The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1876-03-14
of Receiver for the
". o., st. Il. 81 G. II. IL. Company.


\. O., St. L. & c. Railroad has passed
into the hands of receiver Mr.. Alex
ander, of New York; by order of Judge
Wood of the u. S. Circuit Court, on the
application of the Illinois Central K. h.
Co., in accordance with the terms of
deed of trust held by the latter and exc
cuted by the former to satisfy liabilities.
The mortgage is for $4,000, 900, and it is
alleged that the interest has been in de-
fault for year and over.
Elsewhere will be found the proceed
ings in the U. S. District Court on the
application for a receiver. All parties
concurred in the justice and prOpriety of
the appointment of a receiver The pro-
ceeds of the road under this arrangement
will be applied exclusively to the sat
isfaction of the mortgages according
to priority, after deducting the expenses
of operating it, and it is hoped that
the new management will be able to
command means to put it in first-class
running order and secure its supremacy
over competing lines which have hereto
fore crippled its business.
AS part of the proceedings in this
interesting case, we have copied the
statement of General Walthall and other
counsel for the defense, setting forth the
grounds on which they declined to resist
the appointment of a receiver, and the
causes which have produced the present
condition of the Company's affairs. The
causes are such as to reflect no discredit
upon the management of Col. McComb
and the able corps whom he bad engaged
in the service of the road. They have
done all that men could do to overcome
the obstacles with which they have had to
contend. They could not control the
angry floods of the Mississippi river by
which the levees were washed away,
and its waters turned loose upon thirty
miles of the road bed, their business vir
tually suspended, and the elevation
of the track over the swamp be
tween Manchac and New Orleans rem
dered an absolute necessity, the whole il
loss of business and repairs involving al
immense sum, certainly not less than &
million of dollars. Nor was it in theil
power to prevent the financial troubles
that have embarrassed all the enterprises
and industries of the country, and have
borne with peculiar pressure upor
railroads, as evidenced by the large
number which have gone into the hands
of receivers, or utterly failed, during the
past year.
When Col. McComb purchased the
various roads that constitute the CONSOLE
dated line-now operated as the New
Orleans, St. Louis & Chicago r. r.
Company-they were out of repair, and
in the wretched condition left them by the
war. They have been put and kept in
good running order, and an extension has
been made from jackson, Tenn, tC
Cairo, ILL.,, besides the Kosciusko branch,
making in all one hundred and twenty
three miles of new road, with rolling
stock in proportion; and other i'm.
provements have been made to increase
the efficiency of the road as a means
of commerce and travel, between the
fertile sections and the great centres
of trade and population, which it was
the design of its projectors to connect
The road enters the northern boundary
of our State and pepetrates its centre tt
the Southern border. Their interests
are therefore mutual and their gooC
offices should be reciprocal. No mat
ter under what management it may
be placed, the success of the one
will necessarily operate to the advan
tage of the other, and all that will tenC
to increase the business of the road will
develop the resources of the State. This
grand enterprise, we are sure, will con
tinue to be the recipient of the fostering
care and the liberal patronage of oul
people, provided they are met in the
same spirit of kindness and Justice b,
the new management.
OpvTITE TPANT hrotbar of Al