The weekly echo. [volume] (Lake Charles, Parish of Calcasieu, La.) 1868-1876, 1874-07-04
60 80 - - ]


named securities were offered 81
the North and ID New Orleans lor
fifty cents on The dollar, with eqaal
amounts 10 tie shape q eight per
cent income bonds aud full paid
III stock thrown ID as i gift to each
subscriber. a subscription Of
$1,000 600 was actually made ia
New Orleans, but the whole scheme
failed, because, among other rea-
sons. tie company did not have
The SECURITIES 10 dispose Of, &C
cording ID agreement Even had
they been ia possession of Mr..
Bushnell aud the full amount al
the rate they were offered had
been realized, The proceeds, So
T09 500, would have been entirely
insufficient to complete The road
without equipment from Donald
sonyille To Houston, Texas, $40
miles, and there would have been
s5,50l 900 of first mortgage bonds
10 the hands Of other parties, who
would have the right pt any time
after Six months default III the pay
ment 81 interest on their bonds to
foreclose and sell the property.
This, vour committee believe, was
contemplated as q final result BY
the holders Of said bonds.
Nr. Bushnell, through his sub
contractors, To whom, on an aver
age, he paid about ten per cent.
on the work done by them respect
lively, laid ten miles Of track be-
aond Doualdsonville, and partial
liz constructed, 10 a very cheap
and inferior manner, however,
some few miles Of roadway 10 and
along Upper Grand river. All
work ceased ia March, 1873, and
nothing has been done since.
On or about the 18th Of March,
1873, sl25, 900 Of second mortgage
bonds were endorsed By the Gov
ernor Ga the ten miles Of track
laid beyond Donaldsonville bat
IS the hnal limit Of time, January.
Is, 1873, for the completion Of tho
whole road to the Sabine river had
expired nearly two months pre-
Eiously, and tile law itself provided
that none OF said second mott
gage bonds, for or upon that por-
ton Of the said main line of rail-
road not constructed within the
time limited. shall be guaranteed
~ tie State IF Louisiana, it is
manifest that said bonds should
not have been 80 endorsed.
10 date, therefore, on the sixth
seven miles of track laid west Of
Wegtwego, or with only 50 much
road bnif, the State had contrib
uted $4,245,000, with no security
tor the amount, except q second
mortgage for 1915, 600 on seventy
miles Of read beyond Westwego,
subject to a FIRST mortgage hen for
the same amount.
The road beyond DonaldsonvilIe
has not been operated since the
track was laid, and the liens Of ali
the contractors who vet remain
unpaid, including tie constructor
of the drawbridge ACROSS bayou
Lhfourcbe have been recorded ID
the respective parishes within
which their work was done, aud
tile drawbridge was turned off So
that it could not be used.
On the sixth Of June, 1873, an
of the roads and property belong
ing to this company was sold by
the trustees of the Mobile division
second mortgage bonds, which was
. third mortgage on the road west.
and il was all bid in BIZ them for
their principals. On the twen IT,
sixth 81 August, 1873, the said
Mobile division second mortgage
bondh6lders, who are believed 10
be also the first mortgage bond
holders with tile Dane Of the New
Orleans and Texas Railroad Com
pauy mo. 2 ii effect, and trustees
Gardner and Butler transferred to
them ID consideration Of the sum
Of 81 but without guarantee as to
title, on the second day Of October,