The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1876-03-15
The Defendants Admission.

I
| Alter careful examination into the pres
ent condition OF the New Orleans, st. Louis
& Chicago Railroad Com pany's affairs. il
| Is determined that The company cannot sue
cG>sfuily resist the appointment OF re
ceiver.
the circumstances which have produce q
this condition, but ii is deemed proper TO
make general reference TO the following.
which are believed to be the causes from
which il has RESULT d
l. The accumulation during the late war
OF the Indebtedness of the two companies,
OF which the present company was formed
and the deterioration and destruction dur
ing the Same time of their property, it be-
ing impossible during that period tor these
companies either to keep down the interest
on their debts, or To i'm prove or even pre-
serve their property.
,. The great disadvantage at which these
companies, with damaged credit, operated
their lines for some time after the war,
when the tracks were in dilapidated con
ditlon. aud the rolling stock much of which
had been destroyed) was wholly insufficient
in quality and quantity to meet the require
ments of trade and travel.
3. The opening on either side of this
company's line of other lines. which are
formidable rivals for through traffic, where
by much OF this com pany'S former business
has been diverted and rates are affected on
that which it retains.
4. The construction of the extension of
this companys line from Jackson. Tennes-
see, TO Cairo. so as To form continuous
line of railway with the Illinois Central
(under contract with that company be-
tween New Orleans and the Northwest, it
being apparent and in view of rival lines,
that a new connection was vital TO this
eompany'S interests
Much of the work on this extension was
done at the disadvantage and greatly in
creased cost incident to the period of gener-
al nuanclal distress, commencing in Sep
TENDER, 1873
.. The construction in 1874 OF the "kosci-
usko branch, seventeen miles long, in
Mississippi, which, under an act of the Leg
lslature of that State. was required to be
completed by July lst, 1874, as condition
TO the further enjoyment of the n. o. j. Il
G \. X X. Company's franchise, which,
under its charter in that State, would have
been lost without it.
6. The general financial depression of
more than two wears, which has Frustrated
the railroad Interests OF the country by de-
creasirg their business and paralyZing their
credit. The etfec; on this line has been to
reduce its earnings per mile, in the years
1874 and 1870 more than twenty per cent.
Z. The crevasse of 1871, by which trains
below Manchac were stopped tor four
months, and the company was damaged not
less than $400.000 and another in 1874, which
was no less destructive, and made clear the
necessity for raising the track an average
of four or five feet for twenty miles, which
was done at heavy cost.
Bills for receivers are filed by two classes
of bondholderS under different mortgages.
The company is only Interested in the APP
polGtment of such a receiver and under
such pi oc, edings ana on such terms will
best protect the interests OF all parties con-
cerntd.
Therefore, the company. as at present adj
Vised. will not favor the appointment of "A
receiver under one Of these bills as against
the other.
This statement Is not to be taken as an
admission in advance of answers to be filed
of the allegations of either bill. further than
that on The facts as they exist, the company
cannot defeat the appointment of receiver
+. {. WALTHALL,
J.. +. SMoNDs,
j. ii. New.
w. ALEX. GORDON.