New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-01-29
COURT RECORD.


January, A. D. 1875.
COURT RECORD.
THURSDAY, JANUARY GS, 1875.
United sta,es Circui. Court.
SUBMITTED.
The case of the Western Union TELEGRAPH
Company vs.. Southern and Atlantic Tele
graph Company was argued and submitted
ABILL IN CHANCERY.
A bill in chancerv was fled yesterday il
the suit of Edwin D. Morgan and James A.
Raynor, trustees, vs. the New Orleans, Mo
bile and Texas Railroad Company, the
POntchartrain Railroad Company, Thomas
H. Hunt, John 3. LATTE, and president
directors and company Of the Bank Of
Mobile.
Edwin D. Morgan and James Raynor,
who are citizens Of New York, bring Their
bill against the Pontcbartrain Railroad
Company, a corporation created and having
it's domlcile in the State Of Louisiana;
Thomas H. Hunt and John B.
LATTE, citizens of the same State; the
president and directors of the Bank Of Mo-
bile, a corporation of the State of Alabama,
domiciled in that State, and the New Or
leans, Mobile and Texas Railroad Company,
corporation created in Alabama, but
recognized and allowed to do corporate acts
in the State OF Louisiana by its General
Assembly, and having an agent to receive
and subject to suit here under the laws of
Louisiana, and its acceptance Of the same.
Orators complain and say that the New
Orleans, Mobile and Chattanooga Railroad
Company was chartered by the State of
Alabama. liz November 1866, to construct
and operate railroad, from Chattanooga,
Tennessee, through Alabama to Mobile and
thence to New Orleans; and in 1867 and
1868 obtained powers from the States of
Mississippi and Louisiana to effect that OBJ
ject in those States, and to borrow money,
chises, as appear from said charter.
January J., 1869, this corporation made a
mortgage or deed Of trust of all the rail.
roads, estate, property, rights, privileges,
franchises, tales, incomes, etc. to Edwin d.
Morgan and Cakes Ames, Of the said cor
poration in Mobile and between Mobile and
New Orleans and in New Orleans to secure
a uniform issue of 1900 bonds of $1,000 each,
having date Of that day and payable in the
year 1910, bearing interest at the rate of
eight per cent per annum, payable on the
first days Of July and January of every
year, as shown by coupons of $40 each,
payable successfully on those days, a copy
Of which deed OF mortgage is hereto an
nexed.
The bonds to the sum Of 1000 were is
sued, circulated and stand as a charge
upon all its property, franchises, ETC., as
enumerated in the deed, and that Edwin d.
Morgan, by the terms OF the deed, and
orator, James A. Raynor. as successor of
Cakes Ames, who died in 1873, under the
appointment of the said corporation. are in
foN FIR n them fbprpin
imposed upon the trustees, their successors
and assigns.
Orators complain that the interest upon
the bonds on July l. 1874. and on January
l, 1875, was not paid on the presentation Of
the coupons at maturity, according to the
tenor and effect of the deed of trust. and
there has been continuing default on the
part of the New Orleans, Mobile and Texas
Railroad Company, its successors and as
became authorized and are entitled to take
possession of the property comprised within
the terms of the deed Of trust, and that the
New Orleans, Mobile and Texas Railroad
Company, the successors of the original
company, has licensed orators TO take pos
session Of the same, as appears by the reso-
lutiOns hereto attached.
Orators further say that the only bonds
issued under the deed were the 1000 before
the deed Of trust executed bv said corpora
ton 70 secure its debts upon the lines of
road described apply to these bonds as the
first mortgage bOuds, especially by the pro-
visions of deed Of trust made subsequently,
IN favor Of Henry J. Gardner and Peter
Butler. dated March 8. 1869, to secure an
ssne of second mortgage bonds of the same
Orators complain, and say that in the
year 1873 Henry j. Gardner and Peter
Butler filed, i'll the Circuit Court OF the
United States for the district aforesaid,
Dill to foreclose tho said mortgage or deed
% them, and against the said company, and
~ the decree of this court the same prop
,rty was all sold, and purchased by them |
or the holders OF the bonds therein men |
Toned, and the same was purchased by |
hem for the bondholders; and that said |
formed company by the |
lame of the New Orleans, Mobile and |
Texas Railroad Company, as successor to |
he original company, which was originally |
famed the New Orleans. Mobile and Chat |
anooga Railroad Company: and that as |
uch successor, since August, 1873, has |
aiken possession OF all of the said property, |
nder the express condition contained in |
he deed of trust to Gardner and Butler, |
nd in the decree OF sale, and the deed to |
sardner and Butler and the deeds of the |
aid trustees to the company that they |
hould be subject to the prior deed of trust |
nd mortgage, and that the rents, incomes,
ales and profits arising therefrOm should,
l.their hands, be applicablesto the payment
the in ierest and principal of said bonds
lcluded in the same, in the hands of the
rustees therein mentioned and their sue
essors and assigns.
Orators further complain and say that in
So the original New Orleans Mobile and |
exas Railroad Company, in order to ex.
end its connections, and as part of the |
to complete and support and
dust their line Of road from Mobile to
ew Orleans, made a purchase of Ills
1ares of stock in the POntchartraln Rail-
Dad Company, defendant il this bill,
eiug all the stock of said corporation, ex-
opt 3S2 shares. and giving to said company
le control Of the POntchartrain Company
the election of the directors thereof, and
lat since the said purchase the said COM
any has been subject to the management
nd control of the officers of the New Or.
ans, Mobile and Texas Railroad Company,
g successors and assigns; that said shares
stock. like other property, has been SUBJ
ct to the terms Of the deed of trust fled |
erein, and liable to the claims of the cred
Dre mentioned therein.
Orators further complain and cay that
e said shares Of stock were in some man
II hypothecated by the New Orleans, Mo.
ie and Texas Railroad Company, in the |