The Caucasian. (Shreveport, La.) 1900-192?, 1909-07-15

There is in progress in the District
Court, civil section, and pending for de-
cision, a proceedings in which the
Shreveport Northeastern Railway Com
pany, better known as the Clingman
Company, is the defendant.
The plaintiff is w. K. Henderson, a
taxpayer, who with others voted for
the special tax as bonus in aid of the
construction of this railroad from
Shreveport to Homer.
The bonus is for $4,000, payable III
ten years or earlier if the full amount
was collected.
According to agreement this road
should have been completed to Shreve-
port on or about February I, 1909.
Shops were to be established in
Shreveport.
This company has not only failed ii
its stipulations, but there is nothing
practically substantial in its develop
ment.
Having failed in its contract, the
agreement with the taxpayers, as with
other contracts, became void, and be,
sides, it was known as a fact that Pres
ident Clingman had on or about January
/, 1909, transferred to the Minden Eas'
and West Railway, right Of way, title
profles, etc, for which he has acknoWl-
edged that he received $4,000 cash and
further had abandoned the road.
With such facts unquestioned, intelll.
gent action was suggested to relieve th'
taxpayers from the further payment Of
this special tax.
There has been collected and there /:
being held by the city, as custodian
about $4,000, Of which about $I4,oot
has been assigned to the State Fair As
sociation by taxpayers to whom stool
is to be issued.
When there was request and ther
a demand for the payment OF th'
amount of the tax assigned and trans
ferred to the State Fair Association b.
the taxpayers in mind, the city de
INJURED, and there followed the adop
ton of resolution of the Council OF
motion of Councilman Currie granting
this Clingrnan Company an extension 0
six months.
At subsequent meeting OF tn
Council this resolution was repealed, a
the Council had no authority to adop
| it in the first instance. It was null an
void.
In this action Councilman Currie wa
misled and he has SO expressed himself
In the progress of this suit there hav
been developed some remarkable feat
ures. For instance, the company rarel
| theld meetings until recently There ha
been no construction between Mnide
and Shreveport The stockholders be
sides Clingman and Kinnebrew are vii
tuaily fgureheads. In his statement
B. Ards, who has assigned his tax t
1.-THE Fair Association, said that in so ia
as he knows, the Railway Company hs
Imade no financial arrangements fe
construction.
Mr.. Ards was a director of ii
company The present stock of tn
company is capitalized at 100000
which it is proposed to increase
I$I2oooooo, and yet only 500 has bee
paid in cash.
| How much of a railroad could
constructed with 500?
The company is negotiating with son
Ipromoters to float bonds with the vie
of building the road. In his testimol
Mr.. Clingman admitted that he had n
met two of the promoters, and he cou
not state their financial standing, tn
1.-THE third party is the one who is tryii
to float the bonds.
1t is in evidence that when n
Ciingman sold out his right of way, pr
!. lilies, etc. to the Minden East a
West. of which Mr.. Drake is preside
for $25oo, he then and there promis
/. Mr.. Drake he would have his acti
I ratified by the board of directors
9 the Shreveport and Northeastern Rs
9 way. In this agreement of sale he s.
Ieially states that they had abandon
the project and surrendered all title
1.-the right of way which had previo
y been acquired by them.
NJ On June 28 meeting of the direct'
7fof the Shreveport and Northeast
oil Railway was held to ratify the act
4Iof Mr.. Clingman, but instead of do
IoI so in accordance with the origi
3Iagreement as made by Mr.. Clingm
s Z