The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-03-28
RAILROAD FINANCIERING.

1t is worthy of notice that near the close Q
! January last, Messrs. E. D. Morgan and Jas
Raynor trustees and receivers of the Mobii
and New Orleans Railroad first rlortgag
bondholders, filed bill in chancery in tn
United States Circuit Court against the New
Orleans, Mobile and Texas Railroad Company
(or the bondhoiders themselves as o company
the Pontchartrain Railroad Company, Tnos
Hunt, Jno 3. LATTE and the president and
directors Of the Bank OF Mobile, having fol
It's OBJECT to obtain possession Of Ills shares
(of 500 each) of Pontchartrain Railroad stock
which, as alleged, the original bondholders-
known as the New Orleans, Mobile and Texas
Railroad Company-had purchased of the
Pontchartrain Railroad Company -"to extend
is connections, G. bur, in reality or princi-
paliy, to break up Mobile steamboat oppo-
sition line.
1t is averred 'that said shares were in some
manner Hypothetical in New York by the
New Orleans Mobile and Texas Railroad Com
pany, and "were redeemed and liberated in
December last, and returned to the SAID com
pany." -..=
"O,ators charged that payment was made
with moneys arising from rents, profits, ETC.,
pledged in their deed of trust and applicable
to payment of interest on their bonds, that is
to say, the Mobile Railroad bonds that said
stock is the property Of the orators and is now
deposited in the Bank Of Mobile, in the name
of defendants or some Of them," etc.
Now, it is very well known, or should be,
that this Pontchartrain stock was purchased
not with money arising from rents, profits,
etc. belonging to the Mobile land New Or
leans Railroad, but with the New Orleans and
Texas Railroad first mortgage bonds, second
mortgage State-indorsed bonds, income
bonds and stock, all of which securities
and stock, belonging to said railroad, west of
the Mississippi River, were misapplied and
diverted from their legitimate obiect-the !
building OF a railroad newfoundland used to
buy this Pontchartrain Railroad stock and |
20 get rid of a steamboa. opposition to the |
:ailroad between New Orleans and Mobile.
1t would seem that in thus getting rid of |
his opposition, the Mobile Railroad bond
lclders were benefited sufficiently, and |
wholly at the expense of the railroad to
Texas; but it seems that the trustees are not
atlstied; they want all. The State holds
Judgment amounting to nearly million of
lollars against the bondholders' interest in
aid railroad west Of the river, and the public
interest demands that this claim should be
1t passes comprehension, however, how
his Pontchartrain stock, bought entirely with
ecurities bearing mortgage upon the road
rest, and partly with misappled State
ndorsed bonds, can be claimed as the prop
rty of the Mobile Railroad first mortgage
ondholders, whose trustees, Messrs E. d.
lorgan and James A. Raynor, the orators in
his chancery bill, are.
Where is our doughty AMI ever-watchful
ttorney General =? What is he doing !? Has t
OF the State, as judgment creditor, an in -,
rest in the disposal of this stock, purchased t
| part with State of Louisiana Endorsed
'cond mortgage New Orleans and Texas