The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-06-20

The Dack.Denc Railroad and the Prop
crty HOldera' yJntan,

The Backbone Railroad aMd tlic Prop
crty Holders Unien.
A meeting of the Property Holders Union Wa
held last evening, at the rooms Of The Union on
Camp street. next to the German Gazette office,
DIR. Tebault assumed the chair and stated the
object Of che meeting, which was TO hear Mr..
Flanagan. who represented the Baok-Don Rail.
road and desired TO obtain the moral support OF
the people of New Orleans for that enterprise.
lie gave brief history Of the company. II
originally had from the State a grant Of sl2, 800
per mile on q second mortgage, and no went to
London 10 negotiate loan on that security, but
failed therein, and was advised to have q bill
passed relinquishing the clsim on the State and
giving the company authority to Issue bonds on
first mortgage for $4,000 per mile.
he found great difficulty in having such bill
passed, on account Of the venality Of the egisla-
tors, who demanded 100000 for voting for IL.
He got 80 disguised he withdrew from oil inter-
course with such corrupt Legislature, who de-
manded this large sum merely TO release the
State from an obligation Of six millions Of dol
lars. The bill, however, became law under
pinchbacks administration. The issue OF the
bonds, however, was prevented by an injunction
taken out by Mr.. Bates. The company never
thelees obtained land grant from Congress, of
two millions four hundred thousand acres, within
q certain distance of the line OF the road.
1t was this grant which was the basis Of lie
credit, and which gave IL q certainty Of recogni-
ton by Congress, az part Of the Texas Pacific.
Congress would not give . subsidy 10 any road
which did not have . land grant. MIR. Flanagan
pledged the company, In case il had the moral
support Of the people Of New Orleans. 10 return
TO the stockholders Of the New Orleans Pacific
the whole amount paid by them In furthcrance Of
lected on the same line.
When MIR. Flanagan had concluded his address
DIR. Tebault asked If there were any gentlemen
present who desired to PROFOUND any interroga-
had presented to them,
Alexander Walker arose and stated that he had
been invited to attend the meeting. and now
responded TO the request Of the president to
PROFOUND interrogatories to MIR. Flanagan, He
accordingly inquired whether the Back Bone
Railroad Company had corporate existence in
Louisiana.
Answer by Mr.. Flanagan:
OF course it has. |
Who is the president? |
Mr.. Parsons. |
Where is he? |
In London.
Who represents the company here?
Mr.. l. ]. Highly.
Has he any power to sue, or can the COMPANY
be legally served through him?
do not know. suppose so.
Are you aware that Mr.. Highly has testified
before q committee of the Legislature that he
had no such authority?
am not.
Are YOU further aware that there exists a
printed report of the Legislature Of 1876 which
showed that the company had no existence in
Louisiana; that lis office purported to be at the
elevator, but evidence OF the existence OF the
company could be found there2
Mr.. Flanagan knew nothing Of this matter.
Well, will enlighten you as to the substance
OF that report. 1t contains the testimony that he
gave $ll00 to help the passage through the
Legislature of the amended charter, and that Mr..
Gserge Lacey testified that money was raised |