The Louisiana cotton-boll. [volume] (Vermilionville [i.e. Lafayette], Attakapas, La.) 1872-1883, 1878-05-23
rHE RAILROAD SUIT.

Judge John A. Campbell, solici
tor of Frank NJ, Ames, on Satur.
day, May 18th, filed in the United
States Circuit Court the follow,
ing answer il the two cases, Nor
gan's Louisiana aud Texas Rail
road and Steamship Company,
and Louisiana Western Railroad
Company VS.. Frank NJ. Ames,
trustee:
The said Frank NJ. Ames m aud
for answer to the demand Of the plain
tiff saith:
|. That the New Orleans. Mobile and
Texas Railroad Company, by mortgages
or deeds of trust to Cakes Ames aud Il.
d. Morgan, dated March l5, 1870, and
January l. 1879, conveyed the property
specified in the application to secure
bonds amounting TO S7,250,0 600. These
bonds are all outstanding, and are in
the hands of q great number of holders,
with coupons of interest unpaid since,
january, 1873.
2. That under a deed of sale In this
court the respondent purchased in 1874
this property under the provisions of
the deed of trust, in trust for the bond4
holders, in connection with all of the
property described in the deeds afore%
said, and now holds the same in trusa
for the bondholders.
3. This respondent, prior to the date
of this application by the said plaintiffs, :
obtained IN order for the sale Of all of
the property aforesaid, and proceeding
TO execute the order he addressed a no
tiCe to all the bondholders known to him
or Ofwhose connection with the property
he had information, advising them of the
order of the court and of his determine
tion to sell the property on May 81,
1875,and also advertised the same for sale
in the New Orleans Picayune, and the
Tribune, q paper published in the city
of New York, and that he believes that
a very large proportion of all the bond
holders are notified of the time, place
and conditions of sale,
4. This respondent says that Joseph
Seligman, Henry Morgan, Edwin b.
Morgan, George Bliss and Harrison Dur.
kee, are an executive committee and
represent about five millions of dollars
in the bonds aforesaid, and instruct the
trustee to oppose the appropriations
aforesaid
5. These respondents oppose the same
because the property is mortgaged ID
block for the payment of all the bonds,
and that the property is held for the
common benefit and should be sold, ed
as to have the same ownership, and
shat the separation Of the parcel describ-A
ed in the petition apart from the Others
would impair the value of the whole,
6. For if the bondholders should con-
Glude to finish the railroad from Don
~aldsOnville to Vermilionville, and thence
to the Texas lines they would make q
connection between New Orleans and
Houston, in Texas, and that q connec-
tiOn of the same point in Morgan CITY
and VermilioDville, by the company afore
said, over the proposed line, would pro-
duCe a destructive and %exhausting CON-
petition between the parties.
z. That the section of railroad which
the plaintiffs seek TO appropriate was
purchased in order that such a Compe-
tition should not arise.
S.The defendant says that the improve
ment of this property has been hindered
by Charles Morgan, who since 1874 has
been suing your respondents to recover
this property as his own, and the suit is
pending in the Supreme Court of the
United States, and the title to the prop
erty will not be fully determined till
that suit Is determined. This suit origi-
mated in this court and your respondent
Graves reference to the record.
8, Your respondent afirms that his
constituents are ready and willing to
commence work on their railroad, pro.
vided the same falls into their control
afte Their sale to be made on the 3Ist
of May, and that they are ready to nav
for the property its value, and that no
interference with that sale would be
just to the bondholders. ANY person
desiring the property may purchase ut
the sale if he pay the value thereof.
10. This defendant has not been able
willing TO recommenoe the work
the titles were fully adjusted and
until there vas q fair prospect that the
work would be remunerative.
There has been such q depression in
prices and in business that such q pros
pect did not exist,