New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-09-21

the road had been handled very loosely
| he wanted the resolution to embrace full
authority to the committee to inquire fully
into all these matters.
Mr. Burwell deemed a reconsideration
the wisest proceeding, and if the resolution
was reconsidered, he would suggest an
amendment covering Mr.. Blacks view Of
the subject. He had simply offered the
resolution the other night to prevent the
Endorsement of the resolution adopted by
the meeting in New York, where we were
called upon to repudiate the course taken
by a large number of our best citizens, who
had published statement in reference tc
the State debt, and to guarantee these par
ticular bonds
The resolution was recOnsidered.
Mr.. BurweH moved to strike out the
words "of the section" SO that the resolu-
ton would read "stock of the New Or
! leans, Mobile and Texas railroad"
Mr.. Black stated that in view of the fact
that the law officer of the State had pub
| lished his opinion on this matter, the in
formation wanted now is materially
changed He concluded by moving to lay
the whole matter on the table. Carried.
! Some gentlemen called upon Mr.. Upper
| to give what information ne was possessed
of concerning the Backbone" railroad.
Mr. Tupper replied We heard of this
railroad in New York, and the American
Bank Note Company had succeeded in get
ting up some Of the handsomest bonds it
had ever been his good fortune to behold.
And he had heard of but one negotiation of
them Twenty Of them, representing $1,000
each, had been deposited as security for d
loan OF $8000; but the cautious banker saw
fit to require an indorser, and the indorser
paid the note This is about all we were
able to learn about the Backbone railroad"
Mr.. Musson to Mr.. Tupper-You referred
to the stockholders in New York as not
having the same interest that we had in
this enterprise. Can you enIighten us as to
the amount of the payments made by them
on their stock2 Have they paid in full, as
the State of Louisiana has done?
Mr., Upper replied that he could not tell;
that he intended no reflection on the New
York stockholders; only that the completion
of this road was not vital necessity with
them as it was with u.s.
Mr. Musson-We have paid for our stock
in full and the interest On it, some 100000,
according to the statement of Mr.. West.
Now I want to know if they have paid one
cent on their stock, that they should dictate
to US.
Mr.. Tupper said he did not feel at liberty
to investigate the affairs of individual
stockholders of the company. Two or
three individuals told him they bad paid in
full, but he did not feel authorized to in
quire how much they held.
After some further desultory conversa-
ton, and Governor Warmoth not arriving,
the meeting, on motion of Mr.. Black, adj
journed subject to call.
As the members were retiring from the
building they were met at the street door
by Governor Warmoth, and all, or nearly
all of them returned with him to the Cham
Der, where, after being introduced by the
chairman, he gracefully excused himself,
and proceeded to make very full and in
teresting statement of the facts of his mis-
sion to New York as member of the com
mittee,
Governor Warmoth stated that>he found
the condition there to be that the New Or
leans, Mobile and Texas Railroad Company
claimed that they had contributed seven
millions in cash subscriptions by the stock
holders taking the first and second mort
gage bonds Of the road at par, spending |
that amount on the road in constructing |
it from Mobile to New Orleansand Donald |
sonville, and working west. They had |
failed to negotiate any of the bonds, and |
the money had been raised by the directors
who, consequently, had them
in their possession and had not hypothecated |
them.
They agreed that none of the bonds
should be put on the market till all can be
sold at once, and to hold those paid for by
5hem at par. They acknowledged what we
lad done in donations and aid to the enter
orise, but contended that what we had
given with one hand we had on the other
nand made valueless by declarations that
he bonds were illegal-not to be paid to
heir full extent-thus breaking the credit
# the State, and with it the credit of the
They say that in view Of the depreciation
# their securities by the demonstrations
lere against the company they wanted to
zee the merchants and business men of New
Orleans, as an evidence of good faith, re-
ieve the company of the effect of the en-
our people had created by TAX
ng part of the bonds and securities of the
company, and this without wanting US, to
,ay any money except as the road pro
-ressed to completion. When we did this
le was confident the bonds would appre-
late to their full par value. If we took one
million of these bonds they would take the
ther two and half millions, and then the
onds would certainly be at par, and the
DAD would be built at once.
1 told them | did not think there was any
Intention to repudiate these bonde, but that
very dollar would be paid if the railroad
vas completed.
Provided the people of Louisiana co-ope-
ated with these gentlemen to the extent
AIMED, then Messrs. Bushnell. Boynton &
%. will agree to construct the road in a
iven time. Of the stock necessary to have
AIKEN up, Mr.. Ames has taken $500,000
ash, equal to 100000 securities and
Tould take $50OOOO cash additional, and
ould get 81, ,OOO, 900 more subscribed in Bos-
no