The Ouachita telegraph. [volume] (Monroe, La.) 1865-1889, 1879-05-30
A MILLION DOLLARS SUIT.
The state Seeking. to Recover some OF
the Cash Absorbed by Railroad
Companies.

On Tuesday in the fourteenth judicial
district court for the parish of Ouachita,
the State brought suit against the
North Louisiana aud Texas Railroad
Company for the sum Of one million,
one hundred and twenty-three thousand
and thirty-tWO dollars, with interest. |
The company is composed of John |
Ray, William r. Gordon. John T.
Ludeling, +. p. Stubs, George G. |
Waddill and others. These parties |
claimed to be the owners of the Vicks- !
burg, Shreveport and Texas railroad !
by purchase at sheriff's sale in Febru-
airy, 1866, and in 1868, by act No. 1903 !
of the legislature, they organized the !
North Louisiana and Texas Railroad |
Company. In consideration of SAG
bonds of $1,000 each issued to the road,
under authority of act No. 1O8, the
State was granted second mortgage
on the road. BY act No. 81, of 1872:
Eleven thousand two hundred and
twenty shares of the stock of the road
were given to the State In lieu of the
second mortgage; and the road was to
be released from the payment of the
bonds already issued, and the balance
of the bonds authorized to be issued by
act 1OS, viz. SIG bonds, were to be i'm
mediately issued. The bonds were
issued in accordance with this arrange
ment.
The State AYERS that the sole consi-
deration for giving up the second mort
gage, and for issuing the said bonds
and accepting stock therefore, was the
pretended title and ownership by the
North Louisiana and Texas Railroad
of the Vicksburg, Shreveport and Texas
| Railroad. The State AYERS that the
consideration has failed, and that the
supreme court OF the United States has
decided that the pretended sale of the
Vicksburg, Shreveport and Texas Rail-
road to John T. Ludeling and others
was fraudulent and of no effect, and
that said sale has been set aside, and
that all the property of the Vicksburg,
Shreveport and Texas Railroad Com
pany has been ordered to be sold to
| satisfy its creditors.
1t was decreed, however, that the
North Louisiana and Texas Railroad
Company should be paid 1891 $50 40
for Improvements which that company
put upon the Vicksburg, Shreveport
and Texas Railroad. The State de-
mands that its contract with the North
Louisiana and Texas Railroad Com
pany by which it received stock for
its bonds and mortgage he annulled,
and set aside, and its rights of mortgage
reinstated.
The State ayers that under act 1O8,
and under the decree of the supreme
court, the mortgage of the State at
tachcs to the whole fund which by
| said decree has been declared to be the
value of the Improvements and better
| ments put on said railroad by the North
Louisiana and Texas Railroad Com
pany.
The State fears that the North Louisi-
ana Railroad Company will attempt to
transfer or make away with the fund
decrecd to it by the supreme court.
The State therefore asks for an injunc-
| ton, prohibiting the North Louisiana
and Texas Railroad Company from
transferring or pledging or fncumber-
ing the fund resulting from the decree
of the supreme court; also, that its con-
tract with the North Louisiana Com
pany be aunulled. and its mortgage
rights be reinstated; and also for
judgment against the North Louisiana
and Texas Railroad Company for one
million, one hundred and twenty-three
thousand and thirty-two dollars, with
interest, etc. The injunction was issued
as prayed for.-N. o. Times.