The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-06-14
PLANTERS CONSOLIDATED BANK.
IT'S LIQUIDATION BROUGHT INTO A
CHANCERY COURT.
The state view cemes To the Front.

|, The state New GENES To the Front.
Yesterday there was filed before Judge Billings
! bill In chancery, In which many important
questions 10 the State are involved. The bill is
, brought by Attorney General Ogden and e. A.
Palfrey and Jules A. Blanc receivers OF the Con-
solidsted Association Of the Planters OF Louisiana
against Bepjsmin r. Flanders and Allain Eussis,
lately acting ss receivers of the above corpora :
ton. The bill sets forth that the Consolidated
Association OF Planters Of Louisiana was incor-
porated by the Legislature on March 1e, 1877.
The act Of incorporation provides for subscrp.
tions OF stock In shares OF $500 each. secured BY
mortgage on immovable property OF the sub
scribers, and the capital was fixed at "a 600 600
which was TO be raised by loan on the bonds Of
the association, which were authorized 10 be
issued by 1t, payable st five ten and fifteen years.
which bonds were secured BY the stock mort
gage.
BY the provisions Of the act Of the legislature
approved February 10, 1885, amendstory OF the
foregoing act Of Incorporation the capital Of the
corporation was increased to 2,5DO,OgO and
loan was authorized; The stock WAS increased to
s8,Oo0,000 and the faith OF the State WAS pledged
for the security Of the capital and interest and the
State for this sum were authorized TO be issued.
payable TO the order Of the corporation, and 1t
| was further provided that the bonds, with privi-
legged mortgages owned by the corporation,
should be deposited in the offices of the assoeia-
lion as security and special guarantee for the re-
imbursement of said loan.
Under the foregoing act the bonds we're issued,
and OF said bonds s450G0O are still outstanding
as obligations Of the State. By an act of the Leg
slature Of March IA, t842 elaborate provisions
were made for the voluntary or forced liuuids-
ton of the banks Of the State under the control
OF the courts OF Justice, but by the twenty eighth
section Of that ACT 1t was expressly declared that
| said provisions should not apply to. those banks
| TO which the State had issued bonds. and Ii WAS
provided by the twenty piath section that IL de-
cree OF forfeiture OF charter should be rendered
| against any such bank the Governor should APP.
point six managers TO take possession Of the
| property and administer the same until the
| cancellation OF the bonds given by the State.
| The bill alleges that In q proceeding In the
Fifth District Court OF New Orleans, in the year
ls42, the charter Of the Consolidated ASS Jcs.
ton OF the Planters OF Louisiana" was declared
| forfeited, and notice thereof was given to the
Governor, who appointed, under the ACT OF the
Legislature, managers to administer the same.
By the provisions Of an act of April 8, 1s4s, the
powers and duties and mode OF appointment Of
these managers are regulated, and the third sec.
tion declares that the assets shall remain In the
possession and under the exclusive management
Of the State until final payment of all bonds issued
In favor Of this association The bill alleges That
this provision Of the law has never been repealed
Under act No. 100, approved April G, 1S47, q |
different board OF management WAS provided for |
composed OF board OF bank managers appoin ted |
BY the Governor and three directors elected by the
stockholders, which board was authorized TO ex- |
tend the payment Of the bonds OF the State 6, g. |
u, IL and Is years. and the act provides that the
liquidation be continued until the payment Of the |
bonds thus extended.
By act approved April IL, 1863. it was provided |
that the Governor should appoint three persons TO |
be directors OF the Consolidated Planters Assoca-
ton. who with the three directors elected by the
stockholders, should constitute the board Oh d.
rectors; which act, 1t ia alleged, remains now in
force.
by an act of February 20. 1866, the directors of |
the Planters Association were authorized TO me-
gotiate the postponement OF the payment OF the
State bonds issued, and 1t was provided that the |
liquidation might continue until the maturity OF
these bonds and coupons thus extended. The re-
lators alege this act contained clause repeating
the prior acts giving the possession of the assets
exclusively TO the State, but was only intended to
limit the delays which the liquidators might
claim for the liquidation Of the bonds.
The orators aver that in June, 1876, the State,
through its authorized agents, the board of d.
rectors, under the act of 1863, of which B. =.
Flanders was president was lawfully in posses
sion and exclusive management OF the affairs OF
this corporation, and that about this time one
Charles Nathan, holder of q bond Of the State,
indorsed by the t'lanters Association, acting on
information and at the instigation OF b. It. Elan
ders, interviewed In the suit which had been
brought in 1842 in the Fifth Judicial District
Court for the forfeiture OF the charter, and pre-
scented petition asking for the appointment
receiver: that the suit in which this prayer WAS
made was an extinct judicial proceeding, In which
final judgment had been rendered thirty. four
years before; that the proceedings OF Nathan were
entirely en- pd'fe. neither the State nor any party
MT and hnpr IN ntt llxnA
Superior District Court, to which the case was
transferred, had no jurisdiction but that the
Judge did grant an order appointing B. Il. Elan
ders sole receiver OF said corporation Under
board Of directors, did deliver TO himself as sole
receiver the posses sion OF the assets.
Subsequently thereto one Max Grebner, q
bondholder. instituted q suit in equity In the
Flanders OF ais, alleging the nullity Of the pro-
ceeaipgs in the Superior District Court referred
to and the appointment OF Flanders, and the bill
asked for the annullment of the same, and that
the court would appoint receiver. On motion
made in this last proceeding the court appoint
ed b. f. Flanders and Allan Eustis ne joint re
ceivers ~ consent Of parties, which two parties
duly qualified.
The State now AYERS that it is entitle d to have
possession and exclusive management OF the
assets OF the Consolidated Association OF the
Planters OF Louisiana until the payment Of the
bonds, which management is to be
exercised through the agencies, provided by act
1l3 OF 1852 subject to the rights OF creditors and
exercised through courts Of justice oontradicto-
riy with said agents, and that the State has
been wrongfully Invested OF said possession and
has legal right to be restored to the manage
ment.
That the Governor has now appointed Jules A.
Blanc and Jules Tuyes as directors aud they have
duly qualified, and they have called meeting of
the stockholders for the 18th Of july 1877 for the
purpose Of electing three other directors for the
purpose OF organizing the Board Of Directors ac
cordiDg to the act of 1853.
The orators allege that said Flanders and Eus-
tbs, acting as receivers. have been mourning OK.
penses and making disbursements on account of
said corporation to its injury.
The prayer Is that 80 soon az the board OF d.
rectors shall be organized they may make them
selves parties to the BILL and that B. F. Flanders
and Allan Eustis be decreed to deliver to said
president all the property, assets, etc.. of said
corporation which have come into their hands.
An Injunction is also asked for restraining the
said Flanders and Eustis, or their agents, from