The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-06-13


a,srrr YYuxrY ~, III II ~. 71rhl
EnN N ~ wv OINllAk1INDA 14NAl
lin mind after oil has been said on
Il this subject, that the State owes to-day and
is obliged to pay only $680OO0 All the bal
nnon Or tina bonds fssuad tn tI1ts company
/ wara thrown ont nv the S,1nreme Court on,
,aaa1 l,ro,nds not fra11dant ~ has hesn
said ID but legal grounds, in no wise redecting
upon ne integrity q me government tnat -
sued them. Inere were !, pullt ana are running
over two hundred miles Of grading were com
/ pleted when the collapse occurred
p'Wh Whose fault was it that the company failed
road To Honsfnn and to Shrevanort3 i will
| tell You whose fault it was.
i This company had offered its bonds abroad
| A syndicate had been formed at Frankfort to
taxa the whole iss,1a. fire first mortgage
4 bonds. the second MORTGAGE bonds. the sI,n-
sidy bonds and the bonds issued in snbseip-
tipn 81 stock, This syndicate offered fn fake
the whole Of them at eighty-fiye cents. the
| company demanded ninety centia and If Il Ia
| that price. when rival interest in this civ.
knowing The facts had fja attorney nrenare
| the following circular:
M THE p1,p11r
-
| -, NEW ORLEANS. March 49, 1871.
Inc undersigned properly owners and tax.
payers OF the city Of New Orleans, satisfied that
caedad i mas at s a,e
othep ohiaaiinna - AMI qJants anthorzsd On the
mart Of Tia state the total amnnnt Of which is
iimited d, by the recent amendment Of the eonsi.
tuition to cas- 900 600 (already incurred). as shown
| By the annexed official statement Of the Audit.
or. take this early opportunity OF notifying
nsnkers brokers and aeatefs 70 secnr1t,es III ~
.nis country ana .a. az a al,
oa 80 ~ a thaf thsv l snstin ~ iii
fhnritias ~ rea}s,in1 their issne and If issned
viii BY every legal means, endeavor to prevent
tho payment Of any interest or principal, or Of
any tax Levied for that purpose. They only
recognize , 1s the state DEBT to
s2bs2l ~ ~. ana Lney ciass me ueDl
Wlen Tue iilesal iesisia'loh obviously ieieiieo
| ,rI -
ms Was cIcuia ~ rsi.ousn9u H. ohe cl.y %
New orleans Dy tne Irlends OF the morgan
| inteFeSt, alu - everything was PolGlcaI At
that time everybody signed IL, ana over tnree
nanuaem na h d ,, nany o ~ + 1He
k,1 ~ w. t..au 80 ~ 5 ~ muIp t Ln
wola All ethly MY d soo ~ t th e,
e sn u ~ ehey n,n nov d uauelsena Inc n pear
in .gs =. gne ctlcu1ai' an eApleSseu sleat re-
efS Ssi u. IL o;ro,,,.r .r.s ,c,,+oa J., Eronoh
German ana English and thonsands IF conies
tv..ra sent ahrnad and tn Nav Ynri. and die.
trlbuted 10 every banking house 10 tins coun-
| try anu EUROPE. me erealto tne otate had
improved from less tha At thlfty ~, cents, when
months before $3,0O0,OOO of levee bonds at
| ninety cants. hit the effect Of this circular
| waa ~ ctnn fro negotiations itnnajr the
credit If fha s S1 and avarv s rs,
tha stata on and tanaiv the ayndicata ,psihu
Ine oIaIe anu ilnaiiy Ihe synuiGaIe WIN,
and the work stopped. It was too heavy
| load even for the wealthy corpOratOrs to carry,
in addition to the 100000 they had spent on
| the road from Mobile to this CITY, affirm
| that II waa thia All III mr. avn naonIa thai
broke down the credit Of the State and the
H W.. was an MI q maness insnirnd
Dy Willy ana cunning rlvai 1or tne Texas
trade, and the political praludlces and 0ppos-
| tion were tOyed with to influence the people to
sign 1t. 1t was wrong in policy and the
| statement was false In fact. It stated the
| actual debt then to be over $50. OOD. OO0. when
| n Voc loco than COO nm mn and q uiad tho
| nnntinaant AIT ~ i,1n",nnrafin. ;tamS that
s,,a, III * "a hs san
were eo Unfair ana uhtruthlul 10 pe nearly s4o
5UU,OUO.
1t was this circular, with Its false state
ments OF figures, that ruined the credit OF the
n ne evidence 81 thls fact vii read the pro-
ceedngs Of a meeting held in the civ Of New
| Ynrk q ohtean months aftar Tia siGnino and
oistrloutlon Oh Inc circular referred TO:
! At meeting Of citizens of Louisiana. held at
| the New York Hotel on Saturday evening. Sep.
executive committee OF the "raiIroat commit
tee OF fifty" Of New Orleans. to consult as to the
early completion 81 thu New Orleans. Mobile
| and Texas Railroad Moses Gre Dwood, ESQ,
| was called to the oh .lir and p Ell Thomson ap
| pointed secretary
| Mr.. Upper. at the request Of the chairman
explained fully thu present condition of the en-.
| terprise and stated that the COMPANY were EN-.
\ bArrassed by distrnst of the State seeu,itips.
n1ich had been created IN a great measure bp The
action Of on. o,gn citizens: that he believed an
express on OF Oh MON upon the part OF our ciIi-
zens would tend to restore confidence and faefI.
| itate the early building Of the road
| Mr.. G. II. Slocomb refarred n the ci,.cu1ar
signed bv three hundred citizens Of New Orleans
nfich had probably done more 70 depreciate Tie
bonds IN tie possession Of the cornpnnu than ami
thing else and id led that as one Of tflosv largely
| Interested fin rsa, estate he had not only signed
| it himself. but had uroeured the sienni,,rss ri
many others: but that the a. mand for this road
had become SO urgent that he was Willing. and
thought It right. when wa returned IL Nav Or
leans, to start q counter circular. and to use all
| our influence to have It even more extensively
signed and circulated than the original. He
Thought this much the best wav to give effect to
81 o ugsires VI .is ngeeIe, ana 70 meet
State for ths speedv com p4ton # p tbis - raad
After remarks BY Messrs. Greenwood. Urau.