The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1874-12-16
SWINDLING CHIEF JUSTICE.

VOf OF the w llCe House. we REFER
to the decision in the case Of jackson
and others against the Vicksburg,
shreveport, and Texas Railroad
Company, John T. Ludeling, and
others.
About year ago we published a
full history of the transactions in
volved in this case, transactions in
which the Chief Justice of Louisiana
and Kellogg, the spurious Governor
of that State, appeared in the char
acter of unmitigated swindlers. 1t
is long story, but the main facts in
the case are as follows:
| In 1866 Judge Ludeling, John Ray,
and others entered into conspiracy
to gain possession of the above
named railroad, now called the North
Louisiana and Texas Railroad, by
means of a fraudulent sale, in which
they were successful. The road had
cost $2,100,000, and was mortgaged
to secure the payment Of $76l, 900
construction bonds. Suit was brought
to foreclose the mortgage on some of
these bonds without the knowledge
of the great mass of the bondholdcrs;
and sale was offered, notice being
only in an obscure country newspa-
per. But under the laws of Louisi-
ana, property cannot be sold under
such proceedings unless the highest
bid shall equal two-thirds of it's ap.
praised value; and it became neces
sary to secure fictitious appraise
ment in order to consummate the
LOB. This was easily effected. One
of the appraisers was selected by the
complainant in the suit, and the 9th
er by the Vice President of the com
pany, defendant, who, it aftcrward
appeared, became associated with
Ludeling and Ray in the purchase.
The appraisers thus appointed valued
the road, which had cost over ST.
100000, at only $4,000, and the
whole property was actually knocked
off to Ludeling and Ray for $4,000.
So far the conspirators had been
successful, but when their operations
became known q number of the bond
holders began proceedings to have
the sale set aside on the ground of
fraud. Judge Wood, United States
Circuit Judge, promptly decided in
favor of Ludeling and his associates,
when the case was appealed to the
United States Supreme Court. This
left the corspirators in an unpleasant
situation. They desired to sell the
road, but no one would buy the prop
erty with the lawsuit attached. FL
nally, it is understood, Col Tom
Scott made proposition to pay ST.
100000 for the road, which he want
ed to incorporate, in his Southern
Pacific line, provided Ludeling could
give him clear title. 49, @''
! It was at this point that Kellogg
came into the swindling game
Ludeling had been appointed Chief
Justice by Warmoth, but when that
slippery politician left the Republi-
cans the Judge veered over to ,Kel-
logg, and in his capacity Of Chief
! Justice Of the Supreme Court sus
tanned the pretensions of the usurp7
; ing Governor. He now received his
} reward. In 1865 Ray, then q Sena
tor Of the State, had secured the pas
sage Of an act Incorporating this
concern under the, new name Of the
North Louisiana and Texas Railroad,
and giving to it the credit of the
State under certain conditions in the
shape Of bonds secured by second
mortgage at the rate of $4,000 per
mile of road constructed. None of
the stipulated conditions were com
piled with, but $546, 900 of bonds had
been issued to the road, and now in
Ludeling's hour Of need Kellogg ille-
gally and in defiance Of constitution
al prohibition gave him bonds amoun-
ting to nearly 100000 more, with
which to compromise with the bond
holders at the expense of the tax
, payers of the State, and thus remove
the only hindrance to the success OF
his colossal fraud. The greater part
of the bondholders then agree to a
compromise; but few held out and
pressed the suit before the United
States Supreme Court to conclusion.
The result is that the opinion Of
the Court, delivered by Mr.. Justice
Strong, reverses the decree Of the
court below sustaining the sale, and