New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-05-23
GOVERNOR KELLOGG AND THE NEW
BONDS.
The New York Sun says:

Louisiana new consolidated bonds to the
privilege of the Stock Board.
This simple announcement of very i'm
POI tant fact conveys no intimation of the
desperate effort made by the holders of the
fraudulent Chattanooga bonds to prevent
this much desired cousummation, nor of
the skill and pertinacity with which Gov
ernor Kellogg conducted the battle on
behalf Of the interests Of the State.
From the beginning he found stub
born prejudice against all Southern Sc
curities, chiefly attributable to the action
of the Carolinas with regard to their
bonds; but added to this, was arrayed
against our consols ring of powerful
and willy operators, animated by the hope
of forcing the payment of millions Of
fraud1lmt issues, of which they were the
princip owners. But into the very cita-
del of Weir strength Governor Kellogg
''came, and saw, and conquered" and has
earned recognition for well-doing which
will be conferred unstintingly by sill
classes in the hereafter. Briefly stated,
the facts Of the struggle are as follows:
The subcommittee of the Stock Ex-
change, or COMMITTEE on outstanding
securities, is composed of five members,
Edward Branden, chairman, and are
part Of the governing committee, Mr..
Russell, chairman, composed of forty
members. At first o majority of the SUBJ
committee opposed placing the new bonds
on ''call, but finally concluded to make
favorable report. Before being able to do
this, the annual election took place for a
new governing committee, and conse-
quently new committee on outstand-
ing securities" was appointed. Three of
the old subcommittee, including the
chairman, were continued. This COM
mittee re-investigated thoroughly the sub
ject, and on the thirteenth instant determ-
ined to report favorably to the governing
council.
A special meeting Of the latter body
was held on the fifteenth to consider this
report, as there was manifested SO pro-
nounced an opposition, coming mainly
from the Chattanooga ring" as it is
called. Governor Kellogg, by invitation,
was present to advocate the claims Of this
State, and for an hour and half was SUBJ
mitted to critical and exhaustive cross
examination on Louisiana finances by the
entire assembly.
The Chattanooga bondholders were
represented by committee of five, whose
purpose was to resist the placing of the
bonds on the exchange list. On this COM
mittee were such potent inanciers as
Messrs Macaulay, Williams and Cutting,
backed by Samuel Stern, Esq, as attor-
ney, who followed the Governors prelim-
mary remarks. Mr.. Stern alleged that
the funding bill was an act Of reputation
on the part Of the State; that the State had
also repudiated the Chattanooga bonds,
which were now held by innocent pur-
chasers in New York; and that these acts
of injustice forfeited all claims of Louisi-
ana to consideration from the Stock Ex-
change.
The board then adjourned until the fol-
lowing day, especially requesting the
Governor to remain and reply, and that
he did so most effctually, results clearly
demonstrate. He took the ground that
the funding bill was an absolute neces-
sity, and that the State had done no will
full injustice. In clear and succinct
history Of the Chattanooga issues he
proved to the satisfaction of all that the
State had been cheated Of any considera-
ton for them; that purchasers must have
been cognizant Of this fact, and could
therefore. lay no claim to being ''inno-
cent" holders; and that so far as some of
the gentlemen were concerned, especially
Messrs. Macaulay and Williams, they
were directors of the Chattanooga Rail-
road Company at the time these frauds
were consummated, and now held con-
siderable amount of these bonds; for
which reason they had Illuminated threats
that the new consols should have no re-
coenition on the Exchange unless their
illegal claims were satisfied claims which
the people of Louisiana had from their