The weekly echo. [volume] (Lake Charles, Parish of Calcasieu, La.) 1868-1876, 1874-06-27

ary "a, 1870, the completion Of
the road from New Orleans to that
point would secure the issue Of
T5o.000 IF State bonds, while the.
completion of forty miles Of road
vest prior to the 18th Of January,
1871, would secure the States In
dorsemert 81 $500, 600 Of the COM
PAWS second mortgage bonds.
Accordingly, the building Of tho
road west was commenced at West
wego, opposite the present western
portion Of New Orleans, in May,
1870. and the track laying was
completed 70 Bayou Lafourche, at
Donaldsonvilie, May !, 1871, al-
though the road was not opened
|. for public traffic until September ],
1871. Considerable progress had
been made also in the construction
Of the road thence west, twenty
one miles to Grand river,
The first forty miles Of the road,
which, according to the terms oi
the guarantee act, should have
been completed not later then jan
nary rs, 1871, were not completed
until about April 5, 1871; but q
clause was inserted in joint reso-
luton No 81, approved April Is,
1871, Changing the name of the
company, which provides that the
bond might be Endorsed for every
ten miles, instead Of every forty
miles, Of road, completed Tin the
manner providedfor, that is, within
! the time limited.
In July, 1871, $4,000 of bonds
were Endorsed, on sixty miles OF
| the road, though the distance from
| Westwego to Lafourche is fifty
seven miles only, and thus became
part of the contingent debt oil
/ the State, aud il August, 1871,
$4,000 Of subsidy bonds were
| issued to said company. These
bonds were dated July l, 1870;
| therefore the FIRST two sets Of semi
annual coupons should have been
detached and Cancelled, but it is
believed they were not, and, in
! consequence, $4,000 was paid by
/ the State for back interest, all
1 though not due to any one.
But the ST, 100000 State aid on
| the road to Don8ldsonyille was
Only about equal to its cost, and
therefore it was still necessary to
provide in some manner for the
payment Of interest on the first
mortgage bonds on the Eastern and
| Western divisions, which had been
issued By act No. 50, approved
! April 20, 1871, the State issued
81, 100000 OF eight per cent. bonds
4 To this company for stock alone,
lin lieu of its suspensiye condition
al obligation to guarantee second
mortgage Shreveport Branch
I bonds, after the completion OF
each forty miles section of said
branch, which, as the company
was evidently already in a very
embarrassed condition, it never
could have built, and probably
/ never really intended to build.
Stock in company without joint
stock fund, aud without an adj
equate revenue, and ia road par
TALLY built with money obtained
By the issue Of bonds bearing s
per cent. interest, two for one, The
State being Che only real stock.
holder, can not be considered al
Of more value than waste paper.
This s2,000,000 s0-caIled STOCK
subscription was merely another
subsidy" obtained under pre-
| tense III desire to bnild a road
to shreveport. If the Legislature
and executive authorities were
not deceived, they were misled j
not, they conniyed at b fraud. Ac-
/ cording 10 the Auditors report
| these bonds we're issued April FL
/ 1871, but there IS no evidence any,
where 81 their Issue.
II win thus be seen that thi,
company, Oh the completion of Tie
railroad to DonaldsonYille, oh
fasnaa 1tetn amdrs.aats.awf en am