The Ouachita telegraph. [volume] (Monroe, La.) 1865-1889, 1877-07-13

STATE AID TO THE N. Il. l. r. RAIL.
.'..- .'1" ROAD.
We find in the New Orleans Demo-
crat the following abstract of the Acts
of the Legislature granting aid to the
North Louisiana 4 Texas Railroad,
represented by Ludeling and Associ-
bites, and copy the same for the infor-
nation of our readers, and for preserva-
ton and reference hereafter:
The facts are these: while the suit of
Jackson and, the bondholders of the v.
$. & T. r.. r.. Co. was pending in the
United States Circuit Court, the Legis-
lature or 1868, on the application of
John 7. Ludeling, and Others, incor-
porated them under the name OF the
North Louisiana, and Texas Railroad
the extentaf S6OOO"per mile of railroad
which they might construct between
Vicksburg and Shreveport. This act
of incorporation and this aid were au-
thorized upon the hypothesis that the
line of railroad between Vicksburg and
Monroe had been legally purchased by
the parties named in the act at a GER
tain sale made by the sheriff of Ouach-
tia on February 2, 1866, and was their
lawful property.
The first section of Act No. 1O8, of
1868, approved September 26, in that
year Undoubtedly drawn by John T.
Ludeling and John Ray), declared
that John Ray, w, r. Gordon, John
T. Ludeling, and others, had purchased
the property of the Vicksburg, Shreve-
mort and FNovoS Rai1rnod (t,p, =,
sheriff's sale made on February 3, 1866,
and invested them with all the rights
and powers which that company had
and such others us might be granted by
the Legislature.
Under section II of the same act the
company, thus incorporated, was grant
ed forty year eight per cent bonds of
the State of Louisiana to the amount
of $4,000 per mile Of railroad the said
company might construct from a point
on the Mississippi river, in the parish
of Madison, westward, towards Shreve-
port, and the Legislature, upon the
hypothesis that the company owned
the railroad property, retained, under
the same section of the act, Il second
mortgage as Il security tor any advances
the State might make under this grant.
In pursuance Of this act Gov. War
moth, during his term OF office deliver
ed to these parties State bonds to the
amount Of $546, 900; that is to say,
bonds for $4,000 per mile for ninety-one
miles of railroad, viz: seventy-four
miles from Vicksburs to Monroe and
seventeen miles from Shreveport west
ward to the Texas line, although Lude-
ling and his associates had never done
single stroke of work on the latter or
the western division of the line, which
was under lease to another company.
BY section u Of the same act QOS Of
1869, the company contracted to depos-
in it the Treasury of the State, on or be-
fore the maturity of the interest cou-
pons on said bonds, the amount of in
terest due on them, under penalty OF
mo further issue Of bonds &C and a
foreclosure of the second mortgage re-
tanned by the State. But the company
Iefaulted in making this deposit for
the interest coupons, and they had to
be met from the State Treasury. In
September, 1872, the State had a,lvanc-
ed some $S7 900 on this account, for
which a suit was brought, at the in
stance ofLudeIing and Ray, by Attor
ney General Beldcn (see State VS.. N.
l.. & T.. Il. II. Co., 25 Annual Reports,
page G5), resulting in Judgment in
favor of the State for $S7 1850, with
of the suit.
In the meantime, viz: in the spring
of 1872, Ludeling and Ray obtained
from the Legislature another act ono.
81 of 1879, by which the State agreed
to relinquish its claims against them
under the judgment above referred to,
and released them from all liability
on the bonds, reconsideration of the
delivery to the State by the Ludeling
company of certificated of stock for IL,
22O neutrality-suspicious. to $1,122, 1000
and upon such delivery the Governor
was required to issue to the company
bonds of the State to the amount of
:s57e. 900, in addition to previous deli
veries. This made a total Of 1922 bonds
of $1,000 each, payable in forty years,
with eight per cent per annum inter
est, or a total outlay by the State, at
the end of forty years, of principal, 81,
$4,000; interest, $500, 4oo-in all, 81,
ZIP, 400, for stock in a railroad company
whose title was in litigation at the