The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-04-11
THE COURTS.
UNITED STATES CIRCUIT COURT.

Yesterday Judge Billings, in the case OF
| Frank M. Ames, trustee, VS.. the New Orleans,
Mobile and Texas Railroad Company ct al. =,
made an order on plaintiffs petition cancel
ing the contract OF sale made by Ames to the
New Orleans and Texas Railroad Company
Of the property IN his possession, as trustee,
under o previous sale under q decree Of court
| In the order referred to the prayer Of the
plaintiff in the petition for an order to resell
! the property was reserved for examination
| By the original deed of trust, the trustee
was required, In the fourth article of the
declaration of trust, on the sale OF the said
property as authorized in the same by the
trustee under the power of sale, or under any
| judicial proceedings, to attend at the sale in
person. aud to adopt such measures as they
decided would best subServe the interests Of
the bOndholders, and for that purpose to bid
on the property and franchises, if the same
should be sold together, or upon the separate
portions such sum as shall be for the inter
ests Of the holders of the bonds, and to pur-
chase the same; and the trustee, in case of
his purchase, was to operate and manage the
same or any part thereof for the interest Of
the beneficiaries OF the trust, and collect and
receive the tolls, freights, rents, incomes and
| profits, until he could make an advantageous
sale of the same.
The power of the trustee to sell the prop
erty is thus conferred by the deed of trust,
| and the trustee may exercise the power when
ever he can do so to the advantage of the per-
sons interested in the deed OF trust The Tong
sale made under the order OF this court; the
abortive efforts that have been made to sell
the property or to organize the beneficiaries of
the trust in any measure for the common
benefit; the deterioration Of the property for
the want Of repairs and improvements the
danger OF the loss of franchises and privileges
granted to the company for the non-fulfiII-
ment of the conditions in the charter or for q
non-use would seem to render resale proper,
that the property might go into hands
eOmDetent and willing to make it useful.
Wherefore the court orders and decree s.
that the. trustee be empowered and author
lied to sell the railroads, franchises, privi-
leges, rights, estates, interests, movable and
immovable property, and all the accesso-
fies and appurtenanCes OF the New Orleans
Mobile and Texas Railroad property that are
included in the deed Of purchase made to him
under the orders of this court, at public auc-
ton in this city, in front of the Customhouse,
under direction of the master of this court, in
bulk or in separate parcels, as before, as he
may deem proper for the interest of the bond
holders, for cash, on some day to be desig
mated In the advertisements OF sale.
1t is ordered that the sale shall be made
only after advertisement for 30 days in q
paper published in the city of New Orleans,
and in a paper published in New York.
The trustee shall also, give notice to as
many OF the bondholders, by sending notices
to them through the mails, as may be conve-
nent.
The trustee will conduct the sale in person
anu snail make q deed TO the purchaser or
purchasers, conveying all OF his title and
estates upon the fulfilment of the conditions
of sale.
The costs, expenses and claims on the prop
erty having priority under the deed of trust
must be paid in cash before confirmation, and
for any remainder purchaser may pay in the
bonds described in the deed of trust, reserv-
ing. however, a sufficient sum for all other
holders OF bonds, so that each bondholder
shall have the pro rata share of the purchase
price.
The master will superintend the proceed
ings and the master and trustee will make
their report to the court
petition was filed yesterday by George S.
Lacey, United States District Attorney, on
behalf OF the United States against the New
Orleans, jackson and Great Northern Rail
road Company for the recovery of S32,289 for
internal revenue taxes and penalties.
In the case of Mvra Clark Gaines vs. p II.
Mousseaux ct ais, yesterday, Judge Billings
gave an order for plaintiff to take possession
Of the property awarded her by Judgment,
and those In possession and occupying the
same to pay her yearly rents.
United States VS.. New Orleans and Carroll
ton Railroad Company.-A petition was filed
by District Attorney Lacey for internal rev.
enue taxes withheld, and claimed S275 81,
with penalties, etc.