New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-09-21
Messrs. seligman & Co., bankers, of New

Messrs. Seligman 81 Co., bankers, of New
York:
We, the undersigned, do hereby sub
scribe for and agree to receive from j. &
w. Seligman & Co., and to pay to them in
cash therefor, the following described Sc
curities that is to say: $I,749,O00 of the
first mortgage bonds of the New Orleans,
Mobile and Texas Railroad Company
$2G0,OO0 of the second mortgage bonds,
guaranteed by the State of Louisiana,
together with $3,8l9,000 of income bonds,
and $3,8l9,000 of capital stock Of the New
Orleans, Mobile and Texas Railroad Com
pany. at fifty per cent of the said first mort
gage bond and second mortgage bonds, guar
anteed, and par for the accrued interest
thereon to date of delivery; also, So, 100000 of
| the eight per cent bonds of the State of Louis
| lana, issued and to be issued in aid of the
! construction of the railroad of the said
| New Orleans, Mobile and Texas Railroad
Company at fifty per cent of the par value
| OF such bonds, and par for the accrued in
| terest thereon to date; also, 81 800, 600 of
| land grant bonds, to be Issued by the New
Orleans, Mobile and Texas Railroad Com
| pany upon $4,000 acres of land within the
State Of Texas, to come into possession of
| the said company at and for fifty per cent
! of the par value of such bonds, and par for
| the accrued interest thereon to date of de-
| livery.
Now the conditions of this subscription
are as follows, that is to say
| ]. No subscription hereto shall be binding
until the amount subscribed shall be sutfi-
| cient to purchase all the above described
securities at the prices above named.
| Z. Each subscriber shall receive his Just
| proportion of each of the above described
securities in proportion to the amount of
| his subscription
3. Payments under this subscription shall
| be made as and whenever j. & w. Selig-
| man d Co. may require, provided that each
subscriber shall receive the securities to
which he is entitled for such payment
| 4. The said j. 81 w. Seligman g. Co. nav
| deliver for any payment such securities as
they may command, provided that each
subscriber get his share of each class at his
final payment.
Governor Warmoth, handing the book to
Mr.. Kennedy, added that he would sub
scribe $4,000.
Mr.. Upper asked the Governor: Do you
understand that the bonds to be given to
the contractors are now in the hands of the
company, or to accrue as the road pro-
crosses
Governor Warmoth-The first mortgage
bonds have been issued. The second mort
gage bonds can not be issued except as the
road is completed in sections of ten miles
each. The $25OO,OOO is what they are to
receive as subsidy from the State, and is
only to be issued as the work progresses.
If you subscribe to 81 100000 worth of the
stock of this company, you will be required
to pay only as the road is completed, from
time to time. In relation to the So, 100000
given by the State in subscription of stock,
these bonds are in control of the directory,
but hypothecated to the directors them
selves, and they have used the assets in the
construction of the entire road. But if the
road is not completed in given time, the
consideration of the issue fails, and think
there will be some difficulty in getting the
bonds paid.
Mr.. Kennedy-Does the contract include
the road from'Vermilionville to Shreveport?
Governor Warmoth-No, .. it does not.
Parties have been desirous of making that
contract, but the arrangements have not
been approved yet. Mr.. Ward is anxious
to take the contract, on condition that he
has that part of the franchise. This propo-
sition was distinctly made by Mr.. Ward
and l have no doubt some such arrange
ment will be agreed to. In that case, the
road is to be completed to Opelousas by the
first Of January, and within six months to
Alexandria, which is graded part of the |
way already. The question is, are we will |
ing, in order to secure the immediate build |
ing of the Shreveport extension, to surren-
der our franchise! If we do, we will retain |
our hold only on the Texas road.
There is disposition on the. part of some !
of those who hold the first mortgage bonds |
to foreclose them, put the road in default,
sell it out, buy it in, and thus run it on far
less equitable principles. The men who are
taking hold of this work of forwarding the
road to completion are those who propose
to carry out the original design of the road
Mr.. Bushnell has 500 men here now, ready
to go to work at once. And there is every
reason to urge prompt action, and no reason
for longer delay. My opinion is, if this
railroad is not completed by the first of
Mayor nearly eomplcted-it will be years
before it will be built, for you will have to
By the time the road is built the bonds you
have paid for at half price will be at par or
near par; and if it is not built, then the
payment of your subscriptions will not be
required.
1t was feeling of the board that there
should be resident dlrectory-that large
number of the directors, and at least the
vice president, should live in New Orleans.
Eight members of the late directory were
elected from this city, though some have
since resigned. l have no doubt, therefore,
It you subscribe to this million of shares,
Mr., Kennedy can go to New York and make
any arrangement he wishes in your inter
9sts.
Mr.. Joseph moved to appoint committee
If fifteen to solicit subscriptions for the
completion of the road, according to the
of the contractors as submitted
;o-night.
Mr.. Black was in favor of awaiting the
'eturn of the executive committee, now in
New York, and let the matter be digested
1y the executive committee till then-not
or delay, but for safety.
Mr. E. II. Summers favored immediate
action, unless the committee will give US
urther information.
Mr.. Upper stated that the committee
would submit no propositions opposed to
of stock.
Mr.. Joseph thought time was precious,
md action should be taken at once.
Mr. Black thought this was proposition
o take the bonds for the road to Houston.
Ia wanted both roads to 90 through to-