The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-12-09

taken, to persuade him to violate his instruc-
tons and sacrifice the interests of his constitu
ents, himself becoming party to the viola
| ton.
The conduct of the directors of the rail-
road company is then commented on. The
Court say they not only made no effort, lifted
not hand to prevent tie sacrifice OF the
property in their charge, but were found to
be in the combination as purchasers with and
associates Of Ludeling. The language Of the
Court is this
"Thus directors Of the company, owing du-
ties to its stockh olders and creditors, not only
combined to obtain the cCmpany's property
for themselves, at a sacrifice, through the
Formally OF judicial sale, but were active
participants in successful efforts to defeat a
sale for $3.50, 900, in order that they might
become the purchasers for $50, 900. 1t is inn
possible to sustain such a transaction.
Throughout it was grossly inequitable.
That the property was sacrificed by means
Of an unlawful and widespread combination,
is abundantly proved, and that the directors
who were parties to it. and who became the
purchasers, were guilty of an inexcusabie vio-
lation of confidence reposed in them admits
OF no doubt. Ludeling, it is true, was not a
director, but he was leading member OF the
combination and its chief agent to carry out
its plan. He knew its purposes. He knew its
illegality. He had negotiated the surrender
Of Horne, with full knowledge Of Horne's
breach of trust. He assumed the control of
Gordon's executory process, and as we have
noticed when told that Gordon had consented
to stay the sale, he declared that Gordon had
no power to do it. Indeed, Ludeling appears
to have had complete possession OF the
Sheriff
The defendants can take nothing from such
a sale thus made. Were We to sustain it, We
should sanction great moral and legal wrong,
give encouragement to faithlessness to trusts
and confidence repOsed, and countenance
combinations to wrest, by the forms OF law.
from the unintormed and coniding their Just
rights.
The Judgment of the Circuit Court glus.
therefore be reversed.
THE DEcEG1.
7. The mortgage OF Sept. :. 1851. Issued by
the Nicksburg. Shreveport and Texas Rail-
road Company, to secure the payment Of 1900
OF their bonds OF that date. j. adjudged to be
a valid and subsisting lien upon the property
and The holders are authorized to prove their
bonds under the decree Of this court. OF OF
the Circuit Court.
2. The sale made OF the v. S. ana T. Rail
road to Ludeling and Associates On February
,, 1866, is declared to be fraudulent and void
3 Ordered that q receiver be appointed by
the Circuit Court at New Orleans to take
charge Of the property, which is to be sold to
satisfy the claims Of the first mortgage bond
holders and OF other creditors, and after they
are satisfied then the balance to be Tor account
OF the stockholders. The sale to be made
upon such terms as will promote all interests.
/. Defendants to account for all property
and moneys received by them belonging to
the v. S. and T. Railroad Cora any, also Tor
profits and income siace the. L..ye held pos
session.
). Adirdgei to pay costs OF suit IL C:l.ui.
and Supreme Court.