The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1876-03-11
THE GREAT RAILROAD CASE.
A Receiver for the New Orleans,
st. Louis and Chicago Rail-
road Company.
The Company Admitted to be
InsOlyent.

There was large attendance at the United
States Circuit Court Friday morning, to listen
to the arguments in the great railroad case
between Henry Lewis and the Illinois Gen.
trail Railroad Company against the New Or
leans. St Louis and Chicago Railroad Com
pany.
The case is based, go far as the Illinois
Railroad Is concerned, upon an act Of mort
gage executed by the conjoined jackson and
Mississippi Railroads, under which Messrs
Newell and Alexander and the Illinois Central
Company We're appointed trustees. Henry
Lewis, who has filed his bill for receiver, is
a mortgage creditor.
The bills set forth that the defendant COM
pany is hopelessly involved and insolvent,
and that the appointment of receiver is me-
cessary to protect the rights Of creditors. The
case involves about $16.OOO,OO0.
The solicitors representing the different in.
terests were Judge John A. Campbell, and @.
E. Whitehead, Of Chicago, appeared for the
Illinois Central Railroad Company T. J.
Semmes, Esq, for Henry Lewis; Gen. E. a.
Walthal and 4. E. Simonds for the NeW
Orleans, St. Louis and Chicago Railroad
Company and defendants.
Judge Woods called the case at II o'clock,
when Judge Campbell arose and was about
reading the bill in chancery, when Gen.
E. @. Walthal stated that the case so far
as allegations necessary to establish the
fact that the DEFENDANTS company is in such
q condition as to require the appointment Of
q receiver, was admitted. T. j. Semmes then
said that if this was admitted it would leave
the case between Lewis and the Illinois Gen.
trail Railroad Company. If the defendants
would name person, probably they could
agree about it.
Judge Campbell, for the Illinois Railroad,
said that his clients claimed higher rank as
trustees than Henry Lewis, and he therefore
asked that MessYs. Newell and Alexander be
put in possession of the roads, and Alexander
be appointed receiver, as they were under the
act Of trust made trustees with the Central
Railroad. He then read q decree he had
drawn up suited to the prayer Of the bill
Gen. Walthal said that from what he had
heard Of the reading Of the decree he felt
that it was too much in the nature of final
decree to be in keeping with the notice served
upon the defendants. He said that the de-
PENDANTS had time yet to answer the merits,
but if the decree asked for be granted it
would not be the temporary relief asked for,
but would be final.
The defendants were called to answer Q
rule for receiver. and when we come to meet
this and acknowledge the existence of facts
requiring the appointment OF such an officer,
q final judgment is offered u.s. He said that
what was before the court was simply whether
this preliminary order for a receiver should
issue, and not whether the defendants had
been put in default. What was wanted was
simply the appointment of one to take care of
the property during the tendency of the suit
Judge Campbell said that he thought there
was complete surrender, but if it was neces-
sary he would read the afidavits and proof
Gen. Walthal responded that these afi-
davits could not make the case any stronger
than the admissions of the defendants
Mr.. Semmes said he had no idea of allow
ing by an admission the property to 60 to the
trustees He was willing to allow q proper
person to be appointed, but not the trustees.
He would contradict the right of mort
gage to be exeCu1o1 in this State and the
mortgage remainSfn possession. He was
willing that MI. AIlxander as receiver should
be appointed, but mot to take possession a.
trustee. This he would not consent to.
Judge Campbell said that the afidavits at
tached to the bill show that the railroad is
ruinously insolvent, and that it has floating
debt of $4,000, 900, and there is NO hope Of
the company being able to meet its coming
liabilities in the spring. He insisted upon
the decree as read being entered up in the
case.
The case is still going on.
A Il g. ~