with calm /
contempt, its contract to give our people the |
oeneht of the branch to Aberdeen. but il has |
actually encumbered the accomplishment of /
mat Work BY an act of bad faith in having /
applied certain mortgage bonds as a lien on /
me main trunk and the branch, to other /
purposes than that for which those bonds |
We're, in fact authorized-the Construction |
OF the branch
=, As other creditors of the New Orleans,