The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1876-03-14
Inc Defendants Admission.


After careful examination into the nres-
ent condition of the New Orleans St Inr;e
q lineage Railroad Company's affairs. If
!, oel efhined that the company cannot sue
/ ceiver NPPoih'nieH' vi re-
II = not proposed now to review i'm detail
tue circumstances which have nrodnced
thls condition, but it is deemed proner To
make general reference to the following.
"nicn are believed to be the causes from
which it has resulted
1, Inc accumulation during the late war
ot the Indebtedness of the two companies,
OF which the present companv was ftrmad
ana the deterioration and destruction dur2
Jug the same time of their property, it be-
ING IN possible during that period for these
companies either to keep down the interest
On Cneir deots, or to improve or even pre-
serve their property.
z. Inc great disadvantage at which these
companies, with damaged credit, operated
Cheir lines for some time after the war.
Wneh the tracks were in a dilapidated con-
dltlon, and the rolling stock (much of which
!lad Deen destroyed) was wholly insufficient
III qudlILy ana quantity to meet the require
ments Oftrade 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 company's former business
mas Deen diverted and rates are affected on
that which it retains.
4. The construction of the extension OF
this company's 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 Northwe it
| being apparent and i'll view of rival lines
| mat new Connection was vital to this
cOmpany'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 financial distress, commencing in Sep
tember, 1873.
5. The construction in 1874 of the sKOsci-
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 1st, 1874, as condition
10 the further enjoyment of the n. O j. &
u. n X. X. Company's franchise, which
under its charter in that State, would have
been lost without it.
.. The general financial depression OF
more than two years. which has prostrateC
the railroad interests OF the country by de-
creaslrg their business and paraiyZing theil
credit. The effect Oh this line has been tC
| reduce its earnings per mile, in the year:
1874 and 1875, more than twenty per cent.
Z. The crevasse of 1871, by which train!
below Manchac were stopped for foul
mouths, and the company was damaged no
less than 100000, and another in 1874, which
| was no less obstructive, ana 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
poiGtment of snch a receiver and unde
such proceedings and on such terms as vii
=. best protect the interests OF all parties con
cerned.
Therefore, the company, as at present ad
vised. will not favor the appointment of
receiver under one of these bills as agains
the other.
This statement is not to be taken as al
admission in advance of answers to be FLEE
of the allegations of either bill, further thar
that on The facts as they exist, the compan,
cannot defeat the appointment of a receiver
f. G.. WALTHALL,
l.. E. SIMONDS,
j. III. NEW.
w. ALEX. GORDON.