New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-06-23

chattanooga ROAD was DeSet Win olmcul-
ties that led to the suspension of the
trains, and for several days the suspension
continued. 4B -
| The Mobile Tribune of yesterday says
of the Alabama and Chattanooga rail
road:
The differences between debtors and
creditors on this road, we are informed, are
so far adjusted as to enable the road to re-
sumo regular trips, according to the sched-
| ule, to-day. Trains will run through from
Meridian to Chattanooga to-day, and regu-
larry hereafter.
An order came here Tuesday to trans
fer the mails referred to from the New Or
leans and Mobile railroad to the jackson
railroad just as there was resumption of
through trains by the way of the Chatta-
nooga short route, and so there was pos
sibly another error in mail transportation.
The Louisville Ledger, in discussing the
affairs of the Alabama and Chattanooga
railroad, starts out with this declaration:
We are safe in saying that this road in
its appointment, equipment and general
construction is superior to any railroad in
the South, with the single exception of the
Louisville aud Nashville railroad. 1t is 295
miles in length; commences at Chattanooga,
in Tennessee, and extends to Meridian, Mis-
sissippi. 1t is claimed for it that it is the
shortest route between New Orleans and
New York, and it is capable of still shorten
ing the distance by being so well built as to
be able to make forty miles per hour with
out danger to travel. 1t is said by its
friends that the time can be easily made in
from six and a half to seven hours.
The Ledger adds:
Mr.. J. C. Stanton, its protector and build
er, has been over three years in its con-
structiOn, in which he has exhibited rare
energy and pluck. Mr.. Stanton, in his en-
terprise, had the assistance of the State of
Alabama in the shape of Endorsements of |
its bonds to the amount of $4,000 per mile, |
and further grant of 956, 900 acres of land, |
with which to build the road. Mr.. Stanton |
has completed his road and has stocked it |
well. and was moving on swimmingly, but in
order to accomplish this he found at last
that he owed a floating debt of 81 SOC, 900,
or perhaps 100000 of this over 100000
was due employees, who were still willing to
work on had not couple of doubtful cred
ltors attempted to force the road into bank
ruptcy. These men held doubtful claims to
the amount of S2l 900; $4,000 of this
amount was in claim presented by Judge
Walker, of Alabama, for services rendered
in procuring from the Legislature of
a loan of $4,000, 900. His claim of
sl5,OOO Mr.. Stanton refused TO pay. because
he regarded it as a fraud, Walker being al
ready employed by Stanton as attorney for
the road at $4,000 per annum and all ex-
penses paid This Mr.. Stanton regarded as
salary ample for Walkers services. After
The rejection of Walkers claim, he COM
!. |
INTO bankruptcy before Judge Busted,
United States Judge. 1t is said in Alabama
he whole proceeding was gotten up in the
interest OF ring, the said ring expecting to
get this fine road into their hands for the
purpose OF wrecking it. This alarmed the {
'reditors and employees of the road. The
after stopped work, and also stopped the
rams. The employees unanimously Joined
he creditors in resisting the bankrupt pro- [
eedings. On the fourteenth instant cred
tors and employees to the number of fifteen
hundred met at Chattanooga. and adopted S
es0lutl0ns pertinent to the questions at 7
ssue.
For the. extension of time on the floating
ebt, Mr. Stanton offers stock and land t
onds as security, and eight per cent inter-
st, and he offers to accept and consult in
ne management, the creditors, directors, I
nd financial agent appointed by the State r
ond. The road SO far has cost about [
II 100000. 7
AT subsequent meeting of the creditors !,
was agreed that the Governor of Alabama
hOuld appoint the financial agent. as the n
tate is the largest creditor. q
The creditors, with the consent of the :.
labama and Chattanooga railroad manage i
ent, elected L. 5. Kennedy, of Tuscaloosa, t
labama, j. L. Devine, of Chattanooga. and
z S. Mudd, of Alabama, directors in the
'mpany on the part of the creditors. These a
7ntlemen are all favorabiy known to the n
nsiness men of Louisville.
The Montgomery advertiser and lIaa {
ates that at the meeting of creditors }
#. Stanton submitted an exhibit show Z
g that the total cost of the road in
uding excavations, depot buildings, .
'st of iron, bridging track laying, and G
Hing stock, was 1924, 557. The e.
Mount realized from the sale of securi- {.
rs was 81, 248, 600 for the first mortgage u
dorsed bonds, S1,80O,0 900 for the .
raight bonds, and s1,593, 900 for the o
cond mortgage bonds, making in all =. ''
!, GA, 900, from which he deducts 81, 257,- IL
" ioi iAleieSt, TAXES ana expenses
negotiation, leaving as the net re-
ipts from the sale of S9,375, 900 of first IL
d second mortgage bonds the sum of al
1883, 400. Of these securities the State al
Alabama stands bound for Sc, 72O, 600, e'
r her protection against which she d.
Ids mortgage on all the property of u
descriptions belonging to the road
Since the operation of the Alabama u
d Chattanooga railroad may shorten y
e time between New Orleans and New a. u
'rk six or seven honrs, its success is a 81
alter in which our citizens have deep %
terest, for mails and passengers nat Vi
ally seek the shortest route. LII