New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-01-22
yoUIsIaNa RAILROAD COMPANY.
Remarks of Hon. l.. Sewell, OF Orleans,
ON the Bill TO Incorporate the LOUISE
opo RoiIrOad Company.


ON the Bill to Incorporate the LOUISE
ana Railroad Company.
Mr.. Speaker-Some days ago when this
Central railroad bill was brought before the
House for final passage, the railway COM
mittee having reported favOrably on it, |
made then few remarks on the inequity of
the bill. The member from Caddo (Mr.
Keating) appeared rather indignant that
there should be any opposition to his
scheme. / stated then that The object of
this charter was evidently cover, whereby
the State would be defrauded out of two
and half millions of dollars. | succeeded
in postp0ning the passage of the bill. In
the meantime | have inquired into the OBJ
iects OF the bill, and traced it back to the
session of 1868, where its origin Is to be
found, and intend to enlighten the House
regarding the facts, for their government,
that they may vote intelligently. wish
also to enlighten the gentlemen composing
the railway committee, Tor they appear OBJ
livious to the facts. The member from
Caddo may listen. He, no doubt, knows
all can tell him.
am surprised that the Committee on
Railways, after having bill of such i'm
pOrtance committed to them, and then re-
committed for a second consideration,
should be so negligent of their duty to the
State, not to have inquired into the origin
of this gigantic transaction, and insulted
the Intelligence of this House by slender
report, simply finding fault with the ter
mination of a word or two. If the gentle
men of the committee are ignorant of the
facts, | do not wish them "to burst in ignO-
rance | shall, with permission, make
known to this House the history of this
gigantic fraud.
During the session of 1868 an act was
passed relative to the New Orleans, Mo
T. n. l. Do.1
being a corporation OF the State of Ala
bama authorizing and empowering that
company to exercise its corporate powers
and franchises in our State OF Louisiana, in
which we empowered them to exercise and
enjoy the same rights in the State of Lou
isiana which they had obtained from Ala
bama; and to do this there could be no rea-
sonable objection, although it went SO far
as to give rights Of way over certain parts
of the city, so that they could approach
the banks of the Mississippi; but it did not
stop there.
Not content with the privileges and rights
of way granted in 1868, we find the in
corpora tors again on the floor of this House,
during the session of 1869. asking, and did
obtain, an act ito expedite the construc-
ton of the New Orleans, Mobile and Chat
tanooga Railroad Company" They obtained
leave to issue bonds paying eight per cent
W.,
and guaranteed by the State, and by this
action on the part of the State, the State
loaned them over $3,000,000. They guar
anteed the State by second mortgage of
Sl2, 500 for every mile of road they built
Now, sir, the first mortgage bonds, with
similar lien given to others, override en-
tirely the mortgage to the State. Governor
Warmoth is there made trustee-to see fair
play By the same act sinking fund is
prnriHaH for tn raHapnn fball hnDHS and If
is also provided that the interest is to be
paid regularly, and, in default, Governor
Warmoth, as trustee, is to come down upon
the incorpOrators and the property of the
Chattanooga Company, to seize and sell
them out, and thus recoup the State.
want the House to know if that second
mortgage was recorded in the Secretary OF
States office, as provided by the act, if the
interest was paid regularly. and how far
Governor Warmoth did his duty as trustee
Did he act Justly, and did he protect the
interests of the State9 This same act ex-
tended enormous rights again to this COM
pany-river frontage, right to block up
streets, and other property that would sell
to- day for over two millions of dOllars-all
this property wrenched from the city by
Governor Warmeth to benefit this railroad
company, and Cakes Ames in particular
without any compensation whatever to the
city which was so basely robbed OF its
rights.
Again, during the same session of 1869,
in the acts page sixty-seveD, and subse-
quent to the act | have just alluded to, |
find the corporatOrs again aided by Gov
ernor Warmoth, and they then obtained a
Joint resolution TO this effect:
Here Mr.. Sewell read the joint resolution
in the acts of Louisiana, 1862 page sixty
seven.
Thus the city of New Orleans, without
any compensation, is deprived of property
of enormous value-being nearly a quarter
of mile of the most valuable frontage of
the river and with wharves that would sell
to day for more than S4,00O,000. just take
heed. gentlemen, what this company have
obtained from US for absolutely nothing: l..
Grants over the State, as regards river
rights and frontage, worth about 1000, 900;
then grant for $750,000; then bonds of the
State for over $4,000 900; then this last joint
resolution gives them property worth more
than 81 900, 000 Besides, the commerce of
the CITY is Inconvenience, streets blocked
up, and the loss of large wharf revenues to
the city. Only think, gentlemen, up to this
point this company have, by the aid of
Warmoth & Co., robbed the State of over
So, 900, 900.
The preceding acts and grants to this
railroad are questionable and unlawful;
j
read to you caps the climax, and | declare
it unlawful unjust, piece of knavery, a
villainous conspiracy, headed by the then
Governor Of the State, sufficient to draw
down upon him the curses of the people OF
this State and city. And can it be won
dered at that we denounced this man and
hurled him from powerl
And this man, after being hurled from
power for his misgo7ernment, we find him
20 mo ia of q nI
lows Hall, band of men as reckless as
himself, and as hungry for plumber as he
was when he first entered upon the govern
ment of this State. And as the bill now
before the House is only a sequence to the
foregoing, | sOlemnly protest against its
passage until we tind out the condition OF
the Chattanooga company, and how far
they can transfer rights to the Central
railroad.
Now, gentlemen. we come TO the leglSl a.
ton of 1871. | have previously to this in
all my remarks called your attention to the
| acts of the New Orleans, Mobile and Chat
| tanCoga Railroad Company, but the bill be-
| fore us treats of and allUdes to the New
| Orleans, Mobile and Texas Railroad Com
pany, and you might ask me what the acts
| committed by the Chattanooga Railroad
| Company have to do with the Texas Rail
| road Company will explain 1t to you
Inc one Is StuueuCe ~ lhe oIucI" IN d
| Joint resolution during the session of 1871,
| page 2ll, acts of Louisiana, you will find a
| resolution in which You will see that We are
| nearing the present point at issue, and for
! a pelucid statement OF that fact | shall read
| the Joint resolution 10 the House. which is
simple act to change the name of the
Chattanooga company to that of the Mo
bile and Texas.
! wish this Assembly to understand that
the conspiracies of the Chattano' ga Rail
road Company to defraud the State and
city is succinctly brought down to the thing
called the Mobile ard Texas Railroad Com