The New Orleans Democrat. (New Orleans, La.) 1875-1876, 1876-03-19
THE NORTH LOUISIANA RAILROAD
CASE.
History Of the Case-Argumcnt Of COun-
sel-SCcnes In Court.

THE NOHCu IOCISaANA 0AlLWOAh
CASE.
History Of the Case-Argumcnt Of COum'
sel-Scenes In Court.
On Thursday last case came up fol
trial in the United States Circuit Court
before Judge W. B. Woods. for which
careful and elaborate preparation hat
been made in advance certainly by the
defendants. A lengthy argument was
delivered by the respective counsel en-
gagged in the case, and it was submitted
to the court for decision after five
hours debate. Very few persons were
present, as little notice had been given
Of the trial SO far as the public were
concerned, and little notice has since
been taken by the press of that import
tant contest. Yet the amount involved
one million of dollars the parties tC
the litigation and the eminent counsel
engaged in the conduct of it,
the dramatic scene there enacted
and the by-play would we'll have justi-
fled report of the trial, more or less
full, with the incidents which occurred
while 1t was going on. We propose to
supply this omission chargeable to the
press Of New Orleans. and to submit to
our readers report Of the argument in
the case referred to, that Of Henry r..
Jackson and others, Of Georgia, vs.. the
Vicksburg, Shreveport and Texas Rail
road Company and John L. Ludeling,
John Ray and others, of Louisiana
The question involved in the case, and
submitted for decision, was this What
are the rights Of a possessor in bad
faith? A fraudulent possessor, under
the law Of Louisiana, when he is OF
dered to surrender to its lawful owner
the property which he has, in bad faith
and fraudulently, acquired and held in
possession, reaping it's fruits and reve-
nues also in bad faith and fraudulently.
The facts were these The Supreme
Court of the United States, in famous
opinion and decree, jackson ct ais. VS..
Ludelipg ct ais, 81 Wallace, 6l6,, rem
dered. in November, 1874. ordered, ad-
judged and decreed, that
"The sale made on February 8, 1866, by
the Sheriff of Ouachita parish, Louisi-
ana, Of the Vicksburg, Shreveport and
Texas Railroad TO John L. Ludeling,
John Ray and others, be declared to be
fraudulent and void, and be set aside
and cancelled, and that a perpetual in
junction issue, commanding the defend
ants to refrain from setting up or claim
Ing any right, title or interest under
said sale or under said deed
1T Is further ordered, adjudged and
decreed, that this cause be RENTED to
the Circuit Court for the District of
Louisiana, with instructions to direct
an account to be taken of all the pro-
perty Of the said corporation (the Vicks-
burg, Shreveport and Texas Railroad
Company, and to appoint receiver
thereof; and also to order that the
property described or mentioned In the
ton OF that Court, for the benefit, first,
OF all the bona fde bond holders secured
by the mortgage, and secondly, for the
benefit of other creditors of the com
pany and its stockholders, upon such
terms as may appear best calculated to
promote the interests Of all
"And 1t is further ordered and decreed |
that the defendants do account for all
money and property received by them
out OF the property so sold to them or
any OF them, receiving In, their ac-
stances of the case, by the law Of Louis
lana, they are entitled to, and that they |
pay and deliver to the receiver what
ever on such accounting may be found |
due from them"
Under the foregoing decree and man
dates Of the Supreme Court, Judge
Woods In April, 1876, took the railroad
out Of the possession of John T. Lude-
ling, John Ray, and their associates,
who had been in 1868 incorporated by
special act Of the Legislature of Louis.
lana into a company styled the North
Louisiana and Texas Railroad Company
Session Acts, No. lOS Of Sept. 26, 1869,
and placed It in the custody of John W.
Green, ESQ, receiver, specially ap-
pointed by him for that purpose. At
The same time Judge Woods ordered and
required Ludeling and associates to
bring into court forthwith an account of
Ill the property OF the Vicksburg,
and Texas Railroad Com
oany which they had taken possession
II under the deed Of the sheriff Of Feb.
}, 1866, and also to account for all the
loHcy o, StI uillSo, plOlltS, revenues ana
income derived by them from said prop
'rty; that Is to say, to surrender, de-
iver up and disgorge every item Of s
every dollar they had made p,
'ut Of their possession Of the property, |
eceiving as credit against their re-
eipts only such an amount "as the law {
4 Louisiana entitled them to under the t
Of the case" c
In obedience to this order-we have {
% doubt very reluctantly L. I
Iudeling, John Ray and their asso- c
iates set about the work Of preparing a t
tatement of their receipts and expendi- f
Tres and intromissions in connection t
18th and on account Of this property. t
hey did not suppose they were ordered r
} bring into court their original books il
money account, their day books,
eight and passenger books, cash s
ooks, journals and ledgers. They con- j
,rued the order Of the court to mean an O
count current. such as factors and a
gents present to their correspondents a
nd constituents when they desire q 9
,ttlement or strike q balance. They. &
lerefore, directed their secretary and